AGYS - Earnings call transcript Q1 2025

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Operator

Good day, ladies and gentlemen, and welcome to the Agilysys 2025 First Quarter Conference Call.

As a reminder, today's conference may be recorded. I would now like to turn the conference over to Jessica Hennessy, Senior Director of Corporate Strategy and Investor Relations at Agilysys.

You may begin.

Jessica Hennessy

Thank you, Victor, and good afternoon, everybody. the First joining Conference for you Agilysys Quarter XXXX Call. Thank

harbor a get let management's safe started will minute me in the so, We doing just with before comments, read language. but

call including will statements to made financial statements Litigation of regarding forward-looking as Reform on protections Some the harbor Private be our be safe made within the and are predictive Act intended today's Securities of guidance. XXXX,

to its that such the statements and based on could believes assumptions, results subject Although reasonable differ statements are cause are forward-looking risks that uncertainties materially. company to

factors profitability XX-Q vary sales Exchange our increase could forward-looking the and and forth set levels and levels, Important company's ability that with Securities from include and to maintain cause ability and actual the on risks market guidance to statements Form the provided XX-K our materially other in results share to our Commission. reports filed the meet reports to these ability

during and reminder, any made to a As focused period an after in year entirely the software the XXXX. levels references refer Agilysys transformation fiscal hospitality record financial only to company time solutions business this to call,

I'd now Mr. Srinivasan, Ramesh, turn and the like call Ramesh Agilysys. over please CEO to of ahead. to President go that, With

Ramesh Srinivasan

our Jess. Good evening. XXXX Thank you, Earnings Welcome fiscal Quarter to Call. First

Joining headquarters. the at today call me our Jess on and Alpharetta, is Dave Atlanta CFO, Wood,

The past property our moving counted of with development PMS to value numbers from in fiscal to profitability success start including progress represented of the revenue, contract work any for management Marriott the on before numbers reflected to QX of are in and details. ever but first in performance and sales PMS of and years. not services. the this Marriott in is in performing project. include was had discussed QX line sales our year the sales project, we sales call All we None level system Fiscal to anything for is business cover sales the XXXX me the a are services the best mentioned. sales couple services have Let terms. revenue levels, mentioned numbers annual which plan, over high other continues measured according

With respect and PMS, quarter the PMS-related management my pertaining QX quarter. here fourth to increasing property X.X-year sales to systems, consecutive best modules. tenure and the during sequentially was

cloud-native sales is buildup success PMS modules. of by of aided add-on related ongoing gradual momentum, Our state-of-the-art improving the PMS indicative the recently sales and created

on, several property X both them can achieved. One technology during the PMS, And to unify simultaneously, have that from we rewrite extensive are we previous point-of-sale focused guest-facing that By the other work management X staff-facing systems, revamp core the have up, platform revamp years, completely the and ground cloud-native procurement point-of-sale We POS, on-premise calls, solutions also among mean major aspects required our things, completely was base. functions when to also software and from inventory into products. as by customers. past now mentioned investments up, objectives, objective been R&D during ground which of like

past additional core XX-plus second given has to this creating was a with during objective have integrated many modules years. compelling competitive us a experience opportunities software add-on distinct of sales Completing software few objective software the solutions, The advantage. create solutions. hospitality us cloud-native given modules These enhancers, ecosystem the thereby add-on

XXXX. QX than XX% for our sales of sequentially was was thus year. as of high sales modules best the quarter The for the as modules, far, than about add-on more higher quarter QX And was add-on best previous XXXX first which fiscal quarter last and preceding fiscal twice

year occurred sales quarter the highest multiple ago, a quarter and involved and with for The vertical. previous than one licensing sales contracts. these, quarter was the Americas more sales fiscal one also hotels operations vertical highest large Barbados, significant a St. win. of perpetual countries, several sales resort this software sales second license-based XXXX multiple Martins. Divi properties featured ever this QX for Among Aruba, little particularly Bone, and across By and during for X St. featured Cray broad-based Resorts X was of contrast, solutions, including more

more Given firepower our potential marketing we add in vertical, share hotels vertical to The to gaming casino efforts. in close and and among have achieving sales market QX, the portfolio solutions during including continues current to to of levels. verticals, peak resource modest sales huge the our sales more we continue as Americas, improve team the here invest lead levels. targeted

a This was the X XXX-plus the of and homes the holiday of selection fine the luxury range Asia largest third apartments, competitors. Australia, marina add-on and XX pandemic multiple from long win at couple since process and a and options competitive Island region Island PMS berth Hamilton Island about APAC is across property resort restaurant Southern Pacific best Hamilton hotels, XX after by casual integrated the quarter and for thorough stakeholders accommodation activities. featuring sales involved a offering modules tough, XX in internal spas, and the dining in over Hemisphere that highlighted a self-catering to options, the tours and

the ecosystem Island Like Agilysys us become showcase Resort integrated hospitality years. has of for Pacific should a Inspire Hamilton solutions Island been Korea, Hamilton for Asia in site region. POS several customer another

QX the was won subscription new we of products XX respect With signed customer or XX during modules to whom June, average of There per added fiscal agreements. customers, sales April X licensed license-based an XXXX, during to quarter. deals new

current any did that parent the XX properties was the Of before, the customers. and new our XX% of about during new partially fully based. our properties quarter across customers, added XX either license new added not subscription already company solutions but software have were also We or

for XXX properties, sale were In already were total, instances accounted the using to there XXX of or our solution deals one least solutions. at of additional In addition, more XXX products. one of selling which these

the sales instances sales new product respect number best and far our of of number was across those the sold new quarter solutions This quarter total to with thus instances.

quarter lower on than for which Revenue was was customer and fiscal licenses lowest its an quarter. quarter. of software of $XX.X subscription Moving SaaS-based record than at licenses XX% revenue QX the consists perpetual increasing revenue, with at and consecutive expected at year perpetual in preference million, couple revenue to was a licenses. challenged $X.X comparable tenth product Onetime software from hardware prior revenue. higher to years this million continues XXXX the be level

of lower than hardware also our The revenue, other part product was expectations.

of iPad now operating supports the POS point enables we to customers iOS systems As and hardware all POS sale, of sales Android. XX% modernized now is our including noted terminal major iPads directly payment like the providers a use version for have to and portion about can endpoint from attached their purchase agreements, less previously, off gateway manufacturers. This because needs. mini all-in-one Consumer-grade can mobile as they that terminal various shelf they well purchase as of devices and devices, modern

POS and for caused less are competitive overall. of unit ships for This a these a solutions less and providing technology edge. sales licenses support evolving consumer-grade and preference software and of POS an for trends the industry positive flexibility our sales perpetual is solutions naturally customers by hardware cloud increasing SaaS-based which expected Both give for devices, in improvements, each

reversed which of by on-premise big X in POS caused But the can licenses, have mitigated or less least the now at to these increasing been to Apart The quarters, faced revenue-related involving than subscription-based happen X hardware partially perpetual The future. and first licenses shift trends during could affecting second software from wins product one, POS. involving recent sales has additional be levels. is optimal be then. by unlikely sales we challenge

of has We've modernize unified technology been Our POS servers. from transformation working The been terminal endpoint cloud-native solutions. stages the few a configuration parts. The distinct system a POS couple going it tough end, itself phase of through business this layers transforms technology old in state-of-the-art during through years. front middle to past and and back-end as POS consists

We making past involved implementations years approach and of the a couple difficult. combinations old during permutation one and in implementations phased one have modernized technology, new of them have complex by

top one very our and POS guest the time cloud-native achievement beverage short the class kiosks first-time kiosks respect project making that out at under was price with quality results successfully This complex of a have recent implementations news becoming recent month, guest-facing of all implementation a cafes installed bounds a difficulties. modernization Disneyland modules park. and involving have much adoption all The POS by engineering encouraging. improved a at the Paris, versions now schedule. Earlier initial to paid versions and software and easier to product of we new work The have and is such have of less lot We and leaps been new unification food the and this for theme high-pressure business famous been good the completed carried involved handle. for

the POS We After expect such during processes, expanded POS at adopted kiosks installed integrated successes used the our widely the several recently have next to couple manual significantly systems to modernized of major ship number which a use loyalty of additional be has addition, few XXX% systems, expand to used park the their mobility-based of modules use installing months. and our with automate a Agilysys ships, company and ships crucial on of cruise in before. this initial to promotions

state-of-the-art food versions Las of of in very a news include versions location recently a Vegas, guest-facing the at York in implemented modernized the POS the couple Agilysis in and for Other botanical famous implementations Las one few At and well-known of multiple product a a that which court solution been POS properties using New international [indiscernible] was recently system. foot opened premium replacing kiosks, at the add-on modules serving their Philadelphia. not airport Resorts POS, was InfoGenesis Vegas-based launch a competing most successfully and successful involving City. recent other an outlets, most recent those famous completed had garden recent

Now that's court of that food is food Famous name court. not the actual objective. an

at vendors. We'll of most product the Marriott POS versions implementing one the properties POS as approved us, selection who following be with all recent signed our recent

our couple modernized brand standard been coming was marketing with and has the for as more the digital and of already modules of a at Marriott subject up next implementations on Marriott, chosen membership, While implemented Golf book solution weeks. cloud-native along successfully Agilysys in the few properties one with recently property software

product POS of within the past We reasonable old cloud-native should our new versions summary, frame. are be with to business in a good A lot new move transformation-related able now. In to time field the happening challenges things

soon We our rebound to improve reach the things, help future, also which, hardware other sales should POS ever levels. levels expect product higher revenue than numbers and in among before

$X.X and increase QX XX% in and revenue driven a revenue the subscription recurring which respectively, comparable million within prior $X.X revenue for constituted to year-over-year fiscal In of year-over-year, by recurring XX.X% both QX XX.X% number quarter, records increase million, over level growth. of yet. million and grew revenue. XXXX terms, highest Recurring revenue the Subscription $XX during subscription absolute it grew by are total year revenue,

has QX to XX.X% enhancer now year. sequentially revenue of quarters. XX Recurring software quarter total revenue this subscription compared increased experience from revenue XX.X% modules constituted add-on for Subscription consecutive during last

Our PMS-related total turn, subscription larger X revenue competitive by of solutions Please impressive There software keeping ability POS XX% solution software sales of systems, pertaining to XX% set The and with management grew subscription in sale, end-to-end at not primary kind modules. be enterprise year-over-year a property XX% vertically one let to levels. a sets. that. PMS, The can grew of was, a POS increase repeat POS ratios to point and claim me by in the strength, XX%. many by significant are in universe continues win-loss solutions, focused driven in XX% rates year-over-year companies provide which growth related core their broad modules increase revenue our year-over-year that subscription a PMS year-over-year, across increase and and revenue

implementations, to SaaS subscription obviously record for the fiscal ARR augurs solid consecutive future growth. value sixth QX was revenue implemented, combined With projects subscription well of XXXX subscription-based continued which good respect quarter for

end recurring slightly revenue at to fiscal improved QX, compared and combined the of at product sequential the fiscal services With was respect of XXXX QX of backlog previous the levels, and overall previous backlog XX% to peak end levels. XXXX

slightly services levels decreased due implementation and backlog velocity. thanks product to While improved, performance, to good backlog increased sales recurring revenue

months of are couple year provided all was of retaining fiscal We elements a full that guidance XXXX back. the

end revenue possible revenue year Onetime million revenue million of up challenges is XXXX will lower $XXX It to pressure. some to line closer product top created full the end range. fiscal have $XXX the

a towards by levels to about tilted compared expect We revenue percentage of fiscal fiscal years this the half year to be recent the more point. year second

respect to provided, least of with growth will We guidance year the XXXX. upcoming even good revenue quarters in a full comparisons are during given subscription confident at growth to the off become start tougher year-over-year fiscal and are XX%

Our confident to respect business to earlier. are guidance provided is respect the with by we well with performing revenue, levels, profitability also level XX% and EBITDA

let With to details. Dave more business hand other me over that, call and for color the financial on

Dave Wood

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

First while quarter in from a $XX.X recurring net revenue X.X% comparable revenue million, the product million Onetime record XXXX prior over total quarterly XX.X%. a fiscal $XX.X was of up prior the was increase revenue XX.X% was year and professional services of year quarter, up revenue of consisting period.

to business. continue the significant see positive We momentum in

seeing have the revenue in fiscal continued we quarter. during challenges However, second year product began first the last the of half

revenue XX.X%. decreased QX to During XXXX fiscal product previous year, by compared the

more which down are discussed As we customers products choosing hardware-related past, revenue. devices, consumer-grade driving in have is the

gross QX deployments in sales on-premise for expected. XX.X% deals, a consumer-grade software year last first customers XX.X% the fiscal Services and 'XX than services was lower-than-expected quarter. that of was addition, to a record quarter product more record The lowest In our was Professional sequentially X and over led lower in the increased Despite lack on-premise product with prior previously had to remained revenue revenue preceding strong $XX.X slower QX and choosing the sales the bookings, line years. FY quarter. proprietary large POS devices million. margin

grew increased the the the low margins record Professional compared despite next remain XX.X% high Total recurring total XX.X% revenue We again of XX.X% services of backlog professional recurring recurring the first to quarter XX% the XX% services revenue. for levels compared first quarter fiscal of expect to once to the XX% services in record net revenue revenue represented quarters. revenue few XX.X% total quarter in total at of first over revenue of during fiscal comprised or Subscription fiscal in quarter for XXXX. Subscription of fiscal XXXX. XXXX. of revenue the revenue

revenue from increased of sequential our sequentially was end the XXXX, on fourth $X.X which Subscription top million expectations. of quarter the quarter-over-quarter fiscal growth

fiscal quarter statement. to $XX.X compared just Moving to XX% Gross quarter. prior margin was $XX.X profit development, of general main compensation income XX.X% million in X the expense expenses operating items, the down for of sales and was in when gross to and XX.X% XXXX. should the revenue administrative year profit comparable remain XX.X% XXXX north Combined, year. compared compared marketing fiscal in line stock-based product year Overall, fiscal Gross XX% were in margin first full the million total and first quarter. of quarter excluding revenue the the prior of

Excluding revenue million income to XX% compensation, of to development revenue $X.X in expenses at fiscal while year year. revenue quarter of of decreased of $X.XX. compared XX.X% of net to year XXXX remained $X.XX quarter first prior XX.X% from decreased sales $X QX, product steady $XX.X fiscal diluted QX revenue for prior million, share of and than General comparable of and $X.X XX.X% the first compared were XX.X% income last marketing to of greater and Operating to stock-based gain administrative XX.X% the and gain million each for of revenue. million the the per

per net Adjusted $X.XX favorably normalizing first quarter, $X.X the adjusted $X.X in to adjusted diluted noncash nonrecurring prior earnings for certain charges share million and and of to favorably income compared net million year of income compared $X.XX. of

adjusted was to in $X.X quarter, EBITDA year ago first quarter. XXXX the the million For million compared $XX.X

levels plan EBITDA FY We our revenue. at 'XX XX.X% of well are with our adjusted see pleased coming ahead of being to profitability in original

marketable million XXXX, of quarter million as of compared of our million a levels to and June We year the comparable XX, March in $X.X current cash. XXXX. cash cash prior with million Moving was remain comfortable statement. the $X $XXX.X was loss Cash to as sheet flow to flow XX, of securities Free $XXX.X quarter. and the balance compared in

be cash year. have course said and of flow the free over continue good we the to EBITDA for As business health the proxies of the adjusted past, the fiscal in

fiscal cash to of working compared first be flow better our Due half. the to half the fluctuations, capital in free significantly year second to tends the

challenge fiscal During XXXX, product to a continue line top be to revenue will revenue. year

services floor at and guidance million us QX plan, product $XXX of subscription revenue. keeping assuming to of professional the However, is ahead for the lower currently $XXX million revenue range, end are the

on quarter. business we are the In Despite are fiscal our our for our given the QX guidance pressure top line last profitability revenue, with levels future pleased plan XX% north coming comfortably and year results revenue above trending in growth. and the solid year fundamentals full XXXX financial closing, of

Ramesh. call turn With that, to will the back over now I

Ramesh Srinivasan

have looking meaningfully Such broad transformation industry technology positioned than summary, and massive we underlying of and solution new us back, the it the now will of to that state-of-the-art offerings hospitality on its a upcoming technologies. In increasingly deep the has smoother that without products support our based such the transformation sets serve conquered distinct need is and competitors. a business not gratifying successfully to and enhance only X steadily is product Current different vastly reduce better become and challenges. versions implementations, involving

this how We fiscal rebound quick wish that obviously headlines. levels POS year. to success half this are encouraged recent they POS the of in POS made global implementations are outages One interest outages happen. expect note never about by We during our system the the see seeing our sales performed like of a recent second in we solutions during and and system

them some pride several customers back we of frontline to well run the the of until connections However, about system and quality from business robustness serve InfoGenesis we that offline feature come could but POS when not heard help disruptions. feel technology system our preventing our

which product, the Ultimately, and service And to vendors happy are be always now will first be among to support levels. shine. great back-end to were technology service, and running. respect we were position better a both with with support to the respect back in Even up and we down,

or together ecosystem rapid continues the speed possible base, even universe to of make forward major operating integrated that tightly the operating to value whether best will against the the competitors. to of need progress bring breed, one of The systems system support part advantages with multiple such the to alone integrated of well-entrenched systems accelerate our innovation our solution PMS integrated core Our each ability ecosystem, while growth. and superiority vendors, multiple of being continue as competing our systems minimize of of

One final note.

quota sales about time. around strength carrying year global than current is Our higher the personnel same XX%, last

global current Our sales of at time top same last is Agilysys as market hospitality delivers. increasing pipeline solution it of the was higher a than solutions provider and significantly the ecosystem awareness value year, the signaling

overall and we disciplined growth. remains well and continued profitable excellent for Our shape, in business positioned are

the let's questions. Victor, up call that, With open for

Operator

[Operator from from Instructions] first line Needham. Our question will Mayank of Tandon come

Mayank Tandon

maybe -- a Ramesh, Jess. Dave outlook I to Dave just well. Ramesh, bit. little as wanted and for to wanted the understand I

So strong revenue you a the had subscription first very quarter. in performance on

also As also and in rest EBITDA of that a imply very in terms year growth deceleration would the margins in the you and XX% strong said, profitability. obviously growth of

might So year? Is is beginning the what both of terms something there could the just and going you growth that also of through else deceleration Or the are? being drivers conservative just it of expansion. margin walk kind be in driving on the at

Dave Wood

a which expected But sold, a a there was strong. like lot line. script, The number. top management on a really product there's and we on of a less have subscription start bit we Ramesh bit, talked more growth sale what little pressure product got XX% out strong little in put we revenue year. of little to think I we is The got and yes, of Yes, the property subscription the lot in about certainly out line faster a the the point than would expected, than bit the mix

XX% the XX%, is professional to us, we're of of growth. mean, last holding where today. but quarter, For the I in trending north the we're the XX% trending -- services, think kind it And gave I we're of of closer trending guidance we're guidance ahead kind we we're

Ramesh Srinivasan

profitability. And

Dave Wood

than trending ahead the likely It's half which in And of comes or of profitability, today. the decelerate the as point the in the a guidance. closer like we revenue could margin where product the pulls to profitability at we're gross us the XX% said X, XX% back script, year we're certainly second back,

Mayank Tandon

Got it.

in just driving other Okay. these your you after to the as wanted strong Americas big that land And of type Ramesh, market, understand. same parts the adoption opportunities, of PMS to able are to globally, Asia the are you're also on maybe, you've I the Makes of you, some and and both in ask win sure deals side. sense. gating the then in making go rates terms and what on POS of seen I the factors

Ramesh Srinivasan

Yes.

Island. international in regions our So Like and Mayank, And Hamilton products. -- the it quite down a it well, a Paris, state-of-the-art like Korea, we is other some is have and of of settling truly especially regions these few in new young. Inspire matter Disneyland as establishing internationally, are showcase sites now, versions products

So by we names big up there other I'm allowed And that are are not one. to one building here. mention them by customer one some

young, it is The establishing matter newer customers these So versions quite quite our young. and are products are of that know products. a

customers get get adopted right, faster more to and have through will where come reference phase, more and it we up, So that faster.

Mayank, superior. they It very is that innovation you are there And challenges business hard But competitors low low any is business when provide should our related renewal extremely obvious as very that is battles. are see and ecosystem you, competitor product as far deals challenges also, I pricing world fight don't product concerned, price. the the fight We marketplace. special quite tell in with

belt. past. But under customers product more it our our and getting more a get of of and challenges have kinds fundamentally, versions competition new those matter we So establishing business is to reference

Mayank Tandon

What or metric terms One total any a today of that? percentage global is revenue, as of housekeeping item. sales you can in around share

Ramesh Srinivasan

quarter best through was an revenue, than ever never our had Mayank, this. -- share as we a was this global percentage better QX. our June this April Our but of don't sales, We've it

And So few sales the for had it the year. a in of sort fiscal to we've start of is very line level quarters. success good with the last

Operator

from Our Matt from will next come VanVliet question BTIG.

Matthew VanVliet

I wanted that business dive deeper progress some of in the a you Ramesh, slower mentioned. POS guess, of on to little the

biggest a Just of to little time frame to it the around your wanted that turning like struggles you you then products areas sounded it the later And maybe around are lately. newer that better be performance. when showing get maybe prepared saw indicated seems comments, and in

a So maybe just bit like a in of could if inflection more curious type any you little put more both point bookings timing then mix? parameters and you're seeing that

Ramesh Srinivasan

Yes, Matt.

gone consist systems huge parts, of layers end. in in because they terminal POS front business back POS transformation the the are the and with through new. end, it distinct basically, the through product POS a you you And where from stages gone unlike the massive So a configuration the entirely and replace systems server-related new and has old then transformation multiple to the one, has the take PMS, middle

you is way technology do transform the stage kind by only business the it And that to of completely of stage.

you front do then in reverse server terminal layer, So middle the back-end and sometimes a the end and you order. the do first

our products. new that with implementation pause old gives customers implementations has a So invest customers mix last so ready, new the of other they want of in the quarters doing part have part and caused that many challenges. in of before the yet some And few go new both the not the of to and because they us involved the been is we've certain

ended. phase has Now now that

with the of like now, layer customer the through gone modern front the you are for versions few end, all are the going That you're new live sign X, if server that because last middle We all is us, with the back-end you the quarters. have and all and Matt, new. a ended only

So it's lot handle. for us simpler to a

[into new examples big excel now, many all a the my I initial new So where few are customers customers sales]. script during the and ones adopting signing up you gave to

undergo transformation turn starts the all So easier, is new will it have lot POS going but carry a will to be new which going a with we only of customer's great around the makes our And implementation forward, to producing the once we current modern simpler well, them on it versions, start sales. to the customers new. current customers results,

In this away. are of the I think is we a It too of year, few timing, months away. fiscal is far terms second half it not

Matthew VanVliet

that terms had PMS Okay. And are you've out on in PMS additional some that the brought how can of of been selected to help And breakdown Marriott then us attention Very you there? product the with X on products the that. has side, as has any helpful. the successes much state

Ramesh Srinivasan

general, in down It quite anything successes PMS not course, general, else. don't the our far. counted it by In we PMS just PMS product. been agreement It's In break broad-based. not in have is based sales is or Marriott not so on, of anything counted

progress solutions has the So PMS lot the our cloud-native small now. been the sales for products, up with and a have been broad-based, of many and big signing customers

the ever on PMS pipeline encouraging. now. look we And the our been is with PMS. based products, the is not the so that customers And has multiple one guest best it's deal demos been across very PMS, just And as encouraging across at broad-based. it's and journey, very big It have also done adoption

progress So with much by we continue very in we to are PMS. the be how making marketplace encouraged

Operator

One moment for our next question.

Our Stephen next will question of from come Blair. William Sheldon from line the

Stephen Sheldon

rooms under management here, the operating to I about ask one software XXX,XXX years. get to your coming First property to the wanted over goal

as goes about the at talked $XXX,XXX I adding you've [indiscernible] we I XXX,XXX was another think that rooms live Marriott, live. think had point last one

how new thoughts get wins, strong think cetera. now et especially about just category? wanted about as that customer expansions momentum get on of sales meeting updated confident the PMS that other from, in I seeing with you're And we come exceeding where to or XXX,XXX the that So kind are given existing you customers, could or take rooms

Ramesh Srinivasan

many It's Stephen, because years of of great we've to products much basically, the for of accent number rooms the us. so have say, Agilysis or and endpoints last, too you to the so couple to of kind we Yes. number Stephen. Yes. on thing Welcome cover have sell. so, stopped putting

terms, of So in much we've all annual But the our spend time you. time we that. on don't to spending value sales interest it too number is measuring contract exactly with understand more and of do I started and rooms

that of the said Canada So opportunities is Marriott than way you And up PMS -- up look before and what and XXX,XXX the it well. majority is if it universe we've U.S. less adds properties, have our about to you I the always a publicly XXX,XXX properties, Canada would up U.S. rooms. add for current and as is describe PMS said we rooms the

So that or is XXX,XXX rooms. you assume a majority XXX,XXX of

So XXX have, close than numbers with you you that. our PMS we momentum that the less now. add XXX,XXX have And the up to to tremendous gets of course, sales we

our buy we a with products along our still modules but The number are solutions market. of high which room we rooms, at in because young of young. industry state-of-the-art for the use for Stephen, us which least are think, point, are modules. new with still is and partially much put the the just doesn't are lucrative other this in sort the But can modernized month, of per get I we they missing to buy of emphasis But very the per if typical all sense, for they the few PMS, it. modules the products we because too customer They number price the it, on the metric quite sell is are software

wouldn't is, of I of answer terms all of So think the in rooms. it short number

of well, you're calculation up the that, with are if signing with itself, should new now. rooms. there off a your PMS because be Marriott far said XXX,XXX not And XXX,XXX to all us goes customers lot Having

that lot not your room value would lot typical a more more to be than we a to calculation, provider it. every to with that us many have can but because it with is a you're modules So sell off there's far along because PMS we

Stephen Sheldon

about could your when where think monetization just Got product have medium-term higher? specific there per that follow-up, as the of are traction kind that you incremental portfolio than I And it. you're potential which kind module portfolio perspective you another into an think PMS, beyond optimistic way, now from about of that others add-on That's the more my really guess about are And helpful. about asked ties you most optimistic monetization. push you products -- product core is room

Ramesh Srinivasan

Yes, Stephen.

side, tool count demand, So ordering of guest-facing has and but the an add-on to that a and not product, as PMS kiosk And has been lesser on very opportunity on as now POS we modules market the these tremendous start products that core remote But PMS side, on which well modules demand smaller. doing are the sell add-on the also a has are product add-on, as have it. well. the PMS And the have that potential, on some than we is of side there bigger but each along others. with tremendous other big the

in of half But of of million think realize cases, into almost it wouldn't who couple all I or $XXX tens of a dollars, a our million providers the revenue these Stephen. hospitality involves products, is for based size. as privately some add-on whose providers of some add-on almost go and on we'll $XXX just do are are you, only modules of size us and our if their are X one a list millions providers, you X technology thing of business in the hospitality kind entire case, business is there who even technology modules. to annual Like but there and now are

modules these add-on potential. all enormous So have

a bigger market others. the Some have than

Operator

Our Craig next will line from Hallum. the of question George from come Sutton

George Sutton

you've can Ramesh, relative on had the something of that if the side to wonder challenges given options I we plethora point-of-sale on clarify hardware. implementation your the

you you soon. expect getting point-of-sale that's to better now, business your rebound and mentioned saying are that You

that's it going I layering just all together out you're of forward. that's how kind wanted make exactly to -- So sure that and put

Ramesh Srinivasan

That it to only But of the is I put I but X hardware, thing close, the the affects it software pieces get complications, -- revenue. were that. and Yes, more software. the to terms is George. there on complications wouldn't hardware though of it, pieces are distinct pertaining in

new completely that software are is new which endpoints are and well, and and not the ones old restaurants. of One software. match pieces year some is of But so, are or terminal modernized now. past all that you the we we is typically back last the corresponding some of software, mix various of hardware various front-end piece state-of-the-art of the had major ready. that And it But that and to in that see the because involves as all for contains them have pieces end

major version. you only if will major live now a with enterprise, own So you with major will go us, you up the only restaurant and enterprise, modern a go sign you live,

the won't be versions. even of old aware So you

us. did We a behind now. over So of bit quarters. of past. very now the customers before business we phase that in has they pause our but that for But And past soon that through get should complicated those few that getting go little us, transforming invest are complications among the process is into caused

George Sutton

Got in to some want I this increasing sales make adding you quantification of your your marketing firepower script. And plan. sure your I was of efforts, to system and early you. also sense and had of mentioned that sort

Ramesh Srinivasan

Yes.

marketing P&L numbers that So you involve the onetime sometimes and could the sales see in thing.

between too caught of this shows there we in the certain comparisons that not up was timing in certain QX. get was the don't in and forms that QX So and certain last QX. QX a consultants held There

So aside. that let's leave

teams we In of today U.S. lot next sales was quota than personnel our through U.S. Asia, the months. been APAC, the sorry, XX% the coming carrying internally sales expanded this have about we here the a team year in and and the the hotels higher in -- in have vertical are international in been in expansion So and expansion higher. Americas one And now, XX% a Hotels of ago, sales the Europe and Resorts increases lot it in in and locations. verticals. has a going more And resorts are of --

money sales to we as it. more we So targeted to get we ready efforts teams a our And expand successes, getting are more lot in continue and invest the marketing now. more are

George Sutton

you. Got

one thing. Just other

we were about opportunities talked a module about put Golf Marriott, lot brand add-on You ultimately? standard we those Marriott Golf of the being talking kind properties Are you together? pieces X to a added mentioned just that of number that haven't for the named you for Marriott, could but

Ramesh Srinivasan

true customers That as Marriott other Yes. and George. of is well,

make of for But short will be And properties. their managed properties Golf, the standard Golf and term. franchise their And the So course, the of should brand did Agilysys all go many during of they Agilysis Marriott make forward. adopting as then, owners has their golf own then decisions as as for up other and the is continue of see the for a our ecosystem initially benefits sign they signing standard been products of brand newer that. And many customers products. well. true for bigger declared for They couple the they up and that

with but XXX our of we you that number if instances in for involved, new record, Like the quarter what of product results, tied this previous of But years ago. quarter, X.X solutions about was record XXX sales mentioned, in all-time product it an notice XXX a us. the these is instances the number

and So more the such adopting just that customers one Golf is piece we have of that more are example, the current additional and products Marriott Josh.

Operator

from Brian the from of Oppenheimer. Instructions] next line comes Schwartz [Operator question Our

Brian Schwartz

the off the this you to part. fast activity ask wanted trended it how Ramesh, on of part the XQ I the fiscal a wondering about quarter. know earlier deal compared the to I'm got start just in latter to business I linearity

Dave Wood

I a flow QX throughout I mean, us. the mean deal Yes. was quarter, remained the it record record for quarter. strong

for we've where record us the It independent call. point-of-sale I it -- was of the about But rest sales quarter. of I in it think So sets results, was a talked good the a booking as year good where you well. mean, we QX. sales the nicely about can felt the see throughout up overall, the where that the sales bookings

subscription. or and And levels the backlogs remain for at record services levels record near

Brian Schwartz

know on sales year change any sales, the also sales capacity sales was you [indiscernible]. of on to a is your fiscal too. being did then And follow-up your the in here to talk commentary start are question about year-over-year. have best just this up [indiscernible] the new you I impact the go-to-market But on making that

Ramesh Srinivasan

much, has approach Our Brian. not that changed

mix a international especially the personnel, are I Our oriented And lot oriented of in personnel added of are them would sales in and farming sales some more of towards and more towards and say new towards more the oriented in hunting some now, farming. resorts them that Americas, hotels that vertical than hunting.

So POS what a is sales a our are are terms more are companies. the required farming. designed, hunting think of way and I the and efforts right? management teams competitors, do our lot added more both been is have on competitors their newer targeted our Brian, marketing But sales of there lot proportionally than they efforts of are targeted, our who in more There PMS important what But the personnel many comes way. depending fact,

now efforts And for we hunting license, targeted have example, Marriott a POS, marketing there.

certain we -- have more are our more So get they efforts -- our can marketing areas feel also lot become where a with become wide-ranging we while have products. benefit more on they focused immediate

Brian Schwartz

the food changes you terms Is segment Last segment behavior gaming the of business. or buying question the in the me, POS buying? just Are or all at seeing et it for varying on cetera? any lodgings,

Ramesh Srinivasan

be kinds behavior they've a lot that Agilysys seems giving as say against a you much, aggressive are Those short-term lowering where compete higher, with behavior buying it's is from that of competition more because we gets product to pricing Thank but for the superiority our bit I Brian. competitor the seeing is way changing sometimes off a the our renewals more and changing wouldn't now the so low-priced us by longer. price. to you, bit respect walled measures only

slow the So to that regions, many the decision-making segments seeing we've still there. major any behavior the But international said bit U.S. a process in before, But compared of is I'm not remains decisions. buying like in

Operator

would call any now for showing remarks. any further Srinivasan to questions. the I back turn not over Ramesh to like I'm closing

Ramesh Srinivasan

you. again look months Thank October. We now the Thank you results Victor. the all X on Please about end will for you talking enjoy Thank in fiscal you, quarter forward the the report summer. of second we rest and of XXXX interest to your attention. from to towards when

Operator

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

You disconnect. have day. a may great now Everyone,

Agilysys (AGYS) 22 Jul 242025 Q1 Earnings call transcript