William Blair initiated research coverage of Agilysys, Inc. (AGYS $94.81), a comprehensive software provider for the broader hospitality industry.
Analyst Stephen Sheldon estimated that the company would generate revenue of $277 million in fiscal 2025 (ending March) and $331 million in fiscal 2026, following revenue growth of 20% in fiscal 2024.
“Agilysys has built the most comprehensive SaaS/software platform we have seen catering to the hospitality vertical,” Sheldon said. “It offers over 30 products and modules for industries such as gaming, hotels, resorts, and cruises, including the core point-of-sale, or POS; payments; property management, or PMS; loyalty; retail management; and scheduling. Its solutions are tailored to more complex enterprise hospitality operations, and it recently completed a major product improvement/upgrade cycle that lasted nearly seven years. With the modernization process behind it, Agilysys is again investing behind its go-to-market efforts. It sets itself apart from competitors by the platform’s end-to-end capabilities and that practically all solutions are available through the cloud.”
Sheldon continued, “Agilysys reported record sales in fiscal 2023 and achieved similar levels in 2024. Subscription revenue has increased sequentially for 15 consecutive quarters and grew 30% in fiscal 2024. Larger deals are picking up, such as wins with Marriott for the PMS, which should start going live mid-2025, and for its POS platform as an option for on-premises restaurants in North America. It is seeing larger initial lands, and the average number of products per customer ended fiscal 2024 at 2.2, up from 1.6 in 2020. We believe Agilysys is well established for POS products and is early in the adoption curve for PMS products (the Marriott win should help) and internationally.”
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