
Optimizing food & beverage operations and profitability demands a flexible, enterprise-class point-of-sale system. Is yours up to the task?
GoFrom an individual location to an enterprise chain, get the most modern, mobile solution for managing your hospitality business
GoDesigned to optimize foodservice and retail inventory and procurement operations for hotels, resorts, universities, restaurants and others.
GoHospitality businesses are global, 24/7 operations with complex technology demands. You don’t have to go it alone.
GoWhether you operate a single boutique location or a large hotel chain, there’s an Agilysys hotel solution for you.
GoWhether you operate a single boutique location or a large complex resort, your property is a unique operation that requires robust solutions supported by an experienced technology partner
GoYou’re more than a gaming operation. You’re a full-service casino resort property and success isn’t about playing the odds, it’s about making the most of every revenue opportunity.
GoA leader in casino hospitality management solutions who respects the sovereignty of your nation.
GoSmooth seas ahead: technology solutions from Agilysys, a leader in cruise management systems.
GoIdentify emerging dining trends while aligning coverage with demand and capturing more revenue.
GoDelight patients & visitors, retain staff and grow margins with a suite of hospitality solutions for healthcare environments.
GoEnd-to-end foodservice management software solutions for optimum productivity and profitability.
GoOptimizing dozens of food & beverage outlets throughout your facility demands world-class POS performance combined with real-time operating insights.
GoAccess our library and read about the latest in emerging technology and other hospitality trends. Find tips and insights on accelerating business growth and improving guest satisfaction.
GoLearn why so many businesses, small and large, partner with Agilysys for their hospitality technology needs.
GoWatch and learn what Agilysys customers have to say about their experiences with our solutions.
GoAn in-depth collection of product information and datasheets. Read about the latest in hospitality technology features designed to solve the challenges faced by hospitality professionals around the globe.
GoHear from industry professionals about the latest advancements, including tips and tricks, in hospitality and emerging technologies. Check out the library of demo videos and webinar recordings.
GoWatch and learn about the latest in successful technology trends and hear from hospitality professionals in this selection of interactive videos.
GoImportant research and studies from across the hospitality industry. Find out what thought leaders are saying.
GoAgilysys has a broad collection of partners and APIs to help you assemble the perfect solution for you.
GoDiscover how Agilysys customers like you are using our solutions to improve their business and guest experience.
GoWith the Agilysys commitment to 100% Hospitality solutions, we take industry events and conferences seriously. Please see where you can find Agilysys to learn more.
GoSee what Microsoft products and versions are currently support by Agilysys.
GoJul 27, 2022
Alpharetta, GA – July 26, 2022 - Agilysys, Inc. (NASDAQ: AGYS), a global provider of next-generation hospitality software solutions and services, today reported operating results for its fiscal 2023 first quarter and period ended June 30, 2022.
Summary of Fiscal 2023 First Quarter Financial Results
Ramesh Srinivasan, President and CEO of Agilysys, commented, “We are pleased to report a second consecutive record revenue quarter, despite lingering pandemic related industry challenges in international regions and managed food services. Overall revenue and subscription revenue grew by close to 23% and 30% respectively over the comparable prior year quarter. The sum of product and services revenue was about 28% higher year-over-year.
As previously highlighted, our EBITDA level this quarter as a percentage of revenue, was slightly less than recent previous quarters due to expected increased spend in sales, marketing and professional services and certain additional costs which tend to happen during each fiscal Q1 April to June quarter. The decrease in free cash flow this quarter was primarily due to short term working capital fluctuations including additional payments for previously reported increased inventory levels which were required to give us operating cushion against possible future supply chain challenges.
We continue to see good momentum in the marketplace. Backed by a superior set of state-of-the-art cloud native products and supporting software modules, an end-to-end array of software solutions and world class customer service, our sales win-loss ratios continue to remain at high levels. The hospitality industry is investing in technology to mitigate staffing shortages and other challenges and to enhance guest experience. Our R&D investments over the past years have placed us in a good position to take advantage of the advancing industry trends. Our combined product, recurring revenue and services backlog levels have decreased slightly, but continue to remain healthy, at about 85% of peak and about 10% above prior year Q1 levels. Continued sales progress, a healthy backlog and an industry hungry for improved technology options have positioned us well to achieve our 2023 targets and continue on a profitable growth path thereafter."
Fiscal 2023 Outlook
We are reiterating full year fiscal 2023 guidance of revenue to be $190 to $195 million, inclusive of approximately 30% subscription revenue growth year over year, and Adjusted EBITDA of greater than 15% of revenue.
Dave Wood, Chief Financial Officer, commented, “We remain disciplined and focused on profitable growth. We are growing sales, marketing and professional services investments incrementally to prepare the organization to take advantage of the significant growth opportunities in front of us. Another record revenue and substantial subscription revenue growth quarter are good indicators of our consistent progress in the right direction. As the hospitality industry continues to recover and get back to and grow beyond pre-COVID levels, we are well positioned to execute on our medium and long-term strategic plan.”
2023 First Quarter Conference Call and Webcast
Agilysys is hosting a conference call and webcast today, July 26, 2022, at 4:30 p.m. ET. Both the call and the webcast are open to the public. Interest parties may register for the call at https://register.vevent.com/register/BIbcadd579f9d0440a90b3adb201ba0636. After registration, an email confirmation with a personalized PIN will be provided with further access details. Please plan to register fifteen minutes prior to the presentation to ensure that you receive the confirmation and further instruction in a timely manner.
Interested parties may also access the conference call live on the Internet at Agilysys Events & Presentations. Approximately two hours after the call has concluded, an archived version of the webcast will be available for replay at the same location.
Forward-Looking Language
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, our revenue, subscription revenue and Adjusted EBITDA guidance for the 2023 fiscal year and statements we make regarding the hospitality industry's investment in technology and our ability to continue profitable growth.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the effect of the COVID-19 pandemic on our business and the success of any measures we have taken or may take in the future in response thereto; the impact other macroeconomic factors may have on the overall business environment and the risks described in the Company’s filings with the Securities and Exchange Commission, including the Company’s reports on Form 10-K and Form 10-Q. Additionally, references to "record" financial and business levels in this document refer only to the time period after Agilysys made the transformation to an entirely hospitality focused software solutions company in FY2014.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement that may be made from time to time, whether written or oral, whether as a result of new information, future developments or otherwise.
Use of Non-GAAP Financial Information
To supplement the unaudited consolidated financial statements presented in accordance with U.S. GAAP in this press release, certain non-GAAP financial measures as defined by the SEC rules are used. These non-GAAP financial measures include EBITDA, Adjusted EBITDA, adjusted net income, adjusted basic earnings per share, adjusted diluted earnings per share and free cash flow. Management believes that such information can enhance investors’ understanding of the Company’s ongoing operations.
The Company has included the following non-GAAP financial measures in this press release: adjusted net income, adjusted basic earnings per share and adjusted diluted earnings per share. The Company believes these non-GAAP financial measures provide valuable insight into the Company’s overall profitability from core operations before certain non-cash and non-recurring charges. The Company defines adjusted net income as net income before amortization expense (including amortization of developed technology), share-based compensation, convertible preferred stock issuance costs, and one-time charges including severance and other charges, impairments and legal settlements, less the related income tax effect of these adjustments, as applicable, and defines adjusted earnings per share as adjusted net income divided by basic and diluted weighted average shares outstanding.
See the accompanying tables below for the definitions and reconciliation of these non-GAAP measures to the most closely related GAAP measures.
About Agilysys
Agilysys has been driving hospitality software innovations for more than 40 years, delivering cloud-native SaaS and on-premise ready guest-centric technology solutions for gaming, hotels, resorts and cruise lines, corporate foodservice management, restaurants, universities, stadiums and healthcare. Agilysys offers the most comprehensive software solutions in the hospitality industry, including point-of-sale (POS), property management (PMS), inventory and procurement, payments, and related applications, to manage the entire guest journey. Agilysys is also known for its world class customer-centric service and recent investments in research and development, having modernized virtually all its longstanding trusted software solutions. Some of the largest hospitality companies around the world use Agilysys solutions to help improve guest loyalty, drive revenue growth and increase operational efficiencies. Agilysys operates across North America, Europe, the Middle East, Asia-Pacific and India with headquarters located in Alpharetta, GA. Agilysys operates across the Americas, Europe, the Middle East, Africa, Asia-Pacific, and India with headquarters located in Alpharetta, GA. For more information visit Agilysys.com.
# # #
Investor Contact:
Jessica Hennessy
Senior Director Corporate Strategy & Investor Relations
Agilysys, Inc.
770-810-6116 or investorrelations@agilysys.com