Home NewsTechnology Agilysys announces Q3 revenue growth as ResortSuite closes acquisition

Agilysys announces Q3 revenue growth as ResortSuite closes acquisition

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The hospitality software company Agilysys recorded revenues of $39.5m for the third quarter 2021-22, the three-month period ending 31 December 2021. This represents a 7.6% rise on last year’s same-period revenue.

Support, maintenance and subscriptions services accounted for the majority of revenue – $25.1m. Revenue from products was $8.1m while professional services revenue totaled $6.2m.

Gross profit was $24.7m after costs of goods sold of $14.7m.

Operating costs decreased to $23.1m from $26.0m in the previous year. General and administrative expenses of $6.8m followed closely by product development costs at $11.2m. Other costs were $1.1m. Sales and marketing expenditures totaled $3.9m.

The pre-tax profit for the third quarter was $1.6m. Net profit was $1.5m after accounting for income taxes of $24,000. This is up from the $2.0m losses suffered in previous years.

The adjusted earnings, before depreciation, interest taxation and amortization totaled $6m in the third quarter. This is down by 13.1% compared to last year.

Agilysys completed its $25m purchase of the property management software firm ResortSuite in Q3. Agilysys’ CEO and President Ramesh Srinivasan says that this deal is beneficial to the entire hospitality industry.

The previously announced purchase of ResortSuite was completed as planned in early January. There are only a few technology companies that have the expertise and experience to provide robust, comprehensive, and end-toend integrated property-management solutions. The merger between ResortSuite and Agilysys is going well, both internally and with customers.

Srinivasan said that both the subscription revenue and the overall recurring revenues were record highs in the third quarter, suggesting that the next quarter may follow the same trend.

He added: “We’re pleased to see our subscription revenues continue to grow despite the high challenges of business environments in Asia, Europe and managed food services on cruise ships, hotel chains, as well as managing food service providers.

We expect that the pressure on revenue from one-time products and services will ease soon. The Q4 of fiscal year 2022 is expected to reach a new record for total revenue, bringing us closer to the lower end of our fiscal guidance. Profitability will remain at an adjusted EBITDA of slightly over 15%.

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