INVESTOR PRESENTATION
January 2021
Forward-looking Statements & Non-GAAP Financial Information
TECHNOLOGY | INNOVATION | SOLUTIONS
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 words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, our revenue and Adjusted EBITDA guidance for the second quarter, statements we make regarding our ability to improve our competitive positioning and improvement of our business momentum and business health over time once the industry begins to recover.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the effect of the COVID-19 pandemic on our business and the success of any measures we have taken or may take in the future in response thereto; and the risks described in the Company's filings with the Securities and Exchange Commission, including the Company's reports on Form 10-K and Form 10-Q.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement that may be made from time to time, whether written or oral, whether as a result of new information, future developments or otherwise.
Use of Non-GAAP Financial Information
To supplement the unaudited consolidated financial statements presented in accordance with U.S. GAAP in this press release, certain non-GAAP financial measures as defined by the SEC rules are used. These non-GAAP financial measures include EBITDA, Adjusted EBITDA, adjusted net income, adjusted basic earnings per share, adjusted diluted earnings per share and free cash flow. Management believes that such information can enhance investors' understanding of the Company's ongoing operations.
2
The Business We Are In
TECHNOLOGY | INNOVATION | SOLUTIONS
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
Agilysys Overview
End to End Software Solutions Provider
Exclusively Hospitality
Provide Mission Critical Solutions
Products With Global Reach
SaaS
Platform
Analytics
Optimization
Payment
Kitchen
Operations
Reservations
Guest Value
Staff
Mobility
Guest
Contactless
Connected-
ness
Guest
Self-service
$145.8M | 59% | 39% | 23% |
Total | Recurring Revenue as a % of | Subscription Revenue as a | Subscription Revenue |
Revenue | Total Revenue | % of Recurring Revenue | Growth Rate |
Note: All data is as of the trailing twelve months ended September 30, 2020.
4
We Provide Industry Leading Hospitality Solutions
TECHNOLOGY | INNOVATION | SOLUTIONS
Allocation of | POINT-OF-SALE | 61of | ||
Total Revenue | % | |||
Revenue | ||||
% | ||||
Food and Beverage Solutions | 26of Revenue | |||
~66k end points at 09/30/20 | 11% | |||
of Revenue | 2 | |||
of | ||||
INVENTORY & | % | |||
PROCUREMENT | Revenue |
92% | Region |
of Revenue | North America |
PROPERTY
MANAGEMENT
Lodging Solutions
~271k rooms at 09/30/20
DOCUMENT
MANAGEMENT
8%
of Revenue
APAC Plus EMEA
Note: Revenue contribution figures represent percentage for the trailing twelve months ended September 30, 2020 and include an allocation of revenue amounts to our 4 core product groupings.
5
Hospitality Market
TECHNOLOGY | INNOVATION | SOLUTIONS
Agilysys ARR ~ $86.1M*
*Trailing twelve months ended September 30, 2020.
6
Agilysys - Defining Strategy Highlights
TECHNOLOGY | INNOVATION | SOLUTIONS
100% HOSPITALITY FOCUSED
MODERN CLOUD-NATIVE & ON-PREMISE OPTIONS
END-TO-END COMPREHENSIVE SOLUTION OFFERINGS
OBSESSIVELY CUSTOMER-CENTRIC
ENGINEERING/PRODUCT DRIVEN
R&D Team | ||
Strength** | ||
Jan 2017 - 230 | ||
>95% | Mar 2019 - 500 | 23% Increase |
Dec 2020 - 800 | in YOY | |
Customer | ||
Subscription | ||
Retention | ||
Revenue | ||
Annually | ||
*Note: All data is as of the trailing twelve months ended September 30, 2020. | |
**R&D strength numbers represent approximate headcount. | 7 |
India Development Center
TECHNOLOGY | INNOVATION | SOLUTIONS
Chennai
• Current R&D Strength = 800+ | • Currently Expanding Capacity To: | |
• Approximately 95% of Current | • | 100,000 Square Feet |
Employees Are Technical & | • | 1,000 Employee Capacity |
Engineering Expertise | • All Agilysys Employees and Fully | |
• Average Tenure = > 1.8 Years | ||
Engaged With Our Products |
8
Recent Achievements Under Management Team
TECHNOLOGY | INNOVATION | SOLUTIONS
Revenue Growth
Recurring Revenue Return to Pre-COVID Record Levels
9
Quarters of Sequential
Revenue Growth Pre-
COVID
New Sales at 60%+ of Pre-COVID Amounts
Continuing to
Improve
23.9%
Q2 FY21 SaaS Revenue
Growth
188%
YOY Increase in Adjusted
EBITDA
Cash Flow Positive
Since FY19
Focus on
Profitability
$8.6M
Q2 FY21 Adjusted
EBITDA
9%
Organic Increase in Cash
YTD Since FY20
$85.7M
Cash as of Q2 FY21
Expand Product
Capabilities
Tripled
R&D Team Strength
Fully Captive India Development Center
14
New Software Modules
9
Agilysys Hospitality Product Suite
TECHNOLOGY | INNOVATION | SOLUTIONS
10
Global Gaming Business
G2E 2020 Gaming & Technology Awards
Gold Award
Best Productivity-Enhancement Technology
Agilysys rGuest Service
(Cloud-Native,On-Premise Capable)
Only Non-Gaming Hospitality Vendor To
Win Award
11
We Serve Leading Hospitality Brands
TECHNOLOGY | INNOVATION | SOLUTIONS
12
FINANCIAL OVERVIEW
Evolving Business, Evolving P&L
TECHNOLOGY | INNOVATION | SOLUTIONS
Financial Metrics and Valuation*
Share Price (1/12/21) | $40.55 |
Diluted Shares Outstanding | 23.4M |
Diluted Market Capitalization | $949.8M |
Cash (as of 09/30/20) | $85.7M |
Debt (as of 09/30/20) | $14.6M |
Enterprise Value | $878.7M |
Revenue | $145.8M |
Gross Profit | $82.4M |
Adjusted EBITDA^ | $18.8M |
Earnings per Share | ($1.11) |
EV/Revenue | 6.0x |
EV/Gross Profit | 10.7x |
Business Metrics (as of 09/30/20)
Direct POS End Points Managed
Y/Y Growth
Direct Hotel Rooms Managed
Y/Y Growth
Recurring Revenue*
As % of Total Revenue
Subscription Revenue*
As % of Recurring Revenue
Services Revenue*
As % of Total Revenue
Subscription Revenue Growth Y/Y*
New Customer Count*
~66k
17%
~271k -1%
59%
39%
18%
22%
55
^Non-GAAP measure, see reconciliation on slide 26. *Trailing twelve months ended September 30, 2020.
14
Strong Balance Sheet
TECHNOLOGY | INNOVATION | SOLUTIONS | |||
Consolidated Balance Sheet (in thousands) | |||
March 31, 2020 | September 30, 2020 | ||
Cash, Cash Equivalents and Marketable Securities | $46,653 | $85,706 | |
Other Current Assets | 46,755 | 29,838 | |
Long-Term Assets | 61,154 | 58,170 | |
Total Assets | $154,562 | $173,714 | |
Current Liabilities | $69,423 | $45,777 | |
Other Liabilities | 13,382 | 50,013 | |
Total Liabilities | 82,805 | 95,790 | |
Shareholders' Equity | 71,757 | 77,924 | |
Total Liabilities and Shareholders' Equity | $154,562 | $173,714 | |
15 |
Revenue - Quarterly
TECHNOLOGY | INNOVATION | SOLUTIONS
Total Revenue | $41,987 | |||||||||||||||||||||||
$41,000 | $40,722 | $39,659 | ||||||||||||||||||||||
$39,000 | $36,618 | $38,389 | ||||||||||||||||||||||
$37,000 | $36,014 | |||||||||||||||||||||||
$34,203 | $34,360 | |||||||||||||||||||||||
$35,000 | $34,007 | |||||||||||||||||||||||
$33,000 | ||||||||||||||||||||||||
$31,000 | $29,807 | |||||||||||||||||||||||
$29,000 | COVID-19 Pandemic March 2020 - Q2 FY21 | |||||||||||||||||||||||
$27,000 | ||||||||||||||||||||||||
$25,000 | Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | ||||||||||||||
Fiscal Year is From 4/1-3/31
All numbers in thousands. | 16 |
Profitability Metrics - Quarterly
TECHNOLOGY | INNOVATION | SOLUTIONS
Adjusted EBITDA - Non GAAP^
$10,000 | |||||||||||||||
$9,000 | |||||||||||||||
$8,000 | No | ||||||||||||||
$7,000 | |||||||||||||||
Software | |||||||||||||||
$6,000 | Capitalization | ||||||||||||||
from | |||||||||||||||
Q2 FY19 | |||||||||||||||
$5,000 | onwards | ||||||||||||||
$4,000 | $3,235 | $2,984 | $3,235 | ||||||||||||
$3,113 | $2,641 | ||||||||||||||
$3,000 | $2,135 | $2,392 | |||||||||||||
$2,000 | |||||||||||||||
$1,000 | |||||||||||||||
$0 | Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 | ||||||||
- Q2'21 included inorganic COVID related temporary cost savings, including employee
compensation changes and reduction of workforce
• Average of $2.5M in capitalized software development costs per quarter from Q1'17 to Q1'19.
$8,586
$3,572 $3,390
Q4'20 Q1'21 Q2'21
All numbers in thousands.
Fiscal Year is from 4/1-3/31
^ Non-GAAP measure, see reconciliation on slide 27.
17
Historical Financial Results
Revenue - GAAP | |||||||||||||||||||
$165,000 | $160,757 | ||||||||||||||||||
$155,000 | $140,842 | $145,813 | |||||||||||||||||
$145,000 | |||||||||||||||||||
$135,000 | |||||||||||||||||||
$127,360 | |||||||||||||||||||
$125,000 | FY18 | FY19 | FY20 | TTM* | |||||||||||||||
Adjusted EBITDA - Non-GAAP^ | |||||||||||||||||||
$20,000 | $18,783 | ||||||||||||||||||
$16,000 | $13,017 | ||||||||||||||||||
$12,000 | $9,082 | $10,277 | |||||||||||||||||
$8,000 | |||||||||||||||||||
FY18 | FY19 | FY20 | TTM* |
TECHNOLOGY | INNOVATION | SOLUTIONS | |||||||||||||||||||||||
Net Loss - GAAP | |||||||||||||||||||||||
$0 | |||||||||||||||||||||||
($10,000) | $23.7M software impairment | ||||||||||||||||||||||
($8,350) | ($13,164) | ||||||||||||||||||||||
($20,000) | |||||||||||||||||||||||
($24,224) | |||||||||||||||||||||||
($30,000) | ($34,067) | ||||||||||||||||||||||
($40,000) | |||||||||||||||||||||||
FY18 | FY19 | FY20 | TTM* | ||||||||||||||||||||
Adjusted Diluted Earnings per Share - Non-GAAP^ | |||||||||||||||||||||||
$0.60 | $0.48 | ||||||||||||||||||||||
$0.50 | |||||||||||||||||||||||
$0.40 | $0.27 | ||||||||||||||||||||||
$0.30 | $0.23 | ||||||||||||||||||||||
$0.20 | $0.13 | ||||||||||||||||||||||
$0.10 | |||||||||||||||||||||||
FY18 | FY19 | FY20 | TTM* | ||||||||||||||||||||
All numbers in thousands. | |||||||||||||||||||||||
^ Non-GAAP measure, see reconciliation on slide 26. |
*Trailing twelve months ended September 30, 2020. 18
APPENDIX
Senior Management Leading New Growth Vision
TECHNOLOGY | INNOVATION | SOLUTIONS
RAMESH SRINIVASAN - President and Chief Executive Officer
Ramesh is an accomplished CEO with leadership and turnaround success across multiple industries resulting in rapid and sustainable long-term growth and significant increases in shareholder value.
Dave Wood - Chief Financial Officer
Dave is an experienced financial and strategic leader who joined Agilysys in 2011 as controller of the Hospitality Solutions Group. Dave brings with him extensive experience in financial initiatives and strategic development with software and SaaS companies.
PRABUDDHA BISWAS - Chief Technology Officer
Prabuddha brings over 30 years of successful software development and innovative technology leadership to Agilysys, where his responsibilities include leadership and oversight of the Company's technology
vision.
DON DEMARINIS - Senior Vice President Sales, Americas
Don brings extensive industry experience and success at Oracle and Micros selling hospitality technology and services to global clients across markets where he led sales increases of up to 30% per annum.
20
Senior Management Leading New Growth Vision
TECHNOLOGY | INNOVATION | SOLUTIONS
KYLE BADGER - Senior Vice President, General Counsel and Secretary
Kyle leads the global legal and human resources teams and brings over 22 years of legal experience
representing public and private companies in general corporate matters.
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 management leadership across multiple industries.
PRAKASH BHAT - Vice President and Managing Director (India)
Prakash brings 30+ years of experience in technology and management with an impressive track record of building new companies to create a strong market presence for established organizations in new locations.
ANDREW COX - Managing Director (Asia Pacific)
Andrew has 20+ years of experience, including significant experience with hospitality software companies, working in the Asia Pacific region bringing an extensive background in developing and executing go-to- market strategies which deliver profitable and sustainable growth.
21
Senior Management Leading New Growth Vision
TECHNOLOGY | INNOVATION | SOLUTIONS
ROB JACKS - Chief Information Officer
Rob was promoted to CIO in December 2018 and is responsible for advancing Agilysys' internal systems and information technology processes. Rob has a reputation as a transformational executive who can deploy complex solutions with a measurable ROI.
JEBA KINGSLEY - Vice President of Professional Services
Jeba was hired as Vice President of Professional Services in December 2018. Jeba has more than 20 years of experience leading revenue-generating global client services organizations.
22
Agilysys Omnichannel POS Solution
Mobile / Web: IG OnDemand
Profile &
Personalization:
Personalization APIs
Analytics:
Agilysys Analyze
Payment:
Agilysys Pay
IG Quick Pay
Mobile App:
Webapps / API's
Physical Store:
InfoGenesis POS
IG SmartMenu
IG Digital Menu
Marketing & Upsell:
Agilysys Engage
Any Venue:
Agilysys Seat
Kiosk:
IG Buy Kiosk
23
Agilysys Lodging Ecosystem
Search & Discovery | |
Marketing Analytics & CRM | Booking |
Personalized | Arrival |
Communication | Sales & Catering |
Payment | Loyalty & | |||
Rewards | ||||
Housekeeping | Dining | Spa | ||
Maintenance | Concierge | Current Solutions | ||
Back of House | Retail | Golf | ||
Partner | 24 | |||
Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS
25
Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS
26
Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS
27
Cash Flow
TECHNOLOGY | INNOVATION | SOLUTIONS
28
Agilysys Global Footprint
Windsor, UK
Seattle, WA | |||||
Las Vegas, NV | |||||
Santa Barbara, CA | Alpharetta, GA | ||||
Shenzhen, China
Chennai, India
Kuala Lumpur, Malaysia
Singapore
Principal Location
Country with Installation
Reseller
Hong Kong
Manila, Philippines
Agilysys Corporate Headquarters
- Alpharetta, Georgia
Agilysys US Offices
- Las Vegas, Nevada
- Santa Barbara, California
- Bellevue, Washington
Agilysys EMEA Office
- United Kingdom
Agilysys APAC Offices
- Hong Kong
- Malaysia
- Philippines
- Singapore
- China
Agilysys Demonstration Centers
- Las Vegas, Nevada
India Development Center
- Chennai, India
29
Contact:
Jessica Hennessy
Sr. Manager Corporate Strategy and
Investor Relations
-
810-6116
InvestorRelations@agilysys.com
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Agilysys Inc. published this content on 14 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 January 2021 14:39:05 UTC