AMSWA - Earnings call transcript Q3 2018 | Logility Supply Chain Solutions, Inc.

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Operator

Good day, everyone and welcome to today's third quarter of fiscal year 2018 preliminary earnings results. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during a Q&A session. Please note, today's call is being recorded and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Vince Klinges, Chief Financial Officer at American Software. ahead. go Please

Vince Klinges

Good third Elise. and to welcome Thank earnings afternoon conference Software's quarter call. American you, everyone

contemplated In prove acceptance the and forward-looking information pressures, could for economic are by products those statements or underlying call. general of this the On the Any market the services, of call of other products then subject strategy and call date. forward-looking accurate. that be to the made American timely forward-looking forth and set risks and availability with pattern of you regarding, But me be no differ is statements quantified Allan these among there other to like as competitive can to, such forward-looking irregular beyond materially will but not some control. revenues. growth after growth changes our on of which in remind services, are the and of only based and products and and these light are statements, and risks of our I actual give statements of could Such on and materially anticipated will would or rate limited Software. to this and Dow, effect Future assurance business unpredictable pricing of review cause factors numbers uncertainties, contain to These from will uncertainty competitive things, and largely and and from by are be some conference speak statements this the There our market number Allan predicted developments that differ number a include, remarks strategy. results those cannot are that. factors results and conditions, and may I the the forward-looking expectations statements. President uncertainties, of a that including our actual

quarter primarily year. the XX% million we the to third to last fees, ’XX, in last increased quarter license million, compared increased to compared million look of this $XX.X $X That’s XX% $XX.X due fiscal year. period $X to same period a million for taking at to So which revenues same the

revenues period quarter. increased $XX.X Total X$ and our $X.X $X.X the is managed $X.X of contract XX% services million, to increased that the And cloud during ACV annual same also year. million We ACV million XXX% million current is software-as-a-service that increased the ACV, value year. last million to last by compared components, for that to $X.X last other and year. the for to other quarter. And services’ million period same comprised and and services compares Our to hosting, $XX.X approximately such of million in two XXX% the $X.X component approximately services ACV or as increased compared to cloud other

Our X% maintenance to increased revenues $XX.X license million, million, to to primarily $XX.X that's fees. also due compared increased and

last revenues year. of quarter, our maintenance compares to cloud period the in and recurring were total XX% that the streams revenue of XX% current So combined services same for and

for current license same the to our the increased fee in margin compared to the primarily Looking period the and XX% to XX% at the XX% cost, XX% due margin, overall last last for period increased gross which to to same compared in current that's year, quarter, quarter, year.

our XX% for were XX$ was quarter. year And margin the current year margins for maintenance Our and current quarter. prior and also services prior the

XX% of marketing the and revenues, year XX% And current for were expenses, sales operating expenses current expenses of as gross for R&D same to revenues period. compares a and XX% at and for the total year. that period, period our the Looking prior were last percentage

prior the period. current XX% our revenues expenses XX% - That G&A of total the for for quarter. gross compares year were Our to

income operating quarter XX% last quarter to increased year. the for $X.X million same $X.X our to So compared million this

million last quarter, XX% adjusted based increased compensation, the for the stock current period year. same excludes and EBITDA, $X.X that which Our $X.X million compares in to

the GAAP per share XXX% current year. per earnings diluted million that $X.X net $X.XX diluted million or net to share these current Jobs for or this diluted to $X.XX quarter, of total exclude revenues for based of period, related our numbers XXXX. the compares the adjusted tax increased of this approximately adjusted earnings income our were compares $X.XX the amortization diluted million, for share Reform for to to and a benefit quarter and income acquisitions, expense share discrete was income or And of of per $X.XX that million stock XX% and Act adjusted quarter, So quarter, last net intangible compensation Adjusted third X.X revenues year. XX% prior last Tax compared earnings year. related expense $X.X and International $X.X of of

$XX.X to months date X% million. services also at increased revenues increased that million, year. date, ended Maintenance increased to to million X% X% last to total XX, increased compared $XX.X million last fees to year. revenue that $XX million to million to period million, Looking $XX.X to revenues January $XX.X X% numbers million. compared compares $XX.X to And compared year XXXX, and to nine the for same $XX.X Licensee $XX and the year

increased increased date, XX% Looking at to higher License services fees margin cost, margin of mix to in services. that's margins, and cloud and Services to direct to due compared license our year, the an XX% the year primarily in increase fees including margins to compared and channel. XX% same period, gross margin was from due XX% higher compared XX%. license last to fees to that's was our XX%

the was last XX% compared Our maintenance same year. margin period XX% in to

expenses XX% R&D expenses, month XX% nine at total revenues Looking compared our were operating the year. last gross for of to period

XX% were to in of compared our our period period percentage the in G&A to XX% revenues, same of year. year. compared As last and sales same expenses total XX% were the last a marketing XX% revenues, And expenses

compared year. last million So operating to $XX.X income $X.X XXX% year to to date million increased

year $XX.X compared revenues that to earnings $X.XX $XX.X EBITDA to date net year. Act. a compensation net XX% XX% benefit compares million income year and amortization of share $X.X $X.XX increase to International again, based numbers per adjusted last earnings GAAP last And And revenues Tax per earnings to of include increased stock million or $XX year diluted tax net diluted to $X.XX. expense and to diluted of total share. million. or were to Reform of adjusted discrete our or date And million income of date due the year. share million to XX% these income million compared to of that XXX% intangible or per was $X.XX, $X.X compares net income $XX.X Our Adjusted to

million. and purchase a Halo unbilled, shareholder the the equity and and dividends $XX.X long our million to cash million same balance for the at the the period accounts Other during Looking increased financial $XX.X receivables. when revenues, And up balance current Business during the million approximately $XX.X million, we the and last position paid long receivables made XX, deferred remained $X.X million the of strong, billed the investments $X.X acquisition we million Intelligence term sheet company's for compared million. year. total quarter, at which And end And $X.X of sheet, with term short are is accounts of XXXX, January of to of $XX.X million $X.X quarter. outstanding are $XXX of aspects of

current XXXX, year. in as compares Our the that X.X and to same of last ratio is January XX, period X.X

the that's due Our to same day sales the quarter. time, current outstanding primarily period XX year, at last XXXX of as turn like XX to days to was and Allan increase XX, sales large the call January of over in this days Dow. I'd end At compared the a

Allan Dow

third results, on today's comments the announced and then on call, a acquisition on the Thank November Vince. Halo quarter update provide make you, On XX. we few I’ll an

you quarter. another heard we strong from had very As Vince,

revenue record Vince In years the fact, the been business. I back over XX and we that quarter in looking hit involved have a

While at software-as-a-service the time, to a transition same model. continued engagement we to

our QX, subscription $X.X quarter, XXX% recognized indicated, SaaS XXX% million by of an value in in last over part the year initial revenue software-as-a-service more contract revenue, than Vince previous of period. year's of driven the the the increase jumped over As

a of last license on revenue period call, perpetual value. XX% conversion in same SaaS revenue I puts SaaS cloud equivalent increase the contract contracts value date the X% total to in fees our to the grew licenses. accelerating based This up translation the us to traditional net of a While XXX% exact contract year also an drove by business, shared approximate there's potential license no of Again, and we year. last income. over our On

conversion been revenue on had been estimate that in However, $X contracts QX if we SaaS license QX, used based we license have would contracts, perpetual million. the the a similar approach

operating by performance. achievements. services, our quarter portion the by on very strong a with result The visibility can greater predictability So operating in higher our also why we performance, this which very earnings increased team's basis driven which with as value are is an our will our pleased provides over quarter the of looking we're you cloud deliverables business see, and of quarter, is On ultimately model subscription today. increased forward increasing XX%, financial a

$XX last a room after of support based track enhance operating over cloud was total foundation necessary This product increased and that strategy can to pleased distributing fully business become solutions investments in at the results in to to our and of us the the model, with migrate supply see our a strategic recurring achieve. proximately in connected enterprise higher expect that that million business we're the for and the very Business the Halo Vince for quarter already and and Overall, of and service and continue the additional investments offerings our Intelligence. dividends chain. may gives That's revenue to sufficient cash we Our future. customers a on new toward acquisition provide $X in automated million. $X our quarter, trend strong part customers XX% report our we end we’re indicated were expertise million revenue visibility, as that of investing shareholder

of Intelligence. data our chain while analytics of on Business into delivering based a artificial of So let our me advanced and each you acquisition subsequent the those solutions, the intelligence Halo efforts algorithms also to The solutions master our brief supply has and to give differentiate supply Halo advanced deliver solutions update of existing embed acquisition supply uncovered sell chain deliver the number capabilities our to vision and key to on our customers. a future. capabilities cross strategic for We’ve a the our chain offering, of standalone opportunities to the already as ability management, accelerated

months, Halo few platform. we've past added customers several the new over onto While the

the overcome planning, capabilities efficiencies intelligence to compliance artificial chain our analytics, shortage improve supply chain otherwise will their advancements market. advantage operating enable growth them and that take advanced to they hamper and vendor supply profitability chain algorithmic our to their their supply of gain As in customers performance, talent may that management, speed

concept changes respond provides which and artificial ability an on build to supply platform, enhances and manage efficiency. understanding intelligence to syndicated chain market customers’ Furthermore, chain portfolio, machine demand data, our gain of chain artificial and the from their to new their unstructured to performance performance influence insight that leveraging ability to structured impact Our leading by learning supply may customers their supply intelligence customers, radically and the indicators trends. business harness and from

in advanced ground customer with Halo, recent the new delivery the We which solutions success. market position of differentiate continue to will to third accelerates we’re combination with shareholder results of and about pleased continuing the In conditions extremely talent from and and our chain of closely progress forging are in excited and our that future, unparalleled overall a enhance are really the growth. acquisition economic the are specialized We supply global our quarter, summary, and the value. further monitor powerful

engaged, exited and strong remains pipeline is slow fully services Our now holiday organization the traditionally our professional period. having

balance remain of ahead XXXX. about optimistic potential we the the for year So fiscal

incremental competitive our future to focus to in investments open to expectations a benefits fund questions. we sufficient the our growth call to resulting and the transition mission software-as-a-service needed exceed model achieve and a Elise, role is to our customers’ investments and that the our that any profitable our solution leverage We're maintain can for reliable on achieve continue which during customers. of we’d to for a our to leadership supply at continue help deliver cash like providing will this customers the supply them delivering advantage. our We engagement business chain that generates time for to chain confident

Operator

Instructions]. [Operator

Our Sidoti. comes Matthew go question Please from ahead. first Galinko with

Matthew Galinko

you outperformance, of wondering a or Hey, And if the good collection Congrats single, skewed idea the strong go guys. SaaS one sort and deals of or so the anatomy give talk this I instead it was afternoon strong us sort could on from of to quarter. what of whether went if kind and drove of how whether of process out was license multiple up large deals there that ended license license quarter. a sort an you deal. learned of maybe about towards very of the was

Allan Dow

is of in. of this Allan. one. of our bringing brands and of answer we from did a mix every contributing markets. Each see our had Matthew, contracts. Hey them contribution that kind We I'll segment the were

of Some traditional we're as the new had We’ve were times, most larger want join well, surprise. of glad to model. to quarters. bit sized as license of a that larger couple in the seen of ones model but number the last a were family, the a customer perpetual contracts. more many trend that A we said contracts That customers have in software-as-a-service about sense software-as-a-service contracts whatever were we've a more community, of few the model was heading towards and for makes any we're them excited them. the procuring But software-as-a-service that

So have a mix. we good

Matthew Galinko

of industry that that could in about along those they’d anything terms have may ones predicted went license, share you that lines? Appreciate you that those in anything it. Can whether go or - direction perpetual

Allan Dow

for we're had A for the the a we've there. in business our sure out license long model Well, period. seeing time something lot traditional been is of customers very

the they're format would cases, they were we adding that on So into go most - see they would - back in those see that licenses, incremental we if before. customers

So even if they that’s direction. in But not model, we're perpetual go not that a license to they’re - tend exclusive.

We as in to number areas customers have that a model, expand go elected into model have well. gone SaaS of a were perpetual new license with and and that the

how when swing towards looking and we've you the history bit software-as-a-service at you of is we’re if stronger the much are existing at the there. logos new got at at you mix exclude solutions. looking But pipeline, a customers new or So a on look look customers, that our

Matthew Galinko

you license could since you looks Any the provide? on color kind And touched quarters commentary like you last you. pipeline and the what of Got SaaS. composition it, of further couple around shared between

Allan Dow

would exclude their to It’s again are and I that this say trending more more customers pipeline, more if that the pipeline, would particularly at that we if in to the dissected SaaS. see you existing we point, adding SaaS solutions.

it new ones, even couple If more towards in of you trend was look than the quarters. last at is SaaS the

Matthew Galinko

Great. queue. in Thank you. I'll jump back the

Operator

Please [Operator instructions]. We’ll ahead. go to a follow up from Matthew Galinko with go Sidoti.

Matthew Galinko

if, you Thanks. I Halo I wondering the there's there. ACV if guess I’ll in going. number provided, was keep any in represented

Allan Dow

There is.

Matthew Galinko

Okay, build, sequential you. terms might have work on should we that own? much granularity there through our of on that any provide Willingness or ACV kind just Halo of to how the got of been

Allan Dow

one have even to hand don't you on a numbers I Boy, the at specific give …

Vince Klinges

about was It $XXX,XXX.

Allan Dow

incremental? Of

Vince Klinges

Of incremental.

Allan Dow

enough. Fair

Matthew Galinko

or Can taxes. Last your on in GAAP forward? Okay. tax expecting cash you commentary be around of share should terms question going we what All right. any rate

Vince Klinges

discrete can year, forecast this rest the quarter the of out for then around numbers. Yes, had that's XX%. unusual for be $X.X adjusted probably the I'm next packing the that - blended a that of have fourth year around adjustment you at one-time it XX%. in million GAAP - item a we rate Matt. going down will for But And we forward, Yes, roughly of kind

Matthew Galinko

you. thank right, All it. Got

Operator

it it appears any at to gentlemen, additional I’ll And remarks. for instructions]. no or [Operator this back we questions time. closing turn have additional you

Allan Dow

the very joining All call coming to right, months. today, look us Elise. our We appreciate Thank you much. and forward everyone in

Operator

conclude Thank appreciate conference. today's does We participation. you. This your

day. time any have at a disconnect may great and You

Logility Supply Chain Solutions (LGTY) 22 Feb 182018 Q3 Earnings call transcript