Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Q3 FY2023 Earnings Presentation
36 slides from Agilysys's earnings presentation, January 2023
Slide 1: Investor Presentation Q3 FY2023
INVESTOR PRESENTATION Q3 FY2023
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
Slide 4: Our Mission
Our Mission HELP OUR CUSTOMERS IMPROVE EMPLOYEE & GUEST EXPERIENCE WITH DEDICATION TO PAST, PRESENT & FUTURE CUSTOMER INVESTMENTS IN OUR PRODUCTS AND SERVICES 4
Slide 5: Defining Strategy Pillars
OUD-NATIVE & ON-PREMISE OPTIONS G) ee STATE OF THE ART CL Ly i mio i : agilysys
Slide 6: 100% Hospitality Focused - Why It Matters
100% Hospitality Focused - Why It Matters 6
Slide 7: Modern Cloud-Native & On-Premise Options - Why It Matters
Modern Cloud-Native & On-Premise Options - Why It Matters 7
Slide 8: End-To-End Comprehensive Solution Offerings - Why It Matters
End-To-End Comprehensive Solution Offerings - Why It Matters 8
Slide 9: Obsessively Customer-Centric - Why It Matters
Obsessively Customer-Centric - Why It Matters 9
Slide 10: Product & Innovation Driven - Why It Matters
Product & Innovation Driven - Why It Matters 10
Slide 11: Agilysys Revenue Overview
Agilysys Revenue Overview $191.7M 59% Total Recurring Revenue Revenue* as a % of Total Revenue* 49% 30% Subscription Subscription Revenue as a % of Revenue YOY Recurring Revenue* Growth Rate *Data is as of the trailing twelve months ended December 31, 2022.
Slide 12: We Provide Industry Leading Hospitality Solutions
We Provide Industry Leading Hospitality Solutions 60 PROPERTY Allocation of POINT-OF-SALE MANAGEMENT Revenue % 20% of Revenue Food and Beverage Solutions of Revenue Lodging Solutions 6% of Revenue 8% 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 0 230 400 770 960 January 2017 March 2019 April 2020 December 2022 Note: Includes Technical Services 13
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 ~ $121M* *Trailing twelve months ended December 31, 2022. 14
Slide 15: Global Presence
Publicly Traded - NASDAQ: Global Presence AGYS Corporate Headquarters • Alpharetta, Georgia North America Offices • Las Vegas, Nevada • Santa Barbara, California • Bellevue, Washington • Toronto, Ontario Windsor, UK Seattle, WA Toronto, ON EMEA & MENA Offices Las Vegas, NV • United Kingdom Santa Bar
Slide 16: Transition to Growth
Transition to Growth Subscription Sound Business Focus on Recent Revenue Growth Fundamentals Profitability Announcements Q3 FY23 $8.1M Selected as Record Subscription Revenue of $15M Record Total Q3 FY23 Adjusted Marriott Global Revenue EBITDA PMS RFP Winner SaaS Revenue Reaches Q3 FY23 GAAP Net Inc
Slide 17: Existing Customer Greenspace - Average Products
Existing Customer Greenspace - Average Products 2.5 2 1.5 1 0.5 0 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Products Per Customer Note: 25+ Products Available as End-to-End Solutions Provider 17
Slide 18: 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) beginning mid-FY25 Should reach about 900,000 rooms under management in 2-3 years wit
Slide 19: Top 100 Global Customers
Top 100 Global Customers ed ® / COMPASS carsars GOLD=N (Boyp oe VAILRESORTS | qpsHION DRURY @ nd 8 Gor, HOTELS. Sat _ Roan HERSHEY acct Looe COE | BRENGHLICK YTS KOHLER, Fr es rs Qs “ve Ge @GRAND Atlantis G2001cana Sands Ocean CASINO: RESORT zyrrney RESORTS Casino -Horel BROADMOOR | Zatning Stone ca
Slide 20: Agilysys Hospitality Product Suite
Agilysys Hospitality Product Suite TRIP TRIP BOOKING PLANNING Food & Hospitality Inventory & Beverage & Leisure Procurement Document Management IN-VENUE BACK OF DINING HOUSE OPTIMIZATION 3rd Party Solution Integration With Modern Restful APIs 20 Agilysys Private
Slide 21: Agilysys Hospitality Cloud
Agilysys Hospitality Cloud 21 Agilysys Private
Slide 22: Financial Overview
FINANCIAL OVERVIEW
Slide 23: Evolving Business, Evolving P&L
Evolving Business, Evolving P&L Business Metrics (as of 12/31/22) Financial Metrics and Valuation* Recurring Revenue* Share Price (1/25/23) $82.00 59% As % of Total Revenue Diluted Shares Outstanding 26.1M Subscription Revenue* Diluted Market Capitalization $2,137.7M 49% As % of Recurring Revenue Ca
Slide 24: Strong Balance Sheet
Strong Balance Sheet Consolidated Balance Sheet (in thousands) December 31, 2022 March 31, 2022 Cash, Cash Equivalents and Marketable Securities $105,818 $96,971 Other Current Assets 53,265 39,202 Long-Term Assets 87,078 77,989 Total Assets $246,161 $214,162 Current Liabilities $81,132 $71,466 Other
Slide 25: Revenue Growth ($M)
Revenue Growth ($M) AGYS 55 50 45 40 35 30 25 FY17 FY18 FY19 FY20 FY21 FY22 FY23 25
Slide 26: Recurring Revenue ($M)
Recurring Revenue ($M) 30.0 Annual Maintenance Subscription 25.0 20.0 15.0 10.0 5.0 - FY17 FY18 FY19 FY20 FY21 FY22 FY23 26
Slide 27: 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 • Q2’21 included inorganic COVID related temporary cost savings, including employee All numbers in thousands. compensation changes and reduction of workforce Fiscal
Slide 28: Historical Financial Results
Historical Financial Results Revenue - GAAP Net Income (Loss) - GAAP $15,000 $10,653 $205,000 $195,000 $5,000 $185,000 $175,000 $(5,000) $165,000 $23.7M $155,000 $(15,000) software $145,000 impairment $135,000 $(25,000) $125,000 FY19 FY20 FY21 FY22 TTM* $(35,000) FY19 FY20 FY21 FY22 TTM* Adjusted EB
Slide 29: Appendix
© APPENDIX agilysys
Slide 30: 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 31: 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 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation AGILYSYS, INC. RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA (UNAUDITED) Twelve Months Ended March 31. (In thousands) TIM* 2022 2021 2020 2019 Net income (loss) S 12,489 6478 $ (21,001) $ ~~ (34,067) $ (13,164) Income tax expense (benefit) 686 33 (208) 201 221 Inco
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation (in thousands) ‘Net income (loss) Income tax expense Income (Loss) before taxes Depreciation of fixed setets Amortization of intangibles “Amortization of developed technology Interest income EBITDA (a) ‘Shire-based compensation Severance and other charges “Adjusted EBITDA (b)
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation AGILYSYS, INC. RECONCILIATION OF NET LOSS TO ADJUSTED NET INCOME FOR ADJUSTED EARNINGS PER SHARE (UNAUDITED) Twelve Months Ended March 31. (In thousands) TTM* 2022 2021 2020 2019 Net income (Joss) attributable to common shareholders S 10,653 S 4641 S (23,608) $ (34.067) S$ (1
Slide 35: Cash Flow
Cash Flow 31-Mar 31-Mar 31-Mar 31-Mar TIM* FY22 FY21 FY20 FY19 Operating activities ‘Net income(loss) from operations s 12,489 $ 6478 $ (21,001) $ (34,067) $ (13,164) ‘Non cash adjustments, restructuring, legal settlements 16,292 17,683 43,969 46,260 22,219 Changes in assets & liabilities (4,441) 43
Slide 36: Contact
CONTACT Jessica Hennessy Senior Director Corporate Strategy and Investor Relations (770) 810-6116 InvestorRelations@agilysys.com