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Apr 30, 2024
American Software Q4 2024 Earnings Report
American Software's Q4 2024 results reflected a decrease in total revenue, offset by subscription fee growth and strategic advancements in AI-driven supply chain solutions.
Key Takeaways
American Software reported a 5% decrease in total revenues for Q4 2024, primarily due to declines in license fee, services, and maintenance fee revenue. However, subscription fees increased by 8%. The company is focusing on cloud conversions and AI capabilities, with rising client interest.
Subscription fees increased by 8% compared to the same period last year.
Total revenues decreased by 5% due to declines in license, services, and maintenance fees.
Recurring revenue streams accounted for 85% of total revenues.
GAAP net earnings from continuing operations were $2.3 million, or $0.07 per diluted share.
American Software
American Software
American Software Revenue by Segment
Revenue by Segment
Subscription Fees Revenue
CapyFin.comProfessional Services & Other Revenue
CapyFin.comMaintenance Revenue
CapyFin.com Forward Guidance
American Software anticipates that ongoing macroeconomic headwinds will continue to weigh on customer spending decisions in the near-term, projecting total revenues of $104.0 million to $108.0 million and adjusted EBITDA of $15.0 million to $16.4 million for fiscal year 2025.
Positive Outlook
- Expanded pipeline due to increasing client interest in cloud conversions.
- Rising demand for solutions expected to accelerate subscription fee growth.
- Introduction of next-generation AI-first supply chain planning solutions.
- Definitive agreement to eliminate dual class structure.
- Logility earned the title of Leader in the 2024 Gartner Magic Quadrant for Supply Chain Planning Solutions.
Challenges Ahead
- Ongoing macroeconomic headwinds are expected to weigh on customer spending decisions in the near-term.
- Total revenues for the quarter ended April 30, 2024 decreased 5%.
- Operating earnings for the quarter ended April 30, 2024 were $0.7 million compared to $2.2 million for the same period last year.
- EBITDA from continuing operations was $1.5 million for the quarter ended April 30, 2024 compared to $3.0 million for the same period last year.
- Adjusted EBITDA from continuing operations was $3.1 million for the quarter ended April 30, 2024 compared to $4.3 million for the same period last year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income