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Oct 31, 2020

American Software Q2 2021 Earnings Report

Reports preliminary financial results, with subscription fees increasing and cloud services annual contract value also increasing.

Key Takeaways

American Software reported a slight decrease in total revenues for Q2 2021, but saw growth in subscription fees and cloud services annual contract value. The company's transition to SaaS engagement model impacted software license revenues, while recurring revenue streams from Maintenance and Cloud Services increased as a percentage of total revenues.

Subscription fees increased 27% to $7.0 million.

Cloud Services Annual Contract Value (ACV) increased 32% to $29.6 million.

Total revenues decreased 1% to $27.9 million.

GAAP net earnings decreased 61% to $0.7 million, or $0.02 per fully diluted share.

Total Revenue
$27.9M
Previous year: $28.2M
-1.2%
EPS
$0.02
Previous year: $0.08
-75.0%
Cloud Services ACV
$29.6M
Previous year: $22.4M
+32.1%
Gross Profit
$14.8M
Previous year: $15.2M
-2.4%
Cash and Equivalents
$81.8M
Previous year: $62.7M
+30.5%
Free Cash Flow
$5.25M
Previous year: -$889K
-690.2%
Total Assets
$164M
Previous year: $167M
-1.5%

American Software

American Software

American Software Revenue by Segment

Forward Guidance

Company is confident that the growing pipeline will translate into further business momentum in the latter half of fiscal 2021 and beyond.

Positive Outlook

  • Continued adoption of cloud services offerings.
  • Growth in subscription fees.
  • Increase in Annual Contract Value.
  • Strong customer retention rates.
  • Growing pipeline for cloud-based supply chain solutions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income