NETSOL Technologies reports 23% revenue growth in Q2 2024

NETSOL Technologies, Inc. has reported results for the fiscal second quarter of 2024 ended December 31, 2023, with total net revenues increasing 23% to US$15.2 million, compared with US$12.4 million in the same period of 2023.

Gross profit for Q2 2024 was US$7.2 million (47% of net revenues), compared to US$3.1 million in Q2 2023, and operating expenses were US$6.1 million (40% of sales) compared to US$6.2 million for the corresponding period in fiscal 2023.

Licence fees were US$3.0 million in Q2 2024, while total subscription (SaaS and Cloud) and support revenues were US$6.8 million. Meanwhile, total services revenues were US$5.4 million, compared with US$5.9 million in the previous year.

Total net revenues for the six months ended December 31, 2023 were US$29.5 million, while gross profit was US$13.3 million (45% of net revenues).

NETSOL Co-Founder, Chairman and Chief Executive Officer Najeeb Ghauri (pictured) stated, “Similar to our first quarter, the second quarter of fiscal 2024 was characterised by increases in total net revenue, improved gross margins, and profitability.

“While we continue to scale our SaaS business, our hybrid licence and SaaS model has become a major catalyst for our growth. We recognised substantial licence fees in this quarter as part of a large new contract in Asia with a major automotive company, which reinforces our visibility and reputation in the market, as well as the performance and reliability of our products.

“We expect licence fees will continue to represent a key part of our revenue for the foreseeable future, and we have a robust pipeline of both SaaS and licensing opportunities to support this anticipated growth. We recognised increases in our subscription and support revenues this quarter as well, further reflecting the strength of our SaaS offerings.

“With the launch of our Otoz 2.0 digital retail platform, which has doubled enrolment over the last 12 months, and increased traction with key automotive clients like AutoNation and MINI USA, we’re confident that this part of our business is positioned for continued growth.

“We are very pleased with our second quarter results and continue to strategically invest and allocate capital to further expand our presence across key, high growth markets like North America. Given our recent results and trajectory, we expect to see strong double digit organic revenue growth and improved margins throughout the second half of fiscal 2024 as we move into a period of more sustainable profitability.”