Jul 31, 2024

American Software Q1 2025 Earnings Report

American Software's first quarter performance was consistent with internal expectations, reflecting disciplined cost management amidst economic uncertainty and seasonality.

Key Takeaways

American Software reported a 1% increase in total revenues to $26.2 million, driven by growth in subscription and services revenue. Subscription fees increased by 7% year-over-year. The company maintains a strong financial position with approximately $92.0 million in cash and investments.

Total revenues increased by 1% to $26.2 million compared to the same period last year.

Subscription fees increased by 7% to $14.8 million compared to the same period last year.

Operating earnings increased by 32% to $1.8 million compared to the same period last year.

Adjusted EBITDA from continuing operations increased 26% to $4.6 million compared to the same period last year.

Total Revenue
$26.2M
Previous year: $29.2M
-10.2%
EPS
$0.12
Previous year: $0.12
+0.0%
Gross Profit
$17.3M
Previous year: $17.6M
-1.7%
Cash and Equivalents
$53.9M
Previous year: $93.9M
-42.6%
Free Cash Flow
-$1.94M
Previous year: $6.7M
-128.9%
Total Assets
$189M
Previous year: $191M
-0.9%

American Software

American Software

American Software Revenue by Segment

Forward Guidance

American Software anticipates total revenues between $104.0 million and $108.0 million, including recurring revenues of $87.0 million to $89.0 million, and adjusted EBITDA between $15.0 million and $16.4 million for fiscal year 2025.

Positive Outlook

  • Total revenues are projected to be between $104.0 million and $108.0 million.
  • Recurring revenues are expected to be between $87.0 million and $89.0 million.
  • Adjusted EBITDA is anticipated to be between $15.0 million and $16.4 million.
  • Expansion of late-stage pipeline
  • Clients and prospects are ready to move forward with projects

Challenges Ahead

  • Continuing U.S. and global economic uncertainty
  • The irregular pattern of the Company’s revenues
  • Dependence on particular market segments or customers
  • Competitive pressures
  • Market acceptance of the Company’s products and services

Revenue & Expenses

Visualization of income flow from segment revenue to net income