Agilysys Grows Third Quarter Revenue 21% to Record $60.6M

Core Viewpoint - Agilysys, Inc. reported strong financial results for the third quarter of fiscal 2024, achieving record revenues and significant growth in subscription revenue, driven by improved service efficiency and technology solutions [2][3][4]. Financial Performance - Total net revenue increased by 21.3% to a record $60.6 million, compared to $49.9 million in the same period last year [2]. - Recurring revenue reached a record $35.1 million, accounting for 58.0% of total net revenue, compared to 60.4% in the prior year [2]. - Subscription revenue grew by 29.9% year-over-year, representing 55.6% of total recurring revenue [2]. - Gross margin improved to 62.5%, up from 61.7% in the prior-year period [2]. - Net income attributable to common shareholders was $76.9 million, or $2.85 per diluted share, compared to $3.4 million, or $0.13 per diluted share, in the same period last year [2]. - Adjusted EBITDA was $11.8 million, compared to $8.1 million in the prior-year period [2]. - Free cash flow for the quarter was $11.3 million, slightly down from $11.7 million in the same quarter last year [2]. Business Outlook - The company raised its full fiscal year revenue guidance to a range of $235 million to $238 million, with subscription revenue growth expected at 28% year-over-year [4][5]. - Adjusted EBITDA expectations for fiscal 2024 were increased to 15% of revenue, higher than previous guidance [5]. - The company noted strong implementation of its cloud-native solutions across various geographies, enhancing operational efficiencies for clients [4][5]. Management Commentary - The President and CEO highlighted the eighth consecutive record revenue quarter and emphasized the importance of improved implementation services and technology solutions in driving business momentum [3]. - The CFO expressed confidence in continued business growth, supported by a strong backlog and consistent recurring revenue growth [5].