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Oct 31, 2023

American Software Q2 2024 Earnings Report

Reported a decrease in total revenues but an increase in subscription fees, while adjusted EBITDA margin remained strong.

Key Takeaways

American Software reported a 6% decrease in total revenues to $25.7 million, but an 8% increase in subscription fees to $13.4 million. GAAP net earnings from continuing operations were $0.6 million, or $0.02 per diluted share. Adjusted EBITDA from continuing operations was $4.1 million, representing 16% of revenue.

Subscription fees increased by 8% compared to the same period last year.

Total revenues decreased by 6% due to a decline in services and maintenance fee revenue.

Recurring revenue streams accounted for 84% of total revenues.

The company divested its information technology consulting firm, The Proven Method.

Total Revenue
$25.7M
Previous year: $31.4M
-18.3%
EPS
$0.08
Previous year: $0.1
-20.0%
Gross Profit
$16.4M
Previous year: $18.9M
-13.0%
Cash and Equivalents
$83.9M
Previous year: $84M
-0.1%
Free Cash Flow
$4.19M
Previous year: -$10.9M
-138.5%
Total Assets
$184M
Previous year: $183M
+0.4%

American Software

American Software

American Software Revenue by Segment

Forward Guidance

American Software provided financial outlook for fiscal year 2024, including total revenues of $100.0 million to $104.0 million and adjusted EBITDA of $14.5 million to $16.0 million.

Positive Outlook

  • Total revenues of $100.0 million to $104.0 million.
  • Total recurring revenues of $85.0 million to $88.0 million.
  • Adjusted EBITDA of $14.5 million to $16.0 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income