NETSOL Technologies Inc.

Good morning. Welcome to NetSol Technologies' fiscal first quarter 2025 earnings conference call. On the call today are Roger Allman, Chief Financial Officer, and Naeem Gwari, Co-Founder and President. I would like to turn the call over to Patty McGlason, who will provide the necessary cautions regarding the forward-looking statements made by management during this call.

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'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 their actual results could differ materially from those stated or implied. These forward-looking statements are qualified by the cautionary statements contained in NEDFAL'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 measure. 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 Naeem Ghori, who is kindly filling in for Najeeb Ghori, who is traveling in China for business. Naeem?

Good morning, everybody. Thank you, Patty. As Patty mentioned, Najeeb is traveling in China, meeting clients there. and spending some time with the teams over there. In the first quarter of fiscal 2025, we continued to build on the strong foundation that we laid throughout the 2024 fiscal year. We achieved profitability in the first quarter along with a 3% growth in total net revenues, primarily driven by a 26% increase in recurring subscription support revenues. This growth demonstrates an important shift in our revenue mix to rely less on large one-time license fees, which are relatively unpredictable in nature and can fluctuate quarter to quarter, and more on our SaaS products, which generate revenue at a more consistent and predictable rate thanks to the recurring nature of this segment. We continue to strategically invest in the growth of our business, which was demonstrated in our increased selling, general and admin expenses in the first quarter. Our growth strategy is focused on two key initiatives that we believe will position the company at the forefront of our dynamic industry that is constantly evolving to meet shifting customer demands. The innovation and integration of AI into our leading product suite and strategic geographic expansion into both new and existing markets. During the first quarter, we announced a new transparent platform, an AI-powered digital retail and asset finance solution for automotive and equipment OEMs, auto captives, commercial lenders, dealers, brokers, and financial institutions. This platform unifies NetSource products suite under one brand while offering a robust set of solutions that showcases our commitment to harnessing the transformative potential of AI. Like many leading companies, we believe that AI is the future for technology, and as such, it was imperative for us to redefine our product suite to better meet the demand of our growing client base. This transition represents a key strategic milestone for our business as we enter the next era of technology, where AI is at the forefront. We remain committed to investing in the innovation and integration of AI into our products, as well as adding the best talent available to us as we further these initiatives. AI is prevalent across our entire product suite, with one example being the interaction the customers have using our constant retail platform. With the help of AI, buyers can chat with the digital customer support agent in real time to browse new vehicles, financing options, promotions, and vehicle builds, providing options and insights to find the best vehicle and financing options to meet the specific needs. AI is optimizing online car buying from discovery to final sale, and we remain committed to innovating, integrating this technology across our product line. Growth in the United States continues to be a top priority, and we are making encouraging progress as we penetrate this region. In the first quarter, we announced a five-year, $15 million contract with a major automaker to revolutionize the digital car buying experience in the U.S. through class and retail. Our omnichannel digital retail platform that contributes to our recurring revenues. In addition to this contract, we've also been engaged in a longstanding agreement with Mini USA to leverage our class and retail platform in their online purchasing operations. Over the lifetime of this contract, Mini has achieved a 23% increase in conversion rates from lead to sales. We're performing in our established markets as well, thanks to renewed opportunity for growth in regions like APEC, where we already have a leading market share. During the first quarter of fiscal 2025, we signed an expansion agreement with a major automaker in China, a longstanding metro partner increasing the total contract values to over $30 million and demonstrating our strength of customer relationships and ongoing demand for our products from tier one names in the auto industry. As Aziz mentioned last quarter, the stickiness of our customer base also complements our geographic expansion. We have developed a strong base of loyal recurring customers. Over the last four fiscal 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 Chief Financial Officer, Roger Orman, I'd like to take a moment to highlight the enhanced strength of our balance sheet in recent quarters, which Roger will elaborate on his prepared remarks. As you've committed to execute on our growth strategy, we have also significantly enhanced our liquidity and strength of our balance sheet. Notably, our cash and cash equivalents have grown to $24.5 million as of September 30th, 2024, an increase of $5.4 million compared to June 30th, 2024, and an increase of approximately $8 million since the first quarter of 2024. This enhanced liquidity provides us with the flexibility to strategically invest in the growth of our business from product innovation to geographic expansion and allows us to pursue many opportunities that continue to emerge in the market. Overall, we are encouraged by our first quarter results as we continue to build on the progress that we made in fiscal 2024. We expect this to be another year of strong growth for our business. And we are targeting double-digit revenue growth in fiscal 2025, driven by geographic expansion, enhanced sales performance, and market recognition of our products and services. With that, I will now hand the call over to Roger Orman, Chief Financial Officer of Nexo. Roger?