Loading...
•
Jan 31, 2023
American Software Q3 2023 Earnings Report
American Software's third quarter of fiscal year 2023 was marked by subscription fee growth and a solid adjusted EBITDA margin.
Key Takeaways
American Software reported a 20% increase in subscription fees, reaching $13.0 million, while total revenues decreased by 4% to $31.0 million due to a decline in services revenue. The company's adjusted EBITDA margin remained strong at 16%, and adjusted net earnings increased by 18% to $4.5 million.
Subscription fees increased by 20% to $13.0 million.
Total revenues decreased by 4% to $31.0 million.
Recurring revenues reached 70% of total revenues.
Adjusted net earnings increased by 18% to $4.5 million.
Revenue by Segment
Forward Guidance
American Software provided financial outlook for fiscal year 2023, including total revenues of $123.5 million to $125.5 million and adjusted EBITDA of $18.0 million to $20.0 million.
Positive Outlook
- Total revenues are expected to be between $123.5 million and $125.5 million.
- Total recurring revenues are projected to be between $84.5 million and $85.5 million.
- Adjusted EBITDA is anticipated to be between $18.0 million and $20.0 million.
Challenges Ahead
- The company is slightly lowering its guidance for total and recurring revenue due to economic uncertainty and delays in new project starts.
- No specific negative bullet points were provided in the earnings report, but the lowered revenue guidance indicates potential challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...