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Apr 30, 2020

American Software Q4 2020 Earnings Report

American Software reported preliminary results with subscription fees increasing by 64%, cloud services annual contract value increasing by 53%, and operating earnings increasing by 57%.

Key Takeaways

American Software reported an 11% increase in total revenues, reaching $29.3 million, and a 57% increase in operating earnings to $1.6 million. Subscription fees grew by 64%, and Cloud Services ACV increased by 53%. However, GAAP net earnings decreased by 71% to $0.5 million.

Total revenues increased by 11% to $29.3 million.

Subscription fees increased 64% to $6.3 million.

Cloud Services Annual Contract Value (ACV) increased 53% to $26.4 million.

Operating earnings increased 57% to $1.6 million.

Total Revenue
$29.3M
Previous year: $26.3M
+11.4%
EPS
$0.02
Previous year: $0.06
-66.7%
Cloud Services ACV
$26.4M
Previous year: $17.3M
+52.6%
Gross Profit
$15.9M
Previous year: $14.3M
+11.4%
Cash and Equivalents
$79.8M
Previous year: $61.3M
+30.2%
Free Cash Flow
$12.8M
Previous year: $10.1M
+26.8%
Total Assets
$171M
Previous year: $161M
+6.2%

American Software

American Software

American Software Revenue by Segment

Forward Guidance

American Software anticipates continued growth in recurring revenue due to its cloud-first strategy and the longer-term commitment of customers to its platform and services.

Positive Outlook

  • Expects percentage of recurring revenue to continue to trend higher.
  • Believes customers using AI, ML, and advanced analytics will improve supply chain performance.
  • Customers will be better positioned to sense and respond to unforeseen challenges.
  • Customers will be able to capitalize on opportunities that may impact their profitable growth.
  • Company's cloud-based digital platform provides customers with decision support capabilities to achieve an agile, resilient and higher velocity supply chain

Revenue & Expenses

Visualization of income flow from segment revenue to net income