NETSOL Technologies Reports 14% Revenue Growth and EPS of $0.03 in Fiscal Third Quarter 2024

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]