AMSWA - Earnings call transcript Q1 2020 | Logility Supply Chain Solutions, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to today's American Software First Quarter 2020 Earnings Call. [Operator Instructions] Please note that today's call is being recorded and I will be standing by should you need any assistance.

And it is now my pleasure to turn the call over to Vincent Klinges, CFO of American Software. Please go ahead.

Vince Klinges

Thank you, Denisha. welcome Conference Software's Call. and Fiscal Quarter everyone, Earnings XXXX afternoon, to First American of Good

forward-looking only numbers, strategy. will On regarding, including Dow, but this Software. business the conference to could President forward-looking beyond from our those call I among on statements. are in, predicted of as differ then Any the with materially some remind and statements are statements contain strategy American other contemplated our expectations I be this date. the results forward-looking me would like and call speak of These will of our uncertainties, things, based you after may some control. statements and a remarks give is such and cannot to forth Allan and underlying growth that, quantified largely Allan are that set or review risks Future which statements, subject developments of or forward-looking by, actual number and

revenues. competitive are actual of to, other from general results and that statements pressures include, to could and Such rate but the the and limited and effect the in for irregular conditions, these a changes growth and cause products are made factors uncertainty services, and timely products the materially market anticipated unpredictable services, market the by not our availability and of those products factors of pattern acceptance of economic differ number There this pricing on call. of and competitive

the forward-looking be prove and uncertainties, there light be accurate. risks assurance to can In will of that no information these

were prior-year quarter for first period. $XX.X million and the So taking both a look the revenue current numbers, at they

to software $X.X as compared the for the revenues model. XX% transition the quarter license a current for continue last to million increased to while year, $X.X we to for prior-year $X.X Subscription fees the period, to fast X% million same engagement increased $X.X period in to compared quarter million million

backlog services current annual year. value and $XX decreased the ACV, X% contract compared revenues the that same supply and due into $XX.X increased in quarter, same for stronger This XX% Professional or and was our the timing QX. by compares of consulting quarter, a the bookings cloud to an to decrease $XX.X heading approximately of proven primarily unit for million current chain and million IT method due year unit million the was last a other in strong Our to management to by our in of remains partially that period quarter services to result our work. increase last project $XX.X offset business to million as late

million. X% Maintenance revenues compared to to $XX million decreased $XX.X

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

Looking at to quarter, the XX% costs, our in quarter. compared overall gross current prior-year margin was XX% the for

and last lower to resellers non-cash. margin cap XX% a due commission fee to is amortization X% the compared that quarter of And in current license Our that's to fees agent the period same lower for was year. negative software our

mix. which the to decreased costs amortization for in revenue and last increase XX% million due the in the of increase primarily $X.X Subscription fee due XX% margin subscription cap and allocation year, compared the that's same of period to software, that's of approximately to to of XXX,XXX is

margins software the have In 'XX, without non-cash allocation quarter XX%. gross first of would been the cap

unit. and supply period So chain coming to last higher margin for portion from XX% our that's year the margin our services same increased to of XX% revenue our professional business due a compared services higher

to the current cost year, last and period to increased XX% XX% Our to in efforts. that's due same for maintenance quarter containment margin compared the

and current were expenses R&D for the gross our expenses, operating at of revenues prior-year Looking period. XX% total

and percentage As compared same expenses due to and headcount of last marketing revenue, in sales XX% current costs. year commissions increase the revenues primarily the sales period period XX% of the a that's were for to and in

of to and revenues that were XX% some for current total prior-year expenses due compensation period, period, legal the compared the in G&A increase variable to XX% fees. Our and was

So XX% this income same increased operating for a and to that year to the quarter $XXX,XXX our $XXX,XXX compares quarter, for ago.

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

XX% earnings decreased the per current and share share. diluted income $X.XX net or earnings earnings GAAP diluted $X.XX $X.X our that million of quarter for million, income - to of to $X.XX the Our compares in $X.X net

net income per earnings earnings Adjusted same in adjusted $X.XX quarter share that of the adjusted last net income was per to and of year. compares $X.XX or of the $X.X diluted share million, $X.X period for first our

the of And these expense. total compensation approximately current to that and prior-year the stock-based this and International were the XX% adjusted to numbers acquisitions expenses for XX% of exclude amortization intangible quarter, quarter. in related compares quarter revenues revenues

our end XX, at cash July balance $XX the financial company's of the of position million XXXX. at remains with Looking approximately investments strong, sheet, and

the quarter, aspects million dividends. receivable a $XX.X of unbilled sheet, also accounts million, Other build total was we the During for balance our million. $X of paid of $XX.X $X.X million

that and period million. shareholder as year. period the $XX.X compares days $XXX long-term stock of to and days and current XX X.X and July in outstanding revenues were day that last same sales XX, equity compares XXXX the ratio And last million XX was Current same to X.X was Deferred year. was our our

time, turn I'd to Dow. this like call over the to Alan At

Allan Dow

Well, thank you, Vince.

rate in service improvement model. the XX% During evidenced in by mentioned was annual and the preference close XX% the That engagement a subscription year-over-year the revenue increase in for with growth that strong value and software first Vince saw quarter, we marked contract a earlier. the

June closing the we were the way on a with first in QX keep stated I for end to of that contracts of up all momentum couple were quarter. As the that the to quarter, strong the started targeted quarter early call, but able the

increased logos to services in our contracts of new cloud we $XX.X last million QX new contract XX million as associated from year quarter, with customer value fiscal account. last added our $XX.X to The annual for

we're Based off second in new growth seasonally on QX, rate XXXX confident in the as progress Furthermore, number contracts year. closed beyond. year capacity, ability the organization with remain solid the operating we quarter services through a in already now good will fiscal chain full higher of to the ACV and start are our we revenues near signed. at achieve in supply drive our We which to adjusted

same prior represented the year quarter, that in revenues, our growth the subscription of due in recurring first revenue of contracts. about our was the period in maintenance the XX% to cloud to total XX% services the and During streams compared

preference subscription We recurring based rate contracts, revenue to that expect continue before higher with for that XX% approaching percentage the trending future year the of strong end. fiscal on the into

Overall, good profitability The predictability our a growth pleased in company. and the we recurring had achievements. very and of with financial we're our team's quarter revenue improves

projects As solutions and machine our take we supply platform. look our forward, the and advantage we're depth, optimized chain the continuing optimization the of to which of capabilities see capabilities learning leverage simulation in analytics, an the digital transformational uptick advanced

to a time supply uncertainty, while to help for looking trade market gain risk. brand them seeking in the higher and to global the are reduction awareness simultaneously bring a to chain their mitigate products navigate agility Customers

continuous autonomous chain supply ability to advantage. customers and planning leverage as allows Our their strategic our help to chains supply market them a to transform their

we're the by encouraged making we we're summary, go-to-market our for strive In in continued as progress execution success.

to making our and customers continue recurring customers will to successful streams. grow look more focus We our revenue we expand on our as relationships with

delivering grow both to continue can customers. we and that benefits incremental ahead year the revenue to confident be are proud We profitability our in to and are

open at time, Denisha, for the we'd this up any like call to questions.

Operator

Blair. ahead. from We and ahead go go our [Operator William from Please first Instructions] will question take Matt

open. is line Your

Matt Pfau

give to on changes the that made? business the that is driving us the you sales Maybe growth maybe momentum in you partly in had some he's when rates. to wanted ACV could on Just hit some improvement details more and due and - the close a and what's acceleration that seeing and you're just

Allan Dow

take Hi, that Vince I'll one.

about seen quarters. on combination of with we coming things, following had joining that we've that. couple influence question. organization and his So, a yes, that running had He's sales for certainly an excited excited has and us the We're we're in the the thank up activity, talked impact, now about you leadership Mac business, It's we're and direction under last his Matt, for positive and certainly that. of the an impact, a about in,

with and also We're people trade to comfortable it that things be seems that different corner have new almost like the with seeing be and some and prepared all fact dynamics surprise, more impacting days. But gotten that's are any become And, our they're more market action tariffs to happening. those wars, taking seems around or within less people deal need into settled that of they things the it business. for to are have of the norm these

double are where at the there I same So period. both had a think whammy events coming we time together

Matt Pfau

then, that seeing the have model interest you also or seen signing prefer to existing new SaaS well? to from subscription as customers transfer start deployment of the is or that some model, primarily And in you're customers want you're over the your to

Allan Dow

seeing the there's some dialogue where slight on brings very as that discussions interest solution we're so good customers that's are transferring, We're yet, this footprint, a of seeing expanding that not in existing - although happening going that lot up.

point transfer, It of that seeing in incremental subscription almost projects, just direction looking existing new add-on significant not projects the customers of at a business it's fee license the but the add-on new customers that appears, will So though, for small activities forward exclusively customers. with this our be kind and we're are going existing one-for-one business.

Matt Pfau

you're transformational more us on transformational acquired products, being incorporating functionality driving the maybe that details the what's And on or give by your just driven into is the seeing, projects? more that of you projects

Allan Dow

around behind also of analysis administration, management Certainly projects today. is supply the factor how transformational key chain is key for analytics we But that, this DP in transformational but well. and the those the the successful to marketplace reality acquisition to their driver in down realign data it. a that, comes data projects, a without in data made is these really They can't as it new factor part be

better planning, element. up their giving them resources actually the really learning freeing are on driving that's them And artificial initiatives, transformational really work machine capabilities in the giving strategic to intelligence, answer, chain supply more automated a and efficiencies operations,

machine that's analytics, management, their shift all way coming data operate in intelligence pretty a So really together to chains. and artificial supply facilitate they of dramatic the learning with

days. is So what's these happen that making really combination it

Matt Pfau

Well, guys. that's all acceleration. I job Nice for Thanks for the ACV questions. on had you taking my

Allan Dow

soon. you See Matt. Thanks,

Operator

Instructions] from Zach FBR. Please and take ahead Riley go ahead. We'll go next B. from [Operator our question

Zach Cummins

seen you've on new talking and about talk key and can to landscape just But the congrats in differentiator the deals? been afternoon, has strong deals competitive XX and Good these you Alan really for these the the performance win, quarter. that the in Vince, ACV customer about you win what

Allan Dow

The many, is some that we've vendors that competitive chain are with the strong. seeing years. We some still traditional all in see many map, landscape - points coming players the over at ERP competed supply for we're

see picking supply But maybe development momentum we up or pace today's with then that at some necessary frustration which the their bringing capabilities at around new the support that chains. out times some are to they're

So opportunities that's out major the us there's towards there. for still some if a well. there's as players been ERP new But a bias driving investment

environment. mixed a it's So

There new some coming are in. entrants

get in it The was players not the we the real team or we're predominance we of is the pretty the having speed are to of risk solution years we brings against. is in bring we today, predictable of marketplace advantage much toolkit investment. that traditional there's XX brings project but at lot and can a years as the some the turnkey a on focused the somewhat time marketplace, ago, packaged today a have it's to marketplace longer and the as and where a implementation up competitors folks a applications, new of had to So have some a five which return

really and have in intelligence more a learning also we supply drawn operate and a which to the leader chain. in a are market artificial a machine competitive capabilities, with we And advantage making attention there. can difference way they efficient So us has

Zach Cummins

about And And services then of backlog little sounds a more talk this around in the you group? a project drivers earlier is the I But in improve. year-over-year addressed little decline his bit the think it like to bit Vince professional the beginning commentary. can

you as should towards that how thinking we accelerate over quarters So model? about business be coming a shift this the subscription

Allan Dow

don't you take Vince, that one? why

Vince Klinges

backlog points slightly proven year-over-year. business Yes, And of actually services in have new quarters. the primarily the professional I The work, in increased exactly. SaaS discussion, the consulting decline this chain supply actually business Alan we've line higher services IT special we is of mentioned. business, go as anticipate closed of The method couple the next year-over-year up to in that his indicated now a basis of all as couple we of that filled

Zach Cummins

more one for capitalized question bit this well, in you, seems being addressed now the margin, Vince. subscription was software reported the little Is - for to we more of gross thing that just it this a this should next allocated over the I that's And by think margin quarters? know commentary you it impacted as as a going of subscription of the depresses this to is one-time sort that. or the overall be of couple something like

Vince Klinges

we to to cost. less, business, material driving cost cap SaaS Well, license it as becomes to sell actually software cap our inside software the amortization. and year-over-year mix And becomes more that's what's increase allocate that more fees we have in more

will it going forward. number the be So inside

The large and element closed more about actually a during is than year. the happened project XXX,XXX started last we other we advertising that we fairly did quarter

So you that and more allocated area more also to in cost have itself in general. being

So....

Zach Cummins

taking for the congrats questions strong thanks on Well, start and my helpful. to a year. That's

Vince Klinges

Thanks, Zach. Sure.

Operator

look it at questions we doesn't any further [Operator time. line on phone Instructions] have like And the this

Vince Klinges

All to again Denisha, thank all this thank speaking look your certainly evening. Well, you call to forward We participating the for and in right. you our thank in time for you, future. and you

Operator

today's for conclude program. you does your This Thank participation.

disconnect. now may You

Logility Supply Chain Solutions (LGTY) 28 Aug 192020 Q1 Earnings call transcript