American Software Q4 2024 Earnings Report
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
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