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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.
American Software
American Software
American Software Revenue by Segment
Revenue by Segment
Subscription Fees Revenue
CapyFin.comMaintenance Revenue
CapyFin.com 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