American Software (AMSWA) Q2 2022 Earnings Call Transcript
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American Software (AMSWA) Q2 2022 Earnings Call Transcript
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Author Bio
Evan is a Senior Technology Analyst at The Motley Fool. He was previously a Senior Trading Specialist at Charles Schwab, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder. Follow @TMFNewCow
What happened
Shares of
American Software (NASDAQ:AMSWA) were trading up by almost 24% as of 2 p.m. EDT Wednesday after the company reported fiscal fourth-quarter earnings that demonstrated its progress in transitioning toward a recurring-revenue model.
So what
For the period, which ended April 30, total revenue declined by 2% to $28.6 million, but that contraction was a function of how revenue gets recognized under a subscription model. American Software s subscription fees jumped by 28% to $8.1 million, and its cloud services annual contract value (ACV) increased by 45% to $38.3 million. Recurring revenue streams for maintenance and cloud subscriptions comprised 60% of total sales,