Agilysys Inc (AGYS, Financial), a leading global provider of hospitality software solutions, announced its fiscal 2024 second quarter results on October 23, 2023. The company reported a 22.8% increase in total net revenue to a record $58.6 million, compared to $47.7 million in the same period last year. Subscription revenue saw a significant growth of 29.1% year-over-year, contributing to 53.6% of total recurring revenue.
Financial Highlights
Net income attributable to common shareholders was $4.1 million, or $0.16 per diluted share, compared to $3.1 million, or $0.12 per diluted share, in the comparable prior-year period. Adjusted EBITDA (non-GAAP) was $8.1 million compared to $7.4 million in the comparable prior-year period. Free cash flow (non-GAAP) in the fiscal 2024 second quarter was $2.5 million compared to free cash flow of $2.3 million in the fiscal 2023 second quarter. The company ended the quarter with a cash balance of $107.4 million.
CEO Commentary
“We are pleased with the strong fiscal year 2024 second quarter results highlighted by year-over-year 22.8% quarter revenue and 29.1% subscription revenue growth, driving both to record high levels. Adjusted EBITDA was 13.7% of revenue, higher than previous expectations going into the fiscal year. We are doing well managing through the current phase of increased investment requirements which are designed to drive significant further revenue growth in the medium-term. We now expect adjusted EBITDA for the full fiscal year to be 14% of revenue, higher than previous guidance." - Ramesh Srinivasan, President and CEO of Agilysys
Fiscal 2024 Outlook
Agilysys raised its full-year fiscal 2024 revenue guidance to $235M-$238M, increasing subscription revenue growth guidance for the full 2024 fiscal year to 28% year-over-year and increasing Adjusted EBITDA expectations for fiscal 2024 to 14% of revenue.
Financial Tables
The company's financial tables provide a detailed breakdown of its performance, including its income statement, balance sheet, and cash flow statement. Key highlights include a gross margin of 59.9% compared to 61.5% in the comparable prior-year period and an ending cash balance of $107.4 million.
Conclusion
Agilysys Inc (AGYS, Financial) demonstrated strong performance in Q2, with record net revenue and significant growth in subscription revenue. The company's positive results have led to an increase in its full-year revenue guidance, indicating confidence in its future performance.
