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]

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 its 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 for both domestic and international callers [1]

Group 1 - Aeries Technology has inaugurated a new Center of Excellence (CoE) in Bangalore, India, for its client Confluence, aimed at enhancing digital transformation and innovation in the investment management industry [1][2] - The CoE will leverage global talent to support Confluence's strategic growth, focusing on operational effectiveness, flexibility, and cost efficiencies through Aeries' Purpose-Built model [2] - Confluence is recognized as a global leader in data-driven investment management solutions, providing services that optimize efficiency and ensure regulatory compliance for various stakeholders in the asset management ecosystem [1][2] Group 2 - The establishment of the CoE is part of Confluence's global expansion strategy, enhancing its capabilities in digital transformation and process optimization [2] - Aeries Technology, founded in 2012, has over 1,600 professionals specializing in Technology Services, Business Process Management, and Digital Transformation, aimed at driving business success [3][4] - The partnership between Aeries and Confluence is expected to enrich client services and operational efficiency, providing access to skilled talent in the investment management sector [2]

Financial Performance - For the three months ended September 30, 2023, the company reported a net loss of $1,521,855, with general and administrative expenses of $1,597,474[120]. - For the nine months ended September 30, 2023, the company had a net loss of $1,020,930, consisting of general and administrative expenses of $5,344,586, offset by an unrealized gain on marketable securities of $4,711,256[122]. - As of September 30, 2023, the company had a working capital deficit of $9,337,388, raising substantial doubt about its ability to continue as a going concern[133]. Initial Public Offering - The company generated gross proceeds of $200,000,000 from its Initial Public Offering of 20,000,000 shares at a price of $10.00 per Unit[125]. - The company incurred $21,834,402 in transaction costs related to the Initial Public Offering, including $4,600,000 in underwriting fees[126]. - Following the Initial Public Offering, the net proceeds have been invested in U.S. government obligations with a maturity of 185 days or less, minimizing interest rate risk[145]. Business Combination - As of September 30, 2023, the company had cash and marketable securities held in the Trust Account totaling $49,992,699, which will be used for a Business Combination[129]. - The company has until April 22, 2024, to consummate a Business Combination, or it will face mandatory liquidation[134]. - The company may need to obtain additional financing to complete its Business Combination or to redeem a significant number of public shares[131]. Operational Status - The company has not engaged in any operations or generated revenues to date, relying on interest income from cash and cash equivalents[119]. - The company expects to incur increased expenses as a result of being a public company, particularly for legal and financial reporting compliance[118]. Regulatory and Compliance - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[142]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for five years post-IPO[143]. - As of September 30, 2023, the company had no off-balance sheet arrangements or contractual obligations[141].

Financial Performance - For the three months ended June 30, 2023, the company reported a net income of $2,033,037, with general and administrative expenses of $1,475,740, and gains from the change in fair value of derivative warrant liabilities of $1,797,240 [118]. - For the six months ended June 30, 2023, the company had a net income of $500,925, consisting of general and administrative expenses of $3,747,112, and an unrealized gain on marketable securities held in the Trust Account of $4,080,757 [120]. Initial Public Offering (IPO) - The company raised gross proceeds of $200,000,000 from its Initial Public Offering (IPO) by issuing 20,000,000 shares at a price of $10.00 per unit [123]. - The company incurred $21,834,402 in transaction costs related to the IPO, including $4,600,000 in underwriting fees [124]. Cash and Working Capital - As of June 30, 2023, the company had cash and marketable securities held in the Trust Account amounting to $49,362,200 [127]. - The company has a working capital deficit of $7,739,914 as of June 30, 2023 [130]. Business Combination - The company has until October 22, 2023, to consummate a Business Combination, or it will face mandatory liquidation [131]. - The company intends to use substantially all funds held in the Trust Account to complete its Business Combination and for working capital of the target business [127]. - The company may need to obtain additional financing to complete its Business Combination or to redeem a significant number of public shares [129]. - The company has not generated any operating revenues to date and does not expect to do so until after the completion of its initial Business Combination [116]. Regulatory and Reporting - As of June 30, 2023, the company had no off-balance sheet arrangements or contractual obligations [139]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [141]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for five years post-IPO [142]. - Following the IPO, net proceeds have been invested in U.S. government obligations with a maturity of 185 days or less, minimizing interest rate risk exposure [143].

Financial Performance - For the three months ended March 31, 2023, the company reported a net loss of $1,532,112, which included general and administrative expenses of $2,271,372 and a loss from the change in fair value of derivative warrant liabilities of $1,629,960 [120]. - For the three months ended March 31, 2022, the company reported net income of $3,799,755, which included a gain from the change in fair value of derivative warrant liabilities of $4,082,040 [121]. - Cash provided in operating activities for the three months ended March 31, 2023, was $147,062, with net loss offset by interest earned on investments held in the Trust Account [125]. IPO and Financing - The company generated gross proceeds of $200,000,000 from its Initial Public Offering (IPO) by issuing 20,000,000 shares at a price of $10.00 per Unit [123]. - The company incurred $21,834,402 in transaction costs related to the IPO, including $4,600,000 in underwriting fees and $8,050,000 in deferred underwriting fees [124]. - The company may need to obtain additional financing to complete its Business Combination or to redeem a significant number of public shares, which could involve issuing additional securities or incurring debt [129]. Business Combination and Liquidity - As of March 31, 2023, the company had cash and marketable securities held in the Trust Account amounting to $237,085,266, which will be used to complete a Business Combination [127]. - As of March 31, 2023, the company had a working capital deficit of $6,264,174, raising substantial doubt about its ability to continue as a going concern [130]. - The company has until October 22, 2023, to consummate a Business Combination, after which mandatory liquidation may occur if not completed [131]. Regulatory and Reporting - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [140]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for five years post-IPO [141]. - As of March 31, 2023, the company had no off-balance sheet arrangements or contractual obligations [139]. Risk and Investment - As of March 31, 2023, the company was not subject to any market or interest rate risk [142]. - The net proceeds from the Initial Public Offering have been invested in U.S. government obligations with a maturity of 185 days or less [142]. - The company intends to use funds held outside the Trust Account primarily for identifying and evaluating target businesses and performing due diligence [126].

Financial Position and Capital Requirements - The company has approximately $1,200,000 available outside the trust account for working capital requirements[186]. - The company may need to seek additional financing if the net proceeds from the IPO and private placement warrants are insufficient for the initial business combination[187]. - The company plans to invest trust account proceeds only in U.S. government securities or money market funds to avoid being deemed an investment company[198]. - The net proceeds from the IPO and private placement warrants amount to $233,500,000, which includes $8,050,000 of deferred underwriting commissions held in the trust account[318]. - The company may only complete one business combination with the proceeds, leading to dependency on a single business with limited products or services[318]. Risks Related to Business Combination - The independent registered public accounting firm's report expresses substantial doubt about the company's ability to continue as a "going concern" due to expected negative cash flows[190]. - The company may face increased costs and decreased availability of directors and officers liability insurance, impacting the ability to negotiate an initial business combination[192]. - The company may be compelled to abandon a business combination if additional financing is not available on acceptable terms[187]. - The company may pursue acquisition opportunities with early-stage or financially unstable businesses, which carry inherent risks[202]. - The company’s ability to complete its initial business combination may be adversely affected by various external factors, including changes in regulatory requirements and economic conditions[214]. Shareholder Redemption and Trust Account - If the initial business combination is not completed within the required time period, public shareholders may receive only approximately $10.10 per share upon liquidation[194]. - If the company does not complete the initial business combination, public shareholders may only receive their pro rata portion of the funds in the trust account, potentially less than $10.10 per share[200]. - The company’s trust account may be subject to claims from third parties, potentially reducing the per-share redemption amount below $10.10[217]. - If the company does not complete its initial business combination within the specified timeframe, public shareholders may have to wait longer for redemption from the trust account[223]. - The company’s sponsor has agreed to indemnify for claims that reduce trust account funds below $10.10 per public share, but there is no guarantee that the sponsor has sufficient funds to cover these obligations[220]. Regulatory and Compliance Challenges - Compliance with the Sarbanes-Oxley Act may increase the time and costs necessary to complete acquisitions, particularly for target businesses that may not meet internal control requirements[206]. - The company may face additional burdens and risks when pursuing initial business combinations with companies outside the United States, including due diligence challenges and regulatory approvals[207]. - Changes in laws and regulations may adversely affect the company's ability to negotiate and complete its initial business combination[328]. - The company may face challenges related to compliance with U.S. securities laws if new management is unfamiliar with these regulations[329]. Management and Operational Risks - The company does not intend to have any full-time employees prior to completing its initial business combination, which may lead to conflicts of interest among directors and officers[291]. - There may be potential conflicts of interest as directors and officers are affiliated with other entities engaged in similar business activities[292]. - The company may pursue business combinations with affiliated entities, which could raise additional conflicts of interest[298]. - The departure of key personnel could negatively impact operations and profitability post-business combination[312]. - The company may have limited ability to assess the management of a prospective target business, which could lead to incorrect assessments and negatively impact operations[324]. Market and Economic Factors - The company may face increased costs and risks when attempting to complete multiple business combinations simultaneously, which could negatively impact operations and profitability[322]. - The potential for negative interest rates could reduce interest income from the trust account, impacting the overall value of assets held[227]. - The trading price of the company's securities may be more volatile due to reliance on exemptions from disclosure requirements[278]. - The company may face regulatory investigations that could incur substantial costs or require changes in business practices[314]. Shareholder Control and Governance - The initial shareholders and anchor investors will control the appointment of the board of directors until the initial business combination is completed, holding 20% of the issued shares[242]. - The company may amend certain agreements related to the IPO without shareholder approval, which could adversely affect the value of investments[241]. - Amendments to the company's memorandum and articles of association require approval from at least two-thirds of ordinary shares attending and voting at a general meeting, which is a lower threshold compared to some other blank check companies[248]. - The company may seek to amend its governing instruments to facilitate the completion of an initial business combination, which some shareholders may not support[245]. Financial Instruments and Securities - The company issued 11,500,000 warrants to purchase Class A ordinary shares at a price of $11.50 per share, which could complicate future business combinations[233]. - The company has issued a total of 20,400,000 warrants in connection with its IPO, which includes 11,500,000 warrants in units and 8,900,000 private placement warrants[257]. - The company expects to account for the warrants as a warrant liability, recording them at fair value upon issuance, which may adversely affect the market price of its Class A ordinary shares[257]. - The company may redeem the warrants even if it is unable to register or qualify the underlying Class A ordinary shares for sale under applicable state securities laws[253]. Tax and Investment Considerations - The company may be classified as a Passive Foreign Investment Company (PFIC), potentially resulting in adverse U.S. federal income tax consequences for U.S. investors[275]. - The company may face tax liabilities for shareholders or warrant holders if the initial business combination involves a jurisdiction that imposes taxes[276]. - The nominal purchase price for founder shares was $25,000, implying a cost of approximately $0.004 per share, which may significantly dilute the value of public shares upon consummation of a business combination[299]. Emerging Growth Company Status - The company is classified as an "emerging growth company" and may take advantage of exemptions from certain disclosure requirements, which could affect the attractiveness of its securities to investors[277]. - The market value of the company's ordinary shares held by non-affiliates must remain below $700 million to maintain its status as an emerging growth company[277]. - The company is also a "smaller reporting company," allowing it to provide only two years of audited financial statements as long as its market value remains below $250 million or annual revenues are below $100 million[280]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[384].

Financial Performance - The company reported a net loss of $348,075 for the three months ended September 30, 2022, primarily due to general and administrative expenses of $1,444,411 [102]. - For the nine months ended September 30, 2022, the company achieved a net income of $9,626,072, which included a gain from the change in fair value of derivative warrant liabilities amounting to $10,404,000 [102]. - The company has a working capital deficit of $1,306,895 as of September 30, 2022, raising concerns about its ability to continue as a going concern [109]. Cash and Securities - As of September 30, 2022, the company had cash and marketable securities held in the Trust Account totaling $233,442,189 [107]. - The net proceeds from the Initial Public Offering have been invested in U.S. government obligations or money market funds, minimizing exposure to interest rate risk [121]. Initial Public Offering (IPO) - The company generated gross proceeds of $200,000,000 from its Initial Public Offering (IPO) by issuing 20,000,000 shares at $10.00 per unit [104]. - The company incurred transaction costs of $21,834,402 related to the IPO, which included $4,600,000 in underwriting fees [105]. - The underwriters from the Initial Public Offering waived their entitlement to deferred underwriting fees of $8,050,000, recorded as a gain of $7,847,542 [118]. Business Operations - The company has not engaged in any operations or generated revenues to date, with all activities focused on preparing for the IPO and searching for a target business [100]. - The company intends to use funds held outside the Trust Account primarily for identifying and evaluating target businesses and performing due diligence [106]. - The company has until April 22, 2023, to consummate a Business Combination, or it will face mandatory liquidation [109]. Regulatory and Compliance - The company may incur significant expenses related to internal control improvements to meet regulatory requirements following its IPO [110]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [119]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for five years [120]. Financing and Investments - The company may receive loans up to $1,500,000 convertible into warrants at $1.00 per warrant, with no written agreements currently in place [114]. - The sponsor purchased 8,900,000 private placement warrants at $1.00 each, totaling $8,900,000, allowing the purchase of Class A ordinary shares at $11.50 per share [115]. Off-Balance Sheet Arrangements - As of September 30, 2022, the company had no off-balance sheet arrangements or contractual obligations [117].