Agilysys, Inc. (AGYS) Bundle
A Brief History of Agilysys, Inc.
Agilysys, Inc. (NASDAQ: AGYS) has a rich history as a leading provider of software solutions for the hospitality industry. Founded in 1963, the company has evolved significantly over the decades, shifting from hardware to a strong focus on software and cloud-based solutions.
Financial Performance Overview
As of September 30, 2024, Agilysys reported a total net revenue of $68.3 million for the second quarter of fiscal 2025, reflecting a 16.5% increase compared to the $58.6 million recorded in the same period the previous year. This growth can be attributed to a significant rise in subscription and maintenance revenue, which increased by 21.0% to $41.4 million, compared to $34.2 million in Q2 2023.
| Financial Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Total Net Revenue | $68.3 million | $58.6 million | 16.5% |
| Subscription and Maintenance Revenue | $41.4 million | $34.2 million | 21.0% |
| Professional Services Revenue | $16.3 million | $11.7 million | 39.2% |
| Gross Profit | $43.2 million | $35.1 million | 23.1% |
| Gross Profit Margin | 63.3% | 59.9% | +3.4% |
Operating Expenses
Operating expenses for Q2 2024 totaled $39.1 million, up from $34.1 million in Q2 2023, representing a 14.7% increase. The increase was driven primarily by higher sales and marketing expenses, which surged by 37.4% to $8.8 million, in part due to increased compensation and marketing activities.
| Expense Category | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Sales and Marketing | $8.8 million | $6.4 million | 37.4% |
| Product Development | $16.2 million | $14.6 million | 10.9% |
| General and Administrative | $10.2 million | $8.8 million | 15.7% |
Net Income and Earnings Per Share
For the second quarter of fiscal 2025, Agilysys reported a net income of $1.4 million, down from $4.5 million in Q2 2023. This decline is largely attributed to increased operating expenses and lower product revenue. The diluted earnings per share (EPS) for Q2 2024 was $0.05, compared to $0.16 for the same quarter in 2023.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income | $1.4 million | $4.5 million |
| Earnings Per Share (Diluted) | $0.05 | $0.16 |
Market Position and Future Outlook
Agilysys continues to strengthen its market position by focusing on subscription-based solutions, which accounted for 60.7% of total revenue in Q2 2024. The company’s strategy emphasizes enhancing its product offerings and expanding its customer base within the hospitality sector, aiming for sustained growth in the coming years.
As of September 30, 2024, Agilysys holds cash and cash equivalents of $54.9 million, down from $144.9 million at the start of the fiscal year, primarily due to investments in business acquisitions and operational expenditures.
| Balance Sheet Item | As of September 30, 2024 | As of March 31, 2024 |
|---|---|---|
| Cash and Cash Equivalents | $54.9 million | $144.9 million |
Overall, Agilysys remains committed to leveraging technology advancements to drive efficiency and improve customer experiences across its hospitality solutions.
A Who Owns Agilysys, Inc. (AGYS)
Major Shareholders
As of 2024, Agilysys, Inc. (AGYS) has a diverse ownership structure, including institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 12.5% | 4,167,000 |
| The Vanguard Group, Inc. | 10.9% | 3,628,000 |
| Wellington Management Co. LLP | 8.7% | 2,885,000 |
| Dimensional Fund Advisors LP | 5.5% | 1,830,000 |
| State Street Corporation | 4.2% | 1,400,000 |
| Insider Ownership (Executives & Directors) | 2.5% | 830,000 |
| Other Institutional Investors | 18.7% | 6,200,000 |
| Retail Investors | 37.0% | 12,200,000 |
Stock Performance
As of September 30, 2024, Agilysys, Inc. reported a current stock price of $75.00. The stock has shown significant growth over the past year, with a 52-week high of $80.00 and a low of $45.00. The market capitalization stands at approximately $2.25 billion.
Recent Financial Performance
For the fiscal year ending September 30, 2024, Agilysys reported the following financial metrics:
| Metric | Value (in millions) |
|---|---|
| Total Revenue | $131.8 |
| Net Income | $15.5 |
| Gross Profit | $83.1 |
| Operating Income | $9.9 |
| Operating Margin | 7.5% |
Ownership Changes and Market Trends
The ownership landscape of Agilysys has seen changes, particularly with increased institutional investment. The trend towards subscription-based services has positively impacted revenue streams, leading to a notable increase in share prices. The subscription revenue for the fiscal year increased by 21% year-over-year.
Conclusion on Ownership Structure
Agilysys, Inc. has a robust mix of institutional and retail investors, with significant stakes held by major asset managers. The company’s financial performance and strategic focus on subscription models have positioned it favorably within the market.
Agilysys, Inc. (AGYS) Mission Statement
Overview of Mission Statement
The mission of Agilysys, Inc. is to provide innovative and comprehensive hospitality solutions that enhance guest experiences and streamline operations for hotels, restaurants, and other hospitality venues. Their focus is on delivering exceptional service through technology, driving operational efficiencies, and ensuring customer satisfaction.
Core Values
- Customer Focus: Commitment to understanding and meeting customer needs.
- Innovation: Emphasis on developing cutting-edge technology solutions.
- Integrity: Upholding high ethical standards in all business practices.
- Collaboration: Fostering teamwork within the organization and with partners.
Financial Performance Metrics
| Metric | Q2 FY 2025 | Q2 FY 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Net Revenue | $68.3 million | $58.6 million | $9.7 million | 16.5% |
| Gross Profit | $43.2 million | $35.1 million | $8.1 million | 23.1% |
| Gross Profit Margin | 63.3% | 59.9% | 3.4% | — |
| Operating Income | $4.1 million | $3.6 million | $0.5 million | 15.8% |
| Operating Income Margin | 6.0% | 6.1% | -0.1% | — |
Revenue Breakdown
| Category | Q2 FY 2025 | Q2 FY 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Products | $10.5 million | $12.6 million | -$2.1 million | -16.7% |
| Subscription and Maintenance | $41.4 million | $34.2 million | $7.2 million | 21.0% |
| Professional Services | $16.3 million | $11.7 million | $4.6 million | 39.2% |
Strategic Goals
Agilysys aims to achieve the following strategic goals:
- Enhance product offerings to include more subscription-based services.
- Increase market share in the hospitality technology sector.
- Invest in research and development to foster innovation.
- Expand global reach through strategic partnerships and acquisitions.
Recent Acquisitions
In 2024, Agilysys completed the acquisition of Book4Time, enhancing its capabilities in the hospitality management software space.
Investment in Technology
Agilysys continues to invest significantly in technology development, with product development expenses amounting to $16.2 million in Q2 FY 2025, up from $14.6 million in Q2 FY 2024, reflecting a commitment to innovation and quality service delivery.
Market Position
As of 2024, Agilysys holds a strong position in the hospitality technology market, focusing on tailored solutions for various segments, including hotels, resorts, and restaurants.
How Agilysys, Inc. (AGYS) Works
Company Overview
Agilysys, Inc. (AGYS) specializes in providing software solutions for the hospitality industry, including hotels, casinos, and restaurants. The company's offerings focus on property management systems, point of sale, and inventory and procurement solutions.
Financial Performance
As of September 30, 2024, Agilysys reported total net revenue of $70.8 million for the third quarter of fiscal 2024, an increase of 13.8% compared to $62.5 million in the same period of the previous year. The net income for the same period was $1.4 million, down from $4.5 million in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Net Revenue | $70.8 million | $62.5 million | +13.8% |
| Net Income | $1.4 million | $4.5 million | -68.9% |
| Gross Profit | $43.2 million | $35.1 million | +23.1% |
| Operating Income | $4.1 million | $3.6 million | +15.8% |
Revenue Breakdown
Agilysys' revenue is primarily derived from three categories: products, subscription and maintenance, and professional services. For the second quarter of fiscal 2025, the breakdown was as follows:
| Revenue Category | Q2 2025 Revenue | Percentage of Total Revenue |
|---|---|---|
| Products | $10.6 million | 15.4% |
| Subscription and Maintenance | $42.0 million | 60.7% |
| Professional Services | $17.4 million | 23.9% |
Cost Structure
For the second quarter of fiscal 2025, Agilysys reported total cost of goods sold (COGS) of $25.1 million, representing a gross profit margin of 63.3%, up from 59.9% in the previous year. The operating expenses totaled $39.1 million, which included:
| Expense Category | Amount (Q2 2025) | Change (%) |
|---|---|---|
| Product Development | $16.2 million | +10.9% |
| Sales and Marketing | $8.8 million | +37.4% |
| General and Administrative | $10.2 million | +15.7% |
| Depreciation | $0.9 million | -24.3% |
| Other Charges, Net | $2.0 million | +167.0% |
Recent Developments
Agilysys has been focusing on enhancing its subscription model, which saw a growth of 21.0% in Q2 2025, driven by increased demand for its Book4Time subscription services. The total subscription revenue, including Book4Time, rose by 36.6% in the same quarter compared to the previous year.
Market Position
As of September 30, 2024, Agilysys had a market capitalization of approximately $1.3 billion. The company continues to expand its footprint in the hospitality technology sector with a strong emphasis on cloud-based solutions and integrated services.
Balance Sheet Highlights
As of September 30, 2024, Agilysys reported total assets of $260.3 million, with total liabilities of $22.3 million. The company had cash and cash equivalents totaling $54.9 million, compared to $144.9 million at the beginning of the fiscal year.
| Balance Sheet Item | Amount (September 30, 2024) |
|---|---|
| Total Assets | $260.3 million |
| Total Liabilities | $22.3 million |
| Cash and Cash Equivalents | $54.9 million |
Cash Flow Analysis
For the six months ended September 30, 2024, Agilysys generated net cash from operating activities amounting to $7.7 million. The cash used in investing activities was $146.5 million, primarily due to cash paid for business combinations. Financing activities provided $48.7 million, reflecting debt proceeds and Employee Stock Purchase Plan purchases.
How Agilysys, Inc. (AGYS) Makes Money
Revenue Streams
Revenue Streams
Agilysys, Inc. generates revenue from three primary segments:
- Products
- Subscription and Maintenance
- Professional Services
Financial Performance Overview
For the second quarter of fiscal 2025, Agilysys reported the following financial results:
| Category | Q2 2024 (in $000s) | Q2 2023 (in $000s) | Change ($000s) | Change (%) |
|---|---|---|---|---|
| Net Revenue | 68,279 | 58,616 | 9,663 | 16.5 |
| Products Revenue | 10,525 | 12,640 | (2,115) | (16.7) |
| Subscription and Maintenance Revenue | 41,432 | 34,248 | 7,184 | 21.0 |
| Professional Services Revenue | 16,322 | 11,728 | 4,594 | 39.2 |
Cost of Goods Sold (COGS)
For the same quarter, the costs associated with generating revenue were as follows:
| Category | Q2 2024 (in $000s) | Q2 2023 (in $000s) | Change ($000s) | Change (%) |
|---|---|---|---|---|
| Total COGS | 25,065 | 23,520 | 1,545 | 6.6 |
| Products COGS | 5,206 | 6,751 | (1,545) | (22.9) |
| Subscription and Maintenance COGS | 8,827 | 7,804 | 1,023 | 13.1 |
| Professional Services COGS | 11,032 | 8,965 | 2,067 | 23.1 |
Gross Profit and Margin
Agilysys achieved a gross profit of $43,214,000 in Q2 2024, representing a margin of 63.3%, which improved from 59.9% in Q2 2023.
Operating Expenses
The breakdown of operating expenses for Q2 2024 is as follows:
| Category | Q2 2024 (in $000s) | Q2 2023 (in $000s) | Change ($000s) | Change (%) |
|---|---|---|---|---|
| Total Operating Expenses | 39,088 | 31,534 | 7,554 | 24.0 |
| Product Development | 16,172 | 14,583 | 1,589 | 10.9 |
| Sales and Marketing | 8,794 | 6,400 | 2,394 | 37.4 |
| General and Administrative | 10,162 | 8,785 | 1,377 | 15.7 |
Net Income
For the second quarter of fiscal 2025, Agilysys reported a net income of $1,364,000, compared to $4,545,000 in the same quarter of the previous year.
Overall Financial Summary
For the six months ended September 30, 2024, Agilysys reported total net revenue of $131,791,000, a 14.9% increase compared to $114,676,000 in the same period of 2023. The breakdown is as follows:
| Category | 6 Months 2024 (in $000s) | 6 Months 2023 (in $000s) | Change ($000s) | Change (%) |
|---|---|---|---|---|
| Products Revenue | 20,400 | 25,422 | (5,022) | (19.8) |
| Subscription and Maintenance Revenue | 79,474 | 66,373 | 13,101 | 19.7 |
| Professional Services Revenue | 31,917 | 22,881 | 9,036 | 39.5 |
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Article updated on 8 Nov 2024
Resources:
- Agilysys, Inc. (AGYS) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Agilysys, Inc. (AGYS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Agilysys, Inc. (AGYS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.