Agilysys reports Q3 revenue increase as ResortSuite acquisition closes
The majority of the revenue total – $25.1m – came from support, maintenance and subscription services. Product revenue came to $8.1m, while revenue derived from professional services amounted to $6.2m.
Costs of goods sold totalled $14.7m, leaving gross profit of $24.7m.
Operating expenses came to $23.1m, down from $26.0m last year. Product development was the largest expense with $11.2m, followed by general and administrative costs of $6.8m. Sales and marketing expenses were $3.9m, while other costs came to $1.1m.
Pre-tax income for the quarter came to $1.6m. After accounting for $24,000 worth of income tax, net profit for the quarter amounted to $1.5m, up from a $2.0m loss suffered last year.
Adjusted earnings before interest, taxation, depreciation and amortisation totaled $6.6m for the quarter, down 13.1% from last year.
Q3 also saw Agilysys complete its $25m acquisition of property management software company ResortSuite – a deal which Agilysys CEO and president Ramesh Srinivasan believes is benefitting the hospitality industry as a whole.
He said: “The previously announced acquisition of ResortSuite closed early January as expected. Only a handful of technology providers currently have the experience and expertise to offer robust, comprehensive and end-to-end integrated property management solutions and the merger of two of them – Agilysys and ResortSuite – is progressing well on all fronts, among internal teams, customers and the overall hospitality industry community.”
Srinivasan added that the third quarter saw record numbers in terms of both subscription and overall recurring revenue, before suggesting that the upcoming quarter could follow a similar trend.
He continued: “We are pleased with our continued consistent growth in subscription revenue despite partial to high business environment challenges across Asia, Europe, managed food services, cruise ships and hotel chains.
“We expect the current business environment pressures on one-time hardware product and services revenue to get better soon. We expect Q4 fiscal 2022 to be a record high for overall total revenue getting us to the low end of fiscal 2022 annual guidance with profitability remaining at adjusted EBITDA being slightly above 15% of revenue.”