AGYS - Subscription revenue growth bolsters Agilysys' Q2 results beat shares jump

October, 26 2022 02:40 PM Agilysys Inc.

Agilysys posted results after the bell on Tuesday that topped Wall Street estimates as it benefitted from surge in subscription revenue during Q2.
AGYS stock +11.7% in Wednesday's trading session.
The company, which makes hospitality solutions software products, beat Q2 Non-GAAP EPS estimates by 6 cents at $0.24 per share, while revenue of $47.7M was above average analysts expectations by at least $1.68M.
Revenue breakdown: Products $10.5M (+43.8% Y/Y), Subscription and Maintenance $29M (+20.8% Y/Y), Professional Services $8.2M (+24.2% Y/Y).
Other Q2 Metrics: Non-GAAP FCF $2.3M down 28.1% Y/Y, gross profit margin 61.5% vs 64%, oper expenses $26.4M vs $23.1M.
AGYS reaffirmed its FY revenue guidance of $190 to $195M, which includes ~30% subscription revenue growth Y/Y, and Adj EBITDA to be >15% of revenue.
"Profitability and free cash flow remain a priority as we make strategic investments in sales and marketing with a focus on medium and long term revenue and subscription growth.” - CFO Dave Wood
As of last close, AGYS +26% YTD on the Nasdaq.

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