Agilysys (AGYS) 23 Oct 232024 Q2 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Agilysys Fiscal 2024 Second 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. the XXXX joining Call. Quarter for you Agilysys Second 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 assumptions, to that believes forward-looking are such its could statements reasonable results are and Although differ the company cause risks based statements that uncertainties materially. on to

Important services our materially for our need factors effects to ability business, statements that of could these the sales, industry's hospitality technology other the cause on actual company's solutions, results the to include on filed the the from manage our to vary global and ability cost increased factors ability and economic And drive reports Securities forward-looking in Exchange increase to profitability XX-Q risks reports our forth and margins and set Commission. with and XX-K improve Form investments.

in hospitality any software a the and this during transformation levels Agilysys for record an period refer to only to entirely As business call the company made XXXX. financial solutions time references fiscal reminder, year after focused

like now CEO Ramesh Srinivasan, of call to President I'd that, over With and ahead. go Agilysys. the turn to Mr. Ramesh, please

fiscal quarter earnings second to call. XXXX Thank the you, Welcome Good Jess. evening.

Atlanta Wood, Headquarters Joining Jess Dave Alpharetta, and me is our call on at the CFO. today

earnings As the has in become practice calls. regular our

moving and details. the cover on first selling to me success revenue before Let summary other

of won to sales value, year first our and sales, year. was better contract the half success net July one ever half last Overall, agreements April of comfortably fiscal best September of signed. sales fiscal quarters. to measure selling QX, sales our first We in of September annual than was success Fiscal best XXXX XXXX, ACV,

to are sales, across a halfway through year providers quarter virtually of September sales XXXX this managed our Fiscal for significantly full to food regions. we sales year. gaming cruise last best start course, and the good international ships, ever July and off all of year was, resorts, hotels, a service better casinos, was verticals

were resorts, market because APAC. encouraging hotels share thus areas and our levels these Sales and growth April was cruise international low are Europe with ships best and from to half particularly also in stellar across sales non-gaming first our possibilities ahead. far, for September major still

fiscal reached end year-to-date close was of all of last of the across September, sales APAC year. already sales year to As level the full

far for high are today. than help a July around efficiencies, technology, in operational state-of-the-art increasing Our has that unique noticeable increasingly is software and an which feature to based and hospitality every and started effects macroeconomic of period, competitive significant ease create cloud-native the over strength sets of rates, and XXXX, negative installations, seen We've calendar increasing propositions still of reengineering several for done of the breadth month, which are now customers The product success, hospitality the with that most on positioning growing on-premise enable continued huge month becoming also selling and is at compelling us. The creators efforts with getting passing is through help any unabated to end-to-end pickup all not solutions, better well improve more staff need of work and selling needs, offer in experiences users recent guest August added industry technology innovation which challenges. months with, global, use can to later. depth for ecosystem with of prefer. All the possible has XX value September

due expectations to reasons, the of investments. too In done guests. We on development than this innovation property, a needs and of of end-to-end research digital hospitality hospitality the providers lack well the And accelerating, less up technology among needed needs. employees cannot have raising far other and industry meanwhile, the with transformation say is around focus keeping revolution

we seeing will on expect with a our in power product space. gap environment. that We drive have to strategy we advantages line executing technology-driven and think total well, to assessment We are that huge have addressable continue even done in threatening think momentum that in thus clouds the and In challenging escalating sky. market fill macroeconomic not to business good momentum staying any possible growth competitive far, good our this

loss be win at sales levels. impressive to ratios Our continue

average success of personnel of sales years of hired of of tenure rapidly about highlights place this context, Agilysys only is couple past slightly during in Agilysys them, increasing tenure To than group a have Of was of this sales is X.X XXXX, One post-COVID. personnel fiscal the productivity less And of average quota sales quota a joined COVID. the the our the around carrying now. years us half after the during first carrying the year. half personnel sales

half group first value, contract measured all of did personnel During much sales of of annual have XXXX, amounting close to as this in they the sales last fiscal to twice fiscal already won year. as

increasing momentum and only current Current levels. from also decisions, capacity additional maintain prudent strength. make staff to but continue with have sales force grow sales to appropriate sales we still not to While respect

accepted generated In continues focused addition, effective of on efforts improve. customers and the marketing marketing number by and innovative to properties new new generated opportunities, sales

number this it was as months, recent as During at high last time been twice same the has year.

by wins and the XXXX, have solutions of While property fiscal half continues bounds wins. first mainstay. during also significant improve our several included system, management and PMS, leaps Sales with strength remains our POS competitive point-of-sale, to

Black their was Oceanfront Vancouver modules and Columbia, Rock several selected multi-amenity of experience property QX Agilysys the on their in during stunning software iconic enhanced win notable Coast This Canada. A Western Resort resort. add-on British for Island oceanfront PMS

modernized deployment XX for ago. months reengineered the live XX There Visual on One Versa released as properties rebranded ground-up are about now production PMS, close and to

are runway related and still proposition establishing in is modules early of stages the growth the of ahead technology-based PMS in a There cloud-native of our field. us. PMS state-of-the-art We value long

fiscal During to X-X, agreements. the new the subscription customers, July the new XX per of in fully XX range, which which drivers is new XX XX, XX were to quarter XX% XXXX been our of customers within September, added customers we recent past. growth QX revenue one has of

impressively deal customer sizes remains levels. New at high

of couple the quarters. XX of XX, this XX% about property our customer. quarter added also did The have deals parent X-X, before, of average We was products not already new any company size was which the but deal properties new previous higher than our

either XX across parent or properties customers XX%, added customers quarter the Of than properties and new during more than the new subscription-based. XX% were more new -- fully of partially X-X current

total there XX other sold selling at a were instances instances involved additional products. addition, had to XXX customer XX least new product of X our which products These In current to of properties one of already properties.

The instances XX sales X-X, preceding average XX, the deal new about the XX% sequentially than of size across QX higher was product quarter.

XXXX. the half than fiscal during is the million was revenue year to the we've XX% seventh than Now higher was to of Overall XXXX on of revenue highest period. Fiscal XX% first comparable revenue. consecutive a $XX.X quarter The during $XX.X record first million, prior of record close revenue ever higher quarter, revenue fiscal increase year-over-year seen. the revenue the XXXX QX half

QX revenue X-X, X.X% XX.X% of driven recurring revenue year-over-year increase to to XXXX by revenue. recurring compared subscription and year. Fiscal XX%, record a XX.X% Subscription a year-over-year QX grew revenue $XX.X total of quarter-over-quarter XX% sequentially XX% million, in constituted last

a The of $X.X of $X.X compared record overall $X.X record year-over-year million quarter revenue was both revenue year-over-year million, where related POS to growth sequential Quarter-over-quarter revenue and year and modules. recurring of consisting growth in of increases. sequential last increases best both PMS such in are subscription of million and subscription QX

modules, software modules from products. and tangible such improvements numbers. The their in models other few with These the helping the revenue rate the add-on developed modules add-on and a year-over-year make goes we XX%. operations. ecosystem grew are past overall years few which measurable have of the and the built were conjunction during Subscription in of far subscription POS end-to-end over working years, past PMS generated core growth customers the beyond with better each value most of these experience and slightly at than enhancement

recent We to competing when and enhanced heard meetings held operations innovated these bringing several such own stories customer other customer together. their solutions on and board and advisory modules hotel used, gaming stories value are about during show measurable were with impact of as attending positive Vegas these Las on and tremendous customers. Each best-of-breed shared in in

for pace year upcoming of $XX.X Services XX% million, revenue comparable The teams augurs revenue services was well handled higher record quarter. growth. being by implementations increasing prior than recurring a the

managing software at We now, complex several to cloud balance relatively a quicker with on-premise continue implementations and progress modules implementing good newer and between installations. and the pace majority make handling products multiproduct

margins Improving but fell the to few business objectives. one current of margins short our improved expectation. of XX% services Services still XX.X%, levels remains from

short steps affecting to margins currently. on necessary We without improve are off all falling focused remain We services customer taking levels. satisfaction

X-X, a of about record consisting up quarter. year added than XX%, the revenue product services million, XX% Onetime prior revenue $XX.X comparable to and higher

$XXX year Revenue be range year now expectations, XXXX we million raise in first fiscal to our initial are the position levels $XXX guidance to million. during happy to a half to exceeded and full revenue

million Significantly picked has well and the the revenue half going fiscal revenue XXXX subscription and a our of We was the of quarter we of subscription prior full percentage for ahead year was implementations think The rate quarter QX during couple of be of fiscal XX%. and anticipated. EBITDA first XX.X% than up year better of the during $X.X than points better previous project growth the the will guidance into year. than XX, XX%. Adjusted expectations X-X, better growth sequential revenue

us difficult period investments managing forward. cost medium-term increased a levels cost were improve revenue stabilizing of We've Increasing and done drive help revenue consistently going well to through should growth. required profitability which

full at percentage XXXX, point X-X, the We now year. EBITDA year X the of provided beginning expect XX% for higher than be the to fiscal XX, revenue XX% guidance

further me call hand to Dave for let color. that, over With the

Thank statement. Ramesh. Taking a beginning income at with you, results, the financial look our

quarter from prior of $XX.X Second was million revenue quarterly increase total a fiscal $XX.X a the record net XXXX XX.X% million. of year period. in revenue comparable

up revenue period, year with XX% XX.X%. subscription product Recurring compared XX.X% XX.X% All year revenue lines also the and period. to prior X the up over was up increased up services professional with prior product

and Sales above momentum backlog total exit near-record QX with revenue being strong levels despite throughout expectations. remaining continued our

are pleased backlog services the of professional sales team -- remain for second we about services as improve. despite also quarter and continued row to have in our the effectiveness the see strong a same also efficiencies We remain implementation, to

XX.X% prior million. the year revenue Product over increased to fiscal $XX.X

expected, which revenue the expectations product increasing now than revenue better Our quarters expect the during point-of-sale perform is our stay business year. We million year. continues north to to last for of the product $XX.X of fiscal X

a XX.X% $XX.X the fiscal services record prior Professional increased period over to million.

previously are velocity sales begun As that mentioned, are record to we near stabilize levels. implementations keeping backlog at have levels pace pleased with and

services increase professional to and XX% the grow fiscal for should expect to the We continue of north throughout sequentially year. year full

of revenue. Most related revenue subscription is contributing professional than to corresponding for less 'XX fiscal year Development our been years revenue. XX% service of has happening of in acceleration projects the subscription revenue future projects to large the

revenue the Total Recurring in as recurring consisting and onetime a the compared to of because revenue for increase percentage net products total total revenue professional second of of in XX.X% XX.X% revenue quarter revenue second net services. of a XX.X% quarter revenue fiscal of total of decreased represented slightly XXXX. fiscal

XXXX. at grew revenue fiscal of second of for Subscription second revenue XX.X% in the fiscal at XXXX. the of XX% recurring total XX.X% Subscription comprises quarter of revenue than total revenue recurring higher compared quarter now to XX.X%

FY increased quarter the Subscription increase continue of year. subscription revenue million $X.X expect for 'XX better million was to sequentially sequential rest sequentially for subscription $X.X increases. and remains backlog and revenue million each the to between strong The the we than revenue fiscal $X.X expectation and

multiproduct the large normal which backlog timing implementations, prior was of than and completion couple on quarters. were worked QX during higher were a due being of of in to

Gross income profit the fiscal to the the compared down Moving compared of Gross was second second profit $XX.X million fiscal XX.X% XXXX. XXXX. to was quarter XX.X% statement. quarter million margin $XX.X in of in

affected in gross half ramp we the team. services margin as continue to expected, first the was up the As year of

Second back half get XX% margin the gross into should range.

operating prepare and to main XX.X% revenue to due development expense development, investments large to for XX.X% the to sales additional X administrative slightly general prior product and discussed XX.X% of Combined, year. revenue year to the fiscal excluding increased quarter. previously the line of future and Product expenses, compensation, made compared deployments in stock-based in revenue items, were XX.X% marketing prior compared of

and in fiscal XX.X% revenue to of General XX.X% second of administrative compared XXXX. quarter decreased expenses the to

increased to of to expenses. from and revenue, due Sales timing XX.X% slightly marketing XX.X% revenue of of mostly

the Operating income $X.X second gained $X.X $X.XX per of year's of $X.XX. million, the $X.X compared gain million increased and all to quarter quarter million diluted million, and for $X.X net share income prior of of second

diluted year income the was nonrecurring slightly of $X.XX normalizing noncash prior second income million and the $X.XX million share per more for certain net adjusted of of slightly earnings quarter Adjusted higher charges than prior $X.X $X.X in and adjusted net in was year period. than

in revenue. QX million million compared XXXX 'XX to the the ago $X.X XX.X% EBITDA quarter. was year adjusted For was of Adjusted FY second in EBITDA quarter, $X.X

previous to prior high XX%. than Profitability ahead remained of of guidance levels. 'XX FY of better revenue a levels of was percentage as of guidance largely quarter the higher-than-expected digits, for adjusted EBITDA our due revenue single comfortably Profitability

to flow statement. levels $XXX.X of and Moving September remain XXXX. sheet comfortable million was as balance current Cash XX, We compared our on the to marketable cash. million March XXXX, with $XXX.X cash of and XX, securities

the million flow $X.X was quarter. in of gain the year million, $X.X above prior Free a quarter cash slightly in

for EBITDA good we year, CapEx be proxy flow. the believe free less a For adjusted still cash will

$XXX guidance increased fiscal inclusive we revenue year our million, raising For to range XXXX, of an our $XXX XX% are subscription revenue growth. to expectation of million

percentage profitability of growth the service the professional half for the adjusted as improvements of during our closing, raising are year. In revenue momentum, we revenue XX% pleased also EBITDA with from are a year. to XX% We the sales and guidance first

to With that, I over Ramesh. back will now turn the call

day tone understand summary, and In the are expected do listen macroeconomic the sound Dave. the we what headwinds. news hearing deaf want to saying. are of headlines economy to not possible we to you, and pandits when do each Thank We predictions drumbeat what the we read of

momentum. our However, is, are we of what business any report seeing truth can signs we is. The reality only in not slowdown

lot all example, use potential with huge To equipment, with fishermen, bit of with it addressable possible in may a pond a large any a now water of It there that is any relatively shrinks the market effects, we crude are operating negative growth state-of-the-art fish overwhelms total of an drought small possible feel modern are the a becomes even sizes. that we if not or a level ripples unless enormous everything. around

and have or part any We investments of customers met and with and technology long-term appropriate other time heard and their many reluctance needs. make their to meetings spent required not signs business short-term of during recent the trade on seen shows have meet to

are value, additional of innovation addition, modules. solutions worked including have In the integrated high-value-creating recent create real beginning to levels we through massive creation the product during customers. years, around XX experience of enhancer for modular tangible and The the

protect our far growth, us an And will ensure that getting that we ourselves. managing ahead should we is growth remain around never the foreseeable additional future. providing disciplined too prospects of blanket also of All for

our first guidance While has us this during period efficiencies have recurring in kept and revenue record revenue, at improved provided. near effectiveness the significantly continuing and the sales half September, services implementation success giving of level, raised product April year, confidence a total backlog the services to aggregate

repeat and growth. sales overall shape, continue marketing progress we excellent to all-round to we quarter, moving last investments We keep increase business our for will what are necessary business momentum positioned remains also our well along. To and and in as said

up With for Victor? call open that, questions. let's the

from Mayank Needham. will come Instructions] the [Operator line question And of Tandon from first our

quarter on the about and hear sales record performance. first, Well, congrats great to the

just terms ahead, and you just of in with between wins, look more out think expansion. as you between how as that you we ask rate, clients do growth growth the components maybe break new me X forward? it Could ARPU logo down Let expansion existing parse going about the you

Yes.

sales first from of logos, last half year, as first the refer the the When Mayank, half, new versus year than new success was internally, this customers, we half higher, year. sales. significantly was higher is think far of you new customer it customer this that first to about sales when the So we new year's last compare

of remains with is definitely a for us a growth signing More of driver driver new up that big us. So growth. customers significant

it The meaning other products, driver products of current new growth is new properties is signing whether up. up signing for new customers or

compared Our Typically, deal multiple for few a us products sizes years up to sign ago. are giving now. big advantage customers a

the fact good for customers sign us. up that for of is multiple deal one So a driver size products that instead growth remains just

every to presence where better low. PMS driver The systems, still is with better share management is expect and we other get growth have still we market our Property quarter now. very that

in are impressive growth lot continues the more increasing forward. PMS We is our becoming also and to driving products the are strength all and while an That presence also drive continues now. a to major POS RFPs, forward, remain point-of-sale

Our investments ratios, sales effort, we spending sites, too current also is is up winning much purchase also services us used that -- as what new product in customers our But is in whether all, continue existing in for efforts it increasing way it the much much, win-loss than us, better make existing right, lot driving other the a when chances without past. with well. more customers now to to signing an too of expansions above be participate our and and

now, efforts more say forward getting now. door the and would together it now. lot is all driven also I product innovation growth a all our and to marketing for are opportunities that And So is driving our

say So factors, Mayank. combination those of would it's a I all

on quick to a question, as the And focus I That's margins. very follow-up color. helpful wanted

you're break year, does remainder down leverage cost this operating the margin expansion outperformance line? quarter to guiding and of you between and how for saw the that the gross then that that So on the

Yes.

to So sequential higher Certainly, pretty point increase gross like expectations, the we margins talked gross accretive about revenue were largely margin of million due subscription $X.X expansion. just about, levels. was one ahead to the the of

on gross much mean the So a investments as of year margins. cost of or incremental. the would I for ahead one the kind coming of most of our then QX. it be two pretty -- think into settled point rest And our was

obviously, revenue, higher OpEx costs. didn't the incur So additional we

was of the it the subscription most expansion overachievement So the and of revenue revenue.

is I from comments, We've consistently improve like had make what you through margins, when EBITDA drive order typically as in the of we and growth that. in my here. to revenue And aware measure profitability expect, to tough by should Mayank, mentioned investments to our gone significant we cost you're phase medium-term

should year a the in starting as fiscal you during consistent year second of see the into the So next now, profitability improvement and half well.

to hear. on the quarter. Again, great congrats That's

question Matthew VanVliet from next BTIG. line the of Our from comes

very guess deals, strong. you I to continue your around, then when especially strength couple of And win made and be in a APAC that you also comments Europe one, mentioned rates the there.

replatform I guess, side the highlight that a especially different the the as a international sales So how last through customers, curious helping of in to on went diverging driver potential a mind and and how than of much little you about know then international it's you Agilysys, but there, question, at at that on versus least the sort drivers much, the all, you bit brought I that. might be a sort think the contract would investments, the win additional if top more Anything I U.S.? Marriott markets of on big of driving guess mentioned sort or, for in the that's the of couple that product been of

Yes.

to market to is even marketing our actually compared and opportunities is a is X us years we it or low. superior efforts share the whether mean, low, So get areas bit were driving where are where international very What X I domestic ago.

us the -- the -- contention. marketing of is definitely efforts in are for those opening opportunities definitely up impressiveness And the product product are So keeping demos us. the

and world feel to reference they and these what will are products, the more superiority, also building doing give the require more because ourselves comfort get product what is that, well. do establish we from customers in with where yes, are need many the are superiority have who we went customers. them Now we ecosystem There to That's apart we countries the we now.

and more it is is beginning domestic international work even product Matt, or some that now in is in done, areas. and work the less The field many regions

on are really in establishing products, ecosystem now establishing within rolling. reference these focused So these will creating the more integrations then and our field customers ball we and the start

good what saying field, and now doing customers we ratios ecosystem products. But So presence win-loss are about the our is what more great we focused end-to-end of is kind on are are on when our innovation. this focused look nobody demos the product customers things else at now. generating more That's in very

here. comments Dave, And the count head more seem the full majority to your been sort helpful. year additions of for less that Very or of imply made have

So of back sort maybe the But would success rationale to wins, new the or do the capacity of the stand some team in of about confirm need on you comments as what bookings potentially as Marriott especially in confidence one, especially on better where delivery just add importantly, give of light you performance implied. delivery in more of additional total additional continued capacity think count services wanted head that's late. we terms to half up, what or team, your do the project the the ramps you the business

Yes.

we've the given. done OpEx or as left But If perspective we services pretty head there's count job we wouldn't tremendous more from services a that could with which they've -- bullish other the settled mean, I certainly, we over still on sit we're moment. increase. a investments for incremental to start starting or think ramp right? delivery, I pretty it's their through still something head gross But revenue and headcount, we I revenue pretty settled from to open on but to on we're settled team, say team, But whether not So that's continue see the pretty margin team. a we're market we the year, at make of and first the we the mean, left the feel that with on certainly guidance half count wouldn't a have of that. be up parts where there's fit, ramp

will line from Sutton the Next from George Craig-Hallum. question come of

Ramesh, the analogy in I appreciate fishing particular.

talked playing offense could So when increasingly, defense, mean you're show. you through wondered versus about to trade playing success a that? particularly guidance. if are increased out a what of you and And by have the translate you walk help part sales I at just large that and you exactly I why you're seeing the

Yes.

we us of So a comment was a years couple offense compare about a be years as here started defense. low tends right, ago, the Like after measured pending during that issues, my to products, we you customers success meet implementations here the and by of when initial even Whenever pending trade in shows, technical you issues. got to of few when days the improving number

with making That's measured, tend be are you to despite they XX pending only to customers, issues they how are and resolved. be playing there technical that the you and sure defense there that. are issues all constantly So with stay

from percentage this implemented system and additional that. Agilysys. three these their to various these stories went moved especially have were and from there a publicly sessions up were this stories to We some In where were core and we or these they recent in shows, in business about product year two the publicly competing attended we modules. parameters more PMS more shared attended, talking of shows And

share actually happy to details other were those they customers. with So

defense customers by complain and trade into playing So offense them. with to that's that many what going enterprise come play you're no I are going defend and longer software we to companies like to shows expecting mean do, where go

stories the be can Now with other shared that we for looking are customers. positive

more, supporting be more ago. implementation products that. are years and offense we staff many used defense and to that And switching we services So the are our are the from supporting to

better we go becoming along. as is support Our

That's as there So other more for the to for well. an meant, stories George. others provides buy with customers to customers products share what that I are incentive positive

That's great.

the issues. had So operators, had in that big investment some gaming capabilities some the clearly I there you've big on were have Can side. a impacts I a that large your you important. becomes of cybersecurity those space about any made situations? which know know in particularly cybersecurity have cycle, is what when increasingly sales in happens those talk you part doing How you? to cybersecurity And are

Yes.

them. there, directly. questions one, number couple of make that a So No all you impact cover let of me impact. have Number no a sure I recently. There of news direct heard

knowledge overall the understanding of and incidents what publicly. than of more is reported incidents nothing Our been has our the

So though not it, the them. again. to involved us with absolutely were we To in extent always help, we asked back of and there up we directly the directly, not help are impacted up for were course, customers products there various bringing the they to help

So a couple of things to keep in mind here, George.

cybersecurity one, you new in incidents through Number hospitality. not this. think As are

of the there's who guests, of X with so, tend in customers, lot years quite of consumers. because up a this go say, been have list affected a customers you they If hospitality or last, just our lot to deal look by a

happen. cybersecurity the like tend magnet, to So hospitality tends and attacks right, to a it incidents be hackers

one, new. So has before. times It few is ago many not happened happened what months number a

one in is that So mind. thing keep to

keep is mind The other in is our thing growth revenue to now broad-based.

only growth revenue customers, and right, enterprise or -- in is sales Our chain, growth, too not sales the across X, software. X revenue right broad-based on dependent growth and X

to enterprise space. are So pond the fish analogy. not that we lot that software, a just in matter, But in doesn't in size the there's of use the SMB

or or they get canceled our affect postponed around of themselves to anything. none kinds tend George happen months sales postponed, being of getting then decisions get on and badly cybersecurity themselves tightening those postponed get do few does because them later. decisions but not Some focused and back a they The too decisions are

a or something sales So or about impact any revenue from are it's not growth too direct we standpoint. worried

help making about and are are reasonably is customers. a sort sure we whenever thing are year. during This to customers what there always help the is we But regular customers we And we of to worried there required. the and help frequently, several do

security specialists all have that. We us with and

But are we always from these be I about and growth helping. sales So standpoint. worried wouldn't a in revenue involved

So very perfection of And we training layers making hacker sure best is There the well a through they even within ourselves gets protecting severe can. as layers much. no have our protected company, various employees, of cannot in very cybersecurity, stringent as X of business. if layer, very training to reach multiple we employees,

be. we So to protected sure as several about we to investments well can absolutely vendor partners great do have with you are that increasing worked as make

security in our application also personnel the involved. And always are design and information we applications create,

joint a among and a weapon our creating ourselves used cannot are exercise make are no and that it's we there's absolutely Again, as development. security both there, perfection the the be later customers. doing but on. IT, protect to to best product we Now information products sure

Apologies, one to squeeze just in. more I'd love

You little this haven't was thing managed -- a that about for more Could service like and pretty area? good while, bit necessarily quarter. a just you a favorable a give in food said sounds us it specific specificity

Yes.

star cruise to and progress if resorts So a George, the COVID sales, it this and ships. sales FSM, there particular from first is half QX and in definitely well time. But recover continues of is

have compared steady would hotels, things internally, depth couple of the what I star the a the FSM, to So COVID as of to ships last cruise refer improved much HRC continues the performer over was to definitely years. resorts, from we days. show say, improvement how

will from come our of line and Brian Oppenheimer. question next from the Schwartz you, Thank

was other in opportunity management remember management wondering companies, you, the product like how the there? you quarter. there. Brian sitting opportunity midsized And Schwartz. I with? to for that I what's like have? And they land This does ahead is on the Congrats about this companies you do and speaking say, your Friedman or Ari currently the see where And usual module customers like compare

Ari. Yes.

midsized POS or far I one brand as that progress. companies, used to be management such is with suggested whose those be use side, recommended on we are to by -- and tend of the brand in the properties. sales tends deals as to continue we they point-of-sale tends various name who names is PMS the to are involved So majority make that in companies the good say area good a would

best it our describe So continues way management I with improve. the progress is to companies would midsized

are to be keen on more POS PMS latest side more the and improve. We It and to versions. at moment at our the the of to are side tends looking product continues on who them talking more

guys I like question much strength say like like maybe I POS? in POS inning we what terms you guess well are quarter talked baseball like in is one for And this it. and a last. if you the compare how would other to like Got of as you about growth and left analogy, could wondering is then was

lot left POS. Ari, a there's growth, of I for Yes. mean

record with far We POS. is track long as field. competitive rewriting of to stories all competitors lot are with as seem ahead of good because been doing be advantages a had had the well reengineering POS we've have product, POS of Well-established with established the The it. in We we done. concerned, and the a

in POS still many is our So ours, strength a very market and areas. share-wise, low improve. share been it POS to market of has continues But

we ahead a there's the we Though more in on compete a So of just the POS mature growth side. market. lot in how bit are

field the done. product is all we more of side, but have are modules still the PMS the work also created sing like I we but would the lot additional done. product products The get We've having value, baseball as a reengineering XX of that early work products that to the say are On the adding as the establishing praises far work very is more PMS in game. done, in field, customers

And inning has market low is sales geographical or still first done. competitive both work share were second the areas, high in the and well many We established, to are still but verticals. all PMS, in that there. product strength, improve. POS

in early field. ourselves establishing of We the are the in stages

Capital question the next line will our from of Chokshi Northland Nehal from come Markets. And

Great quarter, an better-than-expected earlier nice implementations than September some business, ACV guidance rather large sounds and big correct? like Is EBITDA turn It revenue driven of by this in expected being that quarter. the than is uptick.

by progress the to has driven of say continues best we and go live. before. that ships broad-based. about. and and nothing been correct. the But has half is growth was only the projects large revenue No, Nehal. couple subscription that our do a resorts I of our they It would particularly do in we progress recognition with sales that The to -- talked after we revenue revenue recognize went The has live, But got not before gaming well. cruise that sales FSM casinos ever sales high in internationally space. improve, -- hotels had to and been ever than very continues

our went driven quite been that large the subscription time. growth sequential was is have implementations we all sales by that quarter couple working of some broad-based a live revenue on for across growth, but this So verticals,

Okay.

you clear, is ACV the a quarter. have why So within did quarter to that strong bookings main September raising really you're be reason guidance

keep levels. the #X record strong backlog a it's had our our And at mean, is far #X we I near Nehal, in either as mind, or for revenue #X, product lines, record -- large despite Yes, mean, of within quarter. most sales increase, I as the still levels. it's it's even

going which good the wasn't a sales depletion revenue well despite quarter, there really in well. So is backlog, the as

Okay.

have additional an implementations and than guidance? rate raise the the that's better factor expected, also maybe is factor in improved So that a of

Yes. Subscription revenue establish The of field. we recurring fact well. implementation the lot products doing you're doing revenue the revenue because new on are Nehal, increasingly, efficiencies had to well, doing well. In that a

more We are those products. new getting implementing with fluent

dealing We multiproduct getting complex are also at adept more with implementation.

opportunities winning contributing that doing yes, new has the is sales and a with pace. all faster recurring revenue. us revenue So do increasing well very of also But to to guidance our at

quarter best did more one bookings you And of trend simply can actually be you're every XX-plus give of the fiscal going is ever when the half for expectation bit as to ACV little Okay. in several because far best September saying an and more it's just percent color best growing the than as a X of kind quarter how ever. like kind that quarters year-over-year,

first company As quarter be well. expected a mean ever are revenue, is our you're we I Nehal. saying, generally I best doing and Every -- growing to when what understand

a and start X every from again. you back as you quarter, finish is concerned, sales As quarter, far when it you have build to

to Our and products a sales geographical share to many in is a our well, the to our do more lot areas, to low. do has market sell. we fact do with strength lot has And continuing with lot have a product

of do one reasons sales why well. that's should the to So continue

was first color the of given, half year but as first year this of the year. is concerned some quarter last our one of And of we half as best have and our was than the any higher best, far comfortably if of year sales the

XXXX, take fiscal year sales Now last when for year record you was a us. it full

a made to even last year. better year start first the year, we this So half, much than

Okay. All right.

of this quarter sharks Finally, you made is dolphin quarter that looking the to a comment in the relative you the -- at is Has detail great. narrative dolphins graduation on last are continue be up and Any the Do September June pipeline and quarter, and have the September how rapid pipeline, to would any quarter? within how quarter? shark a traject it rate. dolphins those sharks

this mean, I George Nehal. Yes. also analogy, will like

So sharks play sales. to a our continue of and dolphins big part

September, good year, to going trend. first So entire think there wins any trend, of that the also bought us cruise we they terms half they size be were from opportunities gamut had, is deal were customers. of companies, sales do the through have of sales the we I the that or And and April which sizable products multiple in don't with resort that of were there sizes. several ship, slowdown of during sizable But the

triples are at in quite a look that sales When are that our sales there pipeline. doubles we pipeline, possible few and

them opportunities, and So to They triples were and to be through our continue whether going doubles are there. pipeline They first yes, September and sizable the in we or have there April you sharks they refer dolphins. half, in as forward. do

in in of numbers? increased they've And and terms out

bigger, opportunity to sizes higher. The deal they from us. products increasing because sizes mostly yes, more, are significant and More tend multiple opportunities, Nehal, buy are mostly the because

Congrats.

Thank you. back Ramesh for like the I conference to And closing with now marks. to would that, turn

you, Enjoy will interest talking We all quarter again be the Thank holiday to Thank X you results. when for months season. XXXX Victor. look about your you. in Xrd fiscal you Thank to reporting and participation. we forward

this call. today's And you concludes for conference participating. Thank

have Everyone, disconnect. day. now great a may You