Financial Performance - For the three months ended June 30, 2024, total revenue was $16,667,000, representing a 2% increase from $16,330,000 in the same period of 2023[190]. - Cost of revenue increased by 7% to $12,657,000 from $11,883,000, resulting in a gross profit of $4,010,000, down 10% from $4,447,000[191]. - Operating expenses surged by 457% to $20,430,000 compared to $3,670,000 in the prior year, leading to an operating loss of $16,420,000[191]. - Net loss attributable to shareholders was $14,821,000 for the three months ended June 30, 2024, a significant decline from a net income of $421,000 in the same period last year[191]. - The effective tax expense for the period was $1,091,000, compared to a tax benefit of $218,000 in the previous year, indicating a shift in tax liabilities[191]. - For the three months ended June 30, 2024, the company's consolidated revenue increased by $0.3 million or 2%, reaching $16.7 million compared to $16.3 million for the same period in 2023[194]. - The cost of revenue for the same period increased by $0.8 million or 7%, totaling $12.7 million, primarily due to a $1.6 million rise in employee compensation and benefits[195]. - Gross profit decreased by $0.4 million or 10%, resulting in a gross profit margin decline of 300 basis points, attributed to reduced business from project-based consulting[196][197]. - Selling, general and administrative expenses surged by $16.8 million or 457%, amounting to $20.4 million, driven by a $11.4 million increase in stock-based compensation[198]. - The company reported a net loss of $15.3 million for the three months ended June 30, 2024, raising concerns about its ability to continue as a going concern[205]. Cash Flow and Financing - Cash and cash equivalents stood at $4.2 million as of June 30, 2024, with positive cash flows totaling $2.1 million for the same period[208]. - Net cash provided by financing activities was $4.4 million, primarily from proceeds of a PIPE transaction[212]. - The company acquired approximately $8.7 million in cash following the Business Combination, but may face challenges in meeting future cash obligations[206]. - The company experienced a decrease of $1.8 million in net cash used in operating activities, primarily due to a decline in net income[211]. Operational Insights - Aeries had over 30 clients across various industries, including e-commerce, telecom, security, healthcare, and engineering, as of June 30, 2024[179]. - Aeries' operational performance is influenced by macroeconomic conditions, including inflation and geopolitical uncertainties, which have impacted business operations[181]. - The company focuses on digital transformation and leveraging AI to enhance operational efficiencies and drive innovation for clients[176]. - Aeries aims to maintain strong customer relationships to mitigate risks associated with potential contract terminations, which could significantly impact revenue[183]. Accounting and Estimates - The preparation of condensed consolidated financial statements requires estimates and assumptions that affect reported amounts of assets, liabilities, revenue, and expenses[217]. - Current assumptions, judgments, and estimates used in financial statements are deemed appropriate, but actual results may differ under different conditions[217]. - There have been no material changes to the Company's critical accounting estimates since the 2024 Form 10-K[217]. Credit Facilities - The company amended its revolving credit facility in May 2023, increasing the total borrowing capacity to $3.8 million[186]. Adjusted Metrics - Adjusted EBITDA for the three months ended June 30, 2024, was $0.4 million, with an Adjusted EBITDA margin of 2.4%[203].

Core Insights - Aeries Technology reported financial results for the fiscal year ended March 31, 2024, showing significant growth in revenues and net income, driven by expansion in client engagements and new relationships [1][2]. Financial Performance - Revenues for fiscal year 2024 were $72.5 million, representing a 37% increase from $53.1 million in fiscal year 2023 [2]. - Income from operations increased by 28% to $3.0 million compared to $2.3 million in the previous year [2]. - Net income surged to $17.3 million from $1.7 million in fiscal year 2023, which included $16.2 million in non-cash income related to Forward Purchase Agreements [2][7]. - Adjusted EBITDA for fiscal year 2024 was $9.2 million, slightly up from $8.7 million in fiscal year 2023 [2][5]. Operational Highlights - The gross profit margin improved to 30% in fiscal year 2024 from 26% in fiscal year 2023, indicating enhanced operational efficiency [7]. - Total operating expenses rose by 65% to $18.7 million, primarily due to increased selling, general, and administrative expenses [7]. Cash Flow and Balance Sheet - Cash at the end of the period increased to $2.1 million from $1.1 million, reflecting an 84% rise [9]. - The company reported net cash used in operating activities of $(4.3) million, a decline from $2.1 million in the previous year [9]. - Total assets grew to $49.4 million from $34.4 million, driven by increases in current assets and property [10][11]. Company Overview - Aeries Technology specializes in providing professional services and consulting for businesses in transformation, focusing on private equity sponsors and mid-size businesses [3]. - The company has over 1,700 professionals and emphasizes a technology-driven, solution-specific approach to enhance client operations [3].

Revenue Performance - Total revenue for the year ended March 31, 2024, was $72.51 million, a 36.6% increase from $53.10 million in 2023[300] - Revenue from North America increased to $56.96 million in 2024 from $48.20 million in 2023, representing a growth of 18.3%[300] - Revenue from Asia Pacific and Other regions surged to $15.55 million in 2024, up from $4.90 million in 2023, marking a significant increase of 217.4%[300] - Net revenues for the year ended March 31, 2024, were $72.5 million, a $19.4 million or 37% increase compared to $53.1 million for the year ended March 31, 2023[303] Profitability - Cost of revenue for the year ended March 31, 2024, was $50.9 million, a $11.4 million or 29% increase compared to $39.4 million for the year ended March 31, 2023[304] - Gross profit for the year ended March 31, 2024, was $21.6 million, a $8.0 million or 58% increase compared to $13.7 million for the year ended March 31, 2023[306] - Net income for the year ended March 31, 2024, was $17.3 million, a $15.6 million or 911% increase compared to $1.7 million for the year ended March 31, 2023[322] - Adjusted EBITDA for the year ended March 31, 2024, was $9.2 million, compared to $8.7 million for the year ended March 31, 2023[316] Expenses - Selling, general and administrative expenses for the year ended March 31, 2024, were $18.7 million, a $7.3 million or 65% increase compared to $11.3 million for the year ended March 31, 2023[308] Cash Flow and Financing - Cash at the end of the period for the year ended March 31, 2024, was $2.1 million, an increase of $953,000 or 84% compared to $1.1 million at the end of the previous year[322] - Net cash provided by financing activities for the year ended March 31, 2024, was $7.1 million, a $6.8 million or 2,700% increase compared to $252,000 for the year ended March 31, 2023[322] - Net cash used in investing activities for the year ended March 31, 2024, was $1.7 million, with $1.5 million for property and equipment purchases and $2.3 million for loans to affiliates, offset by $2.1 million from loan repayments[326] - Net cash provided by financing activities for the year ended March 31, 2024, was $7.1 million, primarily from a Business Combination generating $8.7 million and net proceeds from short-term debt of $2.6 million[328] Debt and Liabilities - Aeries amended its revolving credit facility, increasing the total borrowing capacity to $3.8 million as of March 31, 2024[295] - The company has an outstanding unsecured loan of $0.8 million at an interest rate of 10% per annum, with the principal amount outstanding as of March 31, 2024[296] - The company had a deficit of $1.9 million in shareholders' equity as of March 31, 2024, raising concerns about its ability to continue as a going concern[317] Client and Market Position - Aeries had more than 30 clients across various industries, including e-commerce, telecom, security, healthcare, and engineering as of March 31, 2024[280] - The company focuses on maintaining long-term customer relationships, as a significant portion of revenue is derived from long-term contracts[291] Strategic Initiatives - Aeries aims to leverage AI and digital transformation technologies to enhance operational efficiencies and drive innovation for clients[277] - The allowance for credit losses was $1.2 million as of March 31, 2024, compared to $0 as of March 31, 2023, reflecting a transition adjustment and subsequent additions[352] Other Financial Information - Total other income, net for the year ended March 31, 2024, was $16.1 million, a $15.7 million or 3,610% increase compared to $0.4 million for the year ended March 31, 2023[309] - The fair value of the FPA put option liability increased from $25.0 million at the Closing Date to $42.3 million as of March 31, 2024, with a change in fair value of $17.3 million recorded for the year[340] - The Company issued 361,338 Class A ordinary shares to settle vendor balances amounting to $0.9 million in December 2023, with potential additional shares to be issued based on share price performance[342] - The total prepayment amount related to Forward Purchase Agreements was $42.8 million, which includes a net cash outflow of $3.1 million[340] - The Company recorded an unbilled receivable for revenue recognized on contracts exceeding billings, included in accounts receivable, net[351] - The Company capitalizes certain costs related to internal use software, with costs incurred in preliminary stages expensed as incurred[356] - The Company has no material off-balance sheet arrangements as of March 31, 2024[330] - The redeemable noncontrolling interest is recorded as mezzanine equity and is subject to certain exchange conditions and cash redemption features outside the Company's control[350]

Company Overview - Aeries Technology, Inc. (NASDAQ:AERT) is a global professional services and consulting partner, focusing on businesses in transformation mode and their stakeholders, including private equity sponsors and portfolio companies [4] - Founded in 2012, Aeries Technology employs over 1,600 professionals specializing in Technology Services and Solutions, Business Process Management, and Digital Transformation initiatives [4] - The company has received the Great Place to Work Certification, highlighting its effective approach to staffing and workforce development [4] Conference Participation - Aeries is confirmed to present at the 2024 Annual Gateway Conference, scheduled for September 4-5 at the Four Seasons Hotel in San Francisco, CA [1] - The management team will present on September 5 at 8:30 a.m. Pacific Time, with executives available for one-on-one meetings throughout the conference [1] Gateway Conference Insights - The Gateway Conference celebrates 25 years of connecting growth-stage companies with prospective investors, analysts, and partners [2] - The event provides an exclusive platform for over 100 public and private companies to present their stories across various sectors, including technology, cleantech, consumer, industrials, financial services, and healthcare [2]

Group 1 - Aeries Technology, Inc. received a deficiency notification from Nasdaq for failing to timely file its Annual Report on Form 10-K for the fiscal year ended March 31, 2024 [1][2] - The company has 60 calendar days to submit a compliance plan to Nasdaq, with a potential extension of up to 180 days to regain compliance [2] - Aeries Technology is actively working to complete and file the Fiscal 2024 Form 10-K and intends to take necessary steps to comply with Nasdaq's listing rules [2] Group 2 - Aeries Technology is a global professional services and consulting partner, specializing in technology services, business process management, and digital transformation [3] - Founded in 2012, the company has over 1,700 professionals and focuses on providing tailored solutions to drive business success [3] - Aeries Technology has received the Great Place to Work Certification for its approach to staffing and workforce development [3]

Core Insights - Aeries Technology has announced a strategic partnership with Victory Live to establish a Global Capability Center (GCC) in Hyderabad, India, aimed at enhancing technology and operational efficiencies in the ticketing industry [1][2][3] Company Overview - Aeries Technology, founded in 2012, specializes in professional services and consulting for businesses undergoing transformation, with over 1,600 professionals focused on Technology Services, Business Process Management, and Digital Transformation [4] Strategic Partnership - The partnership with Victory Live is designed to leverage global technology talent and optimize operational efficiencies, setting new standards in the ticketing industry through collaboration and innovation [2] - The GCC in Hyderabad will focus on building a team of engineers specializing in Data Analytics and Integrations, reinforcing Aeries' commitment to innovation [1][3] Operational Goals - The GCC aims to consolidate Victory Live's global talent, enhance collaboration, and achieve significant cost savings, thereby creating a streamlined approach to innovation and development [2] - This initiative is seen as a pivotal move for both companies to revolutionize the ticketing industry and set industry benchmarks [3]

Group 1 - Aeries Technology, Inc. has entered into a Subscription Agreement totaling $5 million at a purchase price of $2.21 per share in a private placement [1] - The CEO of Aeries, Sudhir Panikassery, emphasized that this investment is a significant step for the company's growth strategy and expressed gratitude for the support from the new PIPE investor [1] - Norton Rose Fulbright represented Aeries Technology in this transaction [1] Group 2 - Aeries Technology is a global professional services and consulting partner, focusing on businesses in transformation mode, including private equity sponsors and their portfolio companies [2] - The company was founded in 2012 and currently employs over 1,600 professionals specializing in Technology Services and Solutions, Business Process Management, and Digital Transformation initiatives [2] - Aeries Technology has received the Great Place to Work Certification for its approach to staffing and workforce development [2]

Financial Data and Key Metrics Changes - For Q3 2024, the company's revenue was $18.9 million, representing a 49% year-over-year growth, driven by new client acquisitions [5][13] - Year-to-date revenue for the first three quarters was $52.8 million, reflecting a 39% increase compared to the same period last year [6][13] - Adjusted EBITDA for Q3 2024 was $2.4 million, showing a decrease of less than 1% year-over-year, which was in line with expectations [16] - The company reported a GAAP net loss of $16.4 million for Q3 2024, compared to a net loss of $270,000 in the same period of 2023 [16] Business Line Data and Key Metrics Changes - The gross profit for Q3 was $6 million, a 161% increase year-over-year, resulting in a gross margin of approximately 32%, up from 18% in the same period last year [14] - The revenue mix has shifted towards higher-margin services such as digital transformation, AI, and analytics, positively impacting gross margins [14] Market Data and Key Metrics Changes - North America accounted for approximately 77% of the company's revenue in the quarter and fiscal year-to-date [7] - The company opened a new center of excellence in Mexico to better serve North American customers, indicating a strategic focus on near-shoring [7][8] Company Strategy and Development Direction - The company is executing a growth strategy focused on acquiring new clients and expanding services in digital transformation and AI [5][11] - A dual-shoring strategy is being implemented, combining near-shoring in Mexico with existing operations in India to enhance service delivery and reduce costs [8] - The company is also evaluating acquisition targets to drive inorganic growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum in new client acquisition and the expected revenue growth of 40% to 54% in calendar year 2024 compared to 2023 [11][16] - The management highlighted a positive trend in client retention and the availability of talent, indicating an easier labor market compared to previous years [31] Other Important Information - SG&A expenses for Q3 were $5.3 million, a 162% increase year-over-year, primarily due to legal and professional services related to the company's transition to a public entity [15][16] - The company expects total revenue for calendar year 2024 to be between $95 million and $105 million, with adjusted EBITDA projected between $16 million and $20 million [16] Q&A Session Summary Question: How many clients were added in calendar 2023 and what is the revenue mix? - The company added about 10 new clients in 2023, marking its best year for new client acquisitions, with expectations for continued acceleration in 2024 [22] Question: What is the anticipated shift in revenue towards digital and consulting services? - Management noted a clear shift towards digital transformation offerings, which is reflected in higher gross margins [24] Question: How does the company view AI as an opportunity or threat? - AI is seen as a productivity and business enhancement tool, with opportunities expanding in high-value areas like technology and analytics [26] Question: What is the current labor market situation and talent retention? - Retention has improved to about 4%, and the market for talent is becoming easier compared to two years ago [31] Question: What are the plans for sales investment? - The company is investing in its sales team to accelerate growth, particularly in private equity relationships and mid-sized U.S. companies [34][36]

Financial Performance - Revenues for the third fiscal quarter of 2024 were $18.9 million, up 49% compared to $12.7 million for the same period in 2023[2] - Income from operations for the third fiscal quarter of 2024 was $0.7 million, up 150% from $0.3 million in the third fiscal quarter of 2023[3] - Net loss for the third fiscal quarter of 2024 was $(16.3) million, compared to $(0.3) million for the same period in 2023, including a $16.4 million non-cash charge related to Forward Purchase Agreements[3] - Adjusted EBITDA for the third fiscal quarter of 2024 was $2.4 million, consistent with $2.4 million for the same period in 2023[4] - Gross profit for the third fiscal quarter of 2024 was $6.0 million, with a gross margin of 32%, compared to a gross margin of 18% in the same quarter of 2023[15] - Operating margin for the third fiscal quarter of 2024 was 4%, up from 2% in the same quarter of 2023[15] Future Guidance - The company is guiding for 2024 revenues between $95 million and $105 million, and adjusted EBITDA between $16 million and $20 million[5] Cash Position - Cash at the end of the period was $6.5 million, up from $1.6 million at the end of the same period in 2022[19] - The company reported a net cash provided by financing activities of $6.5 million for the nine months ended December 31, 2023[19] Workforce - Aeries Technology has over 1,600 professionals specializing in various services aimed at driving business success[8]

Company Overview - Aeries Technology (Nasdaq: AERT) is a global professional services and consulting partner focused on businesses in transformation mode, providing customized engagement models to optimize and transform business operations [2] - Founded in 2012, the company has over 1,600 professionals specializing in Technology Services and Solutions, Business Process Management, and Digital Transformation initiatives [2] - Aeries Technology has received the Great Place to Work Certification due to its unique approach to staffing and workforce development [2] Upcoming Financial Results - Aeries Technology will host a conference call to discuss their financial results on February 22, 2024, at 8:00 AM ET [1] - The call will be accessible via telephone and live webcast on the company's investor relations website [1] - A replay of the conference call will be available until February 29, 2024, with specific access codes provided [1]