Agilysys reports record $47.5m in net revenue for Q1 FY23
Hospitality solutions provider Agilysys has published its financial results for Q1 of fiscal year 2023, reporting a company record of $47.5m in net revenue.
The quarter saw Agilysys experience double-digit growth across multiple metrics, led by a top-line increase of almost 23%.
Recurring revenue, which is comprised of subscription and maintenance charges, likewise climbed to record levels. For Q1, this amounted to $27.7m, up from $23.2m last year though down as a percentage of total net revenue.
In addition, net income attributable to common shareholders rose from $1.5m to $2.6m, but adjusted EBITDA was down, falling from $6.9m to $6.7m year-on-year.
Ramesh Srinivasan, Agilysys President and CEO, attributed the drop in EBITDA – especially as a proportion of revenue – to increased spend in sales, marketing and professional services, alongside other additional costs.
The company’s free cash flow was also down year-on-year, tumbling to nothing from $7.7m, a decline Srinivasan credited to “short-term working capital fluctuations.”
“The decrease in free cash flow this quarter was primarily due to short-term working capital fluctuations including additional payments for previously reported increased inventory levels which were required to give us operating cushion against possible future supply chain challenges,” he said.
Looking ahead, Srinivasan believes Agilysys is well positioned for sustained growth. He concluded: “Continued sales progress, a healthy backlog and an industry hungry for improved technology options have positioned us well to achieve our 2023 targets and continue on a profitable growth path thereafter.”
To this end, Agilysys upgraded its fiscal year 2023 revenue guidance from $190m to $195m.
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