Q4 2023 NetSol Technologies Inc Earnings Call

Hmm.

[music].

Uh huh.

[music].

Good morning, welcome to that's all technologies fourth quarter and year end 2023 earnings conference call.

On the call today are not cheap quarry, chairman and Chief Executive Officer.

Roger Almond Chief Financial Officer.

I am sorry, chairman and President and Patti Mcglasson General Counsel.

I would now like to turn the call over to Patti Mcglasson, who will provide the necessary cautions regarding the forward looking statements made by management. During this call Patty. Please proceed.

Good morning, everyone and thank you for joining us following a review of the company's business highlights and financial results, we will open the call for questions.

Now I'll provide the necessary cautions regarding the forward looking statements made by management. During this call. Please note that all of the information discussed on today's call is covered under the Safe Harbor provisions of the private Securities Litigation Reform Act.

The company's discussion may include forward looking statements, reflecting management's current forecast of certain aspects of the company's future and our actual results could differ materially from those stated or implied.

These forward looking statements are qualified by the cautionary statements contained in that's all press releases and SEC filings, including our annual report on Form 10-K, and quarterly reports on Form 10-Q.

I would also like to point out that we will be discussing certain non-GAAP measures. The press release issued earlier today contains a reconciliation of these non-GAAP financial results to their most comparable GAAP measures.

Finally, I would like to remind everyone that this call will be recorded and made available for replay at www Dot net top tech dot com and via a link available in today's press release now I'd like to turn the call over to Nick <unk> the Jeep.

Thank you Patti and good morning, everyone.

From a financial perspective, the fourth quarter came in below our expectations.

That said I'm proud of the progress we've made in the year and specifically the fourth quarter.

On the three core drivers of our growth plan.

Number one transition to SaaS or software and the service model and developing products that enhance the strategy.

Two our cost reduction across our company.

The third expansion into the North American market.

In the U S, especially.

Now, let's drill down on each of these.

Beginning nearly two years ago necessarily embarked on a journey to transition our license income to recurring or subscription or SaaS based revenue for all enterprise resource planning and other solution, but in the automotive and mobility markets.

We are seeing positive sequential or year over year growth in our subscription and support revenues and I'm, especially pleased to report that our full year subscription and support revenues exceeded our stated targets of $25 million.

Currently a large portion of our revenues are cutting.

Mobility solutions are now, 100% says or cloud based.

We continue to see interest from existing clients and converting SaaS pricing.

And with new clients buying SAS and cloud based solutions.

Mainly our flagship NFS ascent product.

Recurring subscription and support revenues are positioned for continued growth.

Ascend is our flagship.

SAS based enterprise solution designed for end to end management of the entire contract life cycle.

Customers deploy the solution efficiently manage what are often numerous complex and different differing leasing contracts.

Augmenting our ascent solution is all Opex no marketplace.

API first application that provide essential cause somebody's ability.

Applications like flex, our API based calculation engine, and <unk>, which allows for efficient and streamlined integration of Api's application.

The developer friendly plug and play system.

In the fourth quarter, we implemented flex with the major business finance provider in the United Kingdom.

To offer an online quotation to providing fast and accurate timmins and rates for their customers.

We anticipate adoption of these applications that both new and existing customers.

As we continue to expand the ethics no marketplace.

And increase the customize ability.

Products to meet the specific needs of virtually any customer.

Our outdoor solution continues to see traction in the U S as well specifically, but its adoption in many anywhere dealerships.

Sit here a BMW group throughout the region.

To date autos is live and 60 mini anywhere dealerships across 36 U S States.

We're also strengthening our partnership with Amazon Web services or AWS to numerous recognitions and expeditions.

That establish muscle as the premier partner committed to designing building and maintaining secure reliable and efficient cloud architectures.

Which related specifically to our SaaS offerings.

As anticipated our transition to a SaaS based model has had a short term impact on our cash.

Cash flows, but the nature of SaaS pricing is such that we will be recognizing more consistent predictable higher margin revenues.

As the revenue mix evolves.

Overtime, we expect our cash flows to return to and eventually exceed historic levels. As you continue to drive this transition and we believe that over the next 18 months it consistently growing percentage of our revenue should be recurring.

And then the impact of the SaaS based model is that is of course significantly less manpower.

To provide the level of support for our technology.

Traditional licensing model has historically demand it has.

As a result in the second quarter of 2023, we began implementing companywide cost reduction initiatives that.

That includes the reduction of our overall head count.

What do we expect to be approximately 300 after the period of Sevens acquired the local laws that extend into the first and do the first and second quarters of fiscal 2024.

We expect further cost reduction, allowing us to be.

Better allocate capital to growing our higher margin parts of our business and drive to profitability.

Lastly.

We remain intently focused unexpendable into the North American markets.

We have established a facility in Austin, Texas, a burgeoning technology hub. In addition to our corporate headquarters in Encino, California, and we're taking the time to staff. The office. The most qualified individuals to help us efficiently grow out a business in the United States.

Hi, established markets remained strong muscle is a leading provider of global leasing software solution in the Asia Pacific region, and do you have a presence throughout Europe with room for additional growth.

These Douglas just the established presences across key geographies regions provide us with a strong industry reputation if proven portfolio of contracts with tier one businesses now.

In our pipeline that continues to be robust.

Several potential licensing deals in the works.

Despite this progress I want to be clear, we are not satisfied with our results, but we are confident that the pieces are in place to generate long term growth and positive outcomes for our business.

Based on a healthy pipeline of opportunities.

We are targeting $61 million to $63 million in revenue for fiscal 2020 for.

This would be an approximate 16% to 20% gross revenue growth in this fiscal year.

With that I'll now turn the call over to Roger Almond, our CFO to go our fourth quarter and full year financial results Roger.

Thank you Jean.

Our total net revenues for the fourth quarter of fiscal 2023, with $13 8 million compared with $13 5 million in the prior year period on a constant currency basis net revenues were $14 million for the.

Full year 2023, total net revenues were $52 4 million compared to $57.3 million in the full year 2022.

On a constant currency basis total net revenues were $54 7 million.

License fees of approximately 21000, compared with 952000 in the prior year period, and the same on a constant currency basis for.

For the full year 2023 license fees were $2 3 million compared with $4 5 million in the full year 2020 Q.

On a constant currency basis license fees of $2 4 million.

The decrease in license fees is primarily related to a decrease in licensing contracts compared with the prior year periods.

Recurring revenue or subscription and support revenues for the fourth quarter was $6 8 million compared with $6 1 million in the prior year period on a constant currency basis recurring revenues were $6 9 million.

For the full year 2023 recurring revenues were twofold, when were 26 million compared to $28 3 million in the full year 2022.

Full year 2023 recurring revenue on a constant currency basis was $26 7 million.

The decrease in our full year recurring revenue is related to a one time catch up in support revenue of approximately $3 5 million in fiscal year 2022.

D. G mentioned, we anticipate these fees to gradually increase as we implement both our NFS legacy product and NFS ascent.

Total services revenue for the fourth quarter was 7 million compared with $6 5 million in the prior year period.

On a constant currency basis total services revenue was $7 1 million.

For the full year 2023, total services revenues were $24 1 million compared with $24 4 million in the prior year period.

On a constant currency basis full year 2023 total services revenues were $25 6 million increase in services revenues on a constant currency basis, primarily due to the increase in change request enhancements and reimbursable costs.

Total cost of revenue was 9 million for the fourth quarter compared to $8 7 million in the quarter and fiscal year 2022 on a constant currency basis total cost of revenues was $11 6 million.

For the full year 2023 total classes revenues was $35 5 million compared to $32 5 million in the full year 2022.

On a constant currency basis total cost of revenues was $45 5 million.

Gross profit for the fourth quarter of fiscal 2023 was $4 8 million or 35% of net revenues consistent with $4 8 million or 35, 6% of net revenues in the prior year period.

On a constant currency basis gross profit was $2 4 million.

For the full year 2023, gross profit was $16 9 million or 32, 3% of net revenues compared to $22 7 million or 41, 5% of net revenues for the full year 2022.

On a constant currency basis gross profit was $9 2 million. The decrease in full year gross profit is primarily primarily related to a combination of decreased net revenues and increases in cost of revenues.

Operating expenses for the fourth quarter was seven 7 million or 56% of sales compared to $6 4 million or 47% of sales in the same period last year.

On a constant currency basis operating expense for the fourth quarter with $9 million or 64% of sales.

Full year 2023, operating expenses were $25 7 million or 49% of sales compared to $24 8 million or 42, 3% itself and the full year 2022.

On a constant currency basis operating expenses were $30 4 million or 55, 7% of sales.

Turning to our profitability metrics are GAAP net loss attributable to net so for the fourth quarter of fiscal 2023 totaled $5 million.

Lots of 45 cents per diluted share compared with a GAAP net loss of $2 2 million or a loss of 19 cents per diluted share in the fourth quarter of last year.

On a constant currency basis, our net loss attributable to net sales totaled $7 8 million or 69 cents per diluted share.

GAAP net loss GAAP loss attributable to net so for the full year ended June 32023 was $5 2 million.

So 46 cents per diluted share compared to a loss of 851000 or eight cents per diluted share in the prior year period.

On a constant currency basis net losses attributable to net so it was $12 2 million or a dollar nine per diluted share.

As always it's important to point out that included in our net loss. This quarter included a loss of 610000 on foreign currency exchange transactions compared to a gain of approximately $1 6 million in the fourth quarter of last year.

Operator: Good morning. Welcome to NetSol Tech Knowledge, fourth quarter near end 2023 earnings conference call. On the call today are Najeeb Ghauri, Chairman and Chief Executive Officer, Roger Almond, Chief Financial Officer, Naeem Ghauri, Chairman and President, and Patti McGlasson, General Counsel.

On a constant currency basis, we realized a loss of $1 2 million in foreign currency exchange transactions.

For the full year 2023, our net loss included a $6 $7 million gain on foreign currency exchange transactions compared to a $4 $3 million gain in the full year 2022.

Patti McGlasson: I would now like to turn the call over to Patti McGlasson, who will provide the necessary questions regarding the forward-looking statements made by management during this call. Patti, please proceed.

On a constant currency basis, we realized a gain of $9 4 million.

Patti McGlasson: Good morning, everyone, and thank you for joining us. Following a review of the company's business highlights and financial results, we will open the call for questions.

Because we operate in several geographical regions a significant portion of our business is conducted in currencies other than the U S. Dollar a decrease in the value of the U S dollar compared to foreign currency exchange rates generally has the effect of increasing our revenues, but it also increases our expenses denominated in currencies other than the U S dollar.

Patti McGlasson: I'll now provide the necessary cautions regarding the forward-looking statements made by management during this call. Please note that all the information discussed on today's call is covered under the safe harbor provisions of the Private Security's litigation reform act. The company's discussion may include forward-looking statements reflecting management's current forecast of certain aspects of the company's future, and our actual results could differ materially from those stated or implied. These forward-looking statements are qualified by the cautionary statements contained in NetSol's press releases and SEC filings, including our annual report on Form 10K and quarterly report on Form 10Q.

Similarly, as the U S dollar gained strength relative to foreign currency exchange rates.

Tends to reduce our revenues, but it also reduces our expenses denominated in currencies other than the U S dollar.

Moving to our non-GAAP metrics non-GAAP adjusted EBITDA for the fourth quarter of fiscal 2023 was a loss of $4 2 million or 37 cents per diluted share compared with non-GAAP adjusted EBITDA loss of one 4 million or 12 cents per diluted share in the fourth quarter of last year.

Patti McGlasson: I would also like to point out that we will be discussing certain non-gap measures. The press release issued earlier today contains a reconciliation of these non-gap financial results to their most comparable gap measures.

non-GAAP adjusted EBITDA for the full year ended June 32023 was a loss of $2 3 million compared to an adjusted EBITDA of $1 8 million for the full year ended June 32022.

Patti McGlasson: Finally, I would like to remind everyone that this call will be recorded and made available for replay at www.netSolTech.com and via link available in today's press release.

Please see the reconciliation schedules contained in our earnings release for our revised calculations of adjusted EBITDA for the quarters and years ended June 32023 and 2022.

Patti McGlasson: Now I'd like to turn the call over to Najeeb. Najeeb?

Najeeb Ghauri: Thank you, Patti, and good morning, everyone. From a financial perspective, the fourth quarter came in below our expectations. That said, I'm proud of the progress we made in the year, and specifically the fourth quarter on the three core drivers of our growth plan. Number one, transition to SaaS or software in the service model and developing products that enhance the strategy. Two, our cost reduction across our company and the third expansion into the North American market in the U.S, especially.

Turning to our balance sheet at quarter end, we had cash and cash equivalents of approximately $15 5 million or approximately $1 38 per diluted common share total net stockholders equity at June 32023 was $36 8 million or $3.24 per share.

That concludes my prepared remarks, I'll now turn the call back over to new Jeep Mcgee.

Thank you Roger.

As I said before we're not satisfied with our current results.

And we believe that we have a plan and the pieces.

Najeeb Ghauri: Now let's drill down on each of these. Beginning nearly two years ago, NetSol embarked on a journey to transition our license income to recurring subscription or SaaS based revenue for all enterprise resource planning and other solutions within the automotive asset and mobility markets. We are seeing positive sequential over year over year growth in our subscription and support revenues. And I'm especially pleased to report that our full year subscription and support revenues exceeding our stated targets of 25 million dollars.

And place to change.

That for a long term.

Our transition to SaaS based revenues continues to be underway.

And as more and more customers either transition to SaaS based pricing or enter into the news SaaS based pricing contracts.

We will begin to see the impact of consistent recurring revenues and our financial results.

Moreover, our comprehensive in a highly customizable product portfolio allows us to meet the needs of virtually any customer.

It's established market presence is an issue in Europe , and with exciting new opportunities in North America. We believe that we are positioned for long term sustainable growth and positive results.

Najeeb Ghauri: Currently, a large portion of our revenue is recurring and our mobility solutions are now 100% SaaS or cloud based. We continue to seek interest from existing clients in converting SaaS pricing and with new clients buying SaaS and cloud based solutions, mainly are a flagship NFS Ascent product, our recurring subscription and support revenues are positioned for continued growth. Ascent is our flagship SaaS-based enterprise solution designed for end-to-end management of the entire contract-like cycle.

But the pieces coming into play as we are now focusing our time energy and patients on the execution of this strategy.

But that.

I don't know like to open the call for questions operator.

Thank you.

At this time, we'll be conducting a question and answer session if.

If you'd like to ask a question at this time. Please press star one from your telephone keypad.

A confirmation tone will indicate your line is in the question queue.

Najeeb Ghauri: Our customers deploy the solution efficiently, manage what are often numerous complex and different differing leasing contracts. Augmenting our ascent solution is our apex-now marketplace of API-first application that provide essential customizability, application-like flex, our API-based calculation engine, and Hubex, which allows for the efficient and streamlined integration of API-solu-application with the developer-friendly plug-and-play system. In the fourth quarter, we implemented flex with a major business finance provider in the United Kingdom to offer an online quotation tool providing fast and accurate payments and rates for their customers.

You May press Star two if you like to withdraw your question from the queue.

For Christmas or your speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Well known please while we poll for questions. Once again that is star one thank you.

Thank you. Our first question is from the line of Karen Lewis with Yellow plate for capital. Please proceed with your question.

Hey, guys. Thanks for taking the question you spoke with the effects now marketplace and specifically the flex in cubic's applications.

I'm wondering if you could elaborate on smart place in how these applications tied to your other product offerings, such as NFS ascent.

Najeeb Ghauri: We anticipate the adoption of these applications by both new and existing customers as we continue to expand the apex-now marketplace and increase the customizability of our products to meet the specific needs of virtually any customer. Our auto solution continues to see traction in the US as well, specifically, with its adoption in many anywhere dealerships, a subsidiary of BMW Group throughout the region. Today, auto is live in 60 many anywhere dealerships across 36 US states.

I don't know at least we're experiencing technical difficulties will resume momentarily.

Please proceed with your question.

Hey, guys. So.

Just wondering about the apex.

Apex now marketplace, you, specifically mentioned the flex and she picks applications.

Could you elaborate on that marketplace and how its applications tying to your other product offerings, such as NFS ascent.

Yeah.

Najeeb Ghauri: We also strengthening our partnership with Amazon Web Services or AWS through numerous recognitions and accredations that establish Nestle as a premier partner committed to designing, building, and maintaining secure, reliable, and efficient cloud architectures which relate specifically to our SaaS offerings. As anticipated, our transition to a SaaS-based model has had a short-term impact on our cash flows, but the nature of SaaS pricing is such that we will be recognizing more consistent, predictable, higher margin revenues as the revenue mix evolves.

Pulmonary jumping I'll answer that.

Are you your question is whether.

Our ethics marketplace ethics marketplace can also interfaced.

Interface into other products other than the scent.

Yeah, partially into some just some general color on the marketplace around those applications as well.

So okay. So the marketplace is.

Najeeb Ghauri: Over time, we expect our cash flows to return to an eventually exceed historic level as we continue to drive this transition, and we believe that over the next 18 months, a consistently growing percentage of our revenue should be recurring. Another impact of the SaaS-based model is that it requires significantly less manpower to provide the level of support for our technology that the traditional licensing model has historically demanded. As a result, in the second quarter of 2023, we began implementing company-wide cost reduction initiatives that includes the reduction of our overall head count by what we expect to be approximately 300 after a period of sevens required local laws that extend into the first and second quarter of the fiscal 2024. We expect further cost reduction allowing us to better allocate capital to growing higher margin parts of our business and drive to profitability.

It will to.

Take other products, which are not basketball products, because that's become part of an ecosystem and because it's all API first.

They're all compatible.

So it is a client who wants to buy a product from the marketplace, which is not ours, we can't actually.

And make that happen, but we we take.

Take a piece of the revenue from.

From whoever owns the products so it becomes a little bit like an app store.

Got it got it. Thank you that's all for me.

Okay.

Thank you.

Minders ask a question today, you May press star one at this time.

We will pause a moment to assemble the queue. Thank you.

Once again as a reminder, you May press star one to ask a question at this time.

Thank you.

At this time I will now turn the call back to Roger Almond for closing remarks.

Thank you for joining us today, I, especially want to thank our investors for their continued support our loyal customers and our dedicated employees for their ongoing contributions we look forward to updating you on our next call. Thank you.

Thank you.

Thank you for joining us for todays that's all fourth quarter and year end 2023 earnings call. You may now disconnect at this time.

Najeeb Ghauri: Lastly, we remain intently focused on expanding into the North American markets. We have established a facility in Austin, Texas, a bird-yawning technology hub in addition to our corporate headquarters in Encino, California. And we are taking the time to staff the office, the most qualified individuals to help us efficiently grow our business in the United States. Our established markets remain strong. NetSol is a leading provider of global decent software solutions and Asia-Pacific region.

Najeeb Ghauri: And we have a presence throughout Europe with room for additional growth. These established presences across key geographic regions provide us with a strong industry reputation. We are providing a proven portfolio of contracts with tier one businesses and a pipeline that continues to be robust with several potential licensing deals in the works.

Najeeb Ghauri: Despite this progress, I want to be clear that we are not satisfied with our results, but we are confident that the pieces are in place to generate long-term growth and positive outcomes for our business. Based on our healthy pipeline of opportunities, we are targeting $61 to $63 million in revenue with fiscal 2024. This would be an approximate 16 to 20% growth revenue growth in this fiscal year.

Roger Almond: With that, I will now turn the call over to Roger Armand or CFO to go our fourth quarter and full-year financial results, Roger. Thanks, Najib. Our total net revenues for the fourth quarter of fiscal 2023 were 13.8 million compared with 13.5 million in the prior year period. On a constant currency basis, net revenues were 14 million.

Roger Almond: For the full year 2023, total net revenues were 52.4 million compared to 57.3 million in the full year 2022. On a constant currency basis, total net revenues were 54.7 million. Licensed fees were approximately 21,000 compared with 952,000 in the prior year period and the same on a constant currency basis. For the full year 2023, licensed fees were 2.3 million compared with 4.5 million in the full year 2022. On a constant currency basis, licensed fees were 2.4 million.

Roger Almond: The decrease in license fees is primarily related to a decrease in licensing contracts compared with the prior year period. Recurring revenue or subscription and support revenues for the fourth quarter was $6.8 million compared with $6.1 million in the prior year period, on a constant currency basis recurring revenues were $6.9 million. For the four year 2023 recurring revenues were $2.26 million compared to $28.3 million in the four year 2022, four year 2023 recurring revenue on a constant currency basis was $26.7 million.

Roger Almond: The decrease in the four year recurring revenue is related to a one-time catch-up in support revenue of approximately $3.5 million in fiscal year 2022. As the Geeb mentioned, we anticipate these fees gradually increase as we implement both our NFS legacy products and NFS descent. Total services revenue for the fourth quarter were $7 million compared with $6.5 million in the prior year period, on a constant currency basis total services revenue were $7.1 million. For the four year 2023 total services revenues were $24.1 million compared to $24.4 million in the prior year period.

Roger Almond: On a constant currency basis, four year 2023 total services revenues were $25.6 million. The increase in services revenues on a constant currency basis is primarily due to the increase in change requests, enhancements, and reimbursable costs. Total cost of revenue was $9 million for the fourth quarter compared to $8.7 million in the quarter of fiscal year 2022.

Roger Almond: On a constant currency basis total cost of revenues was $11.6 million. For the four year 2023 total cost of revenues was $35.5 million compared to $32.5 million in the four year 2022. On a constant currency basis total cost of revenues was $45.5 million. Gross profit for the fourth quarter fiscal 2023 was $4.8 million or $35% of net revenues consistent with $4.8 million or $35.6% of net revenues in the prior year period.

Roger Almond: On a constant currency basis, gross profit was $2.4 million. For the four year 2023 gross profit was $16.9 million or $32.3% of net revenues compared to $22.7 million or $41.5% of net revenues for the four year 2022. On a constant currency basis, gross profit was $9.2 million.

Roger Almond: The decrease in four year gross profit is primarily related to a combination of decreased net revenues and increases in cost of revenues. Operating expenses for the fourth quarter was $7.7 million or $56% of sales compared to $6.4 million or $47% of sales in the same period last year.

Roger Almond: On a constant currency basis, operating expense for the fourth quarter was $9 million or $64% of sales. 4-year 2022 operating expenses with 25.7 million or 49% of sales compared to 24.8 million or 43.3% of sales in 4-year 2022.

Roger Almond: On a constant currency basis, operating expenses with 30.4 million or 55.7% of sales.

Roger Almond: Turniture profitability metrics are gap net loss attributable to net loss of 4.5 million or a loss of 45 cents per diluted share compared with a gap net loss of 2.2 million or a loss of 19 cents per diluted share in the 4.4 last year. On a constant currency basis, our net loss attributable to net total of 7.8 million or 69 cents per diluted share.

Roger Almond: Gap net loss attributable to net sold for the full year in the June 30, 2023 was 5.2 million or a loss of 46 cents per diluted share compared to a loss of 851,000 or 8 cents per diluted share in a prior year period. On a constant currency basis, net loss attributable to net sold was 12.2 million or a dollar nine per diluted share.

Roger Almond: As always, it's important to point out that included in our net loss this quarter included a loss of 610,000 unformed currency exchange transactions compared to a gain of approximately 1.6 million in the fourth quarter of last year. On a constant currency basis, we realized a loss of 1.2 million unformed currency exchange transactions.

Roger Almond: For the full year 2023, our net loss included a $6.7 million gain unformed currency exchange transactions compared to a $4.3 million gain in the full year 2022. On a constant currency basis, we realized a gain of 9.4 million because we operate in several geographical regions, a significant portion of our business is conducted in curfews other than the US dollar. A decrease in the value of the US dollar compared to foreign currency exchange rates generally has effective increase in revenues but it also increases our expenses, denominated in currencies other than the US dollar.

Roger Almond: Similarly, as the US dollar gains strength relative to foreign currency exchange rates, it tends to reduce our revenues but it also reduces our expenses denominated in currencies other than the US dollar.

Roger Almond: Moving to our non-gap metrics, non-gap-adjusted EBITDA for the fourth quarter fiscal 2023 was a loss of 4.2 million or 37 cents per diluted share compared with non-gap-adjusted EBITDA loss of 1.4 million or 12 cents per diluted share in the fourth quarter of last year. Non-gap-adjusted EBITDA for the full year ended June 32, 2023 was a loss of 2.3 million compared to an adjusted EBITDA of 1.8 million for the full year ended June 32, 2022.

Roger Almond: We see the reconciliation schedules contained in our earnings release for our revised calculations of adjusted EBITDA for the quarters and years ended June 32, 2023 and 2022. Turning to our balance sheet, at quarter-and, we had cash and cash equivalent of approximately 15.5 million or approximately $1.38 per diluted cow in share. Total NetSol stockholders equity at June 32, 2023 was $36.8 million, but $3.24 per share.

Najeeb Ghauri: That concludes my preferred in March. I'll now turn the call back over to Najeeb. Najeeb.

Najeeb Ghauri: Thank you, Roger. As I said before, we are not satisfied with our current results, and we believe that we have a plan and a piece and place to change that for a long term. Our transition to SaaS-based revenues continues to be underway, and as more and more customers either transition to SaaS-based pricing or enter into the new SaaS-based pricing contracts, we will begin to see the impact of consistent recurring revenues on our financial results. Moreover, our comprehensive and highly customizable product portfolio allows us to meet the needs of virtually any customer.

Najeeb Ghauri: With established market presences in Asia and Europe, and with exciting new opportunities in North America, we believe that we are positioned for long-term, sustainable growth, and positive results. With the pieces coming to place, we are now focusing our time, energy, and patience on the execution of this strategy.

Operator: With that, I will now like to open the call for questions, operator. Thank you. At the time we'll be conducting a question and answer session. If you'd like to ask a question at this time, please press star one from your telephone keypad, and a confirmation tone to indicate your line is in the question queue. You may press star two if you'd like to withdraw your question from the queue. From distance to use figure equipment, it may be necessary to pick up your handset before pressing the star keys. Will Moan please, will we pull for questions? Once again, that is star one. Thank you.

Operator: Our first question is from the line of care in Lewis with Yellow Piper Capital. Please receive a few questions.

Operator: Hey guys, thanks for taking the question. You spoke about the apex now marketplace, and specifically the flex and QBX applications. If you get elaborate on this marketplace and how this application is tied to your other product offerings, such as NFS system.

Operator: One more please, we're experiencing technical difficulties, we'll resume momentarily. Please receive a few questions. Hey guys, so I'm just wondering about the apex now marketplace, specifically mentioned the flex and QBX applications. Could you elaborate on that marketplace and how these applications tie into your other product offerings, such as NFS system?

Operator: I'm going to jump in. I'll answer that. Are you, are you, your questions, whether our ethics marketplace, ethics of marketplace can also interface into other products, other than the scent? Yeah, partially interesting, some, some general call around the marketplace around those applications as well. Yeah, so okay, so the marketplace is able to take other products, which are not natural products, because they've become part of an ecosystem, and because it's all API first, they're all compatible.

Operator: In fact, if there's a client who wants to buy a product from the market business, which is not ours, we can actually make that happen, but we take a piece of the revenue from whoever owns the product, so it becomes a little bit like an app store.

Operator: Got it, got it, thank you.

Operator: That's all from me.

Operator: Okay.

Operator: Thank you.

Operator: As a reminder, if I ask a question to you, we press star one at this time, we'll pause the moment to assemble with you.

Operator: Thank you.

Operator: I'm going to ask a question at this time. Thank you.

Roger Almond: At this time, I'll now turn the call back to Roger Almond for closing remarks. Thank you for joining us today. I especially want to thank our investors for their continued support, our loyal customers, and our dedicated employees for their ongoing contributions.

Operator: We look forward to updating you on our next call. Thank you.

Operator: Thank you for joining us for today's Netsaw 4th quarter and your end 2023 earnings call. You may now disconnect.