American Software, Inc. Reports First Quarter Fiscal Year 2025 Financial Results
Intellectia.AI Updated: 2024-08-25
American Software, Inc. Reports First Quarter Fiscal Year 2025 Financial Results
American Software, Inc. (NASDAQ: AMSWA) announced its financial results for the first quarter of fiscal year 2025, ending July 31, 2024.
Consolidated Financial Performance
| Metric | Q1 FY2025 | Q1 FY2024 | Q/Q Change | YoY Change | Consensus Est. |
|---|---|---|---|---|---|
| Total Revenue | $26.2M | $25.9M | +1.16% | +1.16% | $25.26M |
| GAAP Net Earnings | $2.1M | $2.6M | -19.23% | -19.23% | |
| GAAP EPS | $0.06 | $0.08 | -25% | -25% | $0.08 |
| Adjusted Net Earnings | $4.1M | $4.0M | +2.5% | +2.5% | |
| Adjusted EPS | $0.12 | $0.12 | 0% | 0% | |
| Adjusted EBITDA | $4.6M | $3.7M | +24.32% | +24.32% | |
| EBITDA | $3.0M | $2.1M | +42.86% | +42.86% | |
| Operating Earnings | $1.8M | $1.4M | +28.57% | +28.57% |
Interpretation:
American Software reported a slight increase in total revenue and a notable increase in Adjusted EBITDA and Operating Earnings for Q1 FY2025 compared to the same quarter last year. However, GAAP Net Earnings and EPS witnessed declines. The company met revenue expectations but missed the consensus earnings per share.
Segment Revenue Performance
| Segment | Q1 FY2025 | Q1 FY2024 | YoY Change |
|---|---|---|---|
| Subscription Fees | $14.8M | $13.8M | +7.25% |
| Maintenance Revenues | $7.3M | $8.2M | -10.98% |
| Professional Services and Other | $3.9M | $3.7M | +5.41% |
| Software License Revenues | $0.2M | $0.3M | -33.33% |
Interpretation:
The increase in subscription fees indicated strong demand for cloud services, yet maintenance revenues declined due to divestitures and client cloud transitions. Professional services grew marginally due to seasonal project work, while software license revenues remained low as the company emphasized cloud services.
Management Commentary
CEO and President Allan Dow commented on the realistic sales expectations and the company’s confidence in achieving the FY2025 guidance despite economic uncertainty and protracted sales cycles.
Dividends and Share Repurchase Program
During the first quarter, American Software paid out shareholder dividends totaling approximately $3.7 million.
Forward Guidance
The company reiterated its fiscal year 2025 financial outlook, projecting total revenues of $104.0 million to $108.0 million, with Adjusted EBITDA ranging from $15.0 million to $16.4 million.
Stock Price Movement
Post-earnings release, American Software's stock experienced a slight decline of approximately 0.48%.
This summary aggregates the core financial results and provides a detailed interpretation, highlighting key areas of performance and strategic insights from the management.
