Agilysys, Inc. reported significant financial performance for the three and six months ended September 30, 2024, reflecting a strategic focus on growth and operational efficiency. The company achieved net revenue of $68.3 million for the quarter, a 16.5% increase from $58.6 million in the same period of 2023. For the six months, net revenue rose to $131.8 million, up 14.9% from $114.7 million year-over-year.
Gross profit for the quarter was $43.2 million, representing a 23.1% increase from $35.1 million in the prior year. For the six-month period, gross profit increased to $83.1 million, a 21.9% rise from $68.2 million. Operating income also improved, reaching $4.1 million for the quarter, up from $3.6 million, and $9.9 million for the six months, compared to $4.5 million in the previous year.
Despite these gains, net income for the quarter decreased to $1.4 million from $4.5 million in 2023, primarily due to increased operating expenses and acquisition-related costs. For the six months, net income rose significantly to $15.5 million from $6.1 million, driven by strong revenue growth.
The company’s revenue composition shifted, with products revenue declining by 16.7% to $10.5 million, attributed to a transition towards subscription-based software licenses. Conversely, subscription and maintenance revenue surged by 21.0% to $57.8 million, bolstered by the addition of Book4Time subscriptions, which contributed $2.1 million. Professional services revenue also saw a notable increase of 39.2%, reflecting heightened activity from both new and existing customers.
Agilysys completed the acquisition of Book4Time Parent, Inc. on August 20, 2024, for $147.2 million, funded through a new credit agreement. This acquisition is expected to enhance the company’s product offerings and market position. The company incurred $2.0 million in acquisition costs during the quarter.
Cash flow dynamics showed net cash provided by operating activities at $7.7 million, up from $5.5 million in the prior year. However, net cash used in investing activities surged to $(146.5 million), primarily due to the Book4Time acquisition. The company reported a net decrease in cash and cash equivalents of $(90.0 million), with cash on hand at $54.9 million as of September 30, 2024.
Overall, Agilysys continues to prioritize shareholder value through strategic acquisitions and a focus on subscription-based revenue growth, despite facing challenges from macroeconomic conditions affecting customer spending.
About AGILYSYS INC
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