American Software (AMSWA) Reports In-Line Q4 EPS, Revenues Beat

American Software (NASDAQ: AMSWA) reported Q4 EPS of $0.04, in-line with the analyst estimate of $0.04. Revenue for the quarter came in at $29.27 million versus the consensus estimate of $28.4 million.

Key Fourth quarter financial highlights:

• Subscription fees were $6.3 million for the quarter ended April 30, 2020, a 64% increase compared to $3.8 million for the same period last year, while Software license fee revenues were $1.1 million, a 37% decrease compared to $1.7 million for the same period last year, reflecting our continued transition to the Software as a Service (SaaS) engagement model.
• Cloud Services Annual Contract Value (ACV) increased approximately 53% to $26.4 million as of the quarter ended April 30, 2020 compared to $17.3 million as of the same period of the prior year.
• Total revenues for the quarter ended April 30, 2020 increased 11% to $29.3 million, compared to $26.3 million for the same period of the prior year.
• Recurring revenue streams for Maintenance and Cloud Services were 57% of total revenues in the quarter ended April 30, 2020 compared to 56% in the same period of the prior year.
• Maintenance revenues for the quarter ended April 30, 2020 decreased 4% to $10.4 million compared to $10.8 million for the same period last year.
• Professional services and other revenues for the quarter ended April 30, 2020 increased 16% to $11.5 million compared to $9.9 million for the same period last year.
• Operating earnings for the quarter ended April 30, 2020 increased 57% to $1.6 million compared to $1.0 million for the same period last year.
• GAAP net earnings for the quarter ended April 30, 2020 decreased 71% to $0.5 million or $0.02 per fully diluted share compared to $1.9 million or $0.06 per fully diluted share for the same period last year.
• Adjusted net earnings for the quarter ended April 30, 2020, which excludes non-cash stock-based compensation expense and amortization of acquisition-related intangibles, were $1.3 million or $0.04 per fully diluted share compared to $2.7 million or $0.09 per fully diluted share for the same period last year.
• EBITDA increased by 10% to $3.4 million for the quarter ended April 30, 2020 compared to $3.1 million for the same period last year.
• Adjusted EBITDA increased by 11% to $3.9 million for the quarter ended April 30, 2020 compared to $3.5 million for the same period last year. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest (expense)/income & other, net, income tax (benefit)/expense and non-cash stock-based compensation expense.

The overall financial condition of the Company remains strong, with cash and investments of approximately $94.7 million, an increase of over $6.2 million when compared to April 30, 2019, and no debt as of April 30, 2020. During the fourth quarter of fiscal 2020, the Company paid shareholder dividends of approximately $3.5 million.

“We are pleased with our fourth quarter and overall fiscal 2020 performance. In the midst of the economic slowdown resulting from the pandemic and a rapid shift to a virtual work environment, we continued to perform with a strong contract close rate driving 64% growth in Subscription Fees and 16% growth in our professional services revenue. These key performance indicators continue to underscore our successful transition to a cloud-first company,” said Allan Dow, CEO and president of American Software. “Recurring revenue represented 57% and 56% of fourth quarter and fiscal year total revenues, which is a reflection of the longer-term commitment of our customers to our platform and services. With our cloud-first strategy firmly in place, we expect the percentage of recurring revenue to continue to trend higher in the future.”

“Our cloud-based digital platform provides customers with decision support capabilities to achieve an agile, resilient and higher velocity supply chain,” stated Dow. “We believe customers that take advantage of our advancements in artificial intelligence (AI), machine learning (ML) and advanced analytics to improve their supply chain performance will be better positioned to sense and respond to unforeseen challenges and opportunities that may impact their profitable growth.”

For earnings history and earnings-related data on American Software (AMSWA) click here.

You May Also Be Interested In

• FedEx falls 4% as CY2026 profit forecast misses expectations despite Q4 beat
• Global Water files for expanded water supply in Arizona service areas
• NXP Semiconductors names Mike Lucarelli as new investor relations head