NETSOL Technologies Inc.

Greetings and welcome to the NetSol Technologies first quarter 2024 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Patty McLassen, General Counsel. Thank you, Patty. You may begin.

Good morning, everyone, and thank you for joining us. Following the review of the company's business highlights and financial results, we will open the call for questions. I will 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 NEDCEL'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.netsofttech.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. We had a strong first quarter of 2024, which was highlighted by increases in total net revenues, improved gross margin, and profitability. Revenue grew in the first quarter due to solid performance across our business. Each of our three complementary revenue streams contributed meaningfully. Importantly, we recognize approximately $1.3 million in licensing revenues from Isuzu Motors, a multinational auto manufacturer based in Japan. Our goal going forward is to sign more licensing deals so that we can drive more consistent license revenue from quarter to quarter. In addition to the licensing fees, we also continue to see consistent revenue recognition from subscription and support or SaaS-based revenue, as well as our services revenue, which is generated after a licensing deal is signed. Also on display this quarter was the impact of increased cost discipline across the organization. Cost containment remains a priority as we focus on freeing capital to allocate to our two most vibrant growth opportunities, the growth of our SaaS business and the penetration of the US market. Our expansion in the U.S. continues to progress as we focus on staffing a new office in Austin, Texas with the best talent available. Our goal with this facility is to aggressively expand Nestle into the United States, which is a largely untapped market for us. In addition to organic growth in the U.S., we continue to carefully evaluate strategic acquisition opportunities in North America. We are also now live with Autos, our SaaS-based white-label platform, providing long-term on-demand mobility models and retail solutions in 60 Mini Anywhere dealerships across 37 US states, demonstrating the demand of our SaaS products in this market. On the business development front, we continue to see strong activity and remain focused on building a pipeline of potential licensing deals. In summary, we are very pleased with the results we delivered this quarter. Our performance reflects the earnings potential of the Nestle business model as we scale revenue. We are working diligently to drive more predictable revenue with additional licensing deals and continued expansion of our SaaS offerings which we believe will drive improved and more consistent profitability and cash generation. I'll now turn the call over to Roger Arman, our Chief Financial Officer, to go over our financials from this quarter. Roger.