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Technology NETSOL Technologies reports 19% revenue growth in fiscal Q4 2024 Published: 1st October 2024 Share NETSOL Technologies, Inc., a global business services and asset finance solutions provider, has reported a strong financial performance for the fourth quarter and full fiscal year 2024, ending June 30, 2024. The company surpassed its fiscal year revenue target and achieved profitability, marking significant milestones in its long-term growth strategy. Key financial highlights include: Total revenue for fiscal 2024 increased by 17% to $61.4 million, exceeding the company’s target range of $60 to $61 million. Fourth quarter revenues grew by 19% to $16.4 million, compared to $13.8 million in Q4 2023. Gross margins for the fourth quarter improved to 52%, up from 35% in the same period last year. Fiscal 2024 gross margins increased to 48% from 32% in fiscal 2023. Operating income reached $3.5 million for the full fiscal year, a significant turnaround from a loss of $(8.8) million in fiscal 2023. Earnings per share (EPS) for fiscal 2024 were $0.06, compared to a loss of $(0.46) per share in the previous year. Subscription and support revenues grew by 10% to $7.5 million in Q4 2024, with annual recurring revenues meeting the company’s target of $28 million. Najeeb Ghauri, Co-Founder, CEO, and Chairman of NETSOL Technologies, expressed his satisfaction with the company’s financial achievements: “We’re proud to have exceeded our full-year revenue estimates and achieve profitability for the full fiscal year. Our performance in fiscal 2024 underscores the successful execution of our long-term strategy, our commitment to investing in the growth of our business, and the ongoing development of innovative products and solutions that meet the diverse needs of our expanding customer base.” Fiscal fourth quarter 2024 results NETSOL reported net revenues of $16.4 million for Q4 2024, a 19% year-over-year increase. On a constant currency basis, net revenues were $16.5 million. Licence fees rose to $621,000, while subscription and support revenues grew by 10% to $7.5 million. The company’s gross profit for the fourth quarter was $8.5 million, representing 52% of net revenues, up from 35% in the same period last year. NETSOL also recorded operating income of $798,000 in Q4 2024, a significant improvement from a loss of $(2.9) million in Q4 2023. Full fiscal year 2024 results For the full fiscal year 2024, NETSOL’s revenues grew to $61.4 million, a 17% increase from the prior year’s $52.4 million. Licence fees more than doubled to $5.5 million, and services revenues also saw an increase, reaching $28 million. The company achieved a full-year operating income of $3.5 million, a marked improvement from the $(8.8) million loss recorded in fiscal 2023. Gross profit for the year increased to $29.3 million, representing 48% of net revenues. NETSOL’s non-GAAP EBITDA for fiscal 2024 stood at $4.2 million, compared to a loss of $(426,000) in the previous year, showcasing the company’s continued growth trajectory. Looking forward Commenting on the future outlook of the company, Ghauri noted: “We continued to invest in the growth of our business throughout the fiscal year. We increased our investments in sales and marketing in support of our long-term goals and are intently focused on the development of new products and services that expand our total addressable market. Moreover, we remain committed to the innovation and integration of cutting-edge AI solutions into our business processes and our products and offerings. “As a global company, our presence across key markets is a major focus. We performed well in our established markets during the fiscal year, signing a healthy mix of both new agreements and extensions with existing customers that include tier one automakers, banks, and financial services providers throughout Asia Pacific and Europe,” Mr. Ghauri added. “These longstanding partnerships are especially encouraging as they represent the stickiness of our customer base and validate the performance and reliability of our products. Our presence in the United States is still nascent but exhibiting strong signs of early growth, and we have a healthy and expanding pipeline of activity as we continue to establish NETSOL in this region.” Roger Almond, CFO of NETSOL, added: “We believe that we’re still only in the beginning stages of our renewed growth and anticipate double digit revenue improvement in fiscal 2025 driven by enhanced sales and market recognition of our products and services. As we look ahead, we remain committed to executing on our growth strategy while carefully managing costs to deliver sustainable, profitable growth for our shareholders.” Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories TechnologyNETSOL announces new strategic partner Hiltermann TechnologySofico launches Miles Retail Program with new modules Corporate Member TechnologyCGI signs EU’s Artificial Intelligence Act Pledge