Agilysys posts record Q1 revenue driven by subscription growth

Overview

• Agilysys fiscal Q1 revenue rises 20.7%, beating analyst expectations, per LSEG data

• Adjusted EPS for fiscal Q1 misses analyst expectations, per LSEG data

• Company raises full-year subscription revenue growth guidance to 27%

Outlook

• Agilysys raises full-year subscription revenue growth guidance to 27%

• Agilysys maintains full-year revenue guidance at $308 mln to $312 mln

• Adjusted EBITDA expected to remain at 20% of revenue for fiscal year

Result Drivers

• SUBSCRIPTION REVENUE - Subscription revenue grew 44% year-over-year, driving record total net revenue

• SALES MOMENTUM - Strong sales momentum contributed to increased recurring and services revenue backlog

• CLOUD SOLUTIONS DEMAND - Robust demand for cloud-native hospitality software solutions fueled revenue growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Agilysys Inc is $125.00, about 7.8% above its July 18 closing price of $115.21

• The stock recently traded at 65 times the next 12-month earnings vs. a P/E of 44 three months ago

Press Release: ID:nBw24cc6ha