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Agilysys Inc. (AGYS-20.11%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports a total net revenue of $69.6 million for the quarter, an increase from $60.6 million in the same quarter of the previous year. This increase was primarily driven by a rise in subscription and maintenance revenue.
Products revenue decreased to $10.7 million from $12.7 million due to a shift in customer preference towards subscription-based software licenses.
Subscription and maintenance revenue increased significantly to $44.4 million from $35.1 million, reflecting growth in subscription-based services.
Professional services revenue also saw an increase to $14.5 million from $12.8 million, attributed to higher sales and service activity.
Total cost of goods sold increased to $25.7 million from $22.7 million, with the cost of subscription and maintenance services rising due to increased variable costs.
Operating expenses, excluding other charges and legal settlements, rose to $36.4 million from $30.1 million, driven by higher sales and marketing expenses and increased amortization of intangible assets.
The company reported an operating income of $7.4 million, a slight decrease from $7.8 million in the previous year, with an operating income percentage of 10.7%.
Net income for the quarter was $3.8 million, down from $77.1 million in the previous year, primarily due to the absence of a significant tax benefit recorded in the prior year.
Agilysys completed the acquisition of Book4Time during the quarter for $147.2 million, expanding its service offerings in the hospitality software sector.
The company maintains a revolving credit facility with a maximum aggregate principal amount of $75 million, with $50 million drawn to fund the acquisition of Book4Time.
Agilysys continues to focus on expanding its product offerings and increasing its market presence, with strategic investments aimed at enhancing shareholder value.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Agilysys Inc. quarterly 10-Q report dated January 21, 2025. To report an error, please email earnings@qz.com.