Wed, Nov 13, 7:07 PM (248 days ago)
For the quarter ended September 30, 2024, NETSOL Technologies, Inc. (NTWK) reported net revenues of $14,598,498, a 2.5% increase from $14,242,181 in the prior year. Subscription and support revenue rose significantly to $8,192,471, while license fees plummeted to $1,229. Gross profit improved to $6,564,112, yielding a gross margin of 45.0%, up from 43.3%. However, operating expenses surged to $7,324,270, leading to an operating loss of $760,158 compared to a profit of $350,629 in the prior year. Net income attributable to NETSOL increased to $70,795, up from $30,890, with earnings per share rising to $0.006. Cash flow from operating activities was robust at $5,517,745, indicating improved liquidity, with total cash and equivalents at $24,525,956. The company continues to face challenges, including geopolitical tensions and inflationary pressures, impacting profitability. However, positive trends in automotive sales and contracts signed may bolster future growth. Overall, while revenue growth is promising, the increase in operational costs and market uncertainties present significant challenges ahead.