NETSOL Technologies reports 14% revenue growth in Q3 FY 2024

Ghauri najeeb netsol
Najeeb GhauriCo-Founder and Chief Executive Officer, NETSOL Technologies

NETSOL Technologies, Inc. reported an increase of 14% in total net revenues for the third quarter of fiscal year 2024 to US$15.5 million, compared with US$13.5 million in the same period of FY 2023.

Results for the third quarter of fiscal year 2024 ended March 31, 2024 highlighted decreasing licence fees of US$558,000 compared with US$2.0 million in the previous year, total subscription (SaaS and Cloud) and support revenues rising to US$7.1 million compared with $6.7 million in Q3 2023, and total services revenues increasing to US$7.8 million, compared with $4.9 million in the corresponding quarter of 2023.

Gross profit for the third quarter of fiscal 2024 was US$7.5 million or 48% of net revenues, compared to $4.7 million or 35% of net revenues in the third quarter of fiscal 2023, while operating expenses for the third quarter of fiscal 2024 were $6.2 million or 40% of sales compared to $5.6 million or 42% of sales for the third quarter of fiscal 2023.

Najeeb Ghauri, Co-Founder and Chief Executive Officer of NETSOL Technologies, commented, “The third quarter of 2024 was another very strong quarter for our business highlighted by revenue growth and our third straight quarter of profitability. We demonstrated NETSOL’s ability to deliver profitable results without the recognition of significant license fees, showcasing the enhanced strength and reliability of our model as we continue to win new customers on a global scale.”

For the nine months ended March 31, 2024, NETSOL Technologies noted total net revenues of US$44.9 million, gross profit of US$20.8 million or 46% of net revenues, and operating expenses of US$18.1 million or 40% of sales.

“We’re very pleased with our performance in both the third quarter and the fiscal year to date and are beginning to realise the strength of our business model as we drive revenue growth and consistent profitability.

“Looking ahead, we’re encouraged by our pipeline of licence and SaaS deals in our established markets, and we’re committed to allocating capital to our many growth opportunities, specifically the United States.

“Given our results, we remain confident in our expectation of double-digit organic revenue growth and improved margins and are on pace to reach our target revenue range of between $60 million and $61 million for the full year of 2024,” Ghauri concluded.