Executive Summary
NetSol Technologies delivered a solid top-line performance in QQ4 2024, with revenue of $16.45 million, up 19.3% year over year and up 6.36% quarter over quarter. The gross margin remained healthy at 51.5%, resulting in an EBITDA of $1.17 million and positive operating income of $0.80 million. However, the company reported a net loss of $0.083 million driven by a tax expense and non-operating items, underscoring the ongoing profitability challenge even as the business scales. Importantly, cash generation was strong, with $6.51 million in operating cash flow and $6.95 million in free cash flow, culminating in a cash balance of $19.13 million and a net cash position of approximately -$11.46 million in net debt (i.e., net cash). The balance sheet remains liquidity-rich with a current ratio of ~2.0 and a quick ratio of ~2.6, signaling solid short-term resilience.
Key Performance Indicators
QoQ: -39.43% | YoY:127.46%
QoQ: -125.30% | YoY:98.37%
QoQ: -125.35% | YoY:98.38%
Key Insights
Revenue: $16,448,453; YoY +19.28%, QoQ +6.36% | Gross Profit: $8,472,296; Gross Margin 51.51%; YoY +75.92%, QoQ +13.34% | Operating Income: $798,191; Operating Margin 4.85%; YoY +127.46%, QoQ -39.43% | Net Income: -$82,882; Net Margin -0.50%; YoY +98.37%, QoQ -125.30% | EBITDA: $1,168,752; EBITDA Margin ~7.11% | EPS: -$0.0073; YoY +98.38%, QoQ -125.35% | Free Cash Flow: $6,944,998; CFO: $6,512,065; FCF Margin ~42.2% of revenue...
Financial Highlights
Revenue: $16,448,453; YoY +19.28%, QoQ +6.36% | Gross Profit: $8,472,296; Gross Margin 51.51%; YoY +75.92%, QoQ +13.34% | Operating Income: $798,191; Operating Margin 4.85%; YoY +127.46%, QoQ -39.43% | Net Income: -$82,882; Net Margin -0.50%; YoY +98.37%, QoQ -125.30% | EBITDA: $1,168,752; EBITDA Margin ~7.11% | EPS: -$0.0073; YoY +98.38%, QoQ -125.35% | Free Cash Flow: $6,944,998; CFO: $6,512,065; FCF Margin ~42.2% of revenue
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
16.45M |
19.28% |
6.36% |
| Gross Profit |
8.47M |
75.92% |
13.34% |
| Operating Income |
798.19K |
127.46% |
-39.43% |
| Net Income |
-82.88K |
98.37% |
-125.30% |
| EPS |
-0.01 |
98.38% |
-125.35% |
Key Financial Ratios
operatingProfitMargin
4.85%
operatingCashFlowPerShare
$0.57
freeCashFlowPerShare
$0.61
priceEarningsRatio
-91.51
Management Commentary
No earnings call transcript data included in this dataset. As a result, management themes, strategic remarks, and explicit qualitative guidance are not extractable from the provided material. Once transcripts are available, a thematically grouped summary (strategy, operations, market conditions) with context and implications should be added.
No transcript quotes available in this dataset.
— N/A
No transcript quotes available in this dataset.
— N/A
Forward Guidance
The QQ4 2024 release lacks explicit full-year guidance. Given NetSol’s strategic pivot toward cloud-based offerings (NFS Ascent On The Cloud) and the Otoz platform ecosystem, the key forward-looking catalysts are: (i) accelerations in cloud SaaS revenue and cross-sell of NFS Ascent modules; (ii) growing adoption of Otoz-powered solutions across dealer and customer portals; (iii) monetization of digital auto retail via Otoz Ecosystem. Achievability hinges on pipeline conversion, customer retention, and execution in product monetization. In the near term, investors should monitor: pipeline growth, realisation of gross margins on new cloud contracts, cadence of SG&A investments versus revenue growth, and changes in working capital (notably receivables). If the company can sustain mid-teens revenue growth while driving operating leverage, the profit profile could improve as cloud revenue matures.