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Apr 30, 2022

American Software Q4 2022 Earnings Report

American Software's Q4 2022 earnings showcased strong growth in subscription fees, driving a 21% revenue increase and a record fiscal year revenue.

Key Takeaways

American Software reported a 21% increase in revenue for Q4 2022, reaching $34.6 million, driven by a 37% increase in subscription fees. Operating earnings increased by 186% to $5.5 million, and GAAP net earnings increased by 17% to $3.6 million, or $0.10 per fully diluted share. The company's financial condition remains strong, with cash and investments of approximately $127.5 million.

Total revenues increased by 21% to $34.6 million compared to the same period last year.

Subscription fees increased by 37% to $11.1 million compared to the same period last year.

Operating earnings increased by 186% to $5.5 million compared to the same period last year.

GAAP net earnings increased by 17% to $3.6 million, or $0.10 per fully diluted share, compared to the same period last year.

Total Revenue
$34.6M
Previous year: $28.6M
+21.3%
EPS
$0.13
Previous year: $0.11
+18.2%
Gross Profit
$21.6M
Previous year: $16.7M
+29.4%
Cash and Equivalents
$111M
Previous year: $88.7M
+24.9%
Free Cash Flow
$14.8M
Previous year: $3.61M
+310.5%
Total Assets
$193M
Previous year: $177M
+8.8%

American Software

American Software

American Software Revenue by Segment

Forward Guidance

American Software provided financial outlook for fiscal year 2023, including total revenues of $132.5 million to $135.0 million and adjusted EBITDA of $16.0 million to $18.0 million.

Positive Outlook

  • Total revenues are expected to be between $132.5 million and $135.0 million.
  • Total recurring revenues are expected to be between $86.5 million and $89.0 million.
  • Adjusted EBITDA is projected to be between $16.0 million and $18.0 million.
  • The company is focusing on investments for growth.
  • The company is focusing on investments for employee retention.

Revenue & Expenses

Visualization of income flow from segment revenue to net income