Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Investor Presentation (December 2017)
26 slides from Agilysys's investor presentation, Dec 14, 2017
Slide 1: Investor Presentation August 2017
Investor Presentation August 2017
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-loo
Slide 3: Who We Are and What We Do
WHO WE ARE AND WHAT WE DO Agilysys. .
Slide 4: We Provide Leading Hospitality Solutions
TECHNOLOGY | INNOVATION | SOLUTIONS We Provide Leading Hospitality Solutions Lodging Solutions ~251k rooms at 6/30/17, +5% since 6/30/16 F&B Solutions ~41k end points at 6/30/17, +13% since 6/30/16 WELL-ESTABLISHED POINT-OF-SALE 58% of Revenue 24% of Revenue DOCUMENT MANAGEMENT 9% of Revenue INVENTO
Slide 5: We Serve Leading Hospitality Brands
TECHNOLOGY | INNOVATION | SOLUTIONS Gaming Hotels, Resorts and Cruise Food Service Restaurants, Universities, Stadia and Healthcare We Serve Leading Hospitality Brands 5 Food Service Restaurants, Universities, Stadia and Healthcare
Slide 6: Continuing Cycle of Demand for Agilysys Products
TECHNOLOGY | INNOVATION | SOLUTIONS Continuing Cycle of Demand for Agilysys Products •Guests Increasingly Demand New Technology Enabled Access and Ease of Use •Growing Competition for Guest Loyalty Requires New Guest Experience Solutions • Few Vendors Focused Solely on Hospitality & Large Enough to
Slide 7: Addressing the Guest Experience Lifecycle
TECHNOLOGY | INNOVATION | SOLUTIONS Addressing the Guest Experience Lifecycle Optimize Operations, Reduce Costs Personalized Service, Increase Lifetime Value Guest Recruitment, Increase Sales Wallet Share Growth, Improve Profitability 7
Slide 8: Agilysys Products
TECHNOLOGY | INNOVATION | SOLUTIONS Agilysys Products rGuest Well-Established Partner Food & Beverage Lodging Cross- Functional 8
Slide 9: Agilysys Competition
TECHNOLOGY | INNOVATION | SOLUTIONS Agilysys Competition PMS •Oracle/Micros • Infor •PAR/Brink •Amadeus •Sabre Hospitality Solutions •Constellation •Northwind POS • Oracle/Micros • NCR • Nextep • VivoNet • Skywire • Bypass • Revel • Appetize Technologies • Lavu • Dinnerware • Clover 9
Slide 10: What Makes Agilysys Different?
TECHNOLOGY | INNOVATION | SOLUTIONS What Makes Agilysys Different? Market-leading hospitality knowledge coupled with top technology talent Competitive Strengths Scalability Support deployments from a single end-point operation to 100K+ room enterprise on a single instance Scalability & Enterprise St
Slide 11: Agilysys Vision
TECHNOLOGY | INNOVATION | SOLUTIONS HELP OUR CUSTOMERS INCREASE THEIR REVENUE AND PROFITABILITY THROUGH IMPROVED GUEST EXPERIENCE AND LOYALTY USING ANY AGILYSYS PRODUCT AS WELL AS INTEGRATIONS TO 3RD PARTY SOLUTIONS, WITH DEDICATION TO PAST, PRESENT & FUTURE CUSTOMER INVESTMENTS IN OUR PRODUCTS AND
Slide 12: Go To Market Strategy
TECHNOLOGY | INNOVATION | SOLUTIONS OBSESSIVELY CUSTOMER CENTRIC ENGINEERING DRIVEN COMPANY IN EVERY MARKET WE SERVE Go To Market Strategy 12
Slide 13: Strategic Initiatives to Deliver the Vision
TECHNOLOGY | INNOVATION | SOLUTIONS Strategic Initiatives to Deliver the Vision INCREASED PRODUCT DELIVERY VELOCITY GREATER PROCESS EFFICIENCIES EMPLOYEE & LEADERSHIP DEVELOPMENT PROFITABLE REVENUE GROWTH DIFFERENTIATING PRODUCT BREADTH INTERNATIONAL EXPANSION OBSESSIVE CUSTOMER CENTRICITY INNOVATIO
Slide 14: India Development Center
TECHNOLOGY | INNOVATION | SOLUTIONS India Development Center Delhi Chennai Kolkata Mumbai Pune Bengaluru Hyderabad Kanpur Ahmedabad IDC • 17,000 Square Feet • 160 Employee Capacity • ~100 New Hires by August 31 • Full Capacity EOY FY18 • Other Tenants • Amazon, Cisco, Citi, GE 14
Slide 15: Strategic Initiatives to Deliver the Vision
Strategic Initiatives to Deliver the Vision TECHNOLOGY | INNOVATION | SOLUTIONS OBSESSIVE CUSTOMER CENTRICITY INCREASED PRODUCT DEVELOPMEMENT VELOCITY GREATER PROCESS EFFICIENCIES INNOVATION AND EXECUTION EMPLOYEE & LEADERSHIP DEVELOPMENT PROFITABLE REVENUE GROWTH DIFFERENTIATING PRODUCT BREADTH INT
Slide 16: Evolving Business, Evolving P&L: Financial Metrics and Valuation
TECHNOLOGY | INNOVATION | SOLUTIONS Evolving Business, Evolving P&L Financial Metrics and Valuation (*TTM) Share Price (8/14/17) $10.50 Diluted Shares Outstanding 22.7M Diluted Market Capitalization $238.4M Cash (as of 6/30/17) $43.4M Debt (as of 6/30/17) $0.2M Enterprise Value $195.2M Revenue $130.
Slide 17: Diversified Revenue Base
TECHNOLOGY | INNOVATION | SOLUTIONS Diversified Revenue Base 53% 22% 18% 6% Gaming Hotels & Resorts Food Service RUSH 37% 30% 20% 13% Support and Maintenance Products Professional Services Subscription 94% 6% Well-Established rGuest Revenue by Market Vertical* Revenue by Type* Revenue by Solution Ty
Slide 18: Strong Balance Sheet
TECHNOLOGY | INNOVATION | SOLUTIONS Strong Balance Sheet Consolidated Balance Sheet (in thousands) March 31, 2017 June 30, 2017 Cash, Cash Equivalents and Marketable Securities $49,255 $43,408 Other Current Assets 24,265 25,885 Long-Term Assets 93,785 94,952 Total Assets $167,305 $164,245 Current Li
Slide 19: Historical Financial Results
TECHNOLOGY | INNOVATION | SOLUTIONS Historical Financial Results All numbers in thousands, except per share data *Trailing twelve months ended June 30, 2017. ^ Non-GAAP measure, see reconciliation on slide 20 $103,514 $120,366 $127,678 $130,591 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $1
Slide 20: Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS Non-GAAP Reconciliation *Trailing twelve months ended June 30, 2017. 20 TTM* 2017 2016 2015 Net loss (12,382)$ (11,721)$ (3,765)$ (11,497)$ Income tax expense (benefit) 273 236 6 (1,054) Loss before taxes (12,109) (11,485) (3,759) (12,551) Depreciation of fixed as
Slide 21: Spend and Spend as % of Revenue
TECHNOLOGY | INNOVATION | SOLUTIONS Spend and Spend as % of Revenue $10,000 $15,000 $20,000 $25,000 $30,000 FY15 FY16 FY17 TTM* Spend for PD, S&M, and G&A (GAAP) Product Development Sales and Marketing General and Administrative 10% 15% 20% 25% 30% FY15 FY16 FY17 TTM* Spend as a % of Revenue for PD,
Slide 22: Cash Flow
TECHNOLOGY | INNOVATION | SOLUTIONS Cash Flow *Trailing twelve months ended June 30, 2017. 22 TTM* FY17 FY16 FY15 Operating activities Loss from continuing operations (12,382)$ (11,721)$ (3,765)$ (11,497)$ Non cash adjustments, restructuring, legal settlements 16,704 14,110 7,741 10,117 Changes in a
Slide 23: Hospitality Market
TECHNOLOGY | INNOVATION | SOLUTIONS Hospitality Market Agilysys Revenue ~ $130.6M* 23 *Trailing twelve months ended June 30, 2017.
Slide 24: Revenue Possibilities
TECHNOLOGY | INNOVATION | SOLUTIONS $128 $148 $168 $188 $208 $228 $248 $268 $288 FY17 FY18 FY19 FY20 FY21 Mill io n s Revenue Possibilities 20% CAGR 15% CAGR 10% CAGR Estimated 10%-20% Four-Year Revenue Growth CAGR Adjusted Earnings from Operations 10%-15% of Revenue in FY2020 is Possible 24
Slide 25: Fiscal 2018 Outlook
TECHNOLOGY | INNOVATION | SOLUTIONS Fiscal 2018 Outlook On August 3, 2017, Agilysys Reiterated Outlook for FY 2018 • Revenue of approximately $136 - $140 million compared to fiscal 2017 revenue of $127.7 million • Expect bookings will continue to favor subscription-type contracts • Gross margin is e
Slide 26: Thank You
TECHNOLOGY | INNOVATION | SOLUTIONS Thank You 26