Core Insights - NETSOL Technologies, Inc. has signed a new agreement with a major automaker to support operations in China, valued at over $30 million over five years, contributing to revenue growth in fiscal 2025 and beyond [1][2] - The CEO of NETSOL anticipates this contract will lead to double-digit revenue growth in fiscal 2025, marking a new stage of growth for the company in the Asia Pacific market [2] - NETSOL China holds a dominant market share in the country and expects this contract to nearly double its revenue over the agreement's term [2] Company Overview - NETSOL Technologies is a global leader in asset finance and leasing solutions, serving automotive OEMs, auto captives, and financial institutions across over 30 countries since its inception in 1996 [3] - The company is recognized for its technological innovations, including advanced AI and cloud services, and maintains a strong customer-centric approach [3] - NETSOL is committed to ethical business practices and sustainability, positioning itself as a trusted partner for leading firms globally [3]

ENCINO, Calif., Aug. 01, 2024 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a global leader in delivering state-of-the-art solutions for the asset finance and leasing industry, has announced that Charles & Dean Finance has signed up for two products from Company's new API-first Appex Now marketplace – Flex and Dock. Flex, the first product offering from Appex Now, is an instant, cloud-based calculation engine which guarantees swift and accurate calculations at all stages of the contract life ...

Core Insights - NETSOL Technologies, Inc. has partnered with Charles & Dean Finance to provide two products from its new API-first Appex Now marketplace, namely Flex and Dock [1][3] Product Offerings - Flex is a cloud-based calculation engine that ensures swift and accurate calculations throughout the contract lifecycle [2] - Dock is a centralized document generation tool that allows users to create accurate documents quickly using template-based configurations [2] Partnership Significance - The partnership with Charles & Dean Finance is expected to enhance their business processes, leveraging NETSOL's API-first products for improved agility and simplicity [3] - Charles & Dean Finance has a strong reputation in the UK finance and leasing industry, having supported over 6000 businesses and individuals in the last decade [5] Company Background - NETSOL Technologies is recognized as a global leader in asset finance and leasing solutions, serving clients in over 30 countries since its inception in 1996 [4] - The company is known for its commitment to innovation, customer-centric approach, and ethical business practices, positioning itself as a trusted partner in the industry [4]

Core Insights - NETSOL Technologies has signed a $16 million, five-year contract with a major automaker to enhance US dealership operations through its Otoz digital retail platform [2][4] - The partnership aims to transform the car sales and purchase process, showcasing NETSOL's capabilities in digital retail experiences [1][4] - NETSOL has experienced aggressive growth in the US automotive OEM and dealership segment, with expectations for continued expansion of Otoz [4] Company Overview - NETSOL Technologies is a global leader in asset finance and leasing solutions, serving automotive OEMs, autocaptives, and financial institutions in over 30 countries [3] - The company has been at the forefront of technology since its inception in 1996, focusing on innovations in asset finance solutions and leveraging AI and cloud services [3] - NETSOL is recognized for its customer-centric approach, strong partnerships, and commitment to sustainability and ethical business practices [3]

Business Model and Product Offerings - NetSol Technologies reported a shift to a subscription-based pricing model for its NFS Ascent platform, enhancing customer flexibility and reducing upfront costs [149]. - The introduction of Otoz, a white-label SaaS platform, allows automotive companies to offer on-demand mobility models and digital retail solutions [169]. - The AppexNow marketplace launched two products, Flex and Hubex, aimed at providing API-first solutions for the global credit, finance, and leasing industry [178]. - NetSol's digital transformation solutions, branded as NFS Digital, are designed to enhance customer competitiveness in a rapidly evolving market [161]. - The company’s NFS Ascent platform supports multi-billion-dollar lease portfolios and complies with various regulatory standards, enabling efficient management of complex lending portfolios [155]. - NFS Ascent has been deployed on the cloud, allowing for rapid scalability and flexible subscription options without upfront license fees [160]. Financial Performance - For the quarter ended March 31, 2024, total net revenues increased to $15.46 million, a 14.5% rise from $13.51 million in the same quarter of 2023 [194]. - Subscription and support revenues accounted for 46.2% of total net revenues, increasing from 49.3% year-over-year, while services revenues surged to 50.2% from 36.0% [195]. - Gross profit margin improved to 48.3%, up from 34.8% in the previous year, reflecting a decrease in the cost of revenues to 51.7% from 65.2% [195]. - Net income attributable to NetSol was $327,549, a decline from $2.54 million in the same quarter last year, resulting in a net income per share of $0.03 [195]. - Total net revenues for the nine months ended March 31, 2024, were $44,944,638, an increase of $6,341,772 or 16.4% compared to $38,602,866 for the same period in 2023 [219]. - Net income for the nine months ended March 31, 2024, was $766,755, a significant increase of $935,787 compared to a net loss of $169,032 for the same period in 2023 [236]. Operational Metrics - The company secured a contract with Haydock Finance to provide access to its API-based Flex Calculation Engine, expected to enhance revenue streams [192]. - Operating expenses were $6,156,917 for the three months ended March 31, 2024, an increase of 9.2% from $5,635,464 in the same period of 2023, but as a percentage of sales, it decreased from 41.7% to 39.8% [206]. - Income from operations was $1,317,903 for the three months ended March 31, 2024, compared to a loss of $930,435 in the same period of 2023, representing a turnaround of $2,248,338 [211]. - Other expense was $855,464 for the three months ended March 31, 2024, a decrease of $6,256,148 compared to other income of $5,400,684 in the same period of 2023 [212]. - Cash position decreased to $12,338,642 at March 31, 2024, down from $15,533,254 at June 30, 2023 [245]. Market Outlook - The U.S. automotive sales volumes are projected to reach approximately 15.5 million units in 2024, marking a 2% increase from 2023, which is favorable for NetSol's market outlook [193]. - The global automotive finance market is expected to exceed $245 billion in 2022 and double by 2035, indicating significant growth potential for NetSol's offerings [193]. - The company plans to monitor expenditures and deploy resources to areas of expansion while considering economic uncertainties in target markets [218]. Compliance and Accounting - The company is in compliance with all financial covenants associated with its borrowings as of the date of the report [255]. - Financial statements are prepared in accordance with U.S. GAAP and conform to industry practices, with no significant changes to accounting policies since the last Annual Report [256]. - The company applies critical accounting policies that require management's complex judgments, which may significantly affect reported results and financial position [256]. - There are no quantitative and qualitative disclosures about market risks reported in the current financial statements [258].

Core Insights - NETSOL Technologies, Inc. reported a 14% increase in total revenues to $15.5 million for the third quarter of fiscal 2024, compared to $13.5 million in the same period last year [1][3] - Services revenues surged by 60% to $7.8 million in 3Q '24 compared to 3Q '23, marking the third consecutive quarter of profitability for the company [1][4][15] - The company is on track to meet its target revenue range of $60 - $61 million for the full fiscal year 2024 [1][18] Financial Performance - Total net revenues for the nine months ended March 31, 2024, were $44.9 million, up from $38.6 million in the prior year [9][10] - Gross profit for 3Q '24 was $7.5 million, representing 48% of net revenues, an increase from 35% in 3Q '23 [1][5] - Operating expenses for 3Q '24 were $6.2 million, or 40% of sales, down from 42% in the same quarter last year [6][12] Profitability Metrics - GAAP net income for 3Q '24 was $328,000, or $0.03 per diluted share, compared to $2.5 million, or $0.23 per diluted share, in 3Q '23 [7][25] - Non-GAAP adjusted EBITDA for 3Q '24 was $810,000, or $0.07 per diluted share, down from $3.3 million, or $0.29 per diluted share, in the prior year [8][28] Strategic Initiatives - The company is establishing AI integration as a major initiative, aiming to reduce internal costs and enhance service quality [1][17] - NETSOL is focused on expanding its sales pipeline in the U.S. market and is committed to continuous innovation in its offerings [15][16] Market Outlook - Management expressed confidence in achieving double-digit organic revenue growth and improved margins, supported by a strong pipeline of licensing and SaaS deals [18]

Core Insights - NETSOL Technologies, Inc. reported a 14% increase in total revenues to $15.5 million for the third quarter of fiscal 2024, compared to $13.5 million in the same period last year [1][3] - Services revenues surged by 60% to $7.8 million in 3Q '24 compared to 3Q '23, marking the third consecutive quarter of profitability for the company [1][4][15] - The company is on track to meet its target revenue range of $60 - $61 million for the full fiscal year 2024 [1][18] Financial Performance - Total net revenues for the nine months ended March 31, 2024, were $44.9 million, up from $38.6 million in the prior year [9][10] - Gross profit for 3Q '24 was $7.5 million, representing 48% of net revenues, an increase from 35% in 3Q '23 [1][5] - Operating expenses for 3Q '24 were $6.2 million, or 40% of sales, down from 42% in the same quarter last year [6][12] Income and Profitability - GAAP net income attributable to NETSOL for 3Q '24 was $328,000, or $0.03 per diluted share, compared to $2.5 million, or $0.23 per diluted share, in 3Q '23 [7][25] - Non-GAAP adjusted EBITDA for 3Q '24 was $810,000, or $0.07 per diluted share, down from $3.3 million, or $0.29 per diluted share, in the prior year [8][28] Strategic Initiatives - The company is establishing AI integration as a major initiative, aiming to reduce internal costs and enhance service quality [1][17] - NETSOL is focused on expanding its sales pipeline in the U.S. market and is committed to continuous innovation in its offerings [15][16] Market Outlook - Management expressed confidence in achieving double-digit organic revenue growth and improved margins, supported by a strong pipeline of licensing and SaaS deals [18]

ENCINO, Calif., April 25, 2024 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (NASDAQ:NTWK), a global business services and enterprise application solutions provider, will hold a conference call on Thursday, May 9, 2024, at 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time) to discuss its financial results for the fiscal third quarter of 2024 ended March 31, 2024. Financial results will be issued in a press release prior to the call. Following the call, management will host a question-and-answer session. Date: ...

ENCINO, Calif., April 25, 2024 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, will hold a conference call on Thursday, May 9, 2024, at 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time) to discuss its financial results for the fiscal third quarter of 2024 ended March 31, 2024. Financial results will be issued in a press release prior to the call. Following the call, management will host a question-and-answer session. Date: ...

Business Model and Strategy - NetSol Technologies reported a shift to a subscription-based pricing model for its NFS Ascent platform, enhancing customer flexibility and reducing upfront costs [136]. - The introduction of the AppexNow marketplace features API-first products, with the first offering, Flex, being a cloud-based calculation engine designed to improve efficiency and ROI [165][166]. - The NFS Ascent platform has been deployed on the cloud, allowing for swift implementations and easy scalability, benefiting clients with flexible subscription options [147]. - NetSol's digital transformation solutions, including NFS Digital, are aimed at enhancing customer engagement and competitiveness in the finance and leasing industry [148]. - The company emphasizes investment in hiring and training to ensure high-quality service and client satisfaction, which is critical in a competitive market [138]. Financial Performance - Total net revenues for the quarter ended December 31, 2023, were $15,237,941, a 22.4% increase from $12,390,358 in the same quarter of 2022 [182]. - Gross profit for the quarter was $7,175,737, a significant increase from $3,142,463, resulting in a gross margin of 47.1% [182]. - The company reported a net income attributable to NetSol of $408,316, compared to a net loss of $2,092,926 in the same quarter of 2022 [182]. - License fees increased to $2,990,453, representing 19.6% of total revenues, compared to only $15,884 (0.1%) in the prior year [182]. - Subscription and support revenues were $6,827,781, accounting for 44.8% of total revenues, slightly down from 52.5% in the previous year [182]. Market Presence and Client Base - NetSol's client base includes blue-chip organizations and Fortune 500 companies, indicating a strong market presence and credibility in the finance and leasing sector [137]. - The company contracted with a US auto manufacturer’s captive finance company in China, expected to generate approximately $12 million over the next five years [179]. Operational Efficiency - Operating expenses decreased slightly to $6,148,905 for the three months ended December 31, 2023, compared to $6,188,977 in 2022, resulting in a decrease in operating expenses as a percentage of sales from 50.0% to 40.4% [195]. - Income from operations for the three months ended December 31, 2023, was $1,026,832, a significant improvement from a loss of $3,046,514 in the same period of 2022 [200]. - Average days sales outstanding improved to 147 days for the six months ended December 31, 2023, down from 162 days in the same period of 2022 [237]. Growth and Future Projections - The U.S. automotive sales volumes are projected to reach approximately 15.5 million units in 2023, an estimated increase of 9% from 2022 [180]. - The global automotive finance market was valued at $245 billion in 2022 and is expected to more than double by 2035 at a CAGR of 7.4% [180]. - The overall size of the mobility market in Europe and the U.S. is projected to increase over $425 billion combined by 2035, with a compound CAGR of 5% from 2022 [180]. Cash Flow and Financial Health - Cash position increased to $15,659,516 at December 31, 2023, from $15,533,254 at June 30, 2023 [235]. - Net cash provided by operating activities decreased to $604,684 for the six months ended December 31, 2023, compared to $1,689,543 for the same period in 2022 [236]. - Net cash used in investing activities was $569,336 for the six months ended December 31, 2023, compared to $1,182,042 for the same period in 2022 [238]. - The company remains in compliance with financial covenants associated with its borrowings, with no defaults reported [245]. Personnel and Leadership - The company hired Mr. Erik Wagner as Chief Marketing Officer, bringing over 16 years of diversified marketing experience in the technology sector [179].