NETSOL Technologies Inc.

Good morning. Welcome to NetSol Technologies' fourth quarter near-end 2023 earnings conference call. On the call today are Najeeb Gowri, Chairman and Chief Executive Officer, Roger Almond, Chief Financial Officer, Naeem Gowri, Chairman and President, and Patty McGlasson, General Counsel. I would now like to turn the call over to Patty McGlasson, who will provide the necessary cautions regarding the forward-looking statements made by management during this call. Patty, please proceed.

Good morning, everyone, and thank you for joining us. Following a review of the company's business highlights and financial results, we will open the call for questions. I'll now provide the necessary cautions regarding the forward-looking statements made by management during this call. Please note that all the information discussed on today's call is covered under the safe harbor provisions of the Private Securities Litigation Reform Act. The company's discussion may include forward-looking statements reflecting management's current forecast of certain aspects of the company's future, and our actual results could differ materially from those stated or implied. These forward-looking statements are qualified by the cautionary statements contained in NetSol's press releases and SEC filings, including our annual report on Form 10-K and quarterly reports on Form 10-Q. I would also like to point out that we will be discussing certain non-GAAP measures. The press release issued earlier today contains a reconciliation of these non-GAAP financial results to their most comparable GAAP measures. Finally, I would like to remind everyone that this call will be recorded and made available for replay at www.netsaltech.com and via link available in today's press release. Now, I'd like to turn the call over to Najeeb. Najeeb?

Thank you, Perry, and good morning, everyone. From a financial perspective, the fourth quarter came in below our expectations. That said, I'm proud of the progress we made in the year, and specifically the fourth quarter on the three core drivers of our growth plan. Number one, transition to SaaS or software in the service model and developing products that enhance this strategy. Two, our cost reduction across our company. And the third, expansion into the North American market in the US especially. Now let's drill down on each of these. Beginning nearly two years ago, NetSol embarked on a journey to transition our licensed income to recurring subscription or SaaS-based revenue for all enterprise resource planning and other solutions within the automotive asset and mobility markets. We are seeing positive sequential on over year over year growth in our subscription and support revenues. And I'm especially pleased to report that our full year subscription and support revenues exceeded our stated targets of $25 million. Currently, a large portion of our revenue is recurring. Now mobility solutions are now 100% SaaS or cloud based. We continue to seek interest from existing clients in converting SaaS pricing and with new clients buying SaaS and cloud-based solutions. Mainly, our flagship NFS Ascent products are recurring subscription and support revenues are positioned for continued growth. Ascend is our flagship SaaS-based enterprise solution designed for end-to-end management of the entire contract lifecycle. Our customers deploy the solution to efficiently manage what are often numerous, complex, and differing leasing contracts. Augmenting our Ascend solution is our apex now marketplace of API-first applications that provide essential customizability. Applications like Flex are API-based calculation engine and Hubex, which allows for the efficient and streamlined integration of API applications with a developer-friendly plug-and-play system. In the fourth quarter, we implemented Flex with a major business finance provider in the United Kingdom to offer an online quotation tool providing fast and accurate payments and rates for their customers. We anticipate the adoption of these applications by both new and existing customers as we continue to expand the Apex Now marketplace and increase the customizability of our products to meet the specific needs of virtually any customer. Our auto solution continues to see traction in the US as well, specifically with its adoption in Mini Anywhere dealerships, a subsidiary of BMW Group throughout the region. Today, Autos is live in 60 Mini Anywhere dealerships across 36 US states. We're also strengthening our partnership with Amazon Web Services or AWS through numerous recognitions and accreditations that established Nestle as a premier partner committed to designing, building, and maintaining secure, reliable, and efficient cloud architectures which relate specifically to our SaaS offerings. As anticipated, our transition to a SaaS-based model has had a short-term impact on our cash flows, but the nature of SaaS pricing is such that we will be recognizing more consistent predictable higher margin revenues as the revenue mix evolves. Over time, we expect our cash flows to return to an eventually exceed historic level as we continue to drive this transition, and we believe that over the next 18 months, a consistently growing percentage of our revenue should be recurring. Another impact of the SAS-based model is that it requires significantly less manpower to provide the level of support for our technology that our traditional licensing model has historically demanded. As a result, in the second quarter of 2023, we began implementing company-wide cost reduction initiatives that includes the reduction of our overall headcount by what we expect to be approximately 300 after the period of sevens required the local laws that extend into the first and second quarters of fiscal 2024. We expect further cost reduction allowing us to better allocate capital to growing higher margin parts of our business and drive to profitability. Lastly, we remain intently focused on expanding into the North American markets. We have established a facility in Austin, Texas a burgeoning technology hub, in addition to our corporate headquarters in Encino, California, and we are taking the time to staff the office of the most qualified individuals to help us efficiently grow our business in the United States. Our established markets remain strong. Nestle is a leading provider of global leasing software solutions in the Asia-Pacific region, and we have a presence throughout Europe. with room for additional growth. These established presences across key geographic regions provide us with a strong industry reputation, a proven portfolio of contracts with tier one businesses, and a pipeline that continues to be robust with several potential licensing deals in the works. Despite this progress, I want to be clear. We are not satisfied with our results, but we are confident that the pieces are in place to generate long-term growth and positive outcomes for our business. Based on our healthy pipeline of opportunities, we are targeting $61 to $63 million in revenue for fiscal 2024. This would be an approximate 16 to 20% revenue growth in this fiscal year. With that, I'll now turn the call over to Roger Armand, our CFO, to go over our fourth quarter and full year financial results. Roger.