NASDAQ$AGYS

Agilysys Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Agilysys reported positive GAAP EPS, highest adjusted EPS quarter since fiscal year 2014, and positive adjusted EBITDA with a quarterly cash balance increase.

Agilysys reported a decrease in total net revenue to $34.4 million compared to the prior year, but achieved record profitability levels and a strengthened balance sheet. The company expects a modest sequential revenue increase in the next quarter.

  • Total net revenue was $34.4 million, a 15.6% decrease year over year.
  • Recurring revenues were $22.3 million, representing 64.9% of total net revenue.
  • Net income attributable to common shareholders was $5.3 million, or $0.22 per diluted share.
  • Adjusted EBITDA was a record $8.6 million.

Headline financials

Total Revenue

$34.4M

Previous: $40.7M-15.6%
EPS (adj)

$0.29

Previous: -$0.13+323.1%
Gross margin

67.4%

Previous: 49.6%+35.9%
Recurring revenue percentage

64.9%

Previous: 49.9%+30.1%
Free Cash Flow

$5.87M

Previous: -$2.92M+301.1%
Net Income

$5.87M

Previous: -$2.92M+301.1%
Operating Income

$6.05M

Previous: -$2.88M+310.0%
Gross Profit

$23.2M

Previous: $20.2M+14.5%
Cash & Equivalents

$85.7M

Previous: $38.9M+120.2%
Total Assets

$174M

Previous: $164M+6.1%
Stock-Based Comp

$1.26M

Previous: $1.35M-6.6%

Revenue & EPS history

Agilysys · Revenue · Quarterly

$34.4M

Q2 2021-15.6%vs Q2 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Agilysys · $34.4M total across 3 segments · Q2 2021

  • Subscription and maintenance
    $22.3M+9.7%
  • Products
    $6.56M-44.8%
  • Professional services
    $5.5M-35.5%

Forward guidance

Agilysys expects a modest 5% sequential revenue increase from Q2 to Q3 of fiscal year 2021 and an Adjusted EBITDA of approximately $7.0 million for the same period.

Tailwinds

  • Expect a modest 5% sequential revenue increase from Q2 to Q3 of fiscal year 2021
  • Balance sheet is in its best position in many years due to recent convertible investment and ability to generate cash.
  • Achieved record profitability levels.
  • Maintained steadfast focus on world class customer service.
  • Expanded R&D resource strength further enhancing the pace of product innovation.

Headwinds

  • Hospitality industry business conditions continue to be challenging.
  • Product and services revenue this quarter were affected more than previously anticipated due to a greater extent of postponed customer technology investment decisions.
  • Expect the hospitality business climate to remain tough for a few more quarters.
  • Business climate will be particularly uncertain during the current October to December third quarter due to various factors.
  • Expect to see the reduction of Adjusted EBITDA as a result of cessation of one-time cost actions such as salary reductions, which were in place during the first six months of the fiscal year, continued hiring in R&D, and several additional cost elements such as virtual trade shows coming back into the business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.8%

Avg return

Earnings day

+3.6%

Avg return

5 days after

+8.3%

Avg return

30 days after

60%

37 / 62 earnings

Positive

+24.3%

Q2 2025

Best reaction

-20.2%

Q3 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+0.0%-8.0%+24.5%
Q3 2026-20.2%-23.6%-35.4%
Q2 2026+22.7%+9.0%+9.2%
Q1 2026-4.7%-0.0%-8.6%
Q4 2025+22.3%+22.4%+30.7%
Q4 2024+12.7%+22.2%+12.3%
Q3 2025+4.8%+6.7%-3.9%
Q2 2025+24.3%+24.8%+36.8%
Q1 2025+1.3%+5.5%+2.0%
Q4 2023-11.8%-11.2%-6.8%
Q3 2023+0.8%+2.1%-1.1%
Q2 2023+13.0%+14.4%+18.3%
Q1 2023-5.8%-6.6%+2.3%
Q4 2022+9.9%+15.1%+1.4%
Q3 2022-1.8%-0.7%+13.0%
Q2 2022-19.8%-8.7%-13.8%
Q1 2022+0.2%-1.9%-2.8%
Q4 2021-0.3%+3.9%+15.2%
Q3 2021-16.8%-24.0%+21.8%
Q2 2021+4.4%+4.9%+49.0%
Q1 2021+19.5%+16.3%+40.7%
Q4 2020+1.5%+3.9%-0.9%
Q3 2020+10.8%+7.6%+2.2%
Q2 2020+3.7%-0.9%+1.9%
Q1 2020+2.8%+3.0%+15.9%
Q4 2019+6.2%+12.1%+12.9%
Q3 2019+15.1%+23.5%+46.4%
Q2 2019+7.1%+8.1%+6.3%
Q1 2019-6.1%-6.0%-2.3%
Q4 2018+9.0%+12.9%+21.4%
Q3 2018+1.3%-1.3%-5.8%
Q2 2018+0.3%-2.0%-0.3%
Q1 2018+4.2%+2.0%+4.8%
Q4 2017-1.7%-0.3%+2.1%
Q3 2017-1.0%+7.2%-0.9%
Q2 2017+6.6%+10.8%+6.5%
Q1 2017-3.5%-2.5%+5.8%
Q4 2016+0.3%-4.4%-6.7%
Q3 2016+9.6%
Q2 2016+4.8%
Q1 2016+20.3%
Q4 2015-6.7%
Q3 2015-3.2%
Q2 2015+0.6%
Q1 2015-7.3%
Q4 2014-2.8%
Q3 2014-3.0%
Q2 2014+1.6%
Q1 2014-0.4%
Q4 2013+8.1%
Q3 2013+5.2%
Q2 2013+2.1%
Q1 2013+3.9%
Q4 2011-0.3%
Q3 2011-17.4%
Q2 2011+1.1%
Q1 2011-15.6%
Q4 2010+2.8%
Q3 2010-0.3%
Q2 2010-5.3%
Q1 2010-2.2%
Q4 2009+7.4%

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