Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Q4 FY2023 Earnings Presentation
37 slides from Agilysys's earnings presentation, May 17, 2023
Slide 1: Investor Presentation Q4 and Full Fiscal Year 2023
INVESTOR PRESENTATION Q4 and Full Fiscal Year 2023
Slide 2: Forward-looking Statements & Non-GAAP Financial Information
Forward-looking Statements & Non-GAAP Financial Information Forward-Looking Language This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward- looking statements can be identified by
Slide 3: The Business We Are In
The Business We Are In We Are In The Business Of Providing A Fully Integrated Suite Of Software Solutions To Enterprise Food & Beverage And Lodging Operators In The Hospitality Space That Enable Memorable Experiences Across All Channels Of Guest Engagement 3 Agilysys Private
Slide 4: Our Mission
Our Mission Thank You For your partnership and your Helpingbusiness Our Customers Improve Employee & Guest Experiences, With Dedication To Past, Present & Future Customer Investments In Our Products And Services. 4 Agilysys Private
Slide 5: Agilysys Defining Strategy Pillars
Agilysys Defining Strategy Pillars 1 100% HOSPITALITY FOCUSED OBSESSIVELY CUSTOMER-CENTRIC 2 3 CORE PRODUCT FOCUS & INNOVATION DRIVEN STATE OF THE ART CLOUD-NATIVE & ON-PREMISE OPTIONS 4 5 END-TO-END COMPREHENSIVE SOLUTION OFFERINGS 5 Agilysys Private
Slide 6: 100% Hospitality Focused - Why It Matters
100% Hospitality Focused - Why It Matters 6 Agilysys Private
Slide 7: Obsessively Customer-Centric - Why It Matters
Obsessively Customer-Centric - Why It Matters 7 Agilysys Private
Slide 8: Core Product Focus & Innovation Driven - Why It Matters
Core Product Focus & Innovation Driven - Why It Matters 8 Agilysys Private
Slide 9: State Of The Art Cloud-native & On-premise Options - Why It Matters
State Of The Art Cloud-native & On-premise Options - Why It Matters 9 Agilysys Private
Slide 10: End-To-End Comprehensive Solution Offerings - Why It Matters
End-To-End Comprehensive Solution Offerings - Why It Matters 10 Agilysys Private
Slide 11: Agilysys Revenue Overview
Agilysys Revenue Overview $198.1M 60% Total Recurring Revenue Revenue* as a % of Total Revenue* 49% 28% Subscription Subscription Revenue as a % of Revenue YOY Recurring Revenue* Growth Rate *Data is as of the trailing twelve months ended March 31, 2023.
Slide 12: We Provide Industry Leading Hospitality Solutions
We Provide Industry Leading Hospitality Solutions 59 PROPERTY Allocation of POINT-OF-SALE MANAGEMENT Revenue % 21 of Revenue % Food and Beverage Solutions of Revenue Lodging Solutions 6% of Revenue 9% of Revenue Payment Revenue INVENTORY & PROCUREMENT 5% of Revenue DOCUMENT MANAGEMENT 93% of Revenue
Slide 13: R&D Focus & Resource Strength
R&D Focus & Resource Strength 1000 800 600 400 200 0 230 400 770 1,070 January 2017 March 2019 April 2020 March 2023 13 Agilysys Private
Slide 14: Total Addressable Market
Total Addressable Market ARR Market Opportunity ARR Product Opportunity $4.8 Billion $4.8 Billion SA $0.35B 7% APAC $1.36B 28% PMS $1.61B 34% NA $1.72B POS 37% $3.18B 66% EMEA $1.36B 28% Agilysys ARR ~ $125M* *Trailing twelve months ended March 31, 2023. 14 Agilysys Private
Slide 15: Agilysys Global Presence
Agilysys Global Presence Publicly Traded - NASDAQ: AGYS Corporate Headquarters • Alpharetta, Georgia North America Offices • Las Vegas, Nevada • Santa Barbara, California • Bellevue, Washington Windsor, UK • Toronto, Ontario Seattle, WA Toronto, ON EMEA Office Las Vegas, NV • United Kingdom Santa Ba
Slide 16: Transition to Growth
Transition to Growth Subscription Revenue Sound Business Focus on Profitability Recent Announcements Growth Fundamentals Q4 and Full FY23 $30.3M Selected as Marriott Record Quarterly Subscription Revenue of $15.9M Record Total Record Global PMS RFP Winner Revenue FY23 Adjusted EBITDA Q4 SaaS Revenue
Slide 17: Net Competitive Replacements - Sites
Net Competitive Replacements - Sites 373 211 181 179 155 53 50 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Net Number of Sites 17 Agilysys Private
Slide 18: Existing Customer Greenspace - Average Products Exit Rate
Existing Customer Greenspace - Average Products Exit Rate 2.5 2.25 2 1.75 1.5 1.25 1 FY 2020 FY2021 FY2022 FY2023 Products Per Customer 18 Agilysys Private
Slide 19: Property Management Room Growth Opportunity
Property Management Room Growth Opportunity Approximately 300,000 rooms under PMS management today Expected to add a majority of the Marriott U.S. and Canada Luxury, Premium and Select Services rooms (min. 450,000) Should reach about 900,000 rooms under management in 3 to 4 years with combined curre
Slide 20: Top Global Customers
Top 100 Global Customers 20 Agilysys Private
Slide 21: Agilysys Hospitality Product Suite
Agilysys Hospitality Product Suite TRIP PLANNING TRIP BOOKING Food & Hospitality & Inventory & Beverage Leisure Procurement Document Management IN-VENUE DINING BACK OF HOUSE OPTIMIZATION 3rd Party Solution Integration With Modern Restful APIs 21 Agilysys Private
Slide 22: The Agilysys Hospitality Cloud
The Agilysys Hospitality Cloud The only end-to-end, exclusive hospitality platform that maximizes Return On Experience—for guests and staff—across every hospitality touchpoint. Delight guests. Retain staff. Grow margins. Hospitality Core TM Collection Agilysys PMS Agilysys POS Agilysys I&P PROPERTY
Slide 23: Financial Overview
FINANCIAL OVERVIEW
Slide 24: Evolving Business, Evolving P&L
Evolving Business, Evolving P&L Business Metrics (as of 3/31/23) Financial Metrics and Valuation* Recurring Revenue* Share Price (5/12/23) $77.06 60% As % of Total Revenue Diluted Shares Outstanding 26.3M Subscription Revenue* Diluted Market Capitalization $2,023.6M 49% As % of Recurring Revenue Cas
Slide 25: Strong Balance Sheet
Strong Balance Sheet Consolidated Balance Sheet (in thousands) March 31, 2023 March 31, 2022 Cash, Cash Equivalents and Marketable Securities $112,842 $96,971 Other Current Assets 41,816 39,202 Long-Term Assets 88,378 77,989 Total Assets $243,036 $214,162 Current Liabilities $78,515 $71,466 Other Li
Slide 26: Revenue Growth ($M)
Revenue Growth ($M) 55 AGYS 50 45 40 35 30 25 FY17 FY18 FY19 FY20 FY21 FY22 FY23 26 Agilysys Private
Slide 27: Recurring Revenue ($M)
Recurring Revenue ($M) 35.0 Maintenance Subscription 30.0 25.0 20.0 15.0 10.0 5.0 - FY17 FY18 FY19 FY20 FY21 FY22 FY23 27 Agilysys Private
Slide 28: Profitability Metrics - Quarterly
Profitability Metrics - Quarterly Adjusted EBITDA – Non GAAP^ $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 • Q2’21 included ino
Slide 29: Historical Financial Results
Historical Financial Results Revenue - GAAP Net Income (Loss) - GAAP $12,746 $205,000 $15,000 $195,000 $5,000 $185,000 $175,000 $(5,000) $165,000 $155,000 $(15,000) $23.7M software $145,000 $(25,000) impairment $135,000 $125,000 $(35,000) FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Adjusted EBITDA – Non
Slide 30: Appendix
APPENDIX
Slide 31: Agilysys Omnichannel POS Solution
Agilysys Omnichannel POS Solution Mobile / Web: IG OnDemand Physical Store: InfoGenesis POS Profile & Personalization: IG Smart Menu Personalization APIs IG Digital Menu Board IG KDS Analytics: Marketing & Upsell: Agilysys Analyze Agilysys Engage Payment: Any Venue: Agilysys Pay Agilysys Seat IG Qui
Slide 32: Agilysys Lodging Ecosystem
Agilysys Lodging Ecosystem Staff Task Management & 2-Way Sales & Catering: Guest Communication: Agilysys Sales & Catering rGuest Service Activities: Point-of-Sale & Retail: Agilysys Golf Agilysys InfoGenesis POS Agilysys Spa Agilysys Retail Check-In/Out: Document Management: rGuest Express Agilysys
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation 33 Agilysys Private
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation 34 Agilysys Private
Slide 35: Non-GAAP Reconciliation
Non-GAAP Reconciliation 35 Agilysys Private
Slide 36: Cash Flow
Cash Flow 36 Agilysys Private
Slide 37: Contact
CONTACT Jessica Hennessy Senior Director Corporate Strategy and Investor Relations (770) 810-6116 InvestorRelations@agilysys.com Agilysys Private