- NetSol Technologies delivered a solid QQ3 2024, marking the third consecutive quarter of profitability with minimal license-fee contribution. Total net revenues were $15.46 million, up about 14.5% year-over-year, while gross profit reached $7.47 million for a gross margin of 48.3%. Operating income was $1.32 million (operating margin ~8.5%), and GAAP net income attributable to NetSol was $0.33 million, or $0.03 per diluted share. Non-GAAP adjusted EBITDA was $0.81 million, underscoring ongoing operating leverage even as the company shifts toward a SaaS-centric model.
- Revenue mix shows continuing strength in recurring/subscription and services revenues, with license fees materially lower this quarter as NetSol accelerates its transition from license-heavy revenues to SaaS. Recurring revenues were $7.1 million and services revenues were $7.8 million, versus license fees of about $0.56 million. Management reiterated confidence in double-digit organic revenue growth and reaffirmed FY2024 guidance of $60â$61 million in revenue, supported by a projected minimum $28 million in subscription and support revenues for the full year.
- The company is advancing AI initiatives across internal processes and client offerings, positioning as an AI-first provider with an AI lab and a roadmap for several new AI-based offerings in calendar year 2024. Management emphasized US market expansion, a growing pipeline with OEMs and dealer groups, and notable US-based customer interest in professional services, AWS cloud, data analytics, and AI products. NetSol notes strengthening multi-year relationships and a greater emphasis on the hybrid license/SaaS model to sustain profitability without heavy upfront license fees.