Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Investor Day (September 2014)
35 slides from Agilysys's investor day presentation, Sep 17, 2014
Slide 1: Investor/Analyst Day September 17, 2014
TECHNOLOGY | INNOVATION | SOLUTIONS Investor/Analyst Day September 17, 2014
Slide 2: Forward-looking Statements & Non-GAAP Financial Information
TECHNOLOGY | INNOVATION | SOLUTIONS 2 Forward-looking Statements & Non-GAAP Financial Information Forward-Looking Language This presentation and all publicly available documents, including the documents incorporated herein and therein by reference, contain, and our officers and representatives may f
Slide 3: Today's Agenda
TECHNOLOGY | INNOVATION | SOLUTIONS 3 Today’s Agenda Executive Summary Market Overview Products & Technology Financial Overview
Slide 4: Executive Summary
Executive Summary Agilysys, ,
Slide 5: Transformation to a Pure-Play, Vertical-Specific Hospitality Software Provider
TECHNOLOGY | INNOVATION | SOLUTIONS 5 Transformation to a Pure-Play, Vertical-Specific Hospitality Software Provider Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 James Dennedy appointed as CEO 2011 Divested Technology Solutions Group (“TSG”) Acquired WMS Solution Divested Retail Solutions Group (“RSG”)
Slide 6: Premier Hospitality Software Solutions Provider
TECHNOLOGY | INNOVATION | SOLUTIONS 6 Premier Hospitality Software Solutions Provider Agilysys is a leading pure-play provider of software-enabled solutions for the hospitality industry Offering includes a full suite of hospitality products, including point- of-sale (POS) and property management
Slide 7: Building Lasting Connections
TECHNOLOGY | INNOVATION | SOLUTIONS 7 Building Lasting Connections Transforming the guest experience by improving quality of service through technology Team Customers / Guests Community Investors Connecting Our customers with their guests Our customers with our team Our team with their communities L
Slide 8: Agilysys Solution Value: Service Management
TECHNOLOGY | INNOVATION | SOLUTIONS 8 Agilysys Solution Value: Service Management Process efficiency Staff performance Service quality Inventory, waste prevention Loss prevention Increase revenue & guest satisfaction Identify new products/services Analyze consumer behavior (Big Data)
Slide 9: Guest Lifecycle Driving Vision
TECHNOLOGY | INNOVATION | SOLUTIONS 9 Guest Lifecycle Driving Vision Current offering Future offering Staff Order Pay Order Staff Restaurant Analyze Procure Spa Order Pay Arrive Experience Reserve Analyze Procure Experience Arrive Pre-Visit Reserve Discover Book Staff Procure Order Pay Order Pay Cas
Slide 10: Market Overview
ee a. Market Overview Agilysys. .
Slide 11: Large and Underpenetrated Market
TECHNOLOGY | INNOVATION | SOLUTIONS 11 Large and Underpenetrated Market • Agilysys’ product suite in FY 2014 addressed $4B in annual spend(1) • Agilysys has been expanding its product offerings, including SaaS, analytics and mobile, to address a $12B+ market opportunity(1) • Expanded market opportun
Slide 12: Capitalizing on Market Trends
TECHNOLOGY | INNOVATION | SOLUTIONS 12 Capitalizing on Market Trends Guest Recruitment, Increase Sales Optimize Operations, Reduce Costs Targeted Services, Happier Guests Wallet Share Growth, Improved Profitability
Slide 13: Agilysys' Go-to-Market Growth Strategy
TECHNOLOGY | INNOVATION | SOLUTIONS 13 Agilysys’ Go-to-Market Growth Strategy Realigned Go-to-Market strategy focused on key initiatives across four verticals Cross Selling / Up-Sell Opportunities Domestic strategy International strategy Gaming Hotels, Resorts and Cruiselines Food Service Management
Slide 14: International Presence and Growth
TECHNOLOGY | INNOVATION | SOLUTIONS 14 International Presence and Growth Despite global presence, there is still room for tremendous international growth International revenues represent approximately 5% of revenue composition, reflecting a large growth opportunity Seattle Las Vegas Santa Barbara Ed
Slide 15: Products & Technology
Products & Technology Agilysys. .
Slide 16: Technology and Development Overview
TECHNOLOGY | INNOVATION | SOLUTIONS 16 Technology and Development Overview Maintain Current Strengths Open Standards Engineering and Product Efficiencies Elasticity and Efficiency Multi-Tenant SaaS Enablement New UX Paradigms
Slide 17: Key Differentiators
TECHNOLOGY | INNOVATION | SOLUTIONS 17 Key Differentiators The best hospitality knowledge coupled with the best technology talent Competitive Strengths Scalability Support deployments from single lane café (POS) to 8,000 room property (PMS) on a single instance Scalability Scalability High levels of
Slide 18: Key In-Market Product Offerings
TECHNOLOGY | INNOVATION | SOLUTIONS 18 Key In-Market Product Offerings Workforce Management (Staff) 3% of Revenue Property Management (Book, Arrive, Order) 24% of Revenue Point-of-Sale (Order) 59% of Revenue Inventory & Procurement (Procure) 10% of Revenue Document Management (Order, Procure) 4% of
Slide 19: Product Vision
TECHNOLOGY | INNOVATION | SOLUTIONS 19 Product Vision Agilysys’ Unified Platform for Delivering its Next Generation Offerings Promote Staff Survey Promote Supply Seat Reserve Seat Stay Buy Stay Upsell Profile Analyze NextGen Offering Today’s Offering Guest Lifecycle Pay Suggest Order Market Discover
Slide 20: rGuest Product Release Timeline
TECHNOLOGY | INNOVATION | SOLUTIONS 20 Insight Mobile Manager (IMM) v1.x for LMS & Visual One Agilysys Analytics 2.0+ rGuest Stay (PMS) Expected GA Release End of Calendar Year rGuest Supply (I&P) rGuest Buy (POS) Initial Release Planned for March 2015 rGuest Pay rGuest Seat
Slide 21: Recently Released rGuest Product Offerings
TECHNOLOGY | INNOVATION | SOLUTIONS 21 Recently Released rGuest Product Offerings SaaS-based Reservations & Table Management solution Leverage comprehensive guest data Drive operational efficiency PCI-certified P2PE gateway gets merchant out of PCI scope Card data protection Differentiat
Slide 22: Hospitality Analytics Vision
TECHNOLOGY | INNOVATION | SOLUTIONS 22 Hospitality Analytics Vision Integrated Guest Experience Point-of-Sale Data Property Management Data Inventory and Procurement Data Workforce Management Data
Slide 23: Product Demo
TECHNOLOGY | INNOVATION | SOLUTIONS 23 Product Demo
Slide 24: Next-Gen Property Management
TECHNOLOGY | INNOVATION | SOLUTIONS 24 Next-Gen Property Management SaaS-based property management system Low Cost of Ownership Guest centric property management system enables a superior guest experience rGuest Stay achieves an industry leading level of product integration allowing users to tak
Slide 25: Product Demo
TECHNOLOGY | INNOVATION | SOLUTIONS 25 Product Demo
Slide 26: Financial Overview
26 Financial Overview
Slide 27: Agilysys Solution Value – Service Management
TECHNOLOGY | INNOVATION | SOLUTIONS 27 Agilysys Solution Value – Service Management Industry Leading Gross Margin Profile Strategic shift to higher margin software offerings has led to improved margins Large installed base and growing SaaS-based offerings to drive long term gross margin profile
Slide 28: Historical Financial Results
TECHNOLOGY | INNOVATION | SOLUTIONS 28 Historical Financial Results All numbers in thousands, except per share data (1) All historical numbers are unaudited and reflect the sale of RSG and UK entity (2) Non-GAAP measure, see reconciliation on slide 35 (3) TTM for the twelve month period ended June 3
Slide 29: Recurring Revenue Growth
TECHNOLOGY | INNOVATION | SOLUTIONS 29 Recurring Revenue Growth Agilysys’ pure-play software business model is driving robust recurring revenue Reported revenue growth of +8% in FY14 53% recurring revenue in FY2014 with high retention rates Shift to SaaS / PaaS business model will increase rec
Slide 30: Strong Balance Sheet
TECHNOLOGY | INNOVATION | SOLUTIONS 30 Strong Balance Sheet Consolidated Balance Sheet (unaudited) in thousands June 30, 2014 March 31, 2014 Cash, cash equivalents and marketable securities $87,998 $99,566 Other current assets 26,858 30,288 Long-term assets 63,834 61,041 Total assets $178,690 $190,8
Slide 31: M&A Strategy
TECHNOLOGY | INNOVATION | SOLUTIONS 31 M&A Strategy • Focus is on software enabled solutions for hospitality markets that support the guest lifecycle and next generation rGuest product vision • Keys to success for M&A • Talent – management capacity and industry-leading talent • Technology – extend o
Slide 32: Business Outlook
TECHNOLOGY | INNOVATION | SOLUTIONS 32 Business Outlook – FY 15 • Revenue growth in-line with, or slightly above overall industry rate • Generate break even to slightly positive adjusted operating income • Invest the balance sheet in products and markets • Organic product innovation and next-generat
Slide 33: Investment Highlights
TECHNOLOGY | INNOVATION | SOLUTIONS 33 Investment Highlights Focused Business with Significant Room for Growth $4B in annual industry spend for current product portfolio, Gain share, expand product capabilities through focused investments, acquisitions Support growth with world-class customer
Slide 34: Appendix
34 APPENDIX
Slide 35: Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS 35 Non-GAAP Reconciliation 2012 2013 2014 TTM* Operating loss (45,840)$ (9,307)$ (6,188)$ (9,776)$ Share-based compensation expense 2,397 1,638 2,119 2,120 Amortization of intangibles 3,585 3,284 6,414 7,403 Asset impairments and related charges 9,681 120 327 327