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Jan 31, 2022

American Software Q3 2022 Earnings Report

Reported third quarter of fiscal year 2022 results with double-digit revenue growth driven by continued strong growth in subscription fees.

Key Takeaways

American Software's total revenues for the quarter ended January 31, 2022, increased by 17% to $32.4 million, compared to $27.7 million for the same period of the prior year. The company's operating earnings increased 246% to $3.2 million and GAAP net earnings increased 27% to $2.9 million, or $0.09 per fully diluted share.

Total revenues increased 17% year-over-year to $32.4 million.

Subscription fees increased 45% year-over-year to $10.9 million.

Operating earnings increased 246% year-over-year to $3.2 million.

Cloud Services Annual Contract Value (ACV) increased approximately 43% year-over-year to $45.3 million.

Total Revenue
$32.4M
Previous year: $27.7M
+17.1%
EPS
$0.11
Previous year: $0.09
+22.2%
Cloud Services ACV
$45.3M
Previous year: $31.6M
+43.4%
Gross Profit
$19M
Previous year: $15.3M
+24.2%
Cash and Equivalents
$98.4M
Previous year: $86.7M
+13.4%
Free Cash Flow
$6.15M
Previous year: $6.86M
-10.4%
Total Assets
$186M
Previous year: $167M
+11.1%

American Software

American Software

American Software Revenue by Segment

Forward Guidance

Company expects to build upon momentum as it executes against its growing pipeline and position the company for strong growth in fiscal 2023 and beyond.

Positive Outlook

  • Expects to build upon momentum
  • Execute against growing pipeline
  • Position the company for strong growth in fiscal 2023
  • Adoption of AI and ML is going to continue to accelerate
  • Enable companies to truly optimize operations and achieve sustainability long-term

Challenges Ahead

  • Continuing U.S. and global economic uncertainty
  • The timing and degree of business recovery
  • The irregular pattern of the Company’s revenues
  • Dependence on particular market segments or customers
  • Competitive pressures

Revenue & Expenses

Visualization of income flow from segment revenue to net income