American Software, Inc. (NASDAQ:AMSWA) Q1 2025 Earnings Conference Call August 22, 2024 5:00 PM ET

Company Participants

Vince Klinges - CFO
Allan Dow - President and CEO

Conference Call Participants

Anja Soderstrom - Sidoti & Company
Matthew Galinko - Maxim Group
Zach Cummins - B. Riley Securities

Operator

Good day, everyone, and welcome to today's First Quarter 2025 Earnings Results. [Operator Instructions] Please note, today's call will be recorded.

It is now my pleasure to turn the conference over to Vince Klinges, Chief Financial Officer for American Software. Please go ahead.

Vince Klinges

Thank you, Chloe. Good afternoon, everyone, and welcome to American Software's first quarter 2025 earnings conference call. On the call with me is Allan Dow, President and CEO of American Software. Allan will provide some opening remarks, and then I will review the numbers.

But first, our safe harbor statement. 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.

At this time, I'd like to turn the call over to Allan for our opening remarks.

Allan Dow

Thank you, Vince. Good afternoon, everyone, and thank you for joining us today.

Our first quarter performance was consistent with our internal expectations and provided a solid start to our fiscal 2025. Reflecting the improvement in our bookings over the past few quarters, our revenue increased slightly, both on a sequential and year-over-year basis, led by sustained growth in our cloud revenue, high retention rates, and a return to growth in our services. This, in turn, translated to the strongest gross margin performance we've seen in over a year, which, combined with the disciplined expense management, drove our adjusted EBITDA margin up to nearly 18%.