Good day, ladies and gentlemen, and welcome to the Agilysys fiscal 2022 third quarter conference call. As a reminder, today's conference may be recorded. I would now like to turn the conference over to Jessica Hennessy, Senior Director of Corporate Strategy and Investor Relations at Agilysys. You may begin. Thank you, Josh, and good afternoon, everybody. Thank you for joining the Agilysys fiscal 2022 third quarter conference call. We will get started in just a minute with management's comments, but before doing so, let me read the safe harbor language. Some statements made on today's call will be predictive and are intended to be made as forward-looking within the safe harbor protections of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial guidance. Although the company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause results to differ materially. Important factors that could cause actual results to vary materially from these forward-looking statements include the continued effects of the COVID-19 pandemic on our business, global supply chain challenges, and the risks set forth in the company's reports on Form 10-K and Form 10-Q and other reports filed with the Securities and Exchange Commission. I would also like to note that any references to record financial and business levels during this call refer only to the time period after Agilysys made the transformation to an entirely hospitality-focused software solutions company in fiscal year 2014. With that, I'd now like to turn the call over to Mr. Ramesh Srinivasan, President and CEO of Agilysys. Ramesh, please go ahead. Thank you, Jess. Good evening. Welcome to our fiscal 2022 third quarter earnings call. Joining Jess and me on the call today is Dave Wood, our CFO. If I had to summarize the quarter results and the current state of our business progress in one sentence, I would call it a roller coaster recovery delayed by a quarter or two. This feels like we are caught in a pandemic-induced storm, we can see bright sunshine and glorious days at the next turn on the road, but the path to get there has to be traversed on a roller coaster. Some months during this recovery period have seen high sales success and great business progress, and then some months seem to get overtaken by tough news headlines, infection spikes, heavy travel restrictions, especially across international borders, COVID testing requirements, back to increased work-from-home policies, and staff shortages at customer sites. The answer to the question, have we made significant progress across calendar years 2020 and 2021 would be definitely yes. Has that progress been smooth, consistent, and predictable? The answer would be no. Thanks to the successful product modernization and innovation efforts over the past few years, we continue to operate at record highs in the gaming and destination resort market areas, which also happen to be the dominant areas of our business, constituting more than 70%, 70, more than 70% of our overall sales and revenue levels. However, medium to high business environment challenges remain in Asia, Europe, managed food services, cruise ships, and hotel chains. Despite all these hospitality industry challenges, our product strength continues to drive consistently good progress in subscription recurring revenue. One-time product and services revenue recovery has been delayed by a quarter or two due to postponed projects. More than 90%, that is nine zero. More than 90% of our new customers and new sites this fiscal year have preferred cloud SaaS solutions, leading to a reduction in perpetual license sales affecting one-time software product revenue. Amidst all that, business basics like free cash flow continue to be healthy and at good levels. Now, that would be the short summary. Let me elaborate on the details a bit. Let me cover sales first before moving to revenue. All sales numbers referred to here are measured in annual contract value terms. Our sales success story has remained consistent during the first three quarters of fiscal 2022. Driven by the distinct competitive advantage our products currently give us and strong demand, the first three quarters of fiscal 2022 have been our best period of sales success in gaming and destination resorts in the U.S. by a fair distance. Our integrated end-to-end cloud-native ecosystem of hospitality software solutions, which help hospitality operators adapt quickly to evolving guest preferences, generate additional revenue, reduce labor requirements, and increase operational efficiency, continue to drive demand in market verticals where businesses are enjoying good success. We are fortunate that our two strongest areas, gaming and resorts, have also been the two markets which have recovered the best so far. On the other hand, we have seen only a partial recovery in hotel chains, with city hotels not yet at pre-pandemic levels, while resort-focused full-service hotels are faring better and a similar partial recovery in the cruise ships market. Managed food services and international regions remain significantly affected by all the up and down uncertainties the pandemic continues to cause. Sales year-to-date this fiscal year in managed food services has been at only around 60% of pre-pandemic levels. While the business and industry, B&I, subset of managed food services continues to struggle due to extended work-from-home policies across many large and small corporations, the higher education and healthcare portions of this vertical have continued to have high demand for omni-channel point of sale, POS, software solutions. Our ability to enable staff-facing POS terminal functions, guest-facing features through the buy kiosk and guest-driven remote ordering through on-demand and support for all types of payments, including room charging, use of loyalty points, order only, pay only, order and pay in both full and fast casual service, all of this in one integrated platform for all types of use cases, is a growing competitive advantage for us in this vertical. With respect to international regions, our sales levels in APAC this fiscal year have been at only around 40%, four zero, only at around 40% of pre-pandemic levels. International travel restrictions continue to have a serious detrimental effect on the hospitality industry across APAC countries. However, overall sales across EMEA have performed better and are currently operating at pre-pandemic levels. With respect to subscription recurring fee-based software sales, with one quarter still left to go, fiscal 2022 is already our best year ever in EMEA, which is a strong indicator of our increasing presence as a software solutions provider in the region. Despite all these various remaining short-term business environment challenges, overall global sales levels across all verticals during the first three quarters of fiscal 2022 were at more than 90%, nine zero, more than 90% of the levels seen during the pre-pandemic fiscal 2020 2 years ago. With three months still left to go in the fiscal year, as of the end of December, this is already our best year with respect to global sales pertaining to subscription recurring fees. Now, that fact deserves to be repeated. Thanks to the current availability with us of modern SaaS-ready software solutions across the entire band of hospitality industry needs, despite all the challenges in multiple market verticals, we have sold more subscription-based recurring fees in annual contract value terms in just three quarters of this fiscal year than any other previous full fiscal year. That is terrific progress in our business that we have worked hard to achieve during the past few years. While there is a clear shift towards cloud SaaS products among new customers, our modernization efforts have given us the flexibility to offer the same cloud-native solutions in an on-premise perpetual license model as well, off the same code base, without having to create different products and software modules for that purpose. We are happy to have had the luxury of designing these new software modules and modernizing the core platforms with that flexibility in mind, giving us the ability to support both forms of implementation without any additional R&D costs or delays in development. Total sales of property management systems, PMS products, and related additional modules during the first three quarters of fiscal 2022 have already surpassed sales levels during all of pre-pandemic fiscal 2020. With respect to signed sales agreements during Q3, October to December, we added 11 new customers, with four of them including a SaaS-based core PMS product in their list of products chosen, 62 new properties which did not have any of our products before, but the parent company was already our customer. There were 87 instances of selling at least one additional product to properties which already had one of our other products. Once again, more than 90% of the 11 new customers and 62 new properties added during the quarter were either partially or fully subscription fee license pays. While the number of new customers signed during the quarter was below expectations, the overall sales from new customers in annual contract value terms was again high, thanks to high average deal sizes. New customers buying multiple SaaS-based software products and modules have become the new norm for us. Overall, new customer sales measured in annual contract value terms during the first three quarters of this fiscal year is the highest levels we have seen in 5 years. The first three quarters of fiscal 2022 have also been our best ever in annual contract value of sales of additional products to current sites, what we normally refer to as new product sales. All of that has been driven by the R&D investments over the past few years and our continuing relentless product innovation drive. Some of the new customers who signed with us during the quarter include The Hideout Resort in Texas, who purchased modernized Visual One PMS, InfoGenesis POS, rGuest Book direct channel booking engine, Eatec inventory management, and rGuest Seat for managing reservations. The Breakers in New Jersey, who purchased Stay PMS and InfoGenesis POS for managing their boutique beach hotel and wedding venue. The Lake House, New York, on the shore of the Canandaigua Lake purchased InfoGenesis POS and the Pay module to manage their F&B needs. Now on to revenue. The revenue narrative falls into two distinct categories. One, recurring revenue, including subscription revenue, and two, one-time revenue consisting of hardware, one-time perpetual licensed software, and services. Subscription revenue continues to drive our overall recurring revenue to march forward at record levels. Given excellent customer retention levels and continuing good progress with adding new customers, new sites with current customers, and selling more new products to current customer sites, that should come as no surprise. The subscription revenue backlog continues to also build to record levels due to project delays. We expect the current momentum in the most crucial portion of our business, subscription recurring revenue, to accelerate further when the business environment improves across all the hospitality market verticals we currently operate in. Overall, recurring revenue was $25.1 million this quarter, getting us to the $100 million total ARR exit run rate level for the first time in our history. Of this, $11.7 million consisted of subscription revenue, a bit more than 46% of overall recurring revenue. Each quarter of fiscal 2022 has been a record for subscription revenue, with this quarter growing by 25% compared to Q3 of last fiscal year, and by 48% compared to Q3 of fiscal 2020, before the pandemic. Overall, total recurring revenue was 5% sequentially higher than Q2, 10% higher than Q3 last fiscal year, and 20% higher than Q3 of fiscal 2022 years ago. Fiscal 2022 third quarter overall revenue was $39.5 million, our highest level since the start of the pandemic nearly 2 years ago, but still below expectations and at the low end of revenue guidance. Q3 revenue was 4% sequentially higher than Q2, 8% higher than the comparable quarter last fiscal year, and 6% lower than Q3 from fiscal 2022 years ago, which was our last full quarter not affected by the pandemic, and at $42 million, was a record for quarterly revenue. The main challenges during this quarter were with one-time revenue. Apart from possible exceptionally large on-premise software customer purchases, which would happen from time to time in the future, we expect one-time software revenue to remain at current levels as more new customers and new properties select subscription fee-based options. Hardware revenue increased sequentially from Q2 as the supply chain situation improved, but was still below our expectations going into the quarter. Overall, hardware and software product revenue taken together of $8.1 million was 11% sequentially higher than Q2, 7% higher than Q3 last fiscal year, and 33% below Q3 of fiscal 2020. We expect hardware shipments and related revenue to return to normal levels during Q4. Services revenue continues to be challenged by project billings. Q3 services revenue was $6.2 million, 5% sequentially lower than Q2, about the same as last fiscal year, and 33% lower than Q3 of fiscal 2020 2 years ago. It's been a strange situation of good sales levels but low implementation levels for a few quarters now. Hospitality customers see the value in the integrated end-to-end modern technology-based software products and modules, want to get going, improving their operations and increasing guest experience levels, and are signing sales agreements at a reasonable pace without significant delays. However, when the project start, staff shortages and conflicting priorities have made it difficult to get software implementations completed in a timely manner. The recent extensive spread of Omicron and the resultant extent of customer and our staff falling sick for a week or two each had a significant negative effect on Q3 services revenue. The fact that many of the current projects involve multiple products tend to be complex implementations, and for the most part, involve new and recently extensively modernized software products have been additional challenging factors causing implementation timing delays. We are seeing improvements in these areas, have seen an increased urgency to get projects implemented during the past few weeks, and are cautiously optimistic that the coming months are going to be better. Adjusted EBITDA for the quarter was $6.6 million and about 17%, one seven, about 17% of revenue, slightly higher sequentially compared to Q2, 13%, one three, 13% less than Q3 of last fiscal year, and 104% better than Q3 in fiscal 2020. Q3 was our highest quarter we can recall with respect to cash collections, which is arguably the second best indicator of overall business health after subscription revenue growth. Cash balance increase of nearly $16 million in fiscal 2022 so far is our highest cash increase during the first three quarters of the fiscal year in more than 7 years, excluding the convertible investment cash gain during fiscal 2021. The acquisition of ResortSuite closed early January, as previously announced, for approximately $25 million. Consistent with our revenue structure, ResortSuite comes with a mix of one-time software product, services, and annual maintenance recurring revenue, which should all together add up to slightly more than $1 million per quarter for the next few quarters, of which about 70% should be annual maintenance recurring revenue. Only a handful of technology providers in the hospitality industry currently have the experience and the expertise to offer robust, comprehensive, end-to-end integrated property management PMS solutions, and we are happy two of them are together now. The acquisition-related execution steps have progressed well. The teams are coming together well. Customers have been positive with our combined increased ability to bring them the solutions and innovation pace they need to keep up with their guests and operational demands. The industry community in general has provided good positive feedback. This acquisition makes us significantly stronger in the multi-amenity resort vertical, where advancements like common guest profile and common itinerary management are fast becoming must-have features, and there are very few technology providers who can make that happen. This acquisition opens three major opportunities for us. One, use of the ResortSuite product set to fill in some of the gaps in our product portfolio. Two, incorporate and interface with many of the integrated resort application innovations ResortSuite has done well with over many years. Three, and the most crucial, the revenue synergy opportunity to offer ResortSuite's base of approximately 150 customers the option to move to cloud-native modernized applications during the coming months and years. This should give us an additional way to improve subscription revenue levels during the next couple of years. With that, let me hand over the call to Dave for detailed commentary on the financial results and additional color on our business progress. Over to you, Dave. Thank you, Ramesh. Taking a look at our financial results, beginning with the income statement. Third quarter fiscal 2022 revenue was $39.5 million, a 7.6% increase from total net revenue of $36.7 million in the comparable prior year period. The increase in top line revenue largely reflects a 6.6% increase in product revenue, and a 10% increase in recurring revenue. Product revenue improved sequentially over the previous quarter by 11%. The measures we put in place during the previous quarters to mitigate supply chain risk, such as increasing our inventory on hand, significantly reduced, but did not eliminate the impact of the issues still prevalent in our markets. Our inventory levels have increased by over 175% since the start of the fiscal year, but logistical challenges with delivering product to the end customer resulted in reduced top-line Q3 product revenue. Recurring revenue increased by 10% compared to the prior year period and remain at record levels. Total recurring revenue represented 63.7% of total net revenue for the third fiscal quarter, compared to 62.3% of total net revenue in the comparable prior year period. Recurring revenue of $25.1 million is $2.3 million higher than the prior year and up $1.1 million sequentially. We are also pleased with our subscription revenue growth, which grew year-over-year 24.9% during the third quarter of fiscal 2022 to a record $11.7 million and 5.5% sequentially over the second quarter. Subscription revenue comprised about 46% of total recurring revenue compared to 41% of total recurring revenue in the third quarter of fiscal 2021. The momentum in our add-on software modules that build out our product ecosystem beyond the core point-of-sale, property management, and inventory and procurement offerings continued through our third fiscal quarter, contributing to 6% of total sales this quarter. We continue to add over $1 million in ARR sales bookings for these new products in each of the last seven quarters. Add-on software modules made up 11.7% of subscription revenue in the third fiscal quarter of 2022, despite many of these sales remaining on the backlog due to outlet closures and labor shortages at our customer sites. Moving down the income statement. Gross profit was $24.7 million, compared to $24.2 million in the third quarter of fiscal 2021. Gross profit margin decreased to 62.6% compared to 66% in the prior year period. The change in gross profit was primarily due to a change in revenue mix as the extent of product revenue increased compared to the prior year third quarter. Moving to operating expenses. Operating expenses, excluding charges for legal settlement, severance, and other charges in the third quarter were relatively flat with a slight increase of 2% over Q2 fiscal 2022, mostly due to incremental investments in sales and marketing and certain one-time expenses in G&A. Compared to the prior year period, operating expense saw a 7% decrease to $22.7 million from $24.5 million. This year-over-year decrease in operating expense is due to stock-based compensation expense returning to normal levels from the previous grants. Product development, sales and marketing, and general and administrative expense were 56% of revenue compared to 63% of revenue in the third quarter of fiscal 2021. For the remainder of the fiscal year, we expect the sum of product development, sales and marketing, and general and administrative expense to remain close to this level as a percentage of revenue. Q3 fiscal 2022 net income of $1.1 million is a sequential increase from the previous Q2 net income of $0.5 million, with earnings per share also increasing to $0.04 compared to $0.02. Adjusted net income of $4.9 million is down from $5.5 million in the prior-year third quarter, and adjusted diluted earnings per share of $0.19 decreased from $0.23 in the prior-year third quarter when normalizing for certain non-cash and non-recurring charges. The reduction in adjusted net income and adjusted diluted earnings per share is partially due to some cost-saving measures that were in place during the prior year and a return of normal business operating expense during the current period. For the fiscal 2022 third quarter, adjusted EBITDA was $6.6 million, compared to $7.6 million in the year-ago quarter. Adjusted EBITDA remains a strength of the company and above 15% of revenue, even as we continue to invest in sales and marketing despite slower revenue conversions on the increased level of subscription sales bookings. Moving to the balance sheet and cash flow statement. Cash and marketable securities improved by $8.7 million in the third fiscal quarter of 2022 to an ending balance of $115.1 million. Cash collections continues to be a strength as cash has now increased by $15.9 million since the beginning of the fiscal year, which is also the best nine-month cash collection period in our history. Free cash flow in the quarter was $9.9 million compared to $7.8 million in the prior year quarter. Our sales momentum continued through the fiscal third quarter with our best nine-month stretch in subscription sales. Point of sale, property management, and add-on software modules continue to drive sales back to pre-COVID levels, while certain regions and business verticals remain significantly depressed by the current economic environment. The quality and extent of our backlog remain as strong as ever across all product lines. As the industry continues to recover and the residual challenges are addressed, we expect our increased investment in sales and marketing to result in sustained revenue growth and profitability levels. With that, I'd now like to turn the call back over to Ramesh. Thank you, Dave. In summary, despite the various pandemic-related challenges which remain across Asia, Europe, managed food services, cruise ships, and hotel chains, we expect Q4 to be our best revenue quarter yet, getting us to the lower end of the fiscal 2022 full year total revenue guidance range. We expect continued sequential improvement in subscription recurring revenue and overall recurring revenue, expect services revenue to improve from current levels, and expect a close to pre-pandemic normal hardware product revenue quarter. Adjusted EBITDA should remain at slightly higher than 15% of revenue, including the neutral effect of the ResortSuite acquisition. We came into this fiscal year expecting business levels to pick up significantly during the second half. That recovery has been delayed, but the overall recovery direction remains positive and promising. Our products are where they need to be now. Our win-loss ratio and average deal size remain excellent. We are now investing more in sales and marketing while holding the already high R&D levels steady. Now it is a matter of the hospitality business environment improving in all the affected areas, and this roller coaster ride we have all been on for more than a year to start smoothing out and the progress becoming predictable and consistent. Josh, please open up the call for questions. Thank you. As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Our first question comes from Matt VanVliet with BTIG. You may proceed with your question. Yeah. Good afternoon, everyone. Thanks for taking the question. I guess Ramesh first, on the overall sort of delayed project backlog, you know, continuing to make strong progress on new sales. As that gets more and more backed up, curious on your commentary around, you know, the first couple weeks of January, seeing a little bit of relief there. You know, any color on sort of how many projects or what mix of the backlog might finally be being put into motion? You know, is it still primarily your customers' limitations around staffing or, you know, opening of properties? Kind of as a secondary question, if hypothetically everyone said, "Okay, we're ready, let's start the projects today," how long would it take to really kind of flush out the backlog in an ideal situation? Thanks. Yeah. Hi, Matt. Thank you. Quick comment on the delayed project backlog. In the last few weeks, we've seen positive signs. That is since January started, and we got past the holiday season. The holiday season, Matt, also added a little bit to the staff shortages because many companies, and for all the right reasons, decided to give their staff a break, much-overdue break during the holidays, and that also added up to some of the delays. Starting at the beginning of January, we've seen real positive signs. For example, our services staff are pretty much booked now in implementation projects for the next six to eight weeks, and that's a very positive sign for us. We are seeing positive signs of all the pending projects picking up now, and we have noticed that in the last two, three weeks, and we are hoping that there is no new variant setback or anything like that. That's what we are hoping for. So far so good in January. The projects are really beginning to pick up. Now, as far as the mix of backlog is concerned, Matt, a lot of the backlog mix tends to be towards the PMS side of the equation. Because the POS projects are simpler and have gone through fairly well during the last few months, what has got held up is the relatively more complex PMS software modules, multiple product implementations, which require a bit more work to get it done. A lot of the backlog mix that is pending now, that is beginning to get picked up now, have to do with subscription fees, subscription revenue, and have to do with the PMS side of our product equation. The customer limitations that you mentioned in terms of staff shortages have been a problem, but we've seen that they are now getting better, right? They are now able to focus on the software projects as well now that December is behind us. To a certain extent, our products have been in the field for a while now. A lot of the new modules and the new software products that we were releasing towards the second half of calendar 2021 have all been in the field, 10-15 customers have already gone live. They are also becoming easier to implement and much better integrate. All of this together gives us comfort that services revenue should do much better in Q4 than it did in Q3, and also a lot of our backlog should start getting released. How long will that take? All the backlog getting released is probably a three to six month process. Great. That's helpful. You know, you announced a couple new PMS deals in the quarter. I guess on one of the larger ones there, you know, what are you replacing. I guess how are those conversations progressing now that you've got sort of the new version of the product fully ready and a lot of these add-on modules are particularly useful in that sale? I guess how competitive do you feel like that product is now versus what's available in the market more broadly? Our PMS products now, especially Stay PMS, which has been in the market in its current state for more than a year now. Visual One, which has been completely modernized, and the first three instances of the modernized Visual One being implemented are all slated for February and March. We have one customer going live mid-February, one more towards the end of February, and one more in March. They will be the first three customers going live on modernized Visual One. Between Stay PMS and modernized Visual One, we are very competitive in the marketplace now. It truly is a matter of getting more at bats and getting more chances to demo the product. Of course, LMS always has its market. In the gaming sector and among very big properties, where there are thousands of rooms properties, LMS is always there. We have modernized the UI of LMS very well. In the general hotel resort segment, where our market share is very low on the PMS side, and we really need to make progress, Stay and Visual One now, both of them modernized, both of them cloud native. Visual One can also be implemented on-premise. We are in good shape as far as competitive advantage is concerned. Now, Matt, what adds to that competitive advantage is the fact that we have end-to-end hospitality, starting from a direct channel booking engine, all the way through all the needs. The 17 additional software modules we have that are non-core gives us an enormous advantage. Because the products come with an open API architecture, so we can integrate it with third-party modules that some of which even our competitors provide. The fact that they already come integrated is giving us a tremendous advantage. Now, for good or for bad, many of our major competitors did not focus on that. They focused on core products coming with good API architecture so that it can be integrated with other modules. Now, we have not only done that, we've also come out with the additional modules that are well integrated. Customers come looking for one product and they end up buying seven products, and they love the fact it is well integrated. The quick answer to your question, the products by themselves are very competitive now, and the fact we also provide the additional modules gives us absolutely an extra leg up in PMS now. All right. Wonderful. Appreciate you answering all my questions. Thank you. Thank you, Matt. Thank you. Our next question comes from George Sutton with Craig-Hallum. You may proceed with your question. Thank you. Ramesh, I wanted to bring together two things that you said previously. You've talked about two horses of several that are actually working for you right now, and they are your two largest. But you've also said that the flywheel that you see is a couple of quarters away. I wanted to bring those thoughts together and maybe look out two, three quarters. How much different might the business start to look at that point? Do you see all of your horses, as you call them, coming together in that kind of a timeframe? And then can you give us a better explanation of what you mean by the flywheel effect? Yeah. Hi, George. Yeah, thank you. The two horses, gaming and resorts, you know, of probably six or seven horses we depend on, are working extremely well. When we look at gaming and resort sales levels, we are at record levels. We've never had a three-quarter stretch where we have done this well in gaming and resorts. Now, in terms of the other five horses, call it, right? Asia, EMEA, hotel chains, cruise ships, and managed food service providers. EMEA is beginning to work reasonably well. We are back to pre-pandemic levels. Asia is still struggling because a lot of border closures and international tourism is struggling there. Managed food service providers, of course, are struggling because there's still a lot of work from home going on in big and small corporations. Those five horses, we expect will start working well in the next two, three quarters because the world is getting better, right? Hopefully, this Omicron, you know, gets over fast and the herd immunity stage is reached quickly. Like U.K. has now done, more and more countries open up, and we just get going with our lives now. We hope that happens within the next three to, say, nine-month period. That is what will really get the other horses kicking for us as well, because the products are now there. Compared to the start of the pandemic to now, our products have made enormous advances. Now it is a matter of the market picking up as well. Now, the last question you asked about the flywheel, it is a matter of all these new products that we have, all the new PMS modernization we have, getting installed in the field, which is already happening. We are making good progress, creating more reference customers, and then spending more in sales and marketing, spreading our message around, getting more at bats. It's all a good virtuous cycle that we are seeing the beginning signs of, especially in gaming and resorts, that we think will really pick up speed in the next three to six months or so. Just as a follow-up relative to your at-bat theme, I'm curious, how many at-bats do you think you're not getting today that you ultimately could be getting as you make these additional investments? I think we could easily double the at-bats we are getting today. When we look at our pipeline, which is how we measure the at-bats, and we measure our sales pipeline by annual contract value like we always do, our current pipeline can be doubled with getting more exposure, which we have been a little bit, you know, slow about because we wanted these new products to settle in the field, but we are now getting a lot more aggressive with. We should be able to double our pipeline in the next nine months or so. That should be possible as far as just at-bats are concerned. It's a matter of winning those deals and really doing better than the competition. Super. Thank you very much. Thank you. Our next question comes from Allen Klee with Maxim Group. You may proceed with your question. Good afternoon. Questions on ResortSuite. Did I understand that most of their revenue is kind of software and maintenance type, and that when you mentioned $1 million in revenue per quarter, is that excluding any potential synergies you could get? Can the synergies go both ways in terms of you upselling your products to them, but also their products getting upsold to you guys? Thank you. Hey, Allen. Yeah, just to confirm, the ResortSuite is mostly on-prem. It's a little over $1 million a quarter in revenue, and about 70% of that is recurring on-prem maintenance. Look, there's absolutely significant synergies with us. I mean, just from their 150 customers, there's a subset of those customers that are looking for native cloud products, and that right there creates a you know, 1x-3x you know, ARR opportunity for us. And there's also all the other modern cloud products we've developed over the last 2 years that certainly create an upsell opportunity into the market. When we look at it's largely on-premise and there's certainly a subset that's looking to go subscription and looking for our modern cloud products. One thing I would add, Allen, is that please remember this acquisition was all about revenue synergies. That's what it was all about. The revenue synergies we get by selling a lot of our products, about 20 additional modules to their customers, especially on the POS side, where our POS product is a lot stronger, is much higher than the other way around. You're not gonna get much revenue synergies by selling their modules to our customers. There are not many of them. The synergies the other way around of selling our products to ResortSuite customers is going to be multiple times higher. Thank you very much. Thanks, Allen. Thank you. Our next question comes from Nehal Chokshi with Northland Capital. You may proceed with your question. Yep. Thank you. Staying on ResortSuite. Ramesh, you mentioned it fills some gaps in the PMS suite. What are those gaps? For example, for a lot of our key resort customers, they have a specific ski resort-based product that so far we have not built in our product suite. Now, other than ski, just coming to the normal resort customers, they've created excellent mobility-based options, like a resort app, for example. Like, you go to a resort, and you get an app, and that covers all your needs across booking engine, across spa, golf, and everything else. That kind of resort app, a lot of the mobility options they've created are very sleek and very creative, highly innovative. Those kinds of products have high demand with the customers. What we are doing now is making sure that we also have that kind of a resort application, resort app that connects to our products as well. That kind of modules that ResortSuite has created are excellent additions to our product suite as well. Also in the club membership area, where you have owner portals, right? Where you have certain resorts that consists of villas which are owned by different people. In those kinds of areas, ResortSuite has developed very good applications that we are still a few months away from getting done. We are learning a lot of lessons there as well. In terms of PMS innovation, there's a lot of sleek things that ResortSuite has done that we are now integrating with our product set as well. Got it. Okay. That's very helpful. In response to Allen's question, you implied that the synergy is really coming from the source of selling into the ResortSuite customer set, which could be potentially consistent with the start of a roll-up strategy. Is that actually how we should be interpreting this acquisition? Yeah, absolutely. Nehal, I mean, it'll be incorporated into the business. Just to clarify, the revenue synergies are not only on what we can sell into their product base, meaning new products, but it's also on converting on-prem products to our cloud platforms. Yes, it's absolutely a roll-up strategy. The teams are already integrating through our normal services and support and G&A team. I mean, to be clear, when I said is this the start of a roll-up strategy, meaning that there are other relatively small targets like ResortSuite that you would expect to be able to acquire at an attractive multiple and then get revenue synergies out of that by selling the more complete suite of the Agilysys products into those customers as well. I don't know that I would look at it as a start of a roll-up strategy. You know, certainly our M&A discipline hasn't changed at all. This one was just a good fit based on revenue multiple, the products, obviously the talent and the people and it was a profitable company. Our M&A strategy and roll-up strategy hasn't changed from what you're familiar with. This one was just the right fit at the right time. We will remain opportunistic, Nehal. This was a perfect fit. I mean, starting from their CEO, Frank Pitsikalis, all the way down. This is just a perfect culture fit. We really like each other. We like working with each other. They are in the perfect sweet spot, very creative solutions, excellent customer set, many big names in their customer set. This is just one of those absolutely perfect fits, and we sort of hit it off from day one, and this got done over a five or six month period. Overall, we'll remain very opportunistic and very disciplined, like Dave said, right? We are not gonna get too caught up in this M&A thing, but we'll remain disciplined. If good opportunities like this come up, we'll absolutely take a serious look at it. Okay, great. My last question is that, I believe that you guys have been hiring sales capacity at a reasonable clip. Where is your sales capacity today relative to a year ago and 2 years ago? In terms of quota-carrying sales personnel, we've probably increased by about 15%, one five, 15% during the last five months or so. Probably closer to 20% is where the increase has been compared to nine months ago or 1 year ago, and we are aiming to do a lot more. Compared to where we were 1 year ago, we should be 50%-75% higher in the next six months or so. We're continuing to hire and, you know, most of those hires have worked out well. One or two of those hires have not worked out well for us. We are continuing to hire in sales, and not only in sales, in marketing. Within the next six months to 12 months, we expect to double our marketing budget and our marketing resources and to carry that forward as well. Sales and marketing is going to be a much bigger team six to 12 months from now. We are doing the hiring every day, every week as we go. Okay. It does bring up a follow-up question for me then. I think what I've heard you say is that sales capacity is up about 20% from a year ago. When I look at the subscription revenue, it's up 25% year-over-year. The revenue was up 6% Q-over-Q. You did explicitly say that backlog was also up for the subscription ACV, which then would imply that subscription bookings is trending well above 25% year-over-year. In my book, that basically means that you are actually getting more sales per mature rep than you were a year ago, a lot more. Is that a correct assessment? Yeah, correct. That is correct, Nehal. In terms of, for example, I just tried to break down the math a bit. Our subscription fees sales in just three quarters this fiscal year, just from April through December, with January, February, March not even happened yet, is the best year we've ever had by quite a distance. Now, that is not fully reflected in the subscription revenue yet because of the project delays and the billing backlog, which is again at record levels. You're right. Our growth has been good, mostly driven by products. To answer your question another way, even if we don't do any expansion of sales, we expect to increase our software selling because the products are much better, and we have given a lot more ammunition to our current sales staff to sell a lot more. Yes, our sales staff are contributing a lot more, especially with respect to subscription software sales. You add more sales people, it further adds to that. Okay. All right. Great. Thank you, Ramesh. Thank you, Nehal. Thank you. We have another question from Allen Klee with Maxim Group. You may proceed with your question. Thanks. I know you've answered this, but your guidance implies to get to consensus, it's like over 10% sequential revenue growth in your fiscal fourth quarter. And that's even if you back out the $1 million contribution from ResortSuite. Could you just simplify? If you were to say what was behind that sequential increase, is there one or two things that you could sort of mostly point to that's gonna be that driver? Yeah, Allen. Most of the sequential increase, when you think about, call it $4 million-$5 million, it's about half of that is product revenue. The product revenue is a mix of obviously a strong backlog and the sales momentum we're seeing through the quarter. The other 50% is largely professional services and recurring. The professional services are largely, like Ramesh talked about, where we're seeing installations and customer and labor shortages loosen up a bit. Think of it as half product and half services and recurring. Thank you. Thank you. I'm not showing any further questions at this time. I would now like to turn the call back over to Ramesh for any further remarks. Thank you, Josh. Thank you all for your time this evening and your continued interest in Agilysys. We look forward to speaking with you regarding our fiscal 2022 Q4 and annual results in a few months from now, around the third week of May. Until then, please continue to stay well. Thank you. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.