Agilysys Inc
NASDAQ:AGYS
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Agilysys Inc
Agilysys Inc., a notable player in the hospitality industry, operates with precision and innovation, crafting technology solutions that transform guest experiences. Headquartered in Alpharetta, Georgia, the company primarily focuses on providing software and services designed to streamline operations for hotels, resorts, and other hospitality venues. The essence of Agilysys’s business lies in its comprehensive suite of products which encompass property management systems (PMS), point-of-sale (POS) systems, inventory and procurement solutions, and analytics platforms. These offerings are not merely supportive technologies but are core components that enable hospitality businesses to optimize their operational efficiency, enhance customer service, and ultimately, increase profitability.
The company generates revenue through a blend of software licenses, subscription fees, and professional services. Its software solutions are either sold on a perpetual license basis, with customers paying for the software upfront, or through a subscription model, providing Agilysys a steady stream of recurring revenue. Additionally, professional services, including implementation, training, and support, contribute significantly to its income, enhancing the customer experience and fostering long-term relationships. Through strategic acquisitions and constant innovation, Agilysys continues to expand its portfolio, ensuring that it remains at the forefront of technological advancements in the hospitality sector, providing pivotal tools that shape the future of guest experiences worldwide.
Agilysys Inc., a notable player in the hospitality industry, operates with precision and innovation, crafting technology solutions that transform guest experiences. Headquartered in Alpharetta, Georgia, the company primarily focuses on providing software and services designed to streamline operations for hotels, resorts, and other hospitality venues. The essence of Agilysys’s business lies in its comprehensive suite of products which encompass property management systems (PMS), point-of-sale (POS) systems, inventory and procurement solutions, and analytics platforms. These offerings are not merely supportive technologies but are core components that enable hospitality businesses to optimize their operational efficiency, enhance customer service, and ultimately, increase profitability.
The company generates revenue through a blend of software licenses, subscription fees, and professional services. Its software solutions are either sold on a perpetual license basis, with customers paying for the software upfront, or through a subscription model, providing Agilysys a steady stream of recurring revenue. Additionally, professional services, including implementation, training, and support, contribute significantly to its income, enhancing the customer experience and fostering long-term relationships. Through strategic acquisitions and constant innovation, Agilysys continues to expand its portfolio, ensuring that it remains at the forefront of technological advancements in the hospitality sector, providing pivotal tools that shape the future of guest experiences worldwide.
Record Revenue: Agilysys reported record Q2 revenue of $79.3 million, up 16.1% year-over-year, marking its 15th consecutive record revenue quarter.
Subscription Surge: Subscription revenue grew 33.1% year-over-year and now makes up 65.5% of total recurring revenue, with continued strong momentum and record-level bookings and backlog.
Guidance Raised: Management raised full-year revenue guidance to $315–318 million (from $308–312 million) and increased subscription revenue growth target to 29%.
Profitability Up: Net income rose to $11.7 million from $1.4 million a year ago, and adjusted EBITDA climbed to $16.4 million versus $12.2 million.
Broad-Based Growth: Sales were strong across verticals, especially in international markets, foodservice management, and gaming, with no single customer accounting for over 10% of sales.
AI Impact: The company highlighted increasing efficiency and competitive advantages from AI, boosting both its product innovation and internal operations.
Strong Backlog: Total product backlog and subscription backlog remain at record levels, improving visibility for the rest of the year.