Slide 1: NETSOL Technologies 3Q23 Earnings Results
NETSOL TECHNOLOGIES 3Q23 EARNINGS RESULTS Thursday, May 11, 2023
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation may contain forward-looking statements relating to the development of NETSOL Technologies’ products and services and future operating results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actua
Slide 3: NETSOL is a leading Fintech IT company
NETSOL is a leading Fintech IT company providing software solutions to the global leasing and finance industry 3 NASDAQ: NTWK
Slide 4: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Global customer growth • Multi-million-dollar agreement with Kubota, a leading Japanese equipment finance company “We are focused on • Went live with API-first and cloud-based calculation engine Flex for UK based business finance provider driving enhanced growth both in Nort
Slide 5: Growing Base of Customers and Partnerships
GROWING BASE OF CUSTOMERS AND PARTNERSHIPS NETSOL has built a strong customer base highlighted by global industry leaders across the leasing and finance industries New customers and partnerships in the third quarter include: ü Multi-million-dollar agreement with leading Japanese equipment finance co
Slide 6: Comprehensive Suite of Products to Meet Customer Needs
COMPREHENSIVE SUITE OF PRODUCTS TO MEET CUSTOMER NEEDS Extremely adaptive retail Robust digital White-labelled SaaS and wholesale platform for transformation solutions platform for OEMs, auto- the global finance and to augment and enhance captives, dealers and leasing industry customer ecosystems st
Slide 7: Robust Geographic Presence and Experience
ROBUST GEOGRAPHIC PRESENCE AND EXPERIENCE 40+ 25+ 20+ Years in Years in Years in the Europe the APAC Americas $200B+ 300+ 200+ 25K+ 7K+ 100% Assets managed Successful Global Users Connected Project success globally implementations clients globally interfaces rate 7 NASDAQ: NTWK
Slide 8: Investing in Growth Across North America
INVESTING IN GROWTH ACROSS NORTH AMERICA Growing North American Sales • 12.5% growth in NA sales compared to 3Q22 • Multi-million-dollar contract with tier 1 automotive provider • Otoz product offering live in 53 dealers across 24 U.S. states Establishing support and delivery center in NETSOL Austin
Slide 9: Establishing NETSOL as a SaaS/Fintech IT Company
ESTABLISHING NETSOL AS A SaaS/FINTECH IT COMPANY Sequential Subscription and Support Revenue Growth Driven by Increased Demand for SaaS/AI/Cloud Offerings 6.8 6.6 6.4 6.2 6 5.8 5.6 4Q22 1Q23 2Q23 3Q23 In millions • AI & SaaS offerings represent a tremendous market opportunity, especially in the U.S.
Slide 10: Cost Reduction Initiatives Generating Savings Across Business
COST REDUCTION INITIATIVES GENERATING SAVINGS ACROSS BUSINESS Implementing cost efficiency initiatives to drive enhanced growth • Expected 25% reduction in headcount by Q1 2024 Significant savings expected by • Expected material positive impact on net fiscal year end 2023 profit, earnings per share,
Slide 11: Selected Financials
SELECTED FINANCIALS in thousands 3Q23 Constant Currency 3Q22 Net revenues $13,506 $14,101 $14,809 License fees $1,983 $2,100 $1,621 Subscription and $6,656 $6,819 $6,554 Support Services revenue $4,867 $5,182 $6,634 Gross profit $4,705 $2,410 $5,835 Operating expense $(5,635) $(6,864) $(6,374) Other
Slide 12: Exciting Outlook and Market Opportunity
EXCITING OUTLOOK AND MARKET OPPORTUNITY Expanding into the largely untapped North American market • United States represents NETSOL’s most vibrant growth opportunity • Client support facility in Austin, TX • Actively pursuing M&A opportunities Establishing NETSOL as a SaaS/Fintech IT provider • Rapi
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
APPENDIX 14 NASDAQ: NTWK
Slide 15: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 15 NASDAQ: NTWK