Why American Software Stock Skyrocketed Today
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.
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, up from 57% a year ago. That all resulted in adjusted net earnings jumping by 185% year over year to $3.6 million, or $0.11 per share.
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Source Fool.com
