NETSOL Technologies Inc.

Good morning, and welcome to Netsol Technologies' fiscal fourth quarter and year-end 2024 earnings conference call. On the call today are Najeeb Gowri, co-founder, chairman, and chief executive officer, and Roger Almond, chief financial officer. I would now like to turn the call over to John Nesbitt, who will provide the necessary cautions regarding the forward-looking statements made by management during this call. 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, and I'll 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 provision 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'd 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.netsaltek.com and via the link available in today's press release. Now I'd like to turn the call over to Najeeb. Go ahead, Najeeb.

Thank you, John, and good morning, everyone. Today I'm calling from Riyadh, Saudi Arabia, which is one of the fastest growing economy in the world. In the full fiscal year 2024, we recognized a 17% increase in revenue to $61.4 million exceeding our full year revenue target of between 60 to $61 million and driving full year profitability with earnings per share to make sense. We also met our fiscal 24 annual recurring revenue of $28 million. We are very proud of these results, which are in line with our growth strategy and validate our hard work and execution over the past several years as we evolved and repositioned our business to meet the shifting demands of our customers and the markets in which we operate. In parallel with our revenue growth and profitability, a key focus for us this past year has been proactively managing costs while investing in the growth areas of our business. Throughout the year, We increased our investment in sales and marketing to support our long-term growth goals in what we consider to be a favorable market environment. We also place an emphasis on new product development and introduction as evidenced by example portfolio product and service offerings. We have transcended the complex digital retail and financing processes. For example, we delivered an end-to-end digital retail experience for Mini USA in less than seven months, virtually unheard of in our space because we understand the e-commerce side of car buying as well as the financing complexities. Another major focus for Netsol this past year has been the innovation and integration of AI into both our products and services as well as our internal operations. As a global technology company with large presences in key markets, we are well positioned to take considerable advantage of the tremendous opportunity that AI presents to our industry and potentially expand into new verticals as we continue to innovate, adapt, and improve our technology to meet customer and industry demands. To that end, we are pleased to have added a top talent to our already impressive team of AI experts, and we'll continue to look for leaders in the AI industry that align the necessary goals and values and can help us to further innovate and enhance our AI capabilities. As a global company, we place an emphasis on our presence in key geographic markets. As we've spoken to on previous calls, our most vibrant market has historically been a share-specific RAPAC in which we possess a leading market share and service customers that include major tier-one automakers and banks throughout the region. Europe has also been a strong market for us, where we service a variety of different banks, financial institutions, and financing companies with our comprehensive portfolio of products and offerings. We're also seeing considerable demand for our products and services in the United States, especially for our SaaS-based offerings. Autos, our omni-channel digital retail platform, has experienced strong demand in the U.S. among many anywhere dealerships, which are a subsidiary of BMW Group. Additionally, subsequent to the close of the quarter, we signed a $16 million deal five-year deal with a BMW in the U.S. to revolutionize the digital car buying experience for the customers in the U.S. This deal includes the customization, implementation, deployment, and ongoing subscription of autos. It's the largest deal today by dollar value for Nestle in the U.S. And we are still only beginning to scratch the surface of this market. The U.S. represents an extremely attractive opportunity for our business, and with a strong pipeline of potential deals for both our SaaS and licensed products, we are very excited with the prospects that we are looking ahead of us. Complementing our geographic extension is the stickiness of our customer base. We have developed a strong base of loyal recurring customers over the last four years, We have increased our customer retention rate from approximately 90% in 2021 to just below 95% in 2024, demonstrating the superior performance and reliability of our products and services. Before I hand the call over to our CFO, Roger Almond, I'd like to provide a sneak peek of what's in store for Nestle as we move into fiscal 2025. We expect this to be another year of strong growth for our business as we build on the progress that we made in fiscal 2024, and we are targeting double-digit growth in fiscal 2025, driven by enhanced sales performance and market recognition of our products and services. Our established margins are strong, and we are experiencing renewed demand specifically in APAC as evidenced by our recent deal with a major automaker from their operation in China that brings the total value of over $30 million over five years. This activity, coupled with our opportunities in the U.S., positions us for considerable growth in the year ahead. Moreover, we are taking a fresh look at the portfolio of NetSoil products and how they fit together. We expect to be announcing shortly a comprehensive rebranding of our suite of products to more clearly differentiate and better align our brands with our target markets. So stay tuned as there is more to come on this front, but suffice to say for now that I'm very excited about the work being done on this front. With that, I'll now hand over the call to our CFO Rajaraman to speak. Talk about the financial results. Go ahead, Roger.