Agilysys (AGYS) Stock Surged 23.87% on Q2 Fiscal 2024 Results

The Agilysys, Inc. (NASDAQ: AGYS) stock price surged 23.87% after releasing the earnings results of the second quarter of its 2024 financial year ended September 30, 2023. The company’s total net revenue substantially increased by 22.8%, reaching a record high of $58.6 million. 

The figure markedly improved from the total net revenue of $47.7 million in the previous year. Recurring revenue, encompassing subscription and maintenance charges, achieved a record high of $34.2 million. 

Recurring revenues constituted 58.4% of the total net revenue, compared to $29.0 million, making up 60.8% of the total net revenue during the same period in fiscal 2023. Notably, the subscription revenue surged 29.1% year-over-year, comprising 53.6% of the total recurring revenue, up from 48.9% in the second quarter of fiscal 2023.

The gross margin for the fiscal 2024 second quarter stood at 59.9%. While this is slightly lower than the 61.5% gross margin reported in the corresponding prior-year period, it remains pretty healthy.

Net income attributable to common shareholders amounted to $4.1 million, translating to $0.16 per diluted share. This marks an improvement over the previous year when net income was $3.1 million, or $0.12 per diluted share.

Agilysys reported an adjusted EBITDA (non-GAAP) of $8.1 million, an increase from the $7.4 million recorded in fiscal 2023. The adjusted diluted earnings per share (non-GAAP) reached $0.25 per share, up from $0.24 per share in the prior year.

The company generated free cash flow (non-GAAP) of $2.5 million during the fiscal 2024 second quarter, maintaining its financial strength. This performance is consistent with the $2.3 million free cash flow achieved in the fiscal 2023 second quarter.

Ramesh Srinivasan, President and CEO of Agilysys, commented: “We are pleased with the strong fiscal year 2024 second quarter July-September results highlighted by year-over-year 22.8% quarter revenue and 29.1% subscription revenue growth, driving both to record high levels. Adjusted EBITDA was 13.7% of revenue, higher than previous expectations going into the fiscal year. We are doing well managing through the current phase of increased investment requirements, which are designed to drive significant further revenue growth in the medium term.”

Agilysys stock price. 

The Agilysys (AGYS) stock price rallied 23.87% to trade at $79.15 from Monday’s closing price of $63.90.