Hotel solutions provider Agilysys released its financial results for the first quarter of fiscal 2023, reporting a company record $47.5 million in net revenue.
During the quarter, Agilysys experienced double-digit growth across multiple metrics, driven by an increase in revenue of nearly 23%.
Recurring revenue, which includes subscription and maintenance fees, also reached record levels. For the first quarter, that was $27.7 million, down from $23.2 million last year, but down as a percentage of total net income.
Additionally, net income attributable to common shareholders increased from $1.5 million to $2.6 million, but adjusted EBITDA decreased from $6.9 million to $6.7 million. dollars from one year to the next.
Ramesh Srinivasan, President and CEO of Agilysys, attributed the decline in EBITDA – particularly as a proportion of revenue – to increased spending in sales, marketing and professional services, as well as than at other additional costs.
The company’s free cash flow was also down year-over-year, falling to nothing by $7.7 million, a drop that Srinivasan attributed to “short-term fluctuations in working capital.”
“The decrease in free cash flow this quarter is primarily due to short-term fluctuations in working capital, including previously reported additional payments for increased inventory levels that were necessary to give us operational protection against adverse events. possible future supply chain challenges,” he said.
Looking ahead, Srinivasan believes Agilysys is well positioned for continued growth. He concluded: “Continued sales growth, a healthy backlog and an industry hungry for improved technology options have positioned us well to achieve our 2023 targets and continue on a profitable growth trajectory beyond.”
To that end, Agilysys raised its fiscal 2023 revenue forecast from $190 million to $195 million.