Agilysys, Inc. (NASDAQ:AGYS) Q1 2024 Earnings Call Transcript

So services hiring is not a complex decision-making process, Matt. So the short answer is, whatever we planned for at the beginning of the fiscal year, we are there now. We are exactly – almost exactly where we wanted to be end of June. Now how much more hiring we do it just depends on how our sales plan works out. If we feel that we are going ahead of plan, we will continue hiring more into that team. It’s a reasonable assumption, Matt, that I expect the services team to be significantly higher at the end of this fiscal year than it is today.

Matthew VanVliet: And then if I could squeeze one last more in on the Marriott deal kind of build out of that projects maybe any updates on additional milestones from either the product development side or the staffing side that might be helpful just to make sure that that continues to progress and you’re doing everything from year-end that you can? Thank you.

Ramesh Srinivasan: Yes, sure. Thank you, Matt. So starting from the last part of that question, the hiring has gone well, as far as services is concerned, we are pretty much at the strength we needed to be with respect to the services team. As far as the R&D teams are concerned where we were the product development teams, where we’re adding resources, we’re just about there. We are now in the last 10% or so of the hiring we needed to do for that. So that’s gone more or less according to plan. If anything slightly behind plans as far as product development hiring is concerned but we are more or less there. We are now doing the last 10% or so of that hiring. So hiring has gone well. With respect to the deliveries, they have gone well, our portion of the deliveries we are more or less in range give or take a few weeks and we are a critical requirement for the overall Marriott project, but we are not on the critical path, if you know what I mean.

So our deliverables are going as according to plan, there is always a few weeks difference between the plan and reality, but there is no concern there. So the project, there is no further update on it and everything is moving along, as mentioned before, and there is no change in that. And all the deliverables so far have worked out reasonably well. And the one thing to note Matt is many of the enhancements to the product since it’s a cloud native product and since everything, all the additional enhancements are being built within the product, it is not a customization of the product. Many of the enhancements, Marriott is already in production that can be used by other customers if they require them. So overall, the short summary is going according to plan, give or take a few weeks, we are not on the critical path there are much bigger things that have to happen in the project within Marriott.

So far all good no further updates and everything is going according to plan.

Matthew VanVliet: Great to hear. Thanks for the answers. Appreciate it.

Ramesh Srinivasan: Thank you, Matt.

Operator: Thank you. One moment, while we prepare for our next question. And our next question will be coming from Brian Schwartz of Oppenheimer. Your line is open.

Brian Schwartz: Yes, hi, thanks for taking my questions. Ramesh, you mentioned in the introductory comments that you had a record sales quarter. I think your commentary suggested that this was in both up selling as well as landing with more products with the new logos. My question is, are you doing anything different with the go-to market to make this happen or is this mostly just strengthening of the end market demand?