American Software Inc (NASDAQ: AMSWA) rallied in Friday’s session to close the day with gains of 20.75%. This followed the company’s release of strong Q3 results that beat analyst expectations.

For the quarter, the company reported that subscription fees increased by 57% to hit $5.8 million. In a similar quarter in the previous financial year, the company had generated $3.7 million in fees. The company also reported that software license revenues increased by 115% to hit $3.7 million compared to a similar quarter in the previous financial year. 

The company also reported that cloud service annual contract value rose by 58% from $16.1 million in the previous financial year to $25.5 million.  The company’s total revenues also increased in the quarter by 13% to hit $30.6 million. It’s recurrent revenue streams also increased in the quarter by 54% of the company’s overall revenues. This also represented an increase of 56% compared to a similar quarter in the previous financial year.

The company also reported that maintenance revenues in Q3 dropped by 5% from $11.4 million in the same quarter in the previous financial year to $10.8 million. Nonetheless, quarterly operating earnings edged higher by 32% to $2.3 million. GAAP net earnings also increased to $3.3 million compared to a similar quarter in the previous financial year.

The company’s president Allan Dow commented on the results stating that it was an impressive quarter. He stated that the company showed improvement in the cloud services business and in subscription numbers. He further stated that the company had grown its customer base by looping in customers from 11 different countries.

From its price action, AMSWA was in a breakout on Friday. It gapped up and opened the day at $17.79. It then traded between a low of $17.01 and a high of $19.82, before closing the day at $19.20. Volumes in the day stood at 632.29k.

About American Software Inc

American Software Inc makes and markets software products globally. It is based in Atlanta, Georgia.