Global business services and enterprise application solutions provider, NETSOL Technologies, Inc., has reported increases in total net revenue, improved gross margins, and profitability for the fiscal first quarter ended September 30, 2023.
Total net revenues for Q1 of fiscal 2024 increased 12% to US$14.2 million, compared with US$12.7 million in the same period of fiscal 2023, with SaaS and annual recurring revenues continuing to grow year over year.
Licence fees were US$1.3 million compared with US$250,000 in the prior year period, while total subscription (SaaS and Cloud) and support revenues were US$6.5 million compared with US$6.0 million in the previous year period. Meanwhile, total services revenues were US$6.4 million, consistent with US$6.4 million in the previous year.
Gross profit for the first quarter of fiscal 2024 was US$6.2 million (or 43% of net revenues), compared to US$4.3 million (or 33% of net revenues) in the first quarter of fiscal 2023, and operating expenses were US$5.8 million (or 41% of sales) compared to US$6.1 million (or 48% of sales) compared to the corresponding period in 2023.
NETSOL co-founder, chairman and chief executive officer Najeeb Ghauri (pictured) stated, “Our first quarter of 2024 was highlighted by increases in total net revenue, improved gross margins, and profitability. This quarter highlights the strength of our business model particularly when we recognise licensing fees, subscription and support revenues, and services revenues. One goal is to drive more consistent licence revenue alongside our more predictable subscription and support and services revenues.
“We also continue to drive our cost containment initiative so we can reallocate capital to growing our SaaS business and expansion into the United States market. On that front, our focus continues to be staffing our new office in Austin, Texas with the best talent available to address this largely untapped market. Moreover, our white label SaaS-based solution Otoz is now live in 60 MiniAnywhere dealerships across 37 US states, demonstrating the growing demand for SaaS-based solutions in this market. Finally, we continue to evaluate strategic acquisition opportunities throughout North America.
“We’re very pleased with our results this quarter, and we believe that our performance reflects the long-term earnings potential for NETSOL as we continue to scale our revenue. We are working diligently to build our pipeline of licensing deals, and along with our expanding SaaS offerings, we believe this will drive improved results and more consistent profitability and cash generation.”
