Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Investor Presentation (March 2018)
28 slides from Agilysys's investor presentation, Mar 13, 2018
Slide 1: Investor Presentation March 2018
Investor Presentation March 2018
Slide 2: Forward-looking Statements & Non-GAAP Financial Information
TECHNOLOGY | INNOVATION | SOLUTIONS Forward-looking Statements & Non-GAAP Financial Information Forward-Looking Language This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward- lo
Slide 3: Who We Are and What We Do
WHO WE ARE AND WHAT WE DO Agilysys, ,
Slide 4: Agilysys Overview
TECHNOLOGY | INNOVATION | SOLUTIONS 4 Agilysys Overview • Agilysys is a Technology Solutions Company Exclusively Focused on the Hospitality Sector • Our Solutions Drive Substantial Customer Benefits Including Increased Revenue, Reduced Cost, Enhanced Guest Experiences and Improved Employee Morale •
Slide 5: Agilysys Overview: Resources by Department
TECHNOLOGY | INNOVATION | SOLUTIONS 5 Agilysys Overview Total Resources 833 Research & Development 391 Professional Services 126 General & Administrative 98 Customer Support 80 Sales & Marketing 69 Technical Services 40 Operations 29 Note: Headcount as of February 28, 2018. Resources by Department
Slide 6: Agilysys Mission
TECHNOLOGY | INNOVATION | SOLUTIONS HELP OUR CUSTOMERS IMPROVE GUEST EXPERIENCE AND LOYALTY WHATEVER IT TAKES, INCLUDING INTEGRATION WITH 3rd PARTY PARTNERS WITH DEDICATION TO PAST, PRESENT & FUTURE CUSTOMER INVESTMENTS IN OUR PRODUCTS AND SERVICES. Agilysys Mission 6
Slide 7: We Provide Leading Hospitality Solutions
TECHNOLOGY | INNOVATION | SOLUTIONS We Provide Leading Hospitality Solutions Lodging Solutions ~255k rooms at 12/31/17 +5% since 12/31/16 F&B Solutions ~45k end points at 12/31/17 +17% since 12/31/16 62% of Revenue 26% of Revenue 9% of Revenue INVENTORY & PROCUREMENT 3% of Revenue DOCUMENT MANAGEMEN
Slide 8: We Serve Leading Hospitality Brands
TECHNOLOGY | INNOVATION | SOLUTIONS Gaming – 52% of Revenue Hotels, Resorts and Cruise – 25% of Revenue Food Service ce – 21% of Revenue We Serve Leading Hospitality Brands Restaurants, Universities, Stadia and Healthcare – 2% of Revenue 8 Note: Revenue contribution figures represent percentage for
Slide 9: Growing Need for Agilysys Products
TECHNOLOGY | INNOVATION | SOLUTIONS • Guests Increasingly Demand New Technology-Enabled Access and Ease of Use • New Guest Experience Solutions: Mobile, Self-Service, Preference-Based, Social-Aware • Competition for Guest Loyalty From OTAs, Other Brands, Shared Rentals • Single View of Guest Demands
Slide 10: Agilysys Products
TECHNOLOGY | INNOVATION | SOLUTIONS rGuest Well-Established Partner Food & Beverage Lodging Cross- Functional Agilysys Products 10
Slide 11: Hospitality Market Opportunity
TECHNOLOGY | INNOVATION | SOLUTIONS APAC $1.36B 28% EMEA $1.36B 29% NA $1.72B 36% SA $0.35B 7% ARR Market Opportunity $4.79 Billion POS $3.18B 66% PMS $1.61B 34% ARR Product Opportunity Billions Agilysys Revenue ~ $125.9M* Hospitality Market *Trailing twelve months ended December 31, 2017. 11
Slide 12: Revenue Possibilities
TECHNOLOGY | INNOVATION | SOLUTIONS 130 150 170 190 210 230 250 270 290 FY18 FY19 FY20 FY21 FY22 Revenue Possibilities 20% CAGR 15% CAGR 10% CAGR Estimated 10% - 20% Four-Year Revenue Growth CAGR 12 Adjusted Earnings from Operations at 10%-20% of Revenue is Possible by FY2020
Slide 13: What Makes Agilysys Different?
TECHNOLOGY | INNOVATION | SOLUTIONS Staff From Line Level Roles Within Industries We Serve Best Practice Solution Capabilities Scalable to Largest Global Properties Agility to Meet Custom Requirements Single View of Guest Average Customer Life – 10 yrs Exclusively Hospitality Focused Continuous Impr
Slide 14: Go To Market Strategy
TECHNOLOGY | INNOVATION | SOLUTIONS OBSESSIVELY CUSTOMER CENTRIC ENGINEERING DRIVEN COMPANY IN EVERY MARKET WE SERVE Go To Market Strategy 14 96% increase in developer capacity vs. FY2017 ~25% improvement in customer retention vs. FY2017
Slide 15: Growth in Engineering Capacity
TECHNOLOGY | INNOVATION | SOLUTIONS 15 Growth in Engineering Capacity Jan 1, 2017 Feb 28, 2018 Growth R&D 229 391 71% Developers 134 263 96% Total Headcount 725 833 15% R&D/HC 32% 47% Developers/HC 18% 32% Contractors 102 31
Slide 16: India Development Center
TECHNOLOGY | INNOVATION | SOLUTIONS Chennai • 34,000 Square Feet • 330 Employee Capacity • ~240 Already Onboard • Full Capacity by June 2018 • Other Tenants – Amazon, Cisco, Citi, GE, Fidelity, AstraZeneca India Development Center 16
Slide 17: Strategic Initiatives
TECHNOLOGY | INNOVATION | SOLUTIONS INCREASED PRODUCT DEVELOPMEMENT VELOCITY GREATER PROCESS EFFICIENCIES EMPLOYEE & LEADERSHIP DEVELOPMENT PROFITABLE REVENUE GROWTH DIFFERENTIATING PRODUCT BREADTH INTERNATIONAL EXPANSION OBSESSIVE CUSTOMER CENTRICITY INNOVATION AND EXECUTION GOALS Strategic Initiat
Slide 18: Senior Management Leading New Growth Vision
TECHNOLOGY | INNOVATION | SOLUTIONS TONY PRITCHETT Chief Financial Officer Tony is a certified public accountant who joined Agilysys in 2012 as controller of the Retail Solutions Group, bringing with him prior financial experience with software and SaaS companies. RAMESH SRINIVASAN President and Chi
Slide 19: Senior Management Leading New Growth Vision
TECHNOLOGY | INNOVATION | SOLUTIONS SRIDHAR LAVETI Vice President of Established Products and Customer Support Sridhar leads the product engineering and management teams for established Agilysys products and oversees customer support. He brings 25+ years of technology and general management leadersh
Slide 20: Financial Overview
FINANCIAL OVERVIEW Agilysys, .
Slide 21: Financial Metrics and Valuation
TECHNOLOGY | INNOVATION | SOLUTIONS Financial Metrics and Valuation (*TTM) Share Price (3/7/18) $11.55 Diluted Shares Outstanding 22.8M Diluted Market Capitalization $263.3M Cash (as of 12/31/17) $37.6M Debt (as of 12/31/17) $0.2M Enterprise Value $225.9M Revenue $125.9M Gross Profit $63.1M Adjusted
Slide 22: Consolidated Balance Sheet
TECHNOLOGY | INNOVATION | SOLUTIONS Consolidated Balance Sheet (in thousands) March 31, 2017 December 31, 2017 Cash, Cash Equivalents and Marketable Securities $49,255 $37,615 Other Current Assets 24,265 23,726 Long-Term Assets 93,785 94,577 Total Assets $167,305 $155,918 Current Liabilities $46,337
Slide 23: Historical Financial Results
TECHNOLOGY | INNOVATION | SOLUTIONS All numbers in thousands, except per share data *Trailing twelve months ended December 31, 2017. ^ Non-GAAP measure, see reconciliation on slide 25. $103,514 $120,366 $127,678 $125,907 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 FY15 FY16 FY17 TTM* Revenu
Slide 24: Appendix
APPENDIX
Slide 25: Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS *Trailing twelve months ended December 31, 2017. Non-GAAP Reconciliation 25 TTM* 2017 2016 2015 Net loss (13,425)$ (11,721)$ (3,765)$ (11,497)$ Income tax expense (benefit) (1,455) 236 6 (1,054) Loss before taxes (14,880) (11,485) (3,759) (12,551) Depreciation of
Slide 26: Cash Flow
TECHNOLOGY | INNOVATION | SOLUTIONS Cash Flow *Trailing twelve months ended December 31, 2017. 26
Slide 27: Agilysys Global Footprint
Principal Location Country with Installation Reseller Santa Barbara, CA Seattle, WA Las Vegas, NV Alpharetta, GA Windsor, UK Hong Kong Manila, Philippines Singapore Kuala Lumpur, Malaysia Chennai, India Agilysys Corporate Services • Alpharetta, Georgia Agilysys US Offices • Las Vegas, Nevada • Santa
Slide 28: Contact
Contact: Richard Land / Norberto Aja JCIR (212) 835-8500 agys@jcir.com Tony Pritchett Chief Financial Officer (770) 810-7941 InvestorRelations@agilysys.com 28