Q1 2025 Aeries Technology Inc Earnings Call
Operator: Greetings and welcome to the Area Technology Business Update Call. At this time, all participants are in a listen-only mode. If anyone should acquire operator assistance during the conference, please press star zero on your telephone keypad.
Operator: Greetings and welcome to the AERIES Technology Business Update Call. At this time, all participants are in a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this call is being recorded.
Greetings and welcome to the Aries technology business update call at this time all participants are in a listen only mode. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.
Operator: As a reminder, this call is being recorded.
Speaker Change: As a reminder, this call is being recorded I would now like to turn the call over to Ryan Gardella Investor Relations Ryan you may begin.
Ryan Gardella: I would now like to turn the call over to Ryan Gardella, Investor Relations.
Ryan Gardella: I would now like to turn the call over to Ryan Gardella, Investor Relations.
Ryan Gardella: Ryan, you may begin. Thank you.
Ryan Gardella: Ryan, you may begin. Thank you.
Ryan Gardella: Thank you good afternoon, good morning, and welcome to Aries technology supposed to stay cool.
Sudhir Panikassery: Good afternoon, good morning, and welcome to Aeries Technologies Business Update Call. Joining us from the company is Chief Executive Officer and Co-Founder of Aeries, Sudhir Panikassery, Chief Financial Officer, Rajeev Nair, and Chief Investment Officer, Today's call will consist of commentary around the company's fiscal 2024 and first fiscal quarter 2025.
Dier: Good afternoon. Good morning and welcome to Aries of Technology's business update call. Joining us for the company is Chief Executive Officer and co-founder of Aries, who's your fan cast rate, Chief Financial Officer Rajiv Nayar, and Chief Investment Officer Daniel Wett. Today's call looking just to commentary around the company's fiscal 2024 and first fiscal quarter of 2025 results.
Speaker Change: Joining us for the company as Chief Executive Officer, and co founder of Ares.
Speaker Change: Patrick <unk>, Chief Financial Officer about she's not here.
Speaker Change: And Chief investment Officer takeaway today's call up with just a commentary around the company's fiscal 2024 in the first fiscal quarter.
Ryan Gardella: As a reminder, this conference call contains statements about future events and expectations, which are forward-looking and Statements on this column may be deemed as forward-looking and actual results may differ materially. Words such as believe, estimate, and expect, as well as similar expressions, are intended to identify forward-looking results. for a full list of risks inherent to the business and the company.
Dier: As a reminder, this graph contains statements of future events and expectations, which are power-looking in nature. Statements on this call are deep themes, which are forward-looking and action-results and different material. For such as believe, estimate, and expect, as far as similar expressions are intended to identify power-looking statements.
Speaker Change: As a reminder, this conference call contains statements about future events and expectations, which are forward.
Speaker Change: Statements on this call may be deemed as forward looking and actual results for sure. It differ materially word such as believes estimate can expect as well as similar expressions are intended to identify forward looking statements for a full list of risks inherent to the business. The company does it for the company's SEC filings and earnings press release.
Dier: For a full list of risks and herents for business and a company's vision for the company's SEC filings and earnings press release, Aries undertakes no obligation to revise or update any for the statement to refer to venture circumstances that occur after the call.
Ryan Gardella: Please refer to the company's SEC filings and earnings. undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances that occur after.
Speaker Change: <unk> undertakes no obligation to revise or update any forward looking statements to reflect circumstances is that correct.
Dier: Today's call and webcast will include non-GAAP financial measures from the meeting of SEC regulatory. These non-GAAP financial measures should be considered in addition to, none of the substitute for, or in isolation from GAAP measures. One required reconciliation is called non-GAAP financial measures to the most directly comparable financial measures calculated in presents and accordance with GAAP. It can be found in the company's earnings releases, filings, or other materials available on the company's website.
Ryan Gardella: Today's call and webcast will include non-GAAP financial measures from the meeting of SEC Regulation G. These non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, GAAP measures. When required, reconciliations of all non-GAAP financial measures to the most directly comparable financial measures calculated in presentence in accordance with GAAP can be found in the company's earnings releases, filings, or other materials available on the company's website.
Speaker Change: Today's call and webcast will include non-GAAP financial measures from the meeting if that's your regulation G. non-GAAP financial measures should be considered in addition to not as a substitute for or in isolation from GAAP measures when required reconciliations of all non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP can be found the companys.
Speaker Change: These releases filings or other materials available on the company's website without trying to call over to suit here sit here.
Sudhir Panikassery: With that, I'd like to turn the call over to Sudhir.
Dier: With that, I'd like to turn the call over to Dier. Dier? Hi. Thank you, operator. Thank you, everyone, for joining us.
Sudhir Panikassery: Sudhir? Hi. Thank you, operator.
Speaker Change: Hi, Thank you all and thank you everyone for joining us.
Sudhir Panikassery: Thank you, everyone, for joining us. Today, I will start by walking through some high-level first fiscal quarter. the actions we are taking to better. I will then go over some highlights. for handing it over to Daniel. and an additional color on our For the first fiscal quarter of 2025, our revenues were US dollars 16.7 million, up 2% from the year prior. where a gross profit was US dollars 4 million resulting in a gross margin. our adjusted editor for the first Our results in the first fiscal quarter reflect the impact of investments we are making in ongoing growth, which we believe will benefit the economy.
Dier: Today, I will start by walking through some high-level first fiscal quarter results and the actions we are taking to better position Aries for the long-term success. I will then go over some highlights from our fiscal year 2020-24 results before handing it over to Daniel for the discussion of our new client wins and additional color on our operational initiatives. For the first fiscal quarter of 2025, for the vineyards where US$16.7 million, up 2% from the year prior period, where a gross profit was US$4 million resulting in a gross margin of 24%. Our adjusted habitat for the first fiscal quarter was US$400,000 versus US$2.9 billion in the year prior.
Speaker Change: I will start by walking through some high level first fiscal quarter results.
Speaker Change: And the actions we have taken to pick up a position it is towards the long term success.
Speaker Change: I will then go over some highlights from our fiscal year.
Speaker Change: Photo.
Speaker Change: Before handing it over to Daniel for a discussion of our new client wins and additional color on our operational initiatives.
Speaker Change: For the first fiscal quarter of could you quantify what's driving yesterday.
Speaker Change: On the $16 7 million up 2% from the prior period.
Speaker Change: Gross profit was.
Speaker Change: That's it for me.
Speaker Change: Gross margin of 24%.
Speaker Change: Our adjusted EBITDA for the first fiscal quarter was just under 400000 versus 2019.
Speaker Change: Yes.
Dier: Our results in the first fiscal quarter to reflect the impact of investments we are making in ongoing growth, which we believe will benefit Aries in the long term. While we expect the next few quarters to reflect the focus on our strategies, we are confident regarding the resultant business growth and the cost of realigning to an optimum level required for sustaining agro-poreate ecosystem. We are in parallel focused on accelerating our return to high profitability, with a number of operational initiatives completed and underway that will achieve that goal. On the revenue side, we saw the completion of certain projects ahead of schedule and the start of certain new projects pushed out slightly, which also contributed to our lower gross margins due to the nature and profile of those projects.
Speaker Change: Our results in the first fiscal quarter reflect the impact of investments, we are making and ongoing.
Speaker Change: Which we believe will benefit the long term.
Sudhir Panikassery: While we expect the next few quarters to reflect the focus on our strategies, we are confident regarding the future. We are in parallel, focused on accelerating our return to high profit. with a number of operations. and Andhra Pradesh. On the revenue side, we saw the completion of certain projects ahead of schedule. However, our revenue base is robust. and we have great confidence in our. We believe that this year-over-year comparison... We have also been aggressively pursuing the portfolio companies of private equity firms. As a reminder, our primary growth vector remains expanding. We already count some of the large...
Speaker Change: We expect the next few quarters to reflect the focus on our strategies, we are confident regarding certain businesses.
Speaker Change: And the cost forget lining to an optimum quiet for sustaining that growth.
Speaker Change: Yeah in Babylon focused on accelerating to high profitability with a number of operational initiatives completed and underway.
Speaker Change: Cork.
Speaker Change: On the revenue side, we saw the completion of certain projects ahead of schedule and they start off starting new projects pushed out slightly which also contributed.
Speaker Change: Gross margins.
Speaker Change: Children for fight off those projects. However, our revenue base is robust and consistent and we have great confidence in our new Apis.
Dier: However, our revenue base is robust. and consistent, and we have great confidence in our new business pipeline for the remainder of the fiscal year and beyond. We believe that this year or year of our year, comparison will be our weakest of the fiscal year. We have also been aggressively pursuing the portfolio companies of private equity firms we have a relationship with, as well as the clients of several consulting companies. As a reminder, our primary growth vector remains expanding into the portfolio companies of private equity firms. And we order account some of the largest firms in the United States as clients.
Speaker Change: The pipeline for the remainder of the fiscal year.
Speaker Change: And Bill do you believe that this yes, you've got a body of comparison because of the fiscal year.
Speaker Change: I've also been aggressively pursuing the portfolio company. So everything we do from we have a relationship with <unk> as well as the clients of several consulting companies.
Speaker Change: As a reminder, our family growth sector that means expanding into the portfolio, so private equity firms and.
Speaker Change: And we all did he's calling some of the largest firms in the United States that's great.
Dier: Moving on to our operating expenses, as I said earlier, we will realign cost to an optimum level that enhances profitability by laying the foundations for positioning the company for sustained growth in the future. This will be an ongoing effort properly calibrated to ensure that, in a planned manner, we will achieve profitability as we advance further in our growth strategies both organically and in organically as our opportunities start converting. The effect of these savings will be seen in the coming quarters in a progressive manner.
Sudhir Panikassery: Moving on to our operating expenses, as I said earlier. We will realign cost to an optimum level that enhances profitability by leaps and bounds. We will ensure that in a planned manner we will achieve profitability as we advance forward. both organically and inorganically as a part.
Moving onto our operating expenses as I sat down together.
Speaker Change: Even if we got land costs dry docking months level and answers profitability by laying the foundations are positioning the company for sustained growth in the future.
Speaker Change: This will be an ongoing effort properly calibrated brand showed that in a planned manner, we would like to your profitability as we advanced further in alcoholic strategies, both organically and inorganically as opposed to introduce Doug.
Speaker Change: Okay.
Speaker Change: The effect of these savings will be seen in the coming quarters to that progress isn't that enough.
Sudhir Panikassery: coming court Turning to our fiscal year 2024 financial year. with our end to the fiscal year. revenue of 72.5 million US dollars. 77% growth year-over-year and driven primarily by new clients on the Aeries outsourcing platform. Adjusted EBITDA was U.S. $12.95.
Dier: Turning to our fiscal year 2024 financial results, I am pleased with our end to the fiscal year, including revenue of $72.5 million US dollars, representing 37 percent growth year-over-year, and we went primarily by new clients on the Ares outsourcing platform, as well as additional spend from existing clients. Adjusted Avita was US dollars 9.2 million, which was in line with our expectations. As I said, we are now and for the next few quarters in our next stage of execution of growth strategies and corresponding investments in time, efforts, and costs to achieve our objectives. North America remains our strongest and target market, representing approximately 79 percent of our revenue in the fiscal year and 93 percent in the first fiscal quarter.
Speaker Change: Turning to our fiscal 'twenty financial results I'm pleased with our end to the fiscal year, including revenue of $75 million.
Speaker Change: This is something that is 7% growth you got to let it go and they've been primarily by new clients on the 80 sucks hosting platform.
Speaker Change: As well as additional spend from existing clients.
Speaker Change: Every time I was.
Speaker Change: Yes to all those $92 million, we trust in bank without expectation as I said, we are now and for the next few quarters and our next stage of execution of growth strategies and corresponding investments in airports on cost threat to you about our objectives.
Sudhir Panikassery: Chowdhury. As I said, we are now, and for the next few quarters, in our next stage of execution of growth strategies and corresponding investments in time, efforts, and cost. North America remains a strong country. and Target Market, representing approximately 79% of our revenue. This is a purposeful shift. As I noted on our last call, Mexico has been a particular area of interest to us.
Speaker Change: North America remains our strongest.
I'm trying to get to market, representing approximately 79% of revenue in the fiscal year and 93% in the first fiscal quarter.
Dier: This is a purposeful shift of focus towards the United States and away from a pack to drive the majority of our future growth.
Speaker Change: This is a purposeful shift our focus towards the United States and away from a back to back a majority of our future growth.
Dier: As I noted on our last call, Mexico has been a particular area of focus for Ares, and in September we announced the opening of our second office in Mexico located in La Colonia, America, and the area of Garlanda. This new office will support a diverse range of roles for our clients, including customer service representatives, implementation specialists, training specialists, and other technology positions, aimed at enhancing operational efficiency and adding business value to our clients. Near-shoring remains a powerful trend in the IT services space as companies aim to balance cost efficiency with operational agility, proximity, and cultural alignment.
Speaker Change: As I noted on our last call Mexico has been a particular area of focus for Aries.
Sudhir Panikassery: In September, we announced the opening of our second office. La Colonia Americana area of Guadalajara. for our clients. Customer Service Representatives, Implementation Specialists, Training Specialists, and other Nearshoring remains a powerful trend. We are proud to continue.
Speaker Change: And in September we announced the opening of a second office in Mexico located in.
Speaker Change: Colonial American nobody else has got a lot of it.
Speaker Change: Cause near office and support a diverse range of products for our clients, including customer service Representatives implementation, especially screening, especially if there's another technology positions.
Speaker Change: We aimed at enhancing operational efficiency and adding value to all flash.
Speaker Change: Shouting remains a powerful trend in the services space as companies aim to balance cost efficiency, but it's operational in nature, They destock significant cultural alignment.
Dier: We are proud to continue investing in Mexico. Support on North American clients and believe this will give Ares a distinct advantage over our competitors. Expansion of our Latin American operations also supports the increasingly popular well-shoring strategy, which combines near-shoring in locations like Mexico with maintaining centers of excellence in India, enabling us to provide great value for and coverage, while significantly reducing costs. Our expansion in Mexico has already been incredible, going from 10 staff members in the country to over 150 with an 18 months. We similarly continue to explore other geographies with focus on sustainable pools of talent and business expansion opportunities.
Speaker Change: We're proud to continue investing in Mexico.
Speaker Change: Our bolt on North American clients and believe this will give the eighty's a distinct advantage over our competitors.
Sudhir Panikassery: photographer. Expansion of our Latin American operations also supports the increasingly popular... Our expansion in Mexico has already been incredible, going from and staff members. continue to explore other geographies.
Speaker Change: Expansion of our Latin American operations also supports the increasingly popular drilled shutting strategy, which combines yes shoring locations like Mexico.
Speaker Change: Maintaining centers of excellence in India, enabling us to program set.
Speaker Change: Got it.
Speaker Change: Significantly reducing cost.
Speaker Change: Our expansion in Mexico has already been corrected going.
Speaker Change: Bringing from Teng.
Speaker Change: Staff members in the country to a bunch of forgive me.
Speaker Change: We similarly continue to explore other geographies, but focused on sustainable pools of talent and business expansion opportunities.
Daniel Wett: And with that, I would like to turn the call over to Daniel Web, Chief Investment Officer, to discuss some details of new plans, deployments, as well as some more details on our strategic initiatives. Daniel. Thanks to there, and thanks again to everyone for being on the call.
Daniel Webb: And with that, I would like to turn the call over to Daniel Webb, Chief Investment Officer, to discuss some...
Speaker Change: And with that I would like to turn the call over to Daniel.
Speaker Change: For investment officer to discuss some detailed southern new client deployments I saw there's some more detail on our strategic initiatives Daniel.
Daniel Webb: Thanks, Sudhir, and thanks again to everyone for being on the call. Today, I want to share two of our client wins that contributed to our growth in the year, as well as some additional color on strategy and operational initiatives. First, as we announced in June, we have partnered with a Clear Lake Portfolio company, Victory Live, a global technology platform focused on sports and entertainment, event management, data, and ticketing software solutions. to establish an innovative global capability center in Hyderabad, India. This GCC will focus on building a team of data analytics and integration engineers, further solidifying our position as a provider of experienced, trained team members with skills that go beyond the average pool of talent at traditional IT service providers.
Daniel: Thanks, Sylvia and thanks, again to everyone for being on the call today.
Daniel Wett: Today I want to share two of our client wins that contribute to our growth in the year, as well as some additional color on strategy and operational initiatives. First, as we announced in June, we have partnered with a Clear Lake portfolio company, Victory Live, a global technology platform focused on sports and entertainment, event management, data, and ticketing software solutions to establish an innovative global capability center in Hyderabad, India. This TCC will focus on building a team of data analytics and integration engineers, further solidifying our position as a provider of experienced trained team members, the skills that go beyond the average pool of talent at traditional IT service providers.
Daniel: I want to share two of our client wins that contributed to our growth in the air as well as some additional color on strategy and operational initiatives first as we announced in June we have partnered with a clear Lake portfolio Company victory life, Our global technology platform focused on sports and entertainment event management data and ticketing software solutions.
Daniel: To establish an innovative global capability center in Hyderabad, India. That's G. C. C will focus on building a team of data analytics and integration engineers further solidifying our position as a provider of experienced train team members. The skills that go beyond the average pool of talent at traditional service providers next.
Daniel Wett: Next, in August, we announced that we had been selected by Dilligent, a leading GRC SaaS company, and also a Clear Lake portfolio company, to establish and grow their presence in Guadalajara, Mexico. This new operation will have the dedicated team focused on customer success, highlighting our shared commitment to enhancing customer experience and operational agility. By leveraging our established presence in Mexico, we're enabling Dilligent to respond more swiftly and flexibly to market changes and customer needs. This partnership is a testament to our ability to drive transformation and add substantial business value through local talent and technological advancements.
Daniel Webb: Next, in August, we announced that we had been selected by Diligent, a leading GRC SaaS company, and also a ClearLake portfolio company to establish and grow their presence in Guadalajara, Mexico. This new operation will house a dedicated team focused on customer success, highlighting our shared commitment to enhancing customer experience and operational agility. By leveraging our established presence in Mexico, we're enabling Diligent to respond more swiftly and flexibly to market changes and customer needs. This partnership is a testament to our ability to drive transformation and add substantial business value through local talent and technological advancements. We are dedicated to supporting and driving our clients' global growth by providing a range of services including professional advisory services and operations management services.
In August we announced that we had been selected by diligent Aleve D. G. I see a SaaS company and also a clear like portfolio company to establish and grow their presence in Guadalajara, Mexico. This new operation will have a dedicated team focused on customer success.
Lighting, our shared commitment to enhancing customer experience and operational agility.
Daniel: Leveraging our established presence in Mexico for enabling diligent to respond more quickly and flexibly to market changes in customer needs. This partnership is a testament to our ability to drive transformation and adds substantial business value through local talent and technological advancements.
Daniel Wett: We are dedicated to supporting our and driving our clients' global growth by providing a range of services, including professional advisory services and operations management services, to build and manage GCC's unsuitable and cost effective locations based on client business needs, with a focus towards digital enterprise and age implement. These GCC's are designed to act as seamless extensions of client organizations, providing access to top-tier resources. We believe this empowers our clients to remain competitive and nimble, to achieve their goals of enduring cost efficiencies, operational excellence, and value creation, without sacrificing functional control and flexibility.
Daniel: We are dedicated to supporting and driving our clients' global growth by providing a range of services, including professional advisory services and operations management services to build and manage gcc's and suitable and cost effective locations based on client business needs with a focus towards digital enterprise and H M O M.
Daniel Webb: to build and manage GCCs in suitable and cost-effective locations based on client business. with a focus towards digital enterprise and age. These GCCs are designed to act as seamless extensions of client organization, providing access to top-tier resources. We believe this empowers our clients to remain competitive and nimble, to achieve their goals of enduring cost efficiencies, operational excellence, and value creation, without sacrificing functional control and flexibility. As we've consistently highlighted in our earnings calls, our unique engagement model and focus on building long-term partnerships continue to drive our success. We're confident that these partnerships will contribute significantly to our revenue growth and further solidify our position as a global leader in professional services and technology consulting.
Daniel: These D. C seats are designed to act a seamless extension of client organization.
Daniel: Riding access to top tier resources, we believe this empowers our clients to remain competitive and nimble to achieve their goals are enduring cost efficiencies operational excellence and value creation without sacrificing functional control and flexibility.
Daniel Wett: As we've consistently highlighted in our earnings calls, our unique engagement model and focus on building long-term partnerships continue to drive our success. We're confident that these partnerships will contribute significantly to our revenue growth and further solidify our position as a global leader in the professional services and technology consulting. We've expanded our global capability centers strategically, ensuring business continuity and minimizing risks. This approach not only insulates our clients from regulatory and tax issues, but also provides the flexibility to scale operations efficiently, ensuring we meet evolving business needs.
Daniel: We've consistently highlighted in our earnings calls our unique engagement model and focus on building long term partnerships continued to drive our success. We're confident that these partnerships will contribute significantly to our revenue growth and further solidify our position as a global leader in the professional services and technology consulting.
Daniel Webb: We've expanded our global capability centers strategically, ensuring business continuity and minimizing risks. This approach not only insulates our clients from regulatory and tax issues, but also provides the flexibility to scale operations efficiently, ensuring we meet evolving business needs.
We expanded our global capabilities centers strategically ensuring business continuity and minimizing risks this approach not only insulates our clients from regulatory and tax issues, but also provides the flexibility to scale operations efficiently, ensuring we meet evolving business needs.
Daniel Webb: The importance of AI and digital transformation and driving future growth at Aeries cannot be overstated. We are actively integrating AI and advanced analytics into our service offerings, which has already begun to yield positive results. Our clients are increasingly turning to us for support in their AI and digital transformation journeys, recognizing the value we bring in terms of innovation and efficiency. as we continue to invest in AI and digital solutions. We anticipate further accelerating client acquisition and deeper engagements with existing teams. This in turn drives greater adoption of our digital transformation solutions, driving improved margins and higher value work to our clients.
Daniel Wett: The importance of AI and digital transformation and driving future growth in areas cannot be overstated. Very actively integrating AI and advanced analytics into our service offerings, which has already begun to yield positive results. Our clients are increasingly turning to us for support in their AI and digital transformation journeys. Recognizing the value we bring in terms of innovation and efficiency. As we continue to invest in AI and digital solutions, we anticipate further accelerating client acquisition and deeper engagements with existing teams. This, in turn, drives greater adoption of our digital transformation solutions, driving improved margins and higher value work to our clients.
Daniel: The importance of AI, and digital transformation and driving future growth areas cannot be overstated.
Daniel: Integrating AI and advanced analytics into our service offerings, which has already begun to yield positive results. Our clients are increasingly turning to us for support and their AI and digital transformation journeys recognizing the value we bring in terms of innovation and efficiency.
Daniel: As we continue to invest in AI and digital solutions, we anticipate further accelerating client acquisition and deeper engagements with existing teams. This in turn drives greater adoption of our digital transformation solutions, driving improved margins and higher value work to our clients.
Daniel Wett: We've also made strategic investments in talent and workforce management to support our AI initiative. By focusing on AI talent acquisition and training, we've built a team of skilled professionals across various roles, from data scientists to AI architects. This has allowed us to maintain a competitive edge while managing cost pressures in a tight labor market.
Daniel Webb: We've also made strategic investments in talent and workforce management for our AI initiative. By focusing on AI talent acquisition and training, we've built a team of skilled professionals across various roles, from data scientists to AI architects. This has allowed us to maintain a competitive edge while managing cost pressures in a tight labor market.
Daniel: We've also made strategic investments in talent and workforce management to support our AI initiatives by focusing on AI talent acquisition and training. We've built a team of skilled professionals across various roles from data scientists to AIA architects. This has allowed us to maintain a competitive edge, while managing cost pressures and a tight labor market.
Rajiv Nayar: And now, I would like to turn it over to Regife there, CFO, for a more detailed view of the financials. Regife? Thank you, Daniel.
And now I would like to turn it over to Rajeev, there CFO for a more detailed view of our financials Rajiv.
Rajeev Nair: And now I would like to turn it over to Rajeev Nair, CFO, for a more detailed view of the financials.
Rajeev Nair: Rajeev? Thank you, Daniel. Now, I will be reviewing our financial performance for the first quarter in more detail, followed by our fiscal year 2024 results. Our total revenues for the first quarter of 2025 were $16.7 million, which was an increase of 2% year over year. Our gross profit for the first quarter of 2025 was $4 million. US dollars, which was a decrease of 10% year-over-year Approximately 24% versus 27% in the previous year period. as Sudhir's reference. This was largely the result of the nature. and Profail are the projects that shifted out of the quarter. We remain confident on the robustness of our existing revenue base and the pipeline moving forward.
Rajeev: Thank you Danielle.
Rajiv Nayar: Now, I will be reviewing our financial performance for the first quarter in more detail, followed by R6 failure 2020 for results. Our total revenues for the first quarter of 2025 were 16.7 million, which was an increase of two persons year-over-year. Our gross profit for the first quarter of 2025 was $4 million, US dollars, which was a decrease of 10% year-over-year and resulted in gross margin of approximately 24% versus 37% in the previous year period. As to be referenced, this was largely the result of the nature and profile of the project that shifted out of the quarter.
Rajeev: No I will be reviewing our financial performance.
Rajeev: For the first quarter in more detail.
Rajeev: Followed by our fiscal year to meet any Florida.
Rajeev: Our total revenue for the third quarter of five <unk>.
Rajeev: 16.7 million.
Rajeev: Which was an increase of 2% yet over here.
Rajeev: Gross profit for the first quarter <unk> was 4 million U.
Rajeev: U S dollars, which was a decrease of 10% year over year.
Rajeev: And just something any growth model.
Rajeev: Approximately 24%, which was two 7% in the previous period.
Rajeev: And so the other thing.
Rajeev: This has allowed him to lead the nature.
Rajeev: And I'll tell you another project.
Rajeev: She pulled it out of the quarter.
Rajiv Nayar: We remain confident on the robustness of our existing revenue base and the pipeline moving forward.
Rajeev: We remain confident on the robustness.
Rajeev: Our existing revenue base and the pipeline moving forward.
Rajiv Nayar: Our SDA expenses in the first quarter were 20.4 million, which was an increase of 457 persons year-over-year from $3.7 million. This game was primarily due to one-time non-cash stock compensation for executives and an increase in employee compensation and benefits due to the expansion of our operations. Taken together, this resulted in an operating loss of 16.4 million in the first quarter of 2025. Our gap net loss for the first quarter of 2025 was 15.3 million versus a net income of $500,000 in the same period of 2024. Adjusted the data for the third quarter of 2025 was $400,000 versus $2.9 million in the same period of 2024.
Rajeev Nair: Our SG&A expenses in the first quarter were $20.4 million, which was an increase of 457% year over year from $3.7 million. This gain was primarily due to one-time non-cash top compensation for executives and an increase in employee compensation and benefits due to the expansion of our operations. taken together, this resulted in operating loss of $16.4 billion in the first quarter of 2025. Our gap net loss for the first quarter of 2025 was 15.3 million.
Rajeev: Our SG&A expenses in the first quarter.
Rajeev: <unk> 4 billion.
Rajeev: It was an increase of 450 to one person and you have a whole lot.
Rajeev: Yeah.
Speaker Change: Can you play in $7 million.
Speaker Change: This gain was primarily due to.
Speaker Change: One time noncash stock compensation for executives.
Speaker Change: And an increase in employee compensation and benefits.
Speaker Change: Due to the expansion of thought all people.
Speaker Change: Taken together this resulted in operating loss.
Speaker Change: $16 4 billion in the first quarter close to 20 days.
Speaker Change: Our GAAP net loss for the first quarter was $20 five a 15.3 million.
Rajeev Nair: Wojtas. And that came to about $500,000 in the same period of 2024. adjusted the data for the first quarter of 2025 was $400,000 versus $2.9 million in the same period of 2024. As Sudhir mentioned, we have taken action to control expenses and increase our profitability. including a reduction in head count. We are also working on additional cost-saving measures, which are expected to further improve our business. given these initiatives are still underway.
Speaker Change: Well I suppose.
Speaker Change: It came from all $500000 in the same PV 10.
Speaker Change: Any full.
Speaker Change: And just to have EBITDA, but it sounds quite a bit unique in these five was $400000.
Speaker Change: Well, it's two two.
Speaker Change: $2.9 billion in the same PD often you can default.
Rajiv Nayar: As we have mentioned, we have taken action to control expenses and increase our profitability, including a reduction in headcount. We are also working on additional cost saving measures, which are expected to further improve our business.
Speaker Change: So you had mentioned.
Speaker Change: We have taken action to controlling expenses.
Speaker Change: And increase profitability.
Speaker Change: Looking at our Nexsan head count.
Speaker Change: We are also working on additional cost saving measures.
Speaker Change: It's a mixed picture to further improve our business.
Rajiv Nayar: Given these initiatives are still underway, we are withdrawing our prior 2024 guidance. On the balance sheet, we had 4.2 million in cash for the period ending June 30, 2024. The total long-term debt was $1.7 million.
Speaker Change: Given the beef and chicken.
Speaker Change: Hey.
Rajeev Nair: We are withdrawing our prior 2024 guidance. On the balance sheet, we had $4.2 million in cash for the period ending June 30, 2024. The total long-term debt was $1.7 million.
Speaker Change: We have been doing.
Speaker Change: Any forward guidance.
Speaker Change: On the balance sheet, we had $4 2 million in cash for the period ending June 30 changed any full.
Speaker Change: Long term debt was.
Speaker Change: One 7 million.
Rajiv Nayar: Turning to our fiscal year 2024 financial growth total revenues for the fiscal year were 2024 where 72.5 million up 37 compared to 53.1 million for the fiscal year of 2023. Our gross profit for fiscal year 2024 was 21.6 million compared to 13.6 million in the year-ago period. And this represented a gross margin of 30% and increased from 26% in the year-ago period. RSDN expenses for fiscal year 2024 was 18.7 million, which was an increase of 65% year over year from 11.3 million taken together. This resulted in operating in the most 3 million in the fiscal year 2024.
Rajeev Nair: Turning to our fiscal year 2024 financial results. Total revenues for the fiscal year 2024 were $72.5 million. up 37 compared to 53.1 million for the fiscal year of 2023. Our gross profit for fiscal year 2024 was 21.6 million compared to 13.6 million in the year ago period. and this represented a gross margin of 30%. an increase from 26% in the year-ago period. The CNA expenses for fiscal year 2024 was $18.7 million. which was an increase of 65% year over year from 11.3 million taken together. This resulted in an operating income of 3 million in the fiscal year 2024.
Speaker Change: Turning to our fiscal year 'twenty to any full financials afloat.
Speaker Change: Total revenues for the fiscal year 2020 call it about 72.5 million.
Speaker Change: <unk> 37, compared to $53.1 million for the fiscal year after an eternity.
Speaker Change: Our gross profit for fiscal year quota was 21.6 million.
I'm back to 13.6 million in the year ago period.
Speaker Change: And this is a person there that was not at 30%.
Speaker Change: An increase from 26% in the year ago period.
Speaker Change: G&A expenses.
Speaker Change: Can you give me coal was $18 7 million.
Speaker Change: Which was an increase of 65% yield.
Speaker Change: Oh yeah.
Speaker Change: 11.3 million taken together.
Speaker Change: This was something in the open evening and come off $10 million in the fiscal year was changed to any fall.
Rajiv Nayar: This resulted in a gap net income of 17.3 million for financial year 2024 versus a net income of 1.7 million in fiscal year 2023. At this year, the rate of fiscal year 2024 was 9.2 million versus 8.7 million in fiscal year 2023.
Rajeev Nair: This resulted in a gap net income of 17.3 million for financial year 2024 versus a net income of 1.7 million. in fiscal year 2023. Adjusted EBITDA for fiscal year 2024 was 9.2 million. versus 8.7 million in fiscal year 2023.
Speaker Change: This does sometimes isn't in GAAP net income up $17.3 million for financially have changed any thought.
Speaker Change: Well I suppose a net income of 1.7 million.
Speaker Change: In fiscal year 'twenty to anything.
Speaker Change: Adjusted EBITDA for fiscal year, two Nicole was 9.2 million.
Speaker Change: Well I suppose 8.7 million, it's going to have any clue.
Rajiv Nayar: Thank you all for joining, and we look forward to updating you again soon. Thank you.
Rajeev Nair: Thank you all for joining and we look forward to updating you again soon. Thank you.
Speaker Change: Thank you all for joining and we look forward updating you again soon.
Speaker Change: Yeah.
Speaker Change: Thank you. This concludes today's call you may now disconnect. Your lines. Thank you for your participation.
Operator: This concludes today's call.
Operator: This concludes today's call. You may now disconnect your lines. Thank you for your participation. Thank you, everyone.
Operator: You may now disconnect your lines. Thank you for your participation. Thank you everyone.
Speaker Change: Thank you everyone.
Speaker Change: Yeah.
Speaker Change: Okay.