American Software Inc (NASDAQ:AMSWA) Q4 2019 Earnings Conference Call Transcript

Jun 19, 2019 • 05:00 pm ET

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American Software Inc (NASDAQ:AMSWA) Q4 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, everyone, and welcome to today's Fourth Quarter and Fiscal Year 2019 Preliminary Earnings Results Call for American Software. At this time, all participants are in listen-only mode. But, later on, you will have the opportunity to ask questions during the question-and-answer session. (Operator Instructions) Please note that today's call may be recorded, and I will be standing by if you should need any assistance.

It is now my pleasure to turn the call over to Vince Klinges, CFO of American Software. Please go ahead, sir.

Executive
Vincent Klinges

Thank you, Jenisha. Good afternoon, everyone, and welcome to the American Software Fourth Quarter Earnings Call. On the call with me is Allan Dow, President of American Software. I will review the numbers and then Allan will give some remarks after that.

But I would like to remind you that this conference call may contain forward-looking statements, including statements regarding, among other things, our business strategy and growth strategy. Any such forward-looking statements speak only as of this date. These forward-looking statements are based largely on our expectations and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond our control.

Future developments and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements. There are a number of factors that could cause actual results to differ materially from those anticipated by statements made on this call. Such factors include, but are not limited to, changes and uncertainty in general economic conditions, the growth rate of the market for our products and services, the timely availability and market acceptance of these products and services, the effect of competitive products and pricing and other competitive pressures and the irregular and unpredictable pattern of revenues. In light of these risks and uncertainties, there can be no assurance that the forward looking information will prove to be accurate.

So looking at the fourth quarter of fiscal '19 compared to the same period last year, total revenues for the quarter decreased 11% to $26.3 million compared to $29.4 million the same quarter last year. Subscription fees were $3.8 million for the quarter. That was a 47% increase compared to $2.6 million for the same period last year, while software license revenues were $1.7 million or 42% decrease compared to $2.9 million in the same period last year. And this reflects our continued transition to the SaaS engagement model.

Our cloud annual contract value, or ACV, increased approximately 36% to $17.3 million for the current quarter, and that compares to $12.7 million for the same period last year. Professional services and other revenues decreased 23% to $9.9 million for the current quarter and that compares to $12.9 million in the same quarter last year. And that was also -- that was down to -- also due to -- we had some several large implementation projects that were finishing in the fourth quarter of '18.

Our maintenance revenues decreased 1% to $10.8 million