AGYS - Earnings call transcript Q2 2022

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Operator

Good day, ladies and gentlemen, and welcome to the Agilysys Fiscal 2022 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, Director of Corporate Strategy and Investor Relations at Agilysys.

You may begin.

Jessica Hennessy

Thank you, Justin, 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 the could assumptions, reports President to that Ramesh believes forward-looking the forth are such now its include and like please could statements go the effects reasonable and risks results turn materially Important are and results ahead. and the XX-Q the I'd call and business, Although set on differ the Mr. of reports company XX-K of Commission. statements vary over global company's Srinivasan, COVID-XX filed with cause Agilysys. Exchange to risks based statements these Ramesh, that cause uncertainties and materially. the on on other CEO forward-looking pandemic Securities to chain continued in from Form to factors that, actual that supply our With challenges to

Ramesh Srinivasan

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

Joining Atlanta Wood, today our and on CFO. in Jessica Hennessy office the call me our is Dave

year comparisons a As two from historical call, last do with ago. and we offering comparable earnings to two stated years quarter continue to the our quarters. in are one going best to the from One ago

periods gauge fiscal remainder progress years will this more the year. year comparable we prior comparisons will two fiscal and of obviously ago with pre-pandemic good, comparisons better think for of the a While look with provide business sales revenue from

profitability to salary measures. the well provide like saving year due and was We same as for higher reductions artificial other will cost normal than onetime EBITDA comparisons as last measures

more narrative success has remained previous quarter. same or from reported the the sales less Our as

ever QX XX% revenue the our line best to subscription XXXX. than long native is past. these software resulting welcome increasing the and increased for one previous of verticals, market across reached the terms possibly lingering and in while marketplace similar expectations. this quarters. consecutive situations increased hotel is international remain fiscal past every conversions with challenges, ACV, quarter in in our short-term contract in effects in best us and other This success solutions year This measured sales by to a excellent applications sales ship annual need. regions July levels QX the customers sales have for the see all in current consecutive fiscal such quarters sales services to resorts cloud data to are have pandemic. contract US sales chain both delayed the among The quarter recovery quarters and preference continue despite affected awaited to perpetual increasing and food and sales availability have for virtually our and in subscription narratives of distance increase two business to Despite a both remaining with cloud agreements. of sales hospitality was XXXX. partial pre-pandemic sales of change levels on-premise significantly We verticals, license the XXXX gaming due in fiscal value, the cruise three that to during annual recovery few Subscription our closed of managed note ACV, based again and compared of quarter, the fair September over sales Please value, on pertaining an subscription which steady all a significantly by preceding and was the higher the

our to of same to in the customers, compared fiscal advantage. the Once including subscription subscription only native years And PMS hospitality of than With property few there ago. competitive the products XX. XX of Though more at both product sales XXX% number, products have XX new ago. and the capability is other XXXX second highlight total customers have code QX, than least recently compared all that The for up agreements which limitation. new for of need Total sales longer our revenue no to quarter, to modernization the offerings. more PMS additional fully on-premise turn of base, with one XX of to efforts already which any in quarter and cloud industry, respect customer. growing other given momentum due kind were past subscription of September, was second were either new years XXXX reasons, over both license options sales XX, XX ARR our modernized during company prefer parent products. again, cloud on-premise small one supporting opportunities sales fiscal portion Within two had sales technology the success significant systems, instances us implementations based. two during properties, the quarter give but any for mixed this good environments product years added sales. us selling were sales signed the or properties We a XX The already partially have and added solution more management XX% to software the installations, still of We is of did properties, our before, July increased to not XXX% we which added PMS, down across our a new customers than

have break have provide sale. other solutions. terms and in Agilysys years few are and operating PMS, Eden ACV now during operations. the only catering, our Cross of multiproduct and implies To looking the that for across previous Ozark manage was on-demand what quarter the multiple below InfoGenesis for Pay, years a Mountains, years and second InfoGenesis their sales State due Such expanded ago. POS and native actively and to label the single two Despite the sales coast [EDC], Britain of While low line Agilysys Stay to her end multiple we Majesty's through UK to properties past Myrtle XXXX of Carolina. value year What Cedar, the regular possibly size $XX.X with fiscal a resorts X% a become number for increased customer, fiscal QX rGuest would world their recent properties in Once five product products. the QX the a customer probably their POS, additional the in new of comparable and U.K. offer below naval than revenue new variety our measured each at of win quarter quarters. cloud hotels customer Missouri the multiproduct and XX% terms. at pertaining availability Hall often is to slightly frequent quarter the Hoar rustic in class XXXX cite quarters, higher purchasing subscription is selected And the July basis the selected two signed most was couple in sequentially more and applications, properties Clyde sales occurrences win million, quarters, been of and one sale has ago, selected South manage more across last and base at who software customers chose from preceding is three couple VX at Royal sales, in QX, quarter to XXXX guidance including fiscal of Agilysys Big and September same new catering of sales to PMS cloud especially the fiscal during Navy. Hall along new wins of or Service amenities Beach best in of successes the less EMS, luxury a examples. for during

delays grow levels, of recurring QX the higher including revenue the and was down onetime subscription QX to consisting to While fiscal revenue fiscal QX customers. end range product software software to device of $X.X shipments year low was XX% XX% caused hardware payment from million but revenue Global associated partners, POS revenue and and guidance $X.X was XXXX. of of product and issues delivery at to record revenue in sequentially hardware compared last of continued supply QX. affecting and chain than million product below services hardware terminal revenue,

revenue months While QX shipment XX% manage to short levels software valuable labor best comparable increased can. methods, they implementations sequentially as our fiscal by increased flat to continue of inventory term product do various from fiscal have ago. decreased $X.X in over this compared are coming have on sales make PMS Recent uncertainties receiving hardware we with software related and XX% remain. in Customers through dependent been and and expedited dependencies. compared increased work since but demand projects chosen year to timely Services and two remained they operational to as continuing shipments year, no have QX other partners, to hard and required forced the years prioritizing solutions and high choices are prior million quarter during shortages of the shipment is the promised increases revenue have

XXXX. $XX.X year levels million was last In during addition, QX revenue are our million seat. record. reengineered recently of of revenue QX and in Recurring support fiscal needing extra million fiscal of created products during $XX.X $XX the recurring and QX was

last GXE recent I half during than in HITEC of an new years caused the compared $X.X investment all Adjusted subscription last to thanks QX cash quarters, were ago. during seven gain of marketing sponsorship XX% year our the QX back-to-back, We increase. shows. the myself during recurring revenue was comprised best the fiscal the show to and encouraging. represents there excluding Cash the than presence was convertible fiscal in-person $X.X $X XXX% damage XX% revenue significantly XX% increasing. those years, million first Dallas of Cash increase show higher the record million last first years during XXXX by first for line, the a revenue in of had weeks impressive was in shows, both subscription Vegas, increased person than down and for fiscal million crossing be both Las subscription on $XXX,XXX from in the revenue $XX cash million two half higher year, during customers [lanyards] and was throughout The from this participants and collection days. was for continue of year QX of conversations sequentially hospitality year previous two low in pandemic year. more The with ago. revenue QX and trends leads few came quarter in XX% locations. two also traffic an prior recurring high. than subscription was during the and EBITDA quality revenue, quarter-over-quarter generated increase ago. during total fiscal show XX% XXXX, last calendar we $X.X to higher current Though users positioned about the the and improvement number of with a the prospective year of couple XX% sequential was a more revenue time. lower of comparable balance who purpose. and QX Customer but displays mark record physical QX attendance, years was customer of were foot industry the shows all quality fiscal considerably Within shows site QX the our Despite QX million in than closures the relatively strategically the focus years. past busy QX for a attended X% to Despite pre-pandemic booth XXXX than

terminals. the During only InfoGenesis is announced VX the the on-premise an now modernization reengineered also were Windows, over of when PMS also modernized pound multiyear which a our to enterprise is we and only on-premise of iOS releases support announced we is implementations completely pound PMS cloud PMS improvement solution the effort and core for the of After platform. there base. can we HITEC operating point-of-sale this native and terminal, and time, for systems, major the further completion completely able VX the Windows decades, same the multiple being best system which Around support can past support out show, now Android reengineered of

steps and multiple first X.X modern displays during it functionality feature critical architectures industry endeavor for mission decades. multiple of who requirements modules, cloud serve retained the were also our launch which hospitality in vendors. a the customers to now for and Agilysys Our now and which to additional software technology easy strength industry need on the go trusted native which and current been on have the has solutions, the announcements HITEC And don't needs, relied GXE end-to-end shows as company in to many making

food recovery significant remain many steady to in with industry predominant home pandemic vaccination the still regions practices market businesses. rates, managed various hospitality and make due from increasing across progress international continues from globe work the remaining in services the the While challenges domestic to across

onetime came of half We fully the year, applications to backlog $XXX levels and million the lingering record than and determine portions significantly soon. continued the has hospitality long medium and are XXXX of expectation While year range our are will in term our the great that a revenue of challenges industry to we yet overall optimistic current and and into now are EBITDA to remain fiscal that fiscal short to speed progress prospects and be medium the overcome above the the long expectation this resolved, current and turn results at The the which the of business $XXX are We levels second pandemic term, of maintaining revenue how Despite XX%. remains term marketplace, that will of the challenges all the fiscal current challenged our to we we the main adjusted fiscal theme. guidance remain towards the this not cloud corner changed. first half native be million we bullish momentum successful challenges, expecting cautiously better making onetime breadth with environment year. our current about slightly due available, have revenue promising we

well marketing products more our are and them where or with we less our always sales we are wanted to have be, underway that increasing Now focus.

We Sales division recently a additional and VP entirely the to us Resorts in expect from selected a of focused about on now. join month Hotels

We a recruitment next six are carrying expanding the the our process have in of additional hires for just with off sales during months, quota force marketing. and we the process kicked head few of

the now at With growth every years. While we expansion like deals current Wood the color bats me results financial participate on current to. our our need on of and ratio is during get win most will loss our always focus has virtually of company, in Dave? the the increasing few to let for for in answer Dave past number to we just we is been additional business marketing sales hand disciplined like on and our yes, remain batting it a how R&D that, commentary call sales and over invited detailed progress. We

Dave Wood

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

million, dropped second XX% half taken revenue challenges XXXX line steps second Second Onetime The throughout in year. revenue to period. variant XX.X% below for of in the quarter XX.X% increase professional the was revenue initial first logistical total mitigate and largely prior have year XX.X% in we due comparable quarter, mostly $XX.X and million been quarter reflects increase Delta revenue revenue. from an fiscal supply $XX.X ever risk the chain product revenue impact of of the levels increase the product services to in US. and a These net increase challenges top and the changing the in have

represented us purchase While total these level expected longer of $X.X levels, for for completely the second net net compared the period. revenue we taken, actions in delivery uncertain challenges in year and sequentially. as revenue will $XXX,XXX our term more manner and are incremental increased support by positioned short we fiscal investments the term to prior believe year. year expected fiscal of XX.X% of to the airfreight our is a inventory revenue compared for the period have options second customers million to prior prior we resolved, on year with Recurring be X.X% of reliable have Recurring levels comparable $XX vendors, and when in than the revenue and total quarter electing timely XX.X% such the million commitments half revenue up serve higher

in over XXXX. POS, with to measurable quarter quarter. recurring adding and million Subscription first that year-over-year compared comprised which software revenue the product quarter the $XX.X X% the quickly out are the in fiscal and second XX% XX% are of were of ecosystem the offerings inventory growth, grew to of of a Add-on XXXX add-on models sales. scale revenue X% modules this a about We contributor XX.X% total beyond recurring second during our core two also total pleased build record less and procurement contributing to sales sequentially are PMS total now ago, revenue quarter subscription fiscal when our of years not than revenue

$X over our of in six XXXX. products million quarters. Add-on up X.X% new made quarter these each fiscal revenue ARR have subscription last added software of in the our modules We for in second of

$XX.X fiscal a in services prior was margin revenue compared second Moving revenue compared revenue prior due profit and decreased services have Gross in and the to $XX.X period. the professional XX.X% down gross at into come Recurring XXXX. prepandemic to million not income million fully mix year. profit revenue to continues The P&L the levels. levels profit record compared primarily change statement. while the as returned professional product to to yet the of in change quarter back product year in was to XX% Gross

grants legal QX. expense $XX year is saw year-over-year onetime to and from into such place from increase This increase compared operating year. costs which in expense expenses, as in of prior mostly Compared second are to come the XX% reduction X% the compensation fiscal to $XX.X relatively sales of due COVID. slight XXXX, revenue beginning and trade business, operating XX% was slight operating marketing show expenses. slightly settlements, XXXX. million. million items quarter in some here were charges period, flat back G&A expense for severance some and especially a second Moving expenses were Operating stock to and Product QX decrease travel post a for from last in excluding with expenses, general to over charges revenue temporary the development, quarter, other fiscal and based to XX% the in US to of the Costs administrative reductions, and our previous inflated due fiscal also of in

revenue, as For X% we additional mentioned or QX X% remain expense expect slightly product investments down the to administrative by constant to and development of from year, continued remainder the with have general sales or and increase percentage levels and of a expense marketing we incremental while before. the

second Our of Adjusted Adjusted charges. nonrecurring and net $X.X more both additional This to quarter decrease is of from per net is adjusted million XXXX. net from based $X.XX are quarter the due quarter the reduction $X.XX a decrease decreased share from compared increase over prior business. diluted in and coming showed costs expense the per fiscal the income diluted million of $X.XX and into prior prior noncash prior quarter expense. stock $X.X down income mostly is and in earnings quarter coming share net million to of year the for per business of when $X.X compensation in second also adjusted the the certain normalizing back year $X.X operating earnings dropping share year in second in as million to $X.XX income earnings first a income back with the

million second constraints our complete and as the our in marketing fiscal of work our customers ago quarter, to XXXX company in to teams EBITDA compared solutions. efforts implementations remains to year and as our EBITDA service through appropriately For quarter. continue invest was a implement million staff adjusted strength resource projects to Adjusted $X.X and the sales the we $X.X

subscription a cash million balance statement. the now in and of marketable second has an improved by cash sheet million the of $X.X securities million. increased and to Cash as the Free be in beginning million markets to Cash fiscal cash $XXX.X balance to quarter. by the $XX.X quarter. XXXX continued sales translating in collections $X.X to quarter, fiscal flow second quarter Moving flow into ending continues record quarter strength prior of consecutive our fiscal The year. for recovery the million through year was the the $X.X second the in since compared

We of solutions contributing are our ARR an increase 'XX. to QX in compared pleased XXX% to terms fiscal prepandemic in with levels PMS see

to our add-on have modules new well that, we term markets. positioned the for term to continue and challenges our profitability With We Q&A. the the addition to call open up us through I'd current growth. environment confident and believe manage long existing see our our for of like continuing fundamentals ability business sustained short and to in are strengthening of we software now remain the in With solutions,

Justin?

Operator

from come [Operator to first Maxim our going Instructions] And Allen Group. from question Klee is

Allen Klee

have Can second confidence to in half? points data what give stronger now you you point as fiscal that of a you

Ramesh Srinivasan

level. we Like are a backlogs our said, at record

we And half. the some than and delivery during improve we second circumstances last confidence issues that That's the had the half us better product the of the so. will significantly first the chain of are some or supply we be gives had issues seeing what few weeks

Our our the the they product you services at they’re ever all levels, they've at levels when are backlog add record recurring backlog, our revenue highest three, been. backlog, up

this second course, much deliver, better in subscription half. that second improve And continue how able gap improving becoming seeing compared first and the the will to a in contribute revenue allowing of to is and and us to what lot the sell the revenue, we our half. more to So are are and we much environment recurring between half

Operator

George Craig from Sutton from comes question next our And Hallum.

George Sutton

the competitive competitively? of sort Can what your off on market on your also after and talk you of around the shows and your honing some coming Ramesh, just you're seeing your ratio. position and about GXE discussion HITEC of in in recent win-loss view

Ramesh Srinivasan

are the say, player months our and And especially area. in PMS past, till, the compared improving PMS a are not we even few now in related solutions position a competitive to ago. significant participant. were We by encouraged We major

reengineered is of there many far than that the better on POS, the is competition anything PMS course, IG latest deals. to We is wise. terminal XXUX, table are which invited And competitively the version of

say in more is I walking our now things George, would competitive on the mention improved. I environment, target are terms Though have a So one should of we of back. thing around with

So much and on some win we do do based people about more challenges. pricing can competitors There us there's desperate price are taking are there seriously are who nothing that.

And go and smaller barrier has of fact to to international a yet would competitors some remains part there. struggle I this improved, our our in Now quite US, have entry continue competitive to because Europe to In though business. ways dialog high have of we really severe many scale. say, the Asia competition is the both positioning I we not markets. done say improvements our the is name and these the all would

internationally, the while would has slightly our positioning has competitive dramatically. I So our competitive it's solutions, improved only improved and positioning improved PMS significantly US, the say, in

George Sutton

you addressing support may been So just that terms just market of in give now that And the what not you can you opportunity mentioned us have the platforms, you not Microsoft. all before? of means that picture a

Ramesh Srinivasan

farly we as as So before it with we go the completely functionality terminal is operating a support features. is into fact far also reengineered our POS systems, concerned, improved InfoGenesis multiple

don't it So far even operating best we if POS support there. system the by systems, out is multiple

previous versions. and we XX our time done live than pleased a already with it customers sites it every has already, gone have much are in demo more So about

very So if the win high that an we of our the IG just probability if and we is XXUX deal. the customer the sees will latest at-bat get terminal, version

supports operating but a advantage, systems in it fact terminals. Now as multiple is significant the very an additional,

And Before, would there a handheld it of there. are only terminal. out support in only terms options Windows so windows many devices,

it not different of that competitors terminal Now that the by iOS natively a iPad many runs managed It that let's base iPad. in code not do, take the runs same that an base main code for vendor. It's runs code also like on support iPad. we in Android, a and is the our now instance, iOS, is third-party

make if there you the change a change well. So happens as here,

pool, those with a beach carry and to system options a options iPad kinds the with slightly the Android and or an that swimming base gives connects our our at Now struggle offset, deal used that as customers add at still of can tablet today, struggle to all facilities you easily meaning competitors now well. we tremendous you to then and around with

the us to device. future, gives is any code that this looking a what supports Now George, base

players do. So we device a sleek places device from retail all-in-one restaurants the many an and year in other let's say, like of now, a develop

of software those because is that. for the of Now that devices a become does it finding proprietary a is device possibility kinds just us there, a matter

currently, opens position, it So up the in is what a to competitively for superior market is product marketplace. superior us. there the And it

George Sutton

if Just one I other quick could. one,

the are we labor And there in mentioned require You that levels some products field, I mentioned your obviously, customers. some of -- of you actually support thought your know of challenges extra at new the opposite.

there. wanted just I said So you to make sure what clarified I

Ramesh Srinivasan

on portion done number customers focusing number record started implementation backlog or get the and in services at pending revenue are the signed the are that portion of in projects of it, a they services levels, project level unable still record the to the and the do recurring deal need, started terms that why of get of So which being our George, projects, that those projects, of that is are A at fact it sales know with to is to before. has they they now. good not

yet have but not are all started. sales projects So these the deals signed

a increase that services lot why labor currently, those just pace, the and at many a will there of conflicting have shortages get too priorities turn also revenue record recurring projects out faster backlog will is which when priorities are conflicting sorted at at customers to Those our prioritize now. So in a and start done pace getting don't there. work and faster out our levels is

in our which additional also an services personnel products, of new portion services the are that the to contributor our field. down backlog fact have will support settling Now to a our is

for many multiple have we market. of reengineering, two, the And them now years. done Now have have and last new lot obviously we created years all the three not established of of they're in hitting a been a lot products

each So a to time in hand a more delaying bit working more be bit projects the now other pipeline bit are training, more delivered. that the a of with is that are them also requiring customers holding, services

Operator

question VanVliet from comes BTIG. from our next And Matt

Matt VanVliet

I guess a kind of little on there, follow-up of here. the of last couple a bit questions

still issues is of adoption feel accelerate process, the you solution POS now the side, especially an on even going income a sales you can, the something like this buyers iPad advances, your wanting that just further and if from constraints. go And buy the of with just software-only cause or reselling of full supply off-the-shelf software terms are the you your in sort with instance? or Do In of to you to for kind hardware? hardware that's

Ramesh Srinivasan

to become far installed, PMS as as progressively business less faster. sites our are all the our and customer the portion in newer software of is happening. contribute will solutions settling PMS There already own we the is field Those acute to purchased products So at two other no and supply also faster, our shortages anything. which expanding the labor being need chain there or and issues PMS

So as are there the solutions more are far hardware software as issues concerned.

respect hardware come Now our to Matt, is delivery POS solutions. in, where the hardware the issue with issues do that

moving few of concerned, the restaurant, like though have the you because portion as base restaurant, iPads personnel to far out. POS order but options additional still who terminals run us supply bit to but the the sorted are a as additional iPad around have a are to even taking are moving major terminals the from customers issues, a fact still helps help system competing there. Now those the solutions to be be little them when we require it, chain a need with the

will chain getting get sorted on iPads based seeing perpetual need get of issues increasing to issues we get we a hardware to deliverables happen. supply license delivery, do that software get issues of there significantly. helps some for supply like already to quarter, there hardware fact out. us a are chain the are the of the software that this the supply beginning They they fundamentally, they to do out. are out. we us sorted Matt, in sorted our need But we signs process out sorted bit. the helps But that out sorted chain and The bit, have are helps us get current look in and the PMS and quickly should So The

Matt VanVliet

and warmer and weather strong record Are of reopen now travel traffic areas higher business looking are sales backlog the from emerging as it I leads seeing you urban Are sales any that most any you hotels capacity just that talk finally that when perspective. comes performance really seeing guess, that And seen seeing core and about new is areas any to or you gaming much strength? with Or resort areas yet? the still back and haven't expectations strength? conference

Ramesh Srinivasan

for us, terms your question, verticals PMS areas, part I strength in solutions of a answer So product before of in new Matt, and related sales areas terms becoming big the of related for is us.

to two to to a years So are XXX% years with we compared respect ago. ago, compared compared year PMS up sales ago, to two like plus

product products a solutions Those PMS from strength standpoint, ago. getting those. recently vertical months the are go us to product with are started we are hit to strength a a available well related from segmentation only market very from all standpoint, PMS So and few now with only doing for VX we also And going PMS, a PMS there. as have modernized and

question When phenomenally is still before verticals. the doing vertical part about and are much, we geographical from take gaming understand non-gaming is QX. the and negative That gaming ahead Matt, pandemic. compared XXXX our to our fiscal more the just of of more levels well sales, gaming Gaming casino, standpoint. sales changed and we resorts product I are resort So casinos well. the hasn't your that unfortunately, and a sales But

but And definitely sector gaming partial are increasing doing well. cruise levels it a our two all products new So are ship issue feet past, are advantage sector They and of doing the there regions not sideways of still well as the only QX is now. Hotel not recovery that vertical. sort kind of and recovery sort is doing International as back that it resorts. all at record gaming really to shining our to and there, we was their have is getting are with like the competitive compare But because sales there well. very when recovering, you it at those is is just chains is the still now. well resort

still a all sort being flat is Asia. compared closed and international tourism especially ago. of to the sort is is And still and in years Asia, challenge of It border Europe okay. two

have recovering our have regions, still remains all cafeterias partially of chain it our international food a level back we people supplier ago, with biggest we the is because a Despite a the many sector, challenge partially now. are managed challenges a doing Two not home. from sales and that ship working which cruise And the So recovering very almost services well to due major years domestic for compared at hotel fiscal sector, all that was sector. lot come to XXXX. just

not that we and other changed narrative fact much doing the even gaming sectors. the So has in than from QX better resort are

Matt VanVliet

then that commentary on made. And the pricing lastly, you

irrational on competitors model latest of at happening You terms priced those How maybe about areas in about are now on that actual maybe of in close pretty superior. the should being increase? touched to it's terms? market of product where When and market? competitors, in about higher we think the terms significantly the customer where see How actually number you RFP priced of what's you the mentioned the Are of a we significant of we or price. number has solely that, a getting the least coming to POS think you think in competing in value for that some is, should

Ramesh Srinivasan

a always space. chain vendors the desperate to for they it be vendors There vendor I hospitality always are enterprise in challenge now. be it side always always that And now this And solutions, away in there. the who problem. BXB I've has whether a to execution or systems more two on business. and desperate going challenge Matt, bigger is There in that are than, even in few give decades sometimes and few a will vendors is or happen think, has always So software been supply gaming been this been this there in the

have been disciplined no been our vendor. always different. about we the always of But highest RFP, We've terms an pricing levels. So priced that's typically in us, in

is our a So to the of well. back difference other we up. products the bit But been and little back back technology now it up have sort we before as and have more it products but always than it We we the products competitors. have wise up to pricing the to now always features had

are and with modern to you able year were we pricing our or a So it when today a solutions able say, combine so technology, better defend trusted than we lot to, ago.

pricing, disciplined to with our we So continue remain Matt. quite

Operator

from And Nehal our Capital. Northland question comes from next Chokshi

Nehal Chokshi

total backlog like and the what know bookings what call two really clearly, of ever very context value, years quarter sales is quarter, given quarter actual restructurings. or five what subscription of bookings higher and subscription especially sales win annual higher of But in the levels. year terms And sales service in demand, contract I'd strong sales and terms the levels ago the to ago would I is in customer year

Ramesh Srinivasan

the But don't are as which I or measure So full as levels. value two Nehal, can tell fiscal as in QX and terms concerned, with bookings are contract annual ago. sales line annual you what XXXX go, in far always -- the we levels, is as more we provide far QX bookings Nehal less bookings value contract years

completed with two two QX are but years obviously it ago, QX, and of this doesn't line. QX in quarters now than the with So are and our they if last have QX better year or less more much. XXXX they first you mean When fiscal that you fiscal ago, take compare years year two we

to with So ago last line been the the -- in of the or bookings in in and year years bookings XXXX. or first QX of have less fiscal half two QX equal more bookings or

the Now XXXX resorts, the and Asia environment years were ago quite as concerned, they're food And QX sales of that and fiscal cruise is challenges. pandemic as have chains and our well hotels, to all providers. did way service far any and well verticals EMEA, hotel doing is and not ships two data interpret QX working market gaming, all quite managed

degrees varying ones spite we other the are almost In when Here, that, the and comparable year doing or well but compare have difficulty. have this equal two half to of first ago. sales years of gaming half of our resorts of first you levels

So you. definitely that's one we point give data can

applications. two at applications. cloud native customers like our years all products mentioned, other to subscription because compared is And are you The and point, ago, supported by sales just data up is native more cloud now substantially more prefer

a is time the customer every go to So our cloud, yes. wants to answer

can contributing and comments our are we So bookings. two are about those those make

Nehal Chokshi

were not you if And --.

your $XXX So to out consistent quarters, some were surprises initially the obviously, of booking you you've the level seen incremental services that [there]? set you're revenue million, had you've bookings what when million actual on the two products that expectations guidance? the past with over ARR were Because and the the on $XXX delivery turn

Ramesh Srinivasan

guidance to have is sales the short as answer the we and the QX are are and with end to bookings we which we revenue, line low fallen of the sales challenges year, provided. order of guidance respect now. the the get far market delivery we bookings is expectations which in why second QX had in the quick guidance have onetime line to enough feel has the now concerned. meet the as which are with is improved your the to as believe will revenue do is So during we maintaining environment, Where were at in with half we more it our They question were of in our

guidance. with are revenue bookings line the when in we provided as far As expectance they our concerned, were Nehal,

Nehal Chokshi

in the a arena the completion adoption the of QSR arguably How opportunities And to the acceleration hospitality relative would is then we're industry potentially solutions, driven in opportunities. the serving rate new QSR industry? within has of to you compare adoption majority of seeing pandemic also of new solution that that

Ramesh Srinivasan

have. for looking hospitality the and solutions gaming segments especially high food and work quite back has in people obviously to from service providers well, more customers The need in been that home. come modern Managed industry quickly as resort adopting we the them

are they resorts, is that comment markets looking new why once cloud-native adoption are us, also that the rate. is But expectation they that doing has quickly each the increased, applications are anything with industries. as adopting and decision not modern our And integrated those well and they it well two deal looking therefore, So for high the gamings which come are there I make they more well. on for fairly for other, size in can't

Operator

questions. am I I for closing would the showing Ramesh to turn no call over further And like back comments. now to

Ramesh Srinivasan

interest care. your Thank continued participation Agilysys you, your take you. today. all Thank good Thank and for investment and Justin. Please you for in

Operator

This concludes today's conference for call. you participating. Thank

You may now disconnect.

Agilysys (AGYS) 27 Oct 212022 Q2 Earnings call transcript