NTWK Earnings Prediction
The chart below shows how NTWK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NTWK sees a -2.11% change in stock price 10 days leading up to the earnings, and a -2.00% change 10 days following the report. On the earnings day itself, the stock moves by -1.79%. This data can give you a slight idea of what to expect for the next quarter's release.
NTWK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
14.60M
2.50%
-11.25%
Gross Margin
44.96%
3.91%
-12.72%
Operating Margin
-5.21%
-311.79%
-207.42%
Net Margin
1.49%
-26.96%
-49.83%
EPS
0.01
--
-200.00%
No Data Available
NTWK Earnings Analysis
NetSol Technologies, Inc. Corporation (NTWK.O) Earnings Conference Call
Positive
Recurring Subscription Revenue Increase: 1. Recurring Revenue Growth: Recurring subscription support revenues increased by 26% to $8.2 million, representing 56% of total net revenues, up from 46% in the prior year period.
Net Revenue Growth: 2. Total Net Revenue Increase: Total net revenues for Q1 2025 rose by 3% to $14.6 million compared to $14.2 million in the prior year period, driven by the growth in recurring revenues.
Net Income Increase: 3. Profitability Achieved: The company reported a GAAP net income of $71,000 or $0.06 per diluted share, an increase from $31,000 or $0.03 per diluted share in Q1 2024.
Balance Sheet Improvement: 4. Strengthened Balance Sheet: Cash and cash equivalents grew to $24.5 million as of September 30, 2024, an increase of $5.4 million from June 30, 2024, and approximately $8 million since the first quarter of 2024.
Customer Retention Enhancement: 5. Customer Retention Improvement: The customer retention rate increased from approximately 90% in 2021 to just below 95% in 2024, indicating enhanced customer loyalty and satisfaction.
Negative
License Fee Decline: 1. Decline in License Fees: The company did not recognize any meaningful license fees in Q1 2025, a significant drop from $1.3 million in the prior year period.
Operating Loss Comparison: 2. Operating Loss: NETSOL reported a loss from operations of $760,000 in Q1 2025, contrasting with an income from operations of $351,000 in Q1 2024.
Non-GAAP EBITDA Decline: 3. Decrease in Non-GAAP EBITDA: Non-GAAP adjusted EBITDA fell to $204,000 or $0.02 per diluted share in Q1 2025, down from $466,000 or $0.04 per diluted share in the prior year period.
Rising Operating Expenses: 4. Increased Operating Expenses: Operating expenses rose to $7.3 million, or 50% of sales, compared to $5.8 million, or 41% of sales in the same period last year.
Flat Services Revenue: 5. Stagnant Total Services Revenue: Total services revenue remained flat at $6.4 million in Q1 2025, consistent with $6.5 million in the prior year period.
NTWK FAQs
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NTWK Earning Call Sentiment
NetSol Technologies, Inc. (NTWK) Q1 2025 Earnings Call Transcript
1.0x
00:00
00:00
NTWK.O
1.6%Positive
The earnings call presents mixed signals. Strong recurring revenue growth and customer retention are positives, but high operating expenses and a loss from operations are concerning. The lack of a shareholder return plan and unclear AI initiative timelines add uncertainty. Despite some positive strategic shifts, competitive pressures and potential regulatory challenges loom. The net revenue increase is modest, and the market's reaction is likely to be muted, resulting in a neutral stock price movement prediction.
