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Sep 30, 2020
Agilysys Q2 2021 Earnings Report
Agilysys reported positive GAAP EPS, highest adjusted EPS quarter since fiscal year 2014, and positive adjusted EBITDA with a quarterly cash balance increase.
Key Takeaways
Agilysys reported a decrease in total net revenue to $34.4 million compared to the prior year, but achieved record profitability levels and a strengthened balance sheet. The company expects a modest sequential revenue increase in the next quarter.
Total net revenue was $34.4 million, a 15.6% decrease year over year.
Recurring revenues were $22.3 million, representing 64.9% of total net revenue.
Net income attributable to common shareholders was $5.3 million, or $0.22 per diluted share.
Adjusted EBITDA was a record $8.6 million.
Agilysys
Agilysys
Agilysys Revenue by Segment
Revenue by Segment
Products Revenue
CapyFin.comSubscription & maintenance Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Agilysys expects a modest 5% sequential revenue increase from Q2 to Q3 of fiscal year 2021 and an Adjusted EBITDA of approximately $7.0 million for the same period.
Positive Outlook
- Expect a modest 5% sequential revenue increase from Q2 to Q3 of fiscal year 2021
- Balance sheet is in its best position in many years due to recent convertible investment and ability to generate cash.
- Achieved record profitability levels.
- Maintained steadfast focus on world class customer service.
- Expanded R&D resource strength further enhancing the pace of product innovation.
Challenges Ahead
- Hospitality industry business conditions continue to be challenging.
- Product and services revenue this quarter were affected more than previously anticipated due to a greater extent of postponed customer technology investment decisions.
- Expect the hospitality business climate to remain tough for a few more quarters.
- Business climate will be particularly uncertain during the current October to December third quarter due to various factors.
- Expect to see the reduction of Adjusted EBITDA as a result of cessation of one-time cost actions such as salary reductions, which were in place during the first six months of the fiscal year, continued hiring in R&D, and several additional cost elements such as virtual trade shows coming back into the business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income