Logility Reports Second Quarter Fiscal Year 2025 Financial Results
Logility Supply Chain Solutions, Inc. (NASDAQ: LGTY), prominent in AI-first supply chain planning, released its financial results for the second quarter of fiscal year 2025, which ended on October 31, 2024.
Key Financial Metrics
Comparison to prior periods and estimates:
| Metric | Q2 FY2025 | Q2 FY2024 | Year-over-Year Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $25.3M | $25.7M | -2% | $25.93M |
| GAAP Earnings Per Share (EPS) | $0.05 | $0.02 | +150% | $0.09 |
| Adjusted EPS | $0.11 | $0.08 | +37.5% | Not Provided |
| Adjusted EBITDA | $3.8M | $4.1M | -7% | Not Provided |
Logility reported a slight decline in total revenue compared to the previous year, indicating challenges affecting services and maintenance revenue. Despite this, the company managed a notable improvement in net earnings, highlighting its operational performance improvement year-over-year but falling short of the Wall Street consensus estimates.
Revenue by Segment
| Segment | Revenue Q2 FY2025 | Revenue Q2 FY2024 | Year-over-Year Change | Comparison to Guidance |
|---|---|---|---|---|
| Subscription Fees | $14.5M | $13.4M | +9% | Within Expectations |
| Maintenance | $7.1M | $8.1M | -13% | Below Expectations |
| Professional Services and Other | $3.6M | $4.0M | -10% | Below Expectations |
| Software Licenses | $0.1M | $0.2M | -50% | Below Expectations |
Subscription fees indicate robust demand with a 9% increase. Conversely, maintenance and professional services reported declines, affecting overall revenue.
Key Developments and Operational Highlights - Reclassification of common stock, eliminating Class B shares and issuing new Class A shares. - Payment of $3.7 million in shareholder dividends. - Notable customer acquisitions including J.D. Irving Limited and Ralph Lauren. - New SaaS agreements signed with clients across North America. - Rebranding to Logility Supply Chain Solutions, Inc. to align with industry recognition. - Held the LogiCon24 Virtual Summit, drawing attention to AI-driven supply chain advancements.
Comments from Company Officers CEO Allan Dow emphasized continued growth in subscription revenues despite facing project delays and service revenue reductions. With confidence in securing future deals, the company revised its overall revenue guidance but retained expectations for recurring revenue and EBITDA.
Dividends and Share Repurchase Program
Logility distributed approximately $3.7 million in dividends during the quarter, showcasing its financial health and shareholder commitment. No share repurchase program was mentioned.
Forward Guidance
Revised total revenue guidance for fiscal year 2025 is between $101.0 million and $105.0 million, reflecting current business conditions.
Stock Price Movement
Following the earnings release, Logility’s stock experienced a 1.08% increase, reflecting investor optimism in its strategic initiatives and future potential.
In summary, Logility is demonstrating solid growth in its core subscription business amidst transitional challenges in other areas. The company's strategic rebranding and emphasis on AI-driven solutions show promise for future growth, although conservative financial guidance reflects ongoing unpredictability in the broader market.
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