Q1 2025 Agilysys Inc Earnings Call Transcript
Key Points
- Q1 fiscal 2025 represented the best-ever Q1 sales start for Agilysys Inc (AGYS), indicating strong sales momentum.
- Recurring revenue grew by 18.4% year-over-year, driven by a 32% increase in subscription revenue.
- The company achieved its 10th consecutive record revenue quarter at $63.5 million, a 13% increase from the prior year.
- Agilysys Inc (AGYS) added 16 new customers and 72 new properties, with 95% of new properties opting for subscription-based licenses.
- The gaming casino sales vertical continues to lead sales levels, achieving close to peak levels during Q1.
- One-time product revenue, including perpetual software licenses and hardware, was lower than expected at $9.9 million.
- Hardware revenue was impacted by a shift towards consumer-grade devices, reducing hardware sales by about 20%.
- The POS business faced challenges due to the transition from old to new technology, affecting sales and implementation complexity.
- Product revenue decreased by 22.7% compared to the previous year, driven by lower proprietary software revenue for on-premise deployment.
- The company expects full fiscal year 2025 revenue to be closer to the lower end of the $275 million to $280 million guidance range due to product revenue challenges.
Good day, ladies and gentlemen, and welcome to the Agilysys 2025 first quarter conference call. As a reminder, today's conference may be recorded. I would now like to turn the conference over to Jessica Hennessy, Senior Director of Corporate Strategy and Investor Relations at Agilysys. You may begin.
Thank you, Victor, and good afternoon, everybody. Thank you for joining the Agilysys 2025 first quarter conference call. We will get started in just a minute with management's comments, but before doing so, let me read the Safe Harbor language.
Some statements made on today's call will be predictive and are intended to be made as forward-looking within the Safe Harbor protections of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial guidance.
Although the company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could
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