Agilysys(US:AGYS)2025-05-19 21:30Financial Data and Key Metrics Changes - Fiscal year 2025 revenue reached a record $275.6 million, a 16% increase from the previous year, despite a 16% decline in one-time product revenue [18][22][28] - Q4 revenue was a record $74.3 million, up 19.4% from $62.2 million in the prior year quarter [22][28] - Subscription revenue for Q4 was $29.8 million, growing by 42.7% year-over-year, representing 64.4% of total recurring revenue [15][22] - Full fiscal year 2025 subscription revenue increased by 39.5% compared to the previous year [18][25] Business Line Data and Key Metrics Changes - Subscription SaaS software and services had a record sales year, with PMS and related add-on modules sales up 58% from the previous best year [6][7] - Managed food services (FSM) sales in Q4 were the best of the year, with sales in the second half of fiscal 2025 nearly double that of the first half [8][10] - POS sales in Q4 were 27% higher than Q3 and 16% higher than the previous highest Q2 quarter [7][10] Market Data and Key Metrics Changes - International sales showed positive signs of consistent growth, although still dependent on large wins [10] - The current global demo plus stage sales pipeline is at a record level, 18% higher than the previous year [13] Company Strategy and Development Direction - The company is focused on maintaining investments in various areas, including cybersecurity, product innovation, and customer support, to fuel future revenue growth [21] - The modernization of the POS platform has been completed, enhancing adaptability and supply chain management [20] - The company aims to continue its transformation into a cloud and subscription-based enterprise software entity [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite macroeconomic uncertainties, citing a strong position in the hospitality technology market [20][32] - The company expects full year fiscal 2026 revenue to be in the range of $308 million to $312 million, driven by a 25% year-over-year subscription revenue growth [21][30] Other Important Information - The company has seen a significant increase in professional services revenue, which was up 27.7% year-over-year [23][28] - The cash and marketable securities as of March 31, 2025, were $73 million, down from $144.9 million a year prior, primarily due to the acquisition of Book for Time [28] Q&A Session Summary Question: What drove the improvement in POS bookings? - Management attributed the improvement to the installation of a fully modernized and unified POS platform, which has enhanced their status as a premium provider [36][37] Question: What is the mix of customers using Agilysys implementation teams versus third-party support? - Most implementations are done by Agilysys teams due to the complexity of the software, and the expected growth in professional services is based on normal services revenue [39][40] Question: What does the 2026 guidance imply for organic subscription revenue growth? - The guidance includes about four months of benefit from the Book for Time acquisition, with organic growth expected to be in the 22-23% range [41][42] Question: What is driving the momentum in add-on sales? - The add-on modules provide significant value to the core product, with more customers opting for a unified ecosystem from a single vendor [46][50] Question: How is the Book for Time acquisition performing? - The acquisition is performing well, with strong sales and implementation of the Book for Time product, contributing positively to the overall business [91][93]