The following is a summary of the Agilysys, Inc. (AGYS) Q2 2025 Earnings Call Transcript:
Financial Performance:
Record Q2 revenue of $68.3 million, up 16.5% year-over-year.
Raised FY 2025 revenue guidance to $280-$285 million.
Business Progress:
Acquired Book4Time, enhancing product offerings and customer base.
Launched 18 new customers on a subscription basis.
Opportunity:
Book4Time acquisition provides cross-selling opportunities with major hotel chains.
Transition to subscription model offers potential for stable revenue growth.
Risk:
Challenges in the APAC market could impact regional sales.
Issues in POS transformation may affect revenue consistency.
Financial Performance:
Agilysys reported a record Q2 revenue of $68.3 million, which is a 16.5% increase year-over-year.
Recurring revenue grew 21% year-over-year to a record $41.4 million, driven by a 36.6% increase in subscription revenue.
Net income was reported at $1.4 million with earnings per share of $0.05.
Adjusted EBITDA for Q2 was $12.2 million, improving from $8.1 million in the year-ago quarter.
The company raised full fiscal year 2025 guidance expecting revenue between $280 million to $285 million, and EBITDA as a percentage of revenue to be 18%.
Business Progress:
Agilysys completed the acquisition of Book4Time, a leading spa management software provider, enhancing their product offering and customer base.
Launched 18 new customers all on subscription basis and expanded their property management system (PMS) sales nearly doubling year-over-year.
Introduced Joe Youssef as new Chief Commercial Officer, enhancing the executive team.
Continued significant growth in subscription services, particularly from new and add-on product sales to existing customers.
Witnessed considerable expansion in their EMEA and gaming, casino, and resort verticals, although noted a contraction in the U.S. food service and challenges in APAC.
Opportunities:
With the Book4Time acquisition, Agilysys gained access to a more extensive client base, including major hotel chains, offering significant cross-selling opportunities.
Continued transition to a subscription-based model presents ongoing opportunities for scalable and stable revenue growth.
The integration of spa management software with their existing suite offers attractive bundle propositions to the hospitality industry, potentially accelerating market penetration and customer base expansion.
Risks:
Noted variability and some challenges in the APAC market which may affect regional sales performance.
The transformation issues in the point-of-sale (POS) operations which could impact product and subscription revenue consistency.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
