AGYS - Earnings call transcript Q2 2025

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Operator

Good day, ladies and gentlemen, and welcome to Agilysys 2025 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, Senior Director of Corporate Strategy and Investor Relations at Agilysys.

You may begin.

Jessica Hennessy

Thank you, Marvin, and good afternoon, everybody. the second 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

the Jes. Good evening. XXXX Thank you, earnings Welcome fiscal quarter to call. second

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

followed details by cover details. first to selling brief other the the on about of a before summary BookXTime completed our quarter, and me revenue Let moving we success, acquisition during recent

for #X little more product. enjoyed than quarter. during superior the in Forbes its any good hospitality, for currently decades product last the excellent other and management team spas We reputation serving BookXTime couple enterprise a its spas solution the world-class and service. leading BookXTime of X-star-rated within customer provider has competing BookXTime hospitality midway over SaaS a spa more acquired is the software than high-talent

is major countries, based customers similar includes on golf, including customer clubs XXX subscription chains, resorts, to hotel casinos, at member other Hyatt, Marriott common almost licenses. base currently best who private and Agilysys are their partial properties. small and customers many Seasons of Accor brand Their and than only portion is revenue are Hilton, Agilysys, like who entirely BookXTime's a ours, chains at more in and and IHG, with Four also

of this sales, has revenue other details In we more an best with highlight The quarters. sell difficult and fabric personnel anticipated Agilysys. Agilysys applicable coordination than have of sales to subsequent going process in caveat customers sales to the for to entire moved increasingly of during since become ones us do bigger various separately months Agilysys team integrating is current soon during into various BookXTime business BookXTime to will the and products narrative, we Agilysys their such it along now sales with that territories. customers to difficult an in personnel to our faster sell can couple hospitality new and their the be software spa they acquisition, have metrics of differentiation product BookXTime applicable, sales the going to is where to management and to to separately attribute additional BookXTime and smorgasbord the

discuss the current to during considerable we properties. products see you As customer will from we success having additional numbers selling this are call,

much process. our in as products X the of itself running customer of acquisition reach Our by win-loss The our by X as stage the ratio XX%. least remains product high sales properties at stroke software X-X, number has increased BookXTime modules XX%, demonstration by much or currently in when as we as

of are the transaction. to BookXTime's less is that common with XX%, than than prior X-X, XX% Agilysys properties customer Less

to hospitality global the BookXTime to experienced and even is of for BookXTime's before of is sales to and modules They base strength happened. same can sell or was strong come team software right now sales set a products One have products they ecosystem entire buyers selling to based in feature-rich the technology more team certainly they used The place of acquisition which sell an into the and hospitality industry. a significant to to. less state-of-the-art of selling and the eager accomplished are broader have

happy enhances world-class a to product our we further Overall improving add hospitality. we are competitive that within team got and opportunity professional positioning this

the after same us Mr. Youssef the of around acquisition, During Joe date business at the that comes Commercial technology the to Officer. led of BookXTime division Joe we to as magnitude. on Amadeus a executive X-decade Chief time and by close welcomed quarter, our to of almost catering and tenure orders Hospitality intelligence, hotel PMS, focused of couple the a expansion CRS, to sales he products like where team

it its was $XX XX When than close was the being of he on of by less $X business million. time Joe annual billion joined to revenue Amadeus, later, unit. left about hospitality division knocking a generating doors the years And

We are as team, the add accomplished employee at right time. shares DNA to disciplined mindset officer our Perfect who to and our senior executive obviously of customer-centric, thrilled such growth profitable growth.

a with customer we current net subscription That's value. annual The important current continue of in contract we to as only our regarding measure few transactions details in in our distinction measure net from more recent base. practice customers. generated additional additional On We sales contract in actually see counting conservative value success. an to One growth represents nuance, incremental sales terms. selling slight annual sales it our

Excluding second of any the gaming of quarter our sales August July second the overall the were quarter ever acquisition, for for hotel excellent additional verticals in resorts, cruise U.S. September to and levels EMEA. and second this BookXTime and XXXX Sales quarter. best was sales product late sales since best the for casinos, ship generated after the quarter fiscal

continued disappointing, and the QX. following in management sales APAC vertical service quarter challenging food had quarter be Sales during U.S. to strong a a

licenses. surpassed and also September systems, chunky to previous record add-on enhancer our ago were July perpetual property about established quarter we when first sales of software sales related and second PMS, XXXX X years selling quarter Fiscal matched management solutions, mostly experience

in number fiscal of field of PMS a XXXX of discuss seeing success nearly others modernized who the last growing the category quarter year. the industry. increasing a with compared number of sales more customers the are than trend reference are stories fully now. doubled second for giving The sales a in implementations quarter increasing, their second us product clear year-over-year We PMS-related set PMS to Fiscal are and year willing to of of PMS solutions

of check-in/checkout combination solutions check-in checking solutions of The solution recent to of customer and One cannot a power of was resort of major core a minutes. guest PMS the PMS kiosks times our times from during the express PMS be a testimonials such overstated. peak value recently about integrated wait popular reduced at hours where example powerful the modernized few matter holiday

first first distance. to best the of half year ever a respect April pace was by fiscal XXXX Fiscal with ahead September comfortable year's sales, half to a last record of

version once which still not available scale sell now increased we levels. of newer and to long more are lower are We across sales us sales performing with have the runway lot heights performing verticals to And market where the verticals turn of great due products sustain growth of will ahead market a current share the we can sales growth a all corner well the well awareness. The verticals.

still also market sales can innings cloud-native And only relevant to prefer state-of-the-art entire the are based share each of on-premise perform remains on on-premise who the customers hospitality-focused products, bringing ecosystem of Our many verticals. marketplaces that our technology effectively most for we all implementations. in an at low them of early of well hospitality

our team year of to compared established of increased sales our presence, that's the influence strength expanding persons accomplished our at respected in global the trade quota-carrying efforts, thought leader sales and personnel are ago, and industry. by We a driving commercial greatly is an XX%, end and have have presence marketing in executive by who increased hospitality to good are great September has record shows, more lot X-X, senior well and track a XX leadership added as wills a growth, establishing the

Having recently use is Agilysys XX, is the them solutions. of went discovered all X-X, a the industry not solutions. Agilysys software technology-based several Lajitas modern window, X-day yet. XX present hospitality The over much truth implemented into production said the new And that Golf Texas in competitive all that, of has Resort replacing

just ecosystem can of general industry is it realities in us yet, used today take an convincing time not to and with about is The be to solutions. more hospitality integrated be accomplished modern such going to more what

and economy, technology global guest the increasing see to possibility hospitality If provide down. only will to experience external not experiences increase other help due external slowdown inflation the or customer factor, interest base do any guest of us we improve costs. efficiencies, the rates, elections, that loyalty for can factors believe operational enhance slowing and any We and the need operational without that ways any

of products fiscal July all new involve is customer of per QX added XX X-X, high an wins that average an customer per XX, but September, of of is During a XXXX driven us, was and average we of new them featured we XX these X and which subscription-based. customers added sales new new by products X-X, X.X XX, Each were which deal, wins for deal. to PMS

the the from the the third of spa new during XX, X product customers signed week for addition to up August. In the of BookXTime time acquisition

current which did properties, have subscription-based. during either XX% of the and before new parent of not the already added new across properties our also but properties X-X, XXX customers of our XX any We about new quarter or them about Of company were customer. XX%, added products partially was new fully customers, parent the

X higher the QX our across fiscal properties, These deal first half customer instances of increased about addition, total new XXX least of of the XX%, products. XX% preceding properties. instances was sequentially selling The first involved sales running products XXX properties the to were to In current current which customer product a value average quarter. X instances year. to year-over-year of sales size of additional contract sold sold during product product last XXX were at new of already X-X, least XXX of XX% compared at other these XXXX half Annual than new to there

million on attributable consecutive BookXTime. without of Now revenue year a even X-X, quarter. quarter. record $XX.X XXth from it revenue record was would prior million, Fiscal comparable meaning $X.X revenue. the million that XX.X%, record XX.X% to than been the revenue revenue higher the have was QX BookXTime, $XX.X to a quarter is XXXX

half fiscal is Overall last XXXX of first the million, half revenue that XX%, during higher the than of fiscal was XX% first during revenue $XXX.X year. X-X,

revenue increase revenue $XX.X and million both sequential Fiscal grew $X.X Without driven revenue year-over-year since and quarter-over-quarter This by a revenue, BookXTime recurring XXXX million $XX.X increase included year of subscription fiscal to growth best sequentially have record during the of increases. This subscription and $X.X fiscal record to million. increase the which recurring XX.X% contribution, million XXXX. revenue in to Recurring the XXXX acquisition. subscription during of quarter-over-quarter, year-over-year of increase million QX half QX. $XX.X BookXTime year-over-year was are XX% during first attributable would grew XX.X% X.X% QX $X.X been mainly XX.X% a revenue million

year growth fiscal XX% revenue subscription third was quarter XXXX Second the consecutive X-X, of year-over-year of or higher. XX%, quarter

Subscription remain that QX of our total recurring a our preference a existing as sales revenue, revenue Subscription is both vast majority revenue, XX% now of our fastest-growing XX%, revenue becoming agreements one implementations recurring the consistently XX.X% driving which will and of year. currently. low total of lines. compared by X-X, XX.X% Annual to constituted revenue cloud-based subscription-based X-X, total recurring significant line maintenance the of revenue XX.X%, portion and to customers revenue is no-growth and currently, of new is is last for revenue about

a are subscription add-on inventory of XX.X% and other, software highest These were the BookXTime, constituted vendors, to level past the us, Texas operations. and during innovation. the higher they do the revenue procurement only lot When buy software add-on POS POS, but in integration products, they valuable a along of not modules Resort to manage multiple with Excluding most reached with total immense core adding like and from PMS few have they work such benefit modules, value experience more working future get the PMS customers also revenue, far of which than Lajitas Subscription with multiple modules developed from years, of modules, so pace customer each core far. across that, far enhancer less benefit get the of

multiple can integrated cuts for get there feature coding in software that it create simultaneously have in the enhancement we a When the new product is done products set different innovative we lines. to for about such them multiple is across various that to and when multiple dealing map customers road subsequent time far modules, convincing go release need of than for with an customers of vendors easier each about

embrace The hospitality industry advantages. is only such beginning to distinct

subscription from point-of-sale, systems, PMS-related QX and management BookXTime, add-on profit during revenue XX%. POS, while POS during from add-on QX grew Excluding related by subscription by modules XX% grew PMS revenue modules, year-over-year, and

Our phase order. versions we news work as The POS back discussed quarter. mojo a recently are point-of-sale, business involving get to implementations good tough going expect to we our short in modernized and is continues well, transition through only last POS,

competitors solution benefits just such modernized the our set a we vastly project to the Vegas who of example. completed brought at ago, The POS one of is well-established not carries a superior property the POS couple POS unified a set tangible solution current recent modernized match competitive Las Our could is and months customer well-known major Prestige, replacing and advantages.

through quarters have past optimistic turning we are with POS cautiously worked the phase the our are that We tough for a business corner and now. several

sales higher Sales the point-of-sale July worked related challenges of best XXXX a and sequentially of September we year, technology. POS in quarter modules from preceding confidence POS the have X-X, business was was XX% to transformation us giving POS than quarter of new period increasing our and second of the to during fiscal the point low quarter about that XX%, QX to old POS through related

helped at transactions up solutions, theme more freeing kiosks, while increase the increase by attention and employees food through fully by provide more a POS XX%, recently than to in international installed At X-X, gas a use their the were outlet, major than XX% one drove to guests. park of site, more upsell modernized self-service rates which X% also

results. was This sites on which of executed difference theme enable extremely additional solutions the power resort experienced, also when fastest faster revenue kinds These make this combination and ongoing Driving other projects for to has parks customer is high-volume customers. easier a maintenance management. an customer software increasing technology the and numbers guest valuable also one thanks real to relatively of modern implementations huge and line of levels while applied bottom satisfaction

transformation is QX to Product year. was year-over-year sequentially from which new improved revenue, been affected XX.X% has quarters, QX million, less during but POS still to by XX.X%, slightly $XX.X old few past from the that X-X, the fiscal difficulties compared to last

Fiscal good $XX.X than Services million, September comparable services record be revenue X-X, continues $XX.X July of XX.X% is a XXXX revenue to QX million, that was a future subscription the higher indicator growth. quarter. prior year to

only and our of QX during second top XX.X% These X-X, that to Services compared total engines, of to X support drivers revenue, revenue XX.X%, in subscription comprised X the fiscal is growth comprised growth. XX% revenue last quarter, revenue continue year. total line main strong

levels. product record to sign peak recurring are backlog record grew Product the being implementations including Services quarter far customers of continuing drove Fiscal levels services not scheduled. slightly combined but peak getting levels. levels, for remains backlog short XXXX backlog BookXTime, previous QX second faster best to revenue with of than to up record, XX% projects on sales and improved

Recurring is within revenue, X-X, of record about backlog, subscription and about at its revenue XX%, lifts. XX%

growth. momentum, subscription been the QX Sales and in better has QX, positive even even acquisition, in revenue in strong strong with BookXTime QX along for and better --

enabling beginning to the revenue expectations for X year as the than to to be X-X, expectation than be better year our full million higher XX%, of be have to year. result, now the to all $XXX to percentage And a -- levels. As XX% of XXXX growth revenue that us range be fiscal at EBITDA full XX%, fiscal results We a XX%. full increased, year Subscription $XXX the guidance is raise expect revenue million.

With that, call over for let the further Dave me to hand color.

Dave Wood

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

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

the in increased fiscal BookXTime, during added the As reminder, revenue. XX.X% over year in a acquisition XX.X% a revenue. product prior $X.X total Without revenue decrease total million BookXTime despite August

We to continue significant business. in the momentum positive see

QX remained near momentum strong levels. sales record with Our at bookings

Our significant record is and backlog have we visibility near levels, remainder also at revenue for the into the year. of

continue year. post fiscal Product half revenue biggest to biggest the will of be second in headwind the challenge during and the the business the

the up through providing quarters, and and bookings the over quarter, the level at prior X confidence last are with POS highest half. second acceleration improving additional However, product XX% in bookings the

prior the over at a XX.X% gross XX.X%. quarter services $XX.X record increased margin with year services Professional million, to

expect service We sell next record quarters the record XX% up to to XX% work the Professional in service the range again to professional velocity. backlog to high remain during catch we once low despite margin revenue. services as or few increased levels

XX.X% recurring Fiscal quarter to the XXXX. for quarter XX.X% of of Total grew second revenue the total recurring of revenue the fiscal QX comprised recurring second compared fiscal quarter, second XX.X% fiscal revenue Subscription to total of last of XXXX. XX.X% in quarter XXXX net XX.X% in represented total second year. fiscal over subscription revenue revenue revenue, compared

was revenue half of subscription backlog $X.X half included FY over XX.X% growth high 'XX QX the This sequentially subscription from sales million fiscal first 'XX Subscription BookXTime second first with remains XXXX, increase the the for and rates. of fiscal revenue. $X Subscription the quarter, was XXXX. exit when the in for quarter than year which the increased excluding quarter Subscription when higher XX.X% and BookXTime. of best FY excluding million year BookXTime first our

$XX.X second gross total of the XX.X%, year fiscal margin XX% the Gross quarter. statement. fiscal was profit to compared was XX.X% in in Overall, XXXX. remain profit million comparable of margin to quarter should income prior Gross year. just north the full compared for the down Moving million, $XX.X

Combined, marketing revenue quarter, in the quarter. when of sales revenue XX.X% to stock-based and main operating general X administrative compared and development, year expenses, XX.X% excluding items: were prior the fiscal in Product expense of line the second XXXX and compensation,

stock-based XXXX, prior product compensation, year revenue the XX.X% Excluding development of revenue of to in of XX.X% fiscal year. compared comparable to decreased QX during

steady remained of from revenue. of expenses revenue, while of administrative marketing sales and XX.X% General increased XX.X% revenue XX.X% to and at

favorably diluted $X.X gain compares tax quarter lower share were with second $X.X the The operating costs income second income and for income reduction with $X.XX. net $X.XX. prior both acquisition. along certain of onetime quarter million, nonrecurring share of of Operating year the of million, associated earnings gain in of primarily $X.X normalizing million and and quarter to $X.XX the the Adjusted million, $X.X million income $X.XX due per noncash was income the of prior over charges of quarter and million $X.X for net expense year second $X.X in results per diluted to for improvements adjusted net BookXTime and

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

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

cash Moving to securities million $XX.X to statement. portion BookXTime the of as the on was of paid hand. XX, to acquisition The decrease million, flow March the $XXX.X compared marketable September and XX, sheet as and cash with cash balance was of related XXXX. Cash XXXX

the $XX paid Subsequent balance $XX we BookXTime to added million. at debt, outstanding As acquisition. the current in we of QX, debt down debt leaving $XX million for a reminder, million

million Free to quarter. cash the $X.X comparable the flow $X.X was prior year million, in quarter compared in

continue half tends a of capital better of the in free we've free to working over flow year year. each As proxies compared health be course the to during half. business adjusted Due flow second fiscal for and said significantly the fiscal cash of the fluctuations, be to to our first cash EBITDA good past, the

to least the BookXTime revenue, increasing of XX%. with $XXX are line we With subscription inclusion of to at revenue guidance million our top million growth $XXX

XX% above and full year full revenue, plan, of XX% expectations Our guidance as earlier. percentage the original increasing are adjusted are to coming ahead a at our EBITDA profitability so provided levels year our we of

our Ramesh. with will revenue QX year call With the and In fiscal business over closing, to now we are future back XXXX solid fundamentals results for that, I turn financial growth. pleased the

Ramesh Srinivasan

summary, Thank on the we force all In happy levels increase to guidance you, are business several cylinders. results Dave. of firing despite not good areas yet and

move point We implementations. for the low few gone are that years we challenges quarters the to point-of-sale at modernize combinations confident past will and a up have and couple from moved new technologies solutions its work of the having POS during with now fully old of of implementations past various to business new

our number Agilysys quarter at list of X-X, reference the modernized is because growing the of of BookXTime customers of addition significant by ecosystem gaining level are XX% increased properties and solutions. system, of who portfolio from We great to about least a PMS management during products. value are talent product X property customer the the XX%, The team, running acquisition.

The up currently properties another hundreds other product possible growth. sales running of area Agilysys major opens and of BookXTime revenue no

to are seeing to momentum business external factor. not due challenges We our any any

product at combined are levels, to backlog visibility of the year. good revenue and giving into recurring levels record fiscal half second Our the us close services

while to We marketing increase products and on in and continue of innovation. a healthy level maintaining spend investments sales

total in only possible the what this for a beginning And market bigger the before, business to technology progress kind integrated set business our repeat size. modernized scratch to size we are while must-have and magnitude remains excellent remains said our products of overall orders growth a addressable we of well-run the with sites. of conclusion, customer surface driving industry of shape, vendor current of in at than functions In have the

Marvin, that, can we With questions, up call the please? for open

Operator

Needham. of Our Instructions] Mayank line question from comes the of [Operator first Tandon

Mayank Tandon

wanted first foremost. clarify Jeff, the to and Dave and guide I Ramesh, just

subscription guidance XX% to goes XX%. the that from revenue So

and both half is BookXTime and guide? organic? embedded and how be Dave, is be what is clear, to And to versus second growth Just of related that, for then point the PMS, terms much that would for in the Ramesh of sale what of

Dave Wood

Yes.

subscription. year's there's about this $XX on the million is guidance in guidance the So

the a So be acquisition. XX% organic, remainder little then over the the would would and be BookXTime XX%

And that. up as then But expect subscription to property from POS the point-of-sale be faster starting goes as guiding far growing a not than we much should lower the we're to from management property and guidance management, here And as guidance base. because we're the overall take well.

Mayank Tandon

it. Got

And to just I margins too, Dave. wanted Okay. ask then about clear. That's actually

outperforming You're pretty course over obviously consistently margins the time. of

want the Just understand, the some model, would ramp given to the the think business scale and would of in here. up leverage in from margins I actually

that we of should operating So inherent, could just the well that's the second half note second point why in scaling the than first terms shift anything the you be for half half? would just some faster and why model So given margins better margins in the just mix out might not factors given be any as leverage? not just leverage

Dave Wood

it mean the margins most be consistent. product I coming we the think is related revenue I of business. Yes. will to mean back into

margins. So right we're high gross at now at a XX% mark pretty

that through will down As margins. product increase year, the pull to continues

of definitely revenue. mean, our the leverage year seeing first of in obviously, better-than-expected kind to to half So subscription the EBITDA lot we're a slow and, I But our percentage. operating the OpEx attribute start

gross expect X the XX% a today. we we're So down to margin or tick at where from come

Operator

of VanVliet of comes Matt BTIG. question next from Our the line

Matthew VanVliet

customers of I curious mentioned already look of uncovered. portfolio, the so what of long some entire short you into existing the the market sell obviously, own their at BookXTime some of that of you But those. it's amount guess some far of terms maybe when term can expectations can term, been in maybe calculated you've stack of go are, what success that you in the sort your into kind opportunities you've products size that

of terms of But the the And big in what timing the impacting are the is? think you opportunity How where model? that factors do opportunity? most there's think do you that an key around then,

Ramesh Srinivasan

XX% sales, is to having product an are in the it through timing, that we Matt, you that new we way increased terrific obviously difficult that is additional is first this products compare to think what exact call success And with to other last half. selling specify when But has year-over-year first product Matt. there. product new least half properties X already time's sales at have that

So we get picture customers stage for larger to the relationship us when with are products, having take the we fundamentally, to a good we get have we current customers is, built. very at is Matt, probability a seeing demonstration ecosystem whom that the it success. the to And higher have can a of look

BookXTime properties, those customer than the that literally do customers. long-standing has well to a that a a extend and properties, sales single team built hundreds it's that not of have other with good X,XXX, sales relationships BookXTime more and are you -- that product, Now success properties have we Agilysys BookXTime

we product success. will we've So with BookXTime don't think we if sales just products, of have a Agilysys to too have ecosystem you think growing extend good the that convincing we customer And success new properties good having own been lead the our percentage built. a properties have many who we'll to success take look at

a good in spa a spa products. is to Now the our properties, at ahead hospitality and that, guest it a because It's not about of growing is product getting all of growth the introduced then properties, those in other a small spa market good still also door. nothing market lot and has And and into pretty presence. is terms side overall convince overwhelming. presence in is satisfaction of hospitality It resorts spa is looking hospitality a get share customers terms BookXTime door. of the And itself in door a side to pretty growing

we product. with the one deal grow was bought fact, module is even are synergies along particular at. Matt, It can't But is And part put upside looking over after there time have months, on of after sold our X a month revenue big told, we these month, to all it. time. membership in will will a particular during That BookXTime's So continue quarter. continue enhance to quarter where the spa

Matthew VanVliet

little maybe at you strategy the forward? your look how the sort of and this then initial to diligence anticipate up helpful. early Do from this around are, Very does deal And those going deal, returns as you how the impact guess, M&A measuring a I to and acquisitive couple core that this structure? than more should M&A? deal a at sort of have How future the all years the about of is the in relative being product think last now we level cloud-based over modernized you full

Ramesh Srinivasan

Yes, Suite all down, all way but the years was BookXTime the very It's this about early And too think of that showing being acquisition recommend ago X of is to deal close successful. it's successful. months showing we successful for only it's think X us. Matt, to acquisition the would is judge, Resort I being signs I signs

the But are We've that think company if opportunities is been an have been be very careful far. conservative, think we been which with come, not has to we for acquisitive time, our and we we've I We the can't with we acquisitions. are reason have we've opportunistic. fact so been that after we considered we going patient, done And very analysis acquisitions these successful X take that when do our careful.

that So changing. is attitude not

conservative. ecosystem. of open. the a to to to attractive We're a fill market remain have set us. keep couple expansion going going opportunities product now We ecosystem completely gaps modern always yes, of that rollup, expansion, we eyes of are We're and our patient. in remain ears opportunistic, to our remain going And are state-of-the-art And products, share market possible. those is kinds Geographic we have to also

the been why careful And successful think attitude I we reason in that we've we will after everything. because is far, not going so But have remain. been think,

Operator

Nehal of of Markets. comes Northland Chokshi Capital the question line next from Our

Nehal Chokshi

BookXTime's systems does? about software what PMS the out and well acquisition space, bookings there In are spa results, the tight acquisition. companies Agilysys and booking Congrats Talking as spa on as first. with POS with other integration provides the like software also spa that does raised good guidance. the

Ramesh Srinivasan

you Nehal. cloud between BookXTime, fair Nehal, is product other it's spa product spa be that to not so the X, to that that, is is also say There ago. new most industry, it X a out find. of it Yes. X the is technology and was I'm say, and and technology has in to products state-of-the-art say, used, but is Between and little leading to all that conservative it which trying completely fair is bit the fair which say them, that modern is X here, been modernized widely the which . but to spa, the space pretty of far in years those Agilysys #X can are one market. the introduced, the

modern with feature combine say to happy it's the with them a that products and are both are Agilysys BookXTime in you So rich cloud-native have to along Spa and us when we industry, very leading now. fair of the technology, set, X

That's terms well the of terms most and differentiator, products, set offers. Agilysys are them state-of-the-artness leading PMS. that tightly to everybody spa, a are don't and to Integration products in to both. integrated differentiating of in think factor. we BookXTime of I technology these within them spa the the integrated, a And not is have But of the are and POS/PMS, POS, feature X Spa, happy Nehal. being

Nehal Chokshi

see. I

view that How Okay. you do your hotel market, is as space, player we and looked When in to react And that the acquisition likely big space. well? point-of-sale the spa really looked will a guys not PMS competitor? spa at competitors it in Mindbody how like but necessarily

Ramesh Srinivasan

Good Yes. point.

are spa on. of we all the for market market that hotels, ships. are resorts, is space only That are within on: we focused We focused kind cruise competing the area

open-to-all after We general spa the product. are going not

integrated and these both So also and products, we Spa. of the that are with within has integration kind kind POS where on, Though resorts, marketplace the core a PMS that X hotel, this in core casinos, this X its PMS. the from are of product and hospitality, the spa other are vendor ecosystem, Agilysys fact focused POS, BookXTime leading advantages. comes products And

Our be higher functionality own both because of just of will much that innovation space. we ends pace

But we space. are on hospitality the focused only

after spa going general the business. not are We

Nehal Chokshi

you're commodity raising quarter, Dave, guidance you the dynamic $X your total is it that potentially should Okay. shift overall the bring to revenue? the by? guys lowered last due Agilysys acquisition that than then, not a revenue here. towards overall on guidance like seems to continue the the Does weighing products that Because And needing million be raise terminals BookXTime more

Dave Wood

we're closer reduction the it's, trending I to down in has be Yes. guidance quarter, at mean like and said we're to challenge the moment, X% product we're looks a quarter, the will bit I continue revenue, to year. range. in mean in the gave the originally were throughout trending trending when be it we last XX% expecting And we revenue little product down -- like XX% and we a last products. to

yes, numbers So product revenue line mix. the revenue top lower most with the of associated directly

Nehal Chokshi

other the what's So portion not all related there's to it's -- if if product related?

Dave Wood

point. would Yes. range been our at stayed the above I with this consistent revenue obviously, have with mean, had I mean it's last -- mostly we product year,

Operator

next the of Company. comes Brian Our of from line Schwartz Oppenheimer question

Brian Schwartz

acquisition. the your trying Is the sales unify question understand period between both sales just time discrete? the keep one of the Ramesh, to it whatever go-to-market I'm to planning on forces? over forces. Or them you strategy are plan X X to

Ramesh Srinivasan

Yes.

end answer smaller So back forces. bit most a of single-product will company because I is we sales for question the are be moment, is both the strategies your the the unifying the the short think different At a BookXTime part. to go-to-market

doing So to global single product. they have successful even selling remote been selling very customers, X they're but

but have So different all the effective. very strategies approach, been very . the go-to-market

we, is because sell While complex products. our sales sale more trying to multiple are we lot a

force start of an as unifying so is combined be they sell. it we complex book far. products been ecosystem the the a so has more most used core lot or it to X months year, because next have will only forces but fiscal the before sales of we can for products multiple next is But will time and as X can Sometimes we and product, now over sales X the sales the best time

the XXXX. of period, while the a over to fiscal Now we are unification. fair force the aggressiveness, But into we not sales going do advantages the our Brian, think going to that unified X-month it become will do next sales it that is force BookXTime best, lose to

Brian Schwartz

I Ramesh, second service the your a may data there's of the margin levels. that then level half giving services how guidance And points you're come wanted and lot is with But comfort capacity. Because that to ask of record feeling you your again, feedback near the us backlog you're year. your down in

implement the feeling capacity are you in backlog that how ability So manner? timely a the about and to

Ramesh Srinivasan

it. We increase capacity, about feeling though to good services we continue are our

personnel to to has And September, XX%. this gone since by compare up last services and and our have we September hire. capacity, So you continued September,

are So expand we continuing to services our team.

Brian, increase mind, the in as keep number backlog going to thing services becomes is to the one business better. But

becomes bigger, of As nature better the not backlog. the works. That's right? -- just it how business Bigger businesses have bigger

about X fairly it last services consistent a or metric, over So so. revenue, you to think if you make ratio, backlog X.X, has metric when revenue years been the a of up

just you backlog If and it the kind of it's revenue, compare same take the to services around ratio.

customer for is dependent backlog increasing to work systems, is not more the work multiple matter of complex is sign more there realize a Customers These a then of are also on Now preparation It they it, sign installs. and just services readiness. for personnel. do. purchase do, to multiproduct is there

to So and those also increase kinds things of postpone the tend backlog implementations.

newer and have because positive versions, becoming business field the are, a XX% to the modernized resources. increasing is by up now are versions the up to expanding. go aspects or the the gone services The we X in while, They they Now install. last the in easier next will and for that are have continue in year quarter been product of

implementations. less we nonbillable on those time are So spending

increasing personnel So on that strength services that is way also projects. in a can focus

we watching yes, are backlog increase. the overall, So

It are control dependent not steps taking that we on But for to in keep are to by keep readiness dependent is We products. extremely It's not can. worried on as proportion also it's But customer please the us. services in we as up. in it. all best revenue going mind, backlog

Brian Schwartz

And last question, X for Dave.

raise, to EBITDA of business a that Just Or this is, maybe terms way is is BookXTime, accretive that the year? asking BookXTime? the have fiscal EBITDA another of with guidance any do it is in of to

Dave Wood

would ours. their little Yes. breakeven some guidance pretty and the on above even on -- BookXTime post be are nuances it little on was product slightly the slight acquisition acquisition sales . before less development. to there's I And bit they and EBITDA similar spend more levels will bit our we acquisition. mean But a marketing, with adjusted or now where It raised EBITDA without a today. it's profitability have

Operator

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

Stephen Sheldon

revenue full the down bringing you're like versus touched sounds year subscription expectations organic it prior you guidance. So the

before, over closer I XX% XX%. think now it's it was to

you to POS can about that talk assumed? prior slowdown color what you APAC on there trends Is just the any versus driving mentioned, you'd that guidance. tied Just in changed the So versus that? lower what's what

Ramesh Srinivasan

line of XX.X% the at half in half, a year-over-year Yes. when Stephen, so that. above with if increase FY slightly 'XX look you first not expectations, the subscription during first was results

subscription not worked So BookXTime out revenue well the the growth first revenue subscription of even XX.X% half . quite increase. including

all that product second about concerns Now almost is of the that are half, you the are difficulties this last attributable And during sales we were to also and going some POS quarters. that. few correct, there that affected affected revenue that transformation POS through

a had of through parts transformation and was POS an the QX to but old last and few from effect Now good old pickup this quarters predict. going sales, of effect. whole has a new cannot new of POS combination in exactly the But

on right, by this out fiscal But transformation still been process. year caused quite concerns POS half work expectations. might our the you're The based well second initial have

Dave Wood

backdrop in market Got there APAC, that guess the to out is call it. becoming That's there is execution? Any in the helpful. more And changes terms challenging? I Or then anything of timing? just in just more

Ramesh Srinivasan

-- we news I opportunities before taking there establish on customers cross time. lot we challenges APAC. more bridges of wouldn't at to are a ourselves our we The up say The a just having well. are are sizable more down we in good working taking APAC and timing. have than are There deals lot are is products. But ever done are a there in before. look current ecosystem Bigger

best down of trusted who products. who who be has system it's So it's state-of-the-art of a matter today, a products little set the technology a vendor a in APAC, of can up and integrated ourselves has bit establishing and all name, as truly truly as an

doing We are going lot a work through thought -- there. leadership are of we

increased We our marketing have efforts.

well a process the of couple And we of there establishing We who ourselves. are against big, for competitors pretty are established couple in decades. of a have well-established competing been

It's But frustrating. a progress. working a we on bit process through. are is going are opportunities that up we We APAC bit making the are and we now. it's like So a down.

Operator

line the from George comes of question of Craig-Hallum. next Our Sutton

George Sutton

customers. could wondered clarity we sales BookXTime I opportunity on your little a if for get the Ramesh, current more

called of and mentioned large out had you IHG and So a specifically couple players like Accor.

think is Given permission might type of of this the these realistic of of some a really is unit have the level selling at to they salespeople it more that are remotely, level an players? opportunity? Or or that some smaller larger

Ramesh Srinivasan

as influence, has The only lot know Agilysys have Joe before. BookXTime couldn't Youssef, joined George, of also who but larger have about people Chief a the a Yes. players, you of said that Officer, not lot Commercial

in lot those all players. introduction, a So are the there that, of terms opportunities doors with bigger -- and opening of

do over lot team bulk the of between. whom But XX other our the has next hundreds It the independent, That and literally X, properties. that just not us. change. is months. whole products the with It's their and opportunity And all has customer are success with there a not of it definite who of such of them a customers, opportunities of about to the only we our to resorts hotels and in bunch whole talking good will continue products customers, team, matter X, bigger a the PMS is with similar-sized for are sales introducing relationships very and have close other POS, are also now building

George Sutton

just demos, obviously meetings of customers, you lot any that to had to off of want And a Anything had a would the and for there? along us? at you with one show, of potential Coming me. pass point of lot Understand. this surprises other GXE kind customers,

Ramesh Srinivasan

conversations surprises, the any in If Because always enterprise those conversations. And you're was were an tough for positive. all software professional, of as completely it with tough customers all Virtually surprises. negative absent they No were ready conversations shows. positive. George,

conversations And about a helping busy end. operations, of from their show positive the very with First customers it all, were It was the with was some were when all night positive. almost always do better We about ago the mixed in was and till interest certain busy all us. their beginning it can that. This things years was complaints, X uniformly ecosystem. our we literally day and from for

So that surprise is show. positive great the a was in a and good Busy positive combination.

the been us feeling show. happening are. are how And lot together to very, positive of together they where as -- Any get a follow-up very And surprising even customers get customers since have of conversations positive. GXE are these we

fact, conference. one of In going conference, users user sit us, of as you reasons, a our if not all are trade customers that's who covering are and hundreds of well. feel in show, the and customer just there, think George, invite much We to for analysts the George, us, other will attend where confident that we come and better next are enough but for next the user talk you our conference, user to directly you to

So George. please your mark it the conference, you user at next seeing on look calendar. We forward to

George Sutton

successful. see those, done I definitely you're Having why

congratulations. So

Ramesh Srinivasan

Thank you, George.

Operator

to at back I Ramesh for now Thank you. like showing closing would turn remarks. further Srinivasan it to questions time. no I'm this

Ramesh Srinivasan

Thank you, look holiday from in Agilysys. talking for holidays. Please the to and again season. for you. in months Christmas about forward happy in your participating this to and We X enjoy now. Marvin. interest Thank call Merry Thank you you

Operator

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

disconnect. now may You

Agilysys (AGYS) 28 Oct 242025 Q2 Earnings call transcript