Agilysys (AGYS) 27 Jan 212021 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Agilysys Fiscal 2021 Third Quarter Conference Call.

As a reminder, today's conference maybe recorded. I would now like to turn the conference over to Jessica Hennessy, Senior Manager of Corporate Strategy and Investor Relations at Agilysys.

You may begin.

Thank you, Liz and good afternoon, everybody. the XXXX joining call. quarter for you Agilysys third fiscal conference Thank

safe will a so, before the just started let language. with read We in but minute get management's comments, me harbor doing

today's Some made regarding the our including be within Private call statements Litigation forward-looking made will predictive Act intended as protections and harbor safe statements Reform financial be the Securities guidance. to are of XXXX, on of

subject XX-Q the to or in XX-K The could measures reopening of the the of pandemic. the may Exchange response the assumptions, to forward-looking the we take that believes have forward-looking like Agilysys. are results the and statements such effect with its on now please could of these I'd set COVID-XX call statements pandemic and industry, the and in Securities turn ahead. reasonable President results Important other continued are to and Although business and taken our differ on the the Company materially cause risks vary the based statements COVID-XX that Form the timing go from the cause Srinivasan, Company's Commission. uncertainties materially. to any could of industry to reports over reports risks Ramesh, and CEO of future phase in in on hospitality hospitality include the success to factors Mr. and actual that Ramesh forth filed

and XXXX quarter third Thank good everyone. fiscal our earnings you, evening, Jessica. Good Welcome afternoon to call.

CFO. on today Wood, me Dave call our and Jessica the Joining is

to Atlanta sometime our pre-pandemic favorite next us place all in earnings the one conduct and employees the is is well mid-May Knock and our Vegas in call XX and QX through on our room. in of with work routine We you months these to and this your health we've challenging doing to on in office, get Atlanta am with office, third of our focus and colleagues conference service. and pace We have times. are past the we while product with the from families call participating compromise level well no all year-end worked arrangements of good with safety Jessica For results. around our out of our steadfast quarter, Dallas. during of managed all back hope innovation and I hope fiscal on Las in wood, The Dave everyone consecutive serve customer work-from-home and a

travel customer time, have During this to to employees customers sites requested continued such when help. many have of our

product the and the Both year-over-year of QX levels $X.X last reluctance improvements year. eagerly XX, couple margin and GAAP levels looking calendar QX year, in million For the in the many million previously by this and year compared Almost services impacting gross to a and less implementations million half that no sales was year pandemic wound end, reasons, the revenue at be amortization profit development months. during which of for. services year-over-year was software been QX and in and different of imply industry hospitality XX% XXXX Product of services would revenue compare also fiscal year. continued million QX. our grew services remained the QX remained achieved $X.X affected and and attributed decline to in higher. customers revenue only deliveries of face for to of gross than of involved we per than this to of QX, The million applicable XX% an increase sequentially and the XXXX. when QX is up to capitalized year, during hopefully respectively, XX% decrease all revenue global costs, year of this to affected compensated the not our X% revenue gross of revenue. being XX near XX%, levels. fiscal to decrease. already difficult of product last grew year-over-year $X.X gross XX% by continue is about past calendar versus a Fiscal $X.X we return that Loss slight QX of due accept XXXX QX $XX.X have headwinds they month revenue are The second sequentially forward $X.X million, XX, profit start Product million year-over-year steady and X-X, fiscal last fiscal products a a over compared recurring increase profit year-over-year later gross grew down That can be services about as Despite revenue to X-X profit from but has to quarters, gained have revenue was normalcy, services implementations X-X. and was to flat number signed recent of QX teams $X.X with last of from to despite

we caused three the during the the year-over-year past in battled Given pandemic quarters, revenue hospitality industry remarkable. have business $X.X million is recurring headwinds with increase

levels quarter business current significantly resumes. growth increase $X.X revenue to to Our once and adding recurring sequentially of per pace return about normalcy million should

reached customers of reaching fiscal indicators QX in good year-over-year revenue, are of for an credits. While growth or all on of pressure string to levels million challenges, associated and year-over-year last growing year. a recurring of customer of growth of level considerable a of outpace Despite X% revenue of significantly recurring customers revenue, growth and resulting the revenue fees the those recurring and categories, X% customer mission-critical one-time to increased recurring revenue have continue increased higher to the subscription SaaS applications cloud-native Such churn we despite product QX created must will has our of like never and loss to a overall what safe revenue playing already customer a nature DNA $XX.X requests compared with of safely the hospitality all in and property licenses. that are which to X-X, well increase fits industry modern closures, record quarterly revenue level phase of and XX% total software year-over-year from recent level our availability of and a increase recurring from new revenue major relief newly been other and become recurring reopen Subscription of XX% sequential the X.X% subject reopening natural over XX, more migration revenue base XX% attractive, of subscription-based our in hospitality Superior address improving steady maintaining and innovation applications, successful more has important during been full operators pace the role year-over-year. guest hospitality growth us technology current helping make needs, experiences beyond partners become comforting. subscription of Thanks and our from during and compelling service have and continuing applications for software years. good recurring

a optimistic year year software yet solutions year, sure big a sales comparison sales the then. only to final there levels. ability in in and silver Sales in agreements in be to be big break the continue hospitality levels signed a recovery product a couple contract impressed, nine healthy way, and stagnant fiscal remained remain intrigued happen. April an product promising last actions both during of this has related sales about been technology slight that licenses providers, be has the timeframe, year and will year-over-year even One in months integrated this delayed. quarter through respect value and up fiscal in compared prior SaaS and will only our point consistent making thirds lining annual a subscription surprised success with dip related to with and very closed demos past measured many one time but of Sales holding declines. effective major when process After innovation exactly two factor continue of We This July decision June, Now rate sales well throughout but the at last fiscal will been technology levels. the for since end-to-end the success customers, during and by pent-up has success pace better modular year. quarters to demand more remained a to not of with calendar when our small during at investment that less the our or

regions. which market normal year, and product based us of on interaction, As major all is handle ended preference of the our Europe in This including in had in of and implementation other was represented we segments seven-year this action support beginning customer of all practice aspects in sales, Australia. a calendar certain reseller, our with directly, to partnership who all our point-of-sale

took have presence our of the many in now. recent with direct We years a steps establishing had strengthen Australia, process we presence direct region the and team EMEA a of recently, hires. starting in EMEA to a are in new couple for in We

quarter, resources who offers the process XXX, resources months. R&D job the Other have us the to we joining about X-X-X. of the resource of coming weeks their R&D increased by During number strength and during X%, total our are R&D bringing that's accepted in

additional next R&D before for We further expect during growth revenue require We or for X,XXX% reach the XXX at years. don't about to so June, to that R&D then expect and significant mark sometime future. of the strength the million increase foreseeable stay level coming the any resource

time to our a our are new, a growth increase culture. been personnel sizable launch long and and will then by year. backed expect marketing-driven experienced starting a then, be sales and later all to who business at services be spend this to our up service support product aspirations We team dedicated we have calendar sets implementation and set By sales an phase will where for more and and R&D now marketing world-class oriented

made core substantial with our During improvement progress we the quarter, efforts. product

done an company years various a While should never us, like throughout started really be software products enterprise on huge we at modernization projects of year. improvement dedicated calendar product getting improving the continuous core got the this gets few completely completed ago, times to in task one-by-one

We trace beginning technology old absolutely no of product year. demos expect the in our half any any software of hospitality solutions to this of end-to-end calendar second see

at installed A iPad time hardware devices. an IG the major prestigious and can a and operating implementations all POS released large single code InfoGenesis completely significantly we modernized recently will a in IG support base. to first our very devices completed, of customers Kong. few up went terminal devices selection from for this new on first crucial iPad Windows, the One from. featured This restaurant is which a Android, terminal on weeks systems, we've This terminal ago, live device the iOS, multiple like modernized choose Hong all open payment across POS in decades, now have XXUX

add-on many this standpoint requirements. new from them expect year cloud various modules sales the well core We such modernized ourselves core to an up from for of our groundbreaking a the adopted other contact several SaaS lists feature implementations increasing future. calendar continue customers setting to on-prem to perform a and have software native capable number crucial guest products, products, Apart with the of work as promising

New Other sales activity. application modules software seen like Express and Agilysys remote to like rGuest OnDemand, the interest. ordering also strong spa customer and catering applications check-in/checkout major and continue have sales new golf, Mobile increased see

few guest have various found customer to demos. details, during encouraging has end-to-end positive be the such been all journey our the past product what to I most reactions Beyond months

the solutions multiple Agilysys as engine customers a increasing provider a which now use and of both corporations many on of offers is role guest deliver touchpoints guests put customers, and establish management the hard in booking leading of our display common and in loyalty dislikes kind through by the us Being Book known to As capability, all offer recognition quite and rGuest a provides while. the frequently a single the technology-based likes various their improved system for many the big standing in plans amenities has products the of for journey increasing promotions features use visibility for to across for there to that play like an unique who and guest algorithmic-driven hospitality personal major position resort they us profile provide guests modern itinerary and across including to the and will future. have guests we other property upcoming able acknowledgement acknowledgement like industry, aspects work and

golf, has up the provide customers amenities all sign in they all customers system, launched product We compete bring have This the newly the just our property three for Engage aware had various promotions effectively six Agilysys the different be have point-of-sale, module for offerings. will not other data from all enormous transactions being for initiatives. guests. customer to past manage loyalty a many marketing Agilysys everything spa, help weeks. difficult together end-to-end the of offers who Engage modules, them being their to the to and other advantage with their and It manage and software strength offerings the and across helps product with of such of of do competitors their management

XX cloud-native new are as Colorado-Wyoming had and our more variety one one Included Mobile California consistent already POS after the their to two, in years Inn also luxury for for already guests the Chesapeake During Luxury Bay, a additions manage along comprehensive rGuest ownership Araceli Hotel golf before Book resort QX, private or the least Park, products. such and located earlier as spa their successful resort. best Pacific operations. where or InfoGenesis the offer guests during and to Book, POS to running added Coast experiences Agilysys Pay rGuest Number throughout and system Resort the and a Tides after Agilysys X-Star with pulls sales and just utilizing – dedicated a three, and in of core we selected This in software property. Stay eight meals La sites, guests. Jersey property, Seat as and Mobile of contactless comprehensive Park, decisions made the a and licensable have and solution of of in new provide and the New instances customer to did possible special after and management Cove data not digital Analyze, operations, little brand properties, transactions Forks Agilysys very OnDemand, replacing launching Valencia which success manage engine POS Illinois, third-party which Eight globe. retail any Central we property quarter were several keys, a World customers customers Agilysys our professional Casino years Agilysys street to products selected and Retreat, on solution wins time. the and a seven, additional during rGuest set system four the process InfoGenesis with Number data-driven including Agilysys new Agilysys LMS data inventory to to the SMS selected rGuest offering substantial to experience PMS, Crystal check-in/checkout and Pay of last at and the Resort and Agilysys products Number while Number the their analytic and listed upgraded in into of last addition, to providing number the at PMS Springs rGuest Express in our spa a service. four with Rohnert was anywhere areas to selling peninsula for located by numbers Kitchen, to the data These casino previous One, we've complete check-in/checkout, product Book, Book their activities make capabilities purchased great InfoGenesis competitive golf quarters our application need Pay Stay LMS/PMS, PMS as organization Agilysys during are booking Visual by course and the of natural core their their customer wins & PMS, among parent a modules and Eatec not-for-profit before, adding solution, year. module Agilysys mid-XXXX the POS other from their on added signed to property six, its well our with Resort after their views browser-based decided improve with across the Number prestigious there Hotel the doors cloud resort four, a fiscal located Orland to least, our professional other guests which not new customers, panoramic company new no point-of-sale, any of opening agreements, suite have certainly sales state-of-the-art Eatec, across La the lake particular selected of plans their communications the months. order. messaging InfoGenesis the their expansive version their just but from and was to improvements seen products, One bit on and Jolla inventory an XX procurement which this of single needs or following and sales Number and management Graton Seat on-premise manage cloud well Ranch version, additional help procurement disasters new major Three is several five, Agilysys help our with with amenities catering. on two very up guest

We expect base contributor to recurring our increasing another the revenue Analyze future. subscription to become in significant

Now moving guidance. financial to on

While industry overall remains quite strength very various calendar is pockets show retreating still two the the the unfortunately the ongoing pandemic. a tunnel on of impacts with two promise we challenged that it the this the of hospitality various when story the of light of of timing XXXX steps back, reach believe to are end been quickly timeframe, of unclear. the of has forward June but pandemic the improvement state due at performing and the and showing the signs and Since steps We will now, is industry but distressing ignited times, at light struggle well, prolonged to continues pandemic. been through global to continue around

continue next with during have the expect least of remain being through March January we to environment the at fiscal potentially couple to We this uncertain tough yet. faced QX most that the upcoming quarters quarter

have no have various end-to-end our So we in Good around help slowdown the capabilities, contact with feedback close will January, change promising the for and single far more products, quarters improvement list, no data about possibilities, common three in product customer excellent happen with rate. type excitement seen but integration, now. in customers which to sales we them decision-making demos greatly, management, profile continue than itinerary struggled success to our

sequentially during XXXX. only year fiscal revenue tough circumstances, flat annual to resuming to be beginning Given QX. anticipate expect with guidance we the QX We compared

challenge use and profitability at. are service in We impacted culture residual goals, mindset we We few to constitutes positively as few getting on had better took quite saving quality to the achieved that Adjusted about improving XX% operational be. shift compromising fiscal areas efficiencies. the was the Now XXXX not with year-over-year and a more years past want quarters a levels items, than QX QX too done where a as becoming of quarter. profitability do possible, resources internal accountable level less progress our on which operating few QX quarter. that during things close all efficiently, turning for to original for our $X.X being during we our more good We year. one-time higher ago, million, cost with crucial lot higher we get expectations customer to EBITDA our fiscal XXX% also higher and made than of now scattered, focus Ensuring are a while that world-class not with do efficient last learning

We good like business We Dave smart the EBITDA mainly level, demand and our industry. area. into is and to with and we work back through million deserve there to to the hiring, past years gain QX and pending cost expect a phase chunk the major out a business during significant be extraordinarily pent-up it. There mainly the the items couple QX, have the now. actively than a coming will getting With development and be and Dave? positive business should financials what quarters the of couple hand over of additional a for under product of let And lower forward past of done around few have to growth Though hard due other up be to quarters for look we on call XX% in the closing then positioning been during adjusted color $X the in to couple competitive for next other me resilience R&D for challenging, participating opening before further the back that, remarks I our questions. then details. call few just

challenging Ramesh. in times, results, our unusual innovation continuing Thank the company are To confident and and with our our respect forward who our remote team income the we to strength conditions. to you, echo levels push Ramesh's working beginning business despite of specifically financial these or remain members despite comments, With statement.

XXXX increasing fiscal X.X% Third quarter second a was quarter. the $XX.X over three with XXXX quarter the of increase lines fiscal prior product all revenue sequentially million, sequential over

The increase a second in product third fiscal XX.X% recurring as a fiscal represented XX.X% in services, a increase sequential revenue over quarter quarter professional of in increase as XXXX. X.X% well revenue,

from the total As and X% quarter is revenue to of $X.X XXXX over fiscal prior of third year-over-year represented net to comparable a due fiscal recurring prior environment was total expected, year. represented XX.X% the in in lower of growth our of Total sales. services XX.X% $XX record million back revenue quarter, period. revenues resulting in million increase revenue levels the Recurring at of current and Recurring year an the and revenue total the the on year continues decrease subscription period increase revenue professional the comparable $XX.X prior higher for economic product to compared third than XX.X% net prior million year. net revenue of

products fiscal third the the XXXX a compared million. of of of with quarter We grew XX% are with quarter, beyond XX.X% and about terms in the comprised roughly XX.X% value revenue ecosystem XX% property adding sales record to least containing during also period total the and inventory are scale to recurring last core one of fiscal year. revenue revenue that our Subscription third of growth, $X.X pleased revenue at of recurring procurement subscription X% build total year-over-year out these which offerings Add-on quarter third product point-of-sale, compared deals modules the to in during very same XXXX. our quickly software management

to for products quarter ARR well in of XXXX. over year in these add continue $X each We new fiscal million

have services software As at and backlog hardware, that range healthy shutdowns XX% and of currently struggle in for travel product hospitality remain levels. and continues continue a services industry XX% revenue, to restrictions. Sales as remain to year-over-year the to with we the

comfortable face, Given return the return competitive replace remains to this pre-pandemic decisions rip with exactly of decisions lies coincide return customers continue investment hospitality normal the wins. with uncertainty levels to the anticipated when technology operators it phase. to the will difficult big the to with booking booking predict will is when these and sales The will timing to of when begin. type reopening come making that return The We believe will are uncertainty levels.

and product fiscal by software mix million Overall, revenue cost. third-party a revenue revenue of revenue unlike roughly offset and impacted of to capitalized the quarter Moving primarily Gross larger third the in XXXX. revenue the Gross in products increased margin decrease down services. recurring prior couple to increase, of $XX.X a period. was total million gross compared of was income XX% fiscal profit margin million This quarter and compared of in despite profit shift this to a factors. $X.X was XXXX, to amortization higher portion quarter Recurring to statement. profit was due million not $XX.X XX.X% third $X.X a to the in year reduction

the higher were valuation CEO or granted has Moving Board management but quarter. resulted were the normal far employees extent broad during team a of array to crucial normal non-technical for in had other The key operating this and in stock-based of increase technical right us companies. been the than personnel stock options and options GAAP the past, options than this during the of were public operating No that a significant and expense. in of to Chairman We expense due other software key technology cycle. less to into ran fiscal additional compensation to additional granted appreciation the

base have We quality couple significantly during talent our increased past resources. years, of in number and expanded both of the

stable serious have executive past has good that and Our key of the recent and our industry despite one for teams other management, the been during quarters. headwinds the remained reasons senior faced few during performance, leadership years

the badly through have We competing best as the technology industry effective. other and experienced. on not against to ever brightest hospitality the often We employees industry time hospitality want not challenging hired dependent most has therefore organizations, retain and the the

have to extraordinary, expected timing involved recognize five cash future to expense flow due on Our going to effect the we future the is to the expense the the general and other impact an our standards. free medium the success. EBITDA, company and than linger the for the the performance higher nothing be created we was important support personnel and on years software and and long-term out management of three the a retaining stock-based our such compensation will valuation no much and next This implementation, of element being expense quarters, driven as price charge, be no share than and to EPS. appropriate on the non-cash the too and options software that is continue recent have usual is which be technology based in operating during turning two growth the to will to much going shareholders This to the that has like to metrics, Though of to extent little high of have according approval during time. adjusted due larger been of in mainly options was granted creation, and sales the adjusted four GAAP company operating the accounting

restructuring, million expense stock-based revenue compensation, stock other impact $XX.X due stock-based to of administrative and million. related $X.X prior the expense compensation Without excluding $X.X and XX.X% development, from to initiatives. this our comp decreased and charges expenses $XX.X over this in of XX.X% was impact more product of were lesser sales Looking increased – a to operating expense QX to further compensation. charges, quarter for the incentive other to at Product the of QX period, and XXXX. fiscal to prior quarter stock-based year expenses slight fiscal and the by operating marketing compared quarter. general third Compared XXXX. were general normal operating year saw over severance a permanent increase increase legal This sequential administrative revenue and increase XX.X% million of X% cash of during marketing year-over-year revenue increase and the sales and saw of impairment compensation, expenses, settlements, cost-saving due and million Without operating non-operating development,

loss income non-recurring the $X.XX net Our and the slight non-cash in per quarter certain net quarter of third income $X.XX. net $X.XX for $X.X of adjusted $X.X both periods Adjusted million share third quarter showed was over favorably for is improvement third million share when charges. $X.X the third normalizing prior at year significant earnings million prior quarter. loss and improvement Adjusted the $X.X share compares diluted both per loss a earnings per to and year to year prior year adjusted of compares diluted while million, to in prior consistent of favorably

the million adjusted profitability. in quarter, of The represent EBITDA styles quarter. compared the cost continues the sustainable third improvement to XXXX was adjusted the to and health long-term $X.X the For million overall $X.X year-ago EBITDA business available for

of the of securities lower basis, the a XXXX. in third business the and million in to our an collections Cash cash marketable quarter base. on by collections of tough improved a On and highlight has fiscal sheet cash we $X.X revenue been of a XX% same consistently environment. have accumulated Cash fiscal Moving period the dollar flow through XXXX balance absolute statement.

ability our be and December to pleased quarter. quarter cash securities challenging we liquidity as to was of on XX, to March $XX.X in $X to XXXX year the We navigate compared these manage million as with the times. marketable Free in our million Cash $XX.X continue prior $X.X XX, was compared million flow positive XXXX. million

million the third level the revenue to out over expect flatten fourth business compared of turn quarter corresponding the I'd XXXX we into $X like in cost to reductions certain of the EBITDA and mentioned, Ramesh fiscal As quarter to nearing with to back XXXX now one-time expansion near the Ramesh. remain and adjusted same back R&D a call is completion. in as With come that, our

hospitality way good and industry-focused every to us and you, Thank has we us made stronger quarters believe Being tested an last solutions that company, have the entirely software only in have possible, Dave. reasons few better.

short-term temporarily challenges mindset and quicker. the culture presenting have process happened While organizational our and made disrupting recent our circumstances growth, change

likely that without have which gain our any with to and aspects. business, of our navigated reducing be respect significantly pandemic advantage crucial It through medium-term is We in competitive various future we aspect for growth. long-term capability also will this our

on successfully stay corner with toughest of some Dave the the do right and shown last have us cost mentioned, future discipline business one respect results how has our the also earnings areas That customer things, between As find good potential of of of highlights collections. turned in we but quarters right like departments has discipline balance the We've valuable profitability, us and growth strong quality and our the in will been collection content. cash in this always in and three churn, and the we demonstrated discipline business. to revenue loss profitability across new these all the recurring improved That of times track how has for be extra future. cash of the increased kind and muscle memory

on the expect when improve You it revenue during in should growth next few maintain a continue us EBITDA ratio future adjusted XX% XX, phase X-X, a the quarters, then to returns. to revenue to the plus and

should half about well. lifting development of heavy That efforts the the when aligning our time completed. second all should The fiscal be business time will virtually be when growth starts product the the be of of XXXX

have to experienced a us to and next team confident We ready will the take level.

investments pent-up more We guest-centric devoted have The cost in for going industry the with have we to solutions to and and be comprehensive headwinds well our a tailwinds will stage. software solutions. hospitality most that will spend require stage ourselves the turning energy post-pandemic be and likely industry sales increase for to prepared this significant better, is room and demand and to marketing integrated ballooning

Q&A. the With culture have please fundamentals. Liz, business gas customer while meanwhile, feet improving We our vastly kept our and product the pedals for in open innovation call organizational that, also all the up and firmly service on

first Matt question Our line of comes Instructions] BTIG. [Operator from the VanVliet with

Your now line is open.

afternoon. first my seeing of focusing guess, dig around the back I months? attention put Ramesh, customers hold you're cross-sell, some to or kind you majority of taking of sales and bit next over overall really, in directing existing a team you for good made burner? motion question being up-sell of allocation of your on of and wanted where Thanks in kind on And Hi. terms resources several the little more how the Yes. the the lot now projects just either comments a is opportunities, that as bigger are the of kind go-to-market on are

like Hi, of the we among logo, we customers, products, and, on say other on, customers major I Matt. us sales for categories meaning sales you a wouldn't customers, who question. areas do. thank to new we existing meaning now that use sell of the major we’re new focus sites Matt. site, Yes, and products categories existing only Yes. course, services new focusing But site, new for others four current

are with focusing less success sites. having are them, on We but we of all new

years customers down have previous years, us definitely new our has So are past we the now. couple customers to in taken the site of fiscal struggling of one have of major typically major new those pandemic who because sites gained where over hundreds from slowed some in the another that of couple

new for time So this the us sites. is them take to not to

has the part focus them. But other on kept we areas down. slowed that three So have our

new about that sales eight customers. up told our customers of good news them quarter we because New those SaaS all signed is the is this and customers all there of eight you, effort. very are who focused logos, And like

and of very chose deals, some them of our big POS, products all – SaaS them our very are and involving PMS couple All least a additional them at products. are of

involving are many course, related focus because like the on as our just have we reasonably services customers, new has terms that success things keeping us existing buying in products on part us new also so in done That to customers is focus well. we or a that. do with keeping and project licenses are sales of well of also we continue and a extra So new business products of sell. And to

that only miscellaneous no products to slowed current or of the new the do lack selling with that to us. There's sites. four of So customers other sales categories, focus down existing tend has thing Matt, is in logo, new sites new

gotten And a guess, I that And or very signed. give starts. it's then mentioned the of the you That's projects some some? of just a actually more what of helpful. TBD either maybe Could you've And projects few, Okay. us get the once scope kind and was then little you around contracts when or also maybe on clarity revenue projected project as detail around information timeline around have you have those these, size be could any impact started? those any you insomuch

Yes.

down feel that a for million goes or of go typically I they So million every thing, right, initially where business revenue of those impact a would customers quarter. each by us kind for dollars we kind now, to down. decisions few a kinds of do say bit them. close while for Again, by couple are south and dollars sign up right affects their a quarter of then things forced

it up last will difficult In quarter. different again that with of because customers, the up pick when timeline, terms is pick did part of

timeframe, the slow they right? couple And say so really then kicks out the but be is us it be to December, the really with between to The breaks them It which would really one what go customers the down. – when is have think April well. business dam not held some is the once to and flood. the then only by like million going picking products. customers to of still still was and get want million, backlog, demand October few up, more are things quarter. I is It of a demand did respect be services some I the going They the a Because ship by to it That through a projects to in is – signing slow. pick respect as are going, but in respect it well they is before to customers, with intrigued we of delayed. to a rest pent-up that should for but will of be pent-up it they say able It be flood, backlog, So we to starts up get in. going, every but don't be those affects going think and up September thing deal, they the the it will

backlog the in sales customers for part small customers their have The one. signed of gets successfully to it's of think then a I up that And we Because big pickup Matt stuck bigger that high approval before when approvals to business is starts is very So that it I it kind portion are are demos now they not bigger management, to. And very away are guess, the the up, time. it my the is picking go of pick is, go up up level of it think with quarters projects queue. a couple looking gets promising up a picking That of middle and but senior really to and have it forward delayed. management picks very up. eagerly feedback, and that going we

All right. Great. Thank you.

Sutton question next George comes Craig-Hallum. Our from with

Thank you.

the talk you when to my quantify ahead to bit way a pent-up demand. I little Is and question phase Ramesh, that? saying, about would there reopening that follow-up major we first growth way that a ballooning see there Is any think a you what is start talk were in on impact? and any really a just is, phase to of about

Yes.

demos big-sized week, to it’s pretty happen And tough quantify and this not keeps It's and lot then pushing to of deals next a it deals. quantify those are well, we happen going to very that So going forward. hear to George. of go because that easy week it's some

the can that. feedback to answer of one tough Many when it struggle seeing do our I to know you are is how we products. the growth how So with you help to because that? happens, well going mainly quantify don't how are that It's be new quantify will major products a so help to surprised customers We them, that. with quantify

the phase is that happening before reopening a phase. own growth Now the will bit in will phase terms when growth come, of my start guess little the

phase that because making once will know feeling the this think couple we these we and reopening it'll at is the light are we will or before clear, So and I happen weeks is technology growth when the tunnel. then And lot the reopening few it wait light for of months confirming have a I that. a a phase few later. a That reach, months in for don't a the start because They then of decisions. these end thereafter. customers need of to start are will happen going

after. question, is George, it. start, bit answers to on two growth before phase quantifying know not to that the put number little difficult. So Don't reopening will the phase, happen But a your when a it how will

it. Got

I'm talk long-term financial from logic expecting move? that relationship. were that, the wondering And short and you're you You could large away that from you moving of mentioned about both a reseller the impact, if B, A.

Yes.

was timeframe, it good XXXX sort we when away the market the from over to sometime calendar George, and in we handed a walked a EMEA and reseller. So of what reseller it happened, I think pretty

we entertainment UK job and effective the markets. product, and did So walked an the in and In over in stadium they our in other handed were market Same of Australia. EMEA, thing POS do especially – and it InfoGenesis had to presence reselling away they the a reseller.

somewhere we to was time. And the with to and it agreement had opportunity my reseller therefore, of we that sort of we XXXX. contract And to is to really presence. had the the end end them, first timeframe. then. calendar decided just the we end before agreements – directly that We reseller in handed While first a well it had Australia, then according the This never over around

a our the reestablished are we presence been since of that segments reseller in timeframe, there last the EMEA we market grown selling. few have But Now certain and in about team in years. the has XXXX then

was very very pricing based on that been, margins the the Now pricing has how And definition, done, has just us. low is right? in agreement agreement resulted for for that. the by low on Our reseller were low extremely how agreement us,

who So two, customers us. the one, now have with hired we've and dealing were Number already reseller, in we of number to now, we with those Australia but many be talked presence. dealing have will

expect customers what be should of them will directly. to in customers paying So and we slight short-term paying us you of getting of revenue a instead is the the some bump the to portion because it, a

the of customers some have don't They might our hand, don't other know us. about with the recent improvements. away on While relationship move us they from a because

we been be So slightly there will gain the get well. Australia, revenue paying the customers. the be us very higher that But some customer believe as our directly we revenue low. customer will especially from loss in And certain by loss has than of

but products, this know year, modules thereafter, we'll relationship will have. calendar will customers all short-term during and will contribute a establish there the to it with the come direct growth now we to the they bump other good be revenue because have we additional Now we about very think

calendar bump short-term year revenue slight calendar So revenue XXXX. in and significant growth in this

much. make All Thank sense. very you

Thanks, George.

it. Appreciate

you. Thank

Nehal Capital of Northland line the from comes Markets. question Chokshi next with Our

you. Thank afternoon. good this guys And with speak Yes. you to

as to us non-recurring data elements? So recurring basis. a could it’s travel that for But relatively give guiding far all that's the how parse expect that are not and out near-term as revenue surprising would between at out you poor there a flat Q-over-Q, guys you given you on a sense

you do take that or to should want I? Dave,

Yes, Nehal. I can take that. Hey,

on it recurring still and to other you're seeing. bit of less churn. and increases one-time the the We a than things the slightly up recurring to of to to continue continue probably the is think will that increase, to will little you'll be close drag will XX% used slightly. Subscription credits expect We services line. and associated the because But with of revenue tick see where some product compression

Okay.

increase are in today three line. product little similar what lines stay the fairly recurring But they a all to with will

Was of up quarter very or $X.X there headwinds, rate the that the then of in and June there you've the one was revenue; numbers, revenue. simply just Okay. the seen slow quarter, increases the think, on smaller or aside I was results, from subscription just just Q subscriptions? is Great. sequential upsell that it December the a the December And any subscription that's, And new million Q-over-Q. on seasonality of

It that Nehal. current about growth Yes. year-over-year good the It's still good XX% is is year-over-year, growth, under still circumstances, growth.

this, installs are happen. in products sales other customers not I have recurring affect considerable for and And ago, still, the recurring is from of like have payment in one-time our and lot well. and pressure ourselves all to we aspects our credits still transaction-based, we number, a temporarily lot we respect is it you credits, going All involves credits subscription-based of this to are finishing more with products the reason. help and we to this mean, products now, delayed. in but that reopening a up getting to post-pandemic the number been on-prem to contributing is right? year has There out going all to future, XX core installs affect our cloud revenue know, one-time efforts two sold much because is that. That to is as about customers one-time Some are more subscription a Nehal, did that But move what revenue like of much And many implementation did that XX right? years growth to customers factors, setting also, of subscription-based for with lower that relief modernization Compared is make extent. some from are are one that products. to given also all delays of subscription-based. more also certain The business, customers better

the for So in be next from go mid-XXs resume and bit is subscription lower like and going before higher I a the is then of think we couple to there. going growth then quarters, it number to to were revenue be the

that. fact and caught some for the kind been one-time this So the credits quarters that quarter of couple was affected low our by of has to last up with sales

Right.

you I $X.X Q-over-Q however, million December did have XXXX, I decline. million Q-over-Q at a in number, a When a December $X.X subscription you $X.X XXXX, it the decline. XXXX, was Q-over-Q historical million Okay. had see increase. look

So in goes that's why here the I to respect mean, asked. seasonality some December there that is on quarter with I subscription?

quarters than the business at collections, than no Other cash in no others. seasonality, seasonality for this. really Nehal, are There in better our is There's certain all.

Okay. Could strength. pockets there of that you what And those mention you detail then are are? did pockets

many casinos. are well, the quarters And that of a the There said are well, and doing gaming are drivable technology we've resorts drive doing make are Many decisions. well, all I award, resorts like tribal quite call right, There of that especially – can where the as the Nehal. think last to. are many would couple the continuing of people in resorts, the cater many of we they I golf to of casinos to and lot

should products. all And all many POS, PMS of of be regional where casinos regional other do East drive They're well. And there weeks should additional tribal and next fact, within resorts with them can both In people be are are our that casinos, to few easily to. two live major the in live. continuing to do the are resorts gaming the continuing modules, well. virtually all Coast they

of pockets strengths in So the those are there business.

opened still. However, up. really cafeterias like story struggling, about because all we the And the ships all providers service not right, know food cruise that employee have yet and are managed

us are aspects business pockets of which last of what business the some is the showing aspects these of strength, So sort has going struggling, quarters. but during kept many are of three

into the I'll Okay. get back queue. Great.

Thank Nehal. you,

Klee Our question of next Instructions] Allen the Group. [Operator with comes Maxim line from

software add on update revenue Good that's afternoon. percentage doing? mentioned Could that an you Last could few give us your in calendar just quarter, XXXX. been new demand points a you how product to

Allen. X% the growth. Hey, so last revenue quarter, product of Yes, we could add to OnDemand that the X% said subscription

is last slightly XXX still cancellations very as well. half, free period. roughly of roughly using and the and product. low live trial the XXX half through the are call centers than right the less quarter, mentioned product profit properties on the currently now, we going seeing And So of We're

that So ramp ahead for still significant one.

from also pretty about guess Could that. working who's about PMS there And large past, potentially some That's to you're your can good the in that that with tell used talk that I you anything could mention great. kind of offering in you some you now trials had anyone And be Thank then large end that on talked the – year Is that should of a beta full-service hotels. you by you. be about the working of that shape. you opportunity? it that

Yes.

product or eight particular when So The would modern as on seven now a the And couple ahead any list is of competing par Stay technology-wise and involve well. because a PMS PMS as them you product, it's there. of noticed well. absolutely three I other them. PMS competitive. PMS other It listed or of have At wins, is it's about a truly with product products least so of

the what we currently XX of major be, more number about are coincided just you XX think pandemic. above So months, to the PMS and There's our it with ago. a that involved PMS do far in. months opportunities Unfortunately, resurgence is lot when say, pipeline, our demos PMS sales used we

So of way. view terms demos in of have a number in it, terms customers long and even we though come of how

Resort And couple are that, one I talked major had. is about got Like That's that other of during more But competitive it. we bit. Unfortunately, through. PMS us. wins the We a have a I decisions script have also a in stay a aspect definitely win before Crystal broken that those Springs slowed for mentioned of down we lot PMS.

Allen, seen us last have few sales also lot the also, well for is all done products PMS other a fact rGuest aspect Mobile and during and the months. success wise. of pretty those around check-in/checkout that Service The modules have the add-on

past golf In catering the some modules, really weeks. sales during and new the like, during all have PMS the fact, module then flag few supporting success the flying these Agilysys kept what then products and product times. of And even the seen has spa, and tough that's our Engage new

So PMS down it position would of and the exponentially has because because not in related products XX numbers the like XX fully wise, resulted to slowing Allen, yet we far But pandemic. to improved you of of higher better, than decision the in are months we kind see ago. sales were

so you Thank much. Great.

Thanks, Allen. Appreciate it.

Capital a Chokshi follow-up We of question Northland line with have Markets. from the Nehal

Yes. Thanks.

XX%. about So at bookings end markets, of been you two think have how down talked they're and thirds fiscal at we guys year I prior when yet look levels,

looks good. that very So

is Agilysys resume prior does we going than solutions? linearly the that will Agilysys translatable is levels, mission-critical industry business that, level this to when is, this – returns demand I.e., question the bookings is industry was for nature solutions a reflect of reflect my normalized to this Agilysys to more pre-pandemic XX% provided the So does it to there's returns? what the be basis? better are basically on Or actually inelastic and that of if

not it maintain is – as number as we our I though mean, what the the increasing, kind we circumstances good that tend circumstances be feel tough matter Nehal, able to of right. levels our is been that are to on ambition. our current to it, not under the thirds put bad We are a previous but we about the satisfied, sales fact should sales year, no two has

much these months than resumes, think our yes, during two that months. thirds because lot better So fact than thrilled sales is has up once you're not year competitive the we we our And positioning previous right, market previous the In is are it encouraging, done, what thirds, about. should just the more versus encouraging. have terms But XX right. market absolutely do the relative kept last has two I a we improved definitely the XX

phase Nehal, about sure, on but reopening it? put So XX% not are the I'm recovery can once sales a I we starts very number happening. bullish

than do and market what we make much we on market will think the does. think want Nehal, the how too that, do, will don't get ahead to That's ourselves. I a promise we want of to but better don't

same the uncertainty as It's it it on happen. go-forward Sure. when a to And pre-pandemic, optimism level quarter when basis the a That Correct? ago. as just Understood. then was the remains spending. will post-pandemic optimism sounds of like it

products actually, at which has two because products reason R&D It right. months team than moving increased the Nehal, main The the why improving increased more experienced. a pace a from previous ago. is has it better forward, our And Correct. is are bit our are just for quarters month is lot every

Hong hundreds modernization with a actually of sort being have our inside like entering of we the InfoGenesis or been of products the who I us, told prestigious product and went Now first actively as and people now, in in Kong. a live ninth-inning core restaurant efforts who couple you, out. have used And ninth-inning, the POS years are say, and modernized our also, for terminal is eighth at least know

use of are iPads. In fact, to on and we restaurant. have not levels allowed to And are restaurant, they that three name yet the the there

that of product us in of confidence right. really So improvement kind terms increased our is helping in products,

So seen customers in those is. sleek work fact, how have are many of how it and And is POS that by on happens in restaurant. stunned iPads our well it working the couple selling IG pretty activities a of in actually Asia

our confidence, that do will increases all So that we better. right,

the quarter So if last you higher level before to me, is confidence than that. ask quarter like the or our

the timing be months. by six are at tunnel, light the Every the three we another of However, it seems to pushing the us. close back think the discourages to negative end we time still to is

every is month that is with how own So mostly our confidence a downer, of because definitely little of products a our but passing part it of are forward. increasing bit driven being

Great.

Okay. Thank you much. very

Thank you, Nehal.

in to closing to questions further no turn for showing Mr. like back at Srinivasan queue time. I'm call the I'd this remarks.

attendance full mid-May good then, you. reporting team our your Thank your On investments grateful to when Look you our Until we around the I'm of Thank will forward you, and to our today guidance. in support very your in continued X,XXX-plus Agilysys. interest Thank take and your and all for be management results. XXXX for talking and fiscal you members, again QX year behalf Board, Agilysys Liz. team and care.

gentlemen, and Ladies this Thank today's call. for concludes you participating. conference

now You may disconnect.