NetSol Technologies Inc (NTWK) 2024 Q3 法說會逐字稿

Good morning. Welcome to NetSol Technologies third quarter 2024 earnings conference call. On the call today are Najeeb Ghauri, Chairman and Chief Executive Officer; Roger Almond, Chief Financial Officer; Patti McGlasson, General Counsel; and Naeem Ghauri, President and Founder.

早安.歡迎參加 NetSol Technologies 2024 年第三季財報電話會議。今天參加電話會議的是董事長兼執行長 Najeeb Ghauri；羅傑‧阿爾蒙德，財務長；帕蒂·麥克格拉森，總法律顧問；以及總裁兼創辦人納伊姆·高里 (Naeem Ghauri)。

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. Please proceed.

我現在想將電話轉給帕蒂·麥克格拉森 (Patti McGlasson)，她將就管理層在本次電話會議中發表的前瞻性聲明提供必要的警告。請繼續。

Good morning, everyone, and thank you for joining us. Following the review of the company's business highlights and financial results, we will open the call for questions. I'll now provide the necessary cautions regarding the forward-looking statements made by management during this call.

大家早安，感謝您加入我們。在回顧了公司的業務亮點和財務表現後，我們將開始提問。我現在將就管理層在本次電話會議中所做的前瞻性陳述提供必要的警告。

Please note that all 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 may differ materially from those stated or implied.

請注意，今天電話會議中討論的所有資訊均受《私人證券訴訟改革法案》的安全港條款管轄。本公司的討論可能包括反映管理階層目前對公司未來某些方面的預測的前瞻性陳述，我們的實際結果可能與陳述或暗示的結果有重大差異。

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 10-K and our Quarterly Reports on Form 10-Q.

這些前瞻性陳述受到 NetSol 新聞稿和 SEC 文件（包括我們的 10-K 表格年度報告和 10-Q 表格季度報告）中包含的警示性陳述的限制。

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.netsoltech.com and via link available in today's press release.

我還想指出，我們將討論某些非公認會計準則措施。今天稍早發布的新聞稿包含這些非公認會計準則財務表現與最具可比性的公認會計準則衡量指標的調節表。最後，我想提醒大家，本次通話將被錄音，並可在 www.netsoltech.com 上或透過今天新聞稿中提供的連結重播。

Now, I'd like to turn the call over to Najeeb. Najeeb?

現在，我想把電話轉給納吉布。納吉布？

Thank you, Patti, and good morning, everyone. The third quarter of 2024 was another very strong quarter for our business, highlighted by revenue growth and our third consecutive quarter of profitability. In this quarter, we demonstrated NetSol's ability to deliver profitable results without the recognition of material license fees. We reported strong services revenues and consistent subscription and support revenues, which contributed to us achieving earnings per share of $0.03 for the quarter.

謝謝你，帕蒂，大家早安。2024 年第三季度是我們業務的另一個非常強勁的季度，營收成長和連續第三個季度獲利尤為突出。在本季度，我們展示了 NetSol 在不承認材料授權費用的情況下提供獲利結果的能力。我們報告了強勁的服務收入以及穩定的訂閱和支援收入，這有助於我們在本季實現每股收益 0.03 美元。

Our ability to achieve profitability without significant license fees, showcases the enhanced strength and reliability of our model as we continue to win new customers on a global scale. And these past several quarters, in particular, are an excellent example of our hybrid license and SaaS model at work.

我們能夠在不收取大量許可費的情況下實現盈利，這表明我們的模式在不斷贏得全球範圍內的新客戶的過程中不斷增強的實力和可靠性。尤其是過去的幾個季度，是我們混合許可證和 SaaS 模式發揮作用的一個很好的例子。

In the first and second quarters of the fiscal '24, we recognized substantial license fees, which translated to consecutively profitable quarters to start the year as we continue to build our customer base. These new contracts are now generating services revenues for our business with services revenues in the third quarter of fiscal 2024, increasing approximately 60% compared to the third quarter of fiscal 2023. This is an encouraging development as we have traditionally needed to recognize license fees in a given quarter to achieve profitability.

在 24 財年的第一和第二季度，我們確認了巨額許可費，隨著我們繼續建立客戶群，這轉化為年初連續盈利的季度。這些新合約目前正在為我們的業務帶來服務收入，2024 財年第三季的服務收入比 2023 財年第三季成長約 60%。這是一個令人鼓舞的發展，因為我們傳統上需要在特定季度確認許可費才能實現盈利。

We have a healthy sales pipeline of both license and SaaS deals in our established markets and we are intently focused on building similar pipelines in our more nascent markets, specifically the United States. We're also very excited by the progress we are making advancing our initiatives in the US market. We are noticing strong interest from the US-based customers, specifically in the professional services segment of our AWS cloud services, data analytics and AI-based products.

我們在成熟市場中擁有健康的許可和 SaaS 交易銷售管道，並且我們專注於在新興市場（特別是美國）建立類似的管道。我們也對我們在美國市場推進計劃所取得的進展感到非常興奮。我們注意到美國客戶的濃厚興趣，特別是對我們的 AWS 雲端服務、數據分析和基於人工智慧的產品的專業服務領域。

We anticipate to leverage [professional] service challenge in North America and create additional revenue stream. We believe that there is tremendous potential for growth in this market, and we are strategically allocating capital to make sure we are ideally positioned to capture our SaaS offerings, in particular, and gaining some strong early traction in this region.

我們期望利用北美的[專業]服務挑戰並創造額外的收入來源。我們相信這個市場有巨大的成長潛力，我們正在策略性地分配資本，以確保我們處於理想的位置，特別是抓住我們的 SaaS 產品，並在該地區獲得一些強大的早期吸引力。

With our auto digital, retail and mobility platform currently live in 58 MINI USA dealerships across the US and with AutoNation powering the back end of their recently launched Micro Lease Marketplace, our successful journey with MINI Anywhere and AutoNation Mobility has opened new opportunities in the retail and mobility sector in the US.

憑藉我們的汽車數位化、零售和行動平台目前遍布美國58 家MINI USA 經銷商，以及AutoNation 為他們最近推出的Micro Lease Marketplace 的後端提供支持，我們與MINI Anywhere 和AutoNation Mobility 的成功之旅為零售業開闢了新的機會和美國的流動部門。

The US market is home to thousands of major auto franchise dealerships across the country looking to adopt omnichannel digital retail solutions and modernize their vehicle sales and purchase processes. This interest has resulted in strong pipeline activity with OEMs and dealer groups of various sizes demonstrating interest in our OTOZ products.

美國市場是全國數千家主要汽車特許經銷商的所在地，它們尋求採用全通路數位零售解決方案並實現車輛銷售和購買流程的現代化。這種興趣導致了各種規模的原始設備製造商和經銷商集團對我們的 OTOZ 產品表現出興趣的強勁管道活動。

With our visibility today, we believe that we will be able to achieve at least $28 million in subscription and support revenues for the full fiscal year 2024. We are intently focused on the continuous innovation and improvement of our products and offerings to meet the diverse demands of our customers. To that end, we have begun leveraging deep learning AI algorithms into our business processes and have launched a company-wide AI initiative to both reduce internal costs and enhance external quality improvements.

憑藉今天的知名度，我們相信我們將能夠在 2024 年整個財年實現至少 2800 萬美元的訂閱和支援收入。我們專注於產品和產品的持續創新和改進，以滿足客戶的多樣化需求。為此，我們已開始將深度學習人工智慧演算法運用到我們的業務流程中，並啟動了全公司範圍的人工智慧計劃，以降低內部成本並增強外部品質改進。

As a long-standing global business services and asset finance solution providers, we have nearly 27 years of internal program management data, which we intend to use to train our AI use cases and further enhance efficiencies for both us and our customers. We're also in the process of creating industry-leading AI use cases for our clients to help improve their business metrics with an anticipated launch of several new AI-based offerings in the calendar year, which is something that we are very excited about and we'll keep you apprised as we continue to progress this initiative.

作為一家歷史悠久的全球商業服務和資產融資解決方案提供商，我們擁有近 27 年的內部專案管理數據，我們打算用這些數據來訓練我們的人工智慧用例，並進一步提高我們和客戶的效率。我們也正在為客戶創建業界領先的人工智慧用例，以幫助改善他們的業務指標，預計在今年推出幾款基於人工智慧的新產品，這是我們非常興奮的事情隨著我們繼續推進這一舉措，我們將隨時向您通報情況。

Overall, we are very pleased with our results in both the third quarter and fiscal year-to-date. We are beginning to realize the strength of our business model, exemplify by consistent revenue improvement and three straight quarters of profitability. Given our results, we remain confident in our expectations of double-digit organic revenue growth and improved margins, and we are on pace to reach our target revenue range of between $60 million to $61 million for the full fiscal year of 2024.

整體而言，我們對第三季和本財年迄今的業績感到非常滿意。我們開始認識到我們業務模式的優勢，收入的持續改善和連續三個季度的盈利就是例證。鑑於我們的業績，我們對兩位數的有機收入成長和利潤率提高的預期仍然充滿信心，並且我們正在努力實現 2024 年整個財年 6000 萬至 6100 萬美元的目標收入範圍。

I now turn the call over to Roger Almond, our CFO, to go over our financials from this quarter. Roger?

我現在將電話轉給我們的財務長羅傑·阿爾蒙德（Roger Almond），讓他檢查我們本季的財務狀況。羅傑？

Thanks, Najeeb. Before I go over our financial results, I would like to provide some additional information on the selection of our new auditor, Fortune CPA. On May 6, 2024, BF Borgers was dismissed as the independent public accounting firm of NetSol Technologies. As a result of BF Borgers well-publicized suspension from appearing and practicing before the SEC, which affected hundreds of public companies.

謝謝，納吉布。在介紹我們的財務表現之前，我想提供一些有關選擇我們的新審計師 Fortune CPA 的附加資訊。2024 年 5 月 6 日，BF Borgers 被解聘為 NetSol Technologies 的獨立會計師事務所。由於 BF Borgers 被美國證券交易委員會暫停出庭和執業，這影響了數百家上市公司。

The Audit Committee and the Board of Directors mobilized quickly, approving this dismissal and appointment of Fortune CPA to serve as the company's independent registered public accounting firm for both the quarter ended March 31, 2024, and the year ended June 30, 2024. We believe that Fortune CPA is well suited to assist us in our auditing responsibilities, and we look forward to working with them going forward.

審計委員會和董事會迅速行動，批准解聘並任命財富會計師事務所為公司截至2024年3月31日的季度和截至2024年6月30日的年度的獨立註冊會計師事務所。我們相信財富會計師事務所非常適合協助我們履行審計職責，我們期待與他們繼續合作。

With that, I will now go over our financial results. Our total net revenues for the third quarter of fiscal 2024 were $15.5 million compared with $13.5 million in the prior year period. On a constant currency basis, total net revenues were $15.6 million. License fees for the third quarter of fiscal 2024 were $558,000 compared with $2 million in the prior year period. License fees on a constant currency basis were $577,000.

接下來，我將回顧我們的財務表現。2024 財年第三季我們的總淨收入為 1,550 萬美元，而去年同期為 1,350 萬美元。以固定匯率計算，總淨收入為 1560 萬美元。2024 財年第三季的授權費為 558,000 美元，而去年同期為 200 萬美元。以固定匯率計算的許可證費用為 577,000 美元。

Recurring revenues or subscription and support revenues for the third quarter of fiscal 2024 were $7.1 million compared to $6.7 million in the prior year period. Subscription and support revenues on a constant currency basis were $7.2 million.

2024 財年第三季的經常性收入或訂閱和支援收入為 710 萬美元，而去年同期為 670 萬美元。以固定匯率計算的訂閱和支援收入為 720 萬美元。

Total services revenue for the third quarter of fiscal 2024 were $7.8 million compared with $4.9 million in the prior year period. Total services revenue for the third quarter 2024 on a constant currency basis were $7.8 million. Total cost of revenues was $8 million for the third quarter of fiscal 2024 compared to $8.8 million in the third quarter of fiscal year 2023.

2024 財年第三季的服務總收入為 780 萬美元，而去年同期為 490 萬美元。以固定匯率計算，2024 年第三季的服務總收入為 780 萬美元。2024 財年第三季的總營收成本為 800 萬美元，而 2023 財年第三季的總營收成本為 880 萬美元。

Gross profit for the third quarter fiscal 2024 was $7.5 million or 48% of net revenues compared with $4.7 million or 35% of net revenues in the prior year period. Gross profit was $7.2 million or 46% of net revenues on a constant currency basis.

2024 財年第三季的毛利為 750 萬美元，佔淨收入的 48%，而去年同期為 470 萬美元，佔淨收入的 35%。毛利為 720 萬美元，以固定匯率計算佔淨收入的 46%。

Operating expenses for the third quarter fiscal 2024 were $6.2 million or 40% of sales compared to $5.6 million or 42% of sales in the same period last year. On a constant currency basis, operating expenses for the third quarter were $6.3 million or 41% of sales.

2024 財年第三季的營運費用為 620 萬美元，佔銷售額的 40%，而去年同期為 560 萬美元，佔銷售額的 42%。以固定匯率計算，第三季營運費用為 630 萬美元，佔銷售額的 41%。

Turning to our profitability metrics. GAAP net income attributable to NetSol for the third quarter fiscal 2024 totaled $328,000 or $0.03 per diluted share compared with a GAAP net income of $2.5 million or $0.23 per diluted share in the third quarter of fiscal 2023. Included in our net income in the quarter was a loss of $964,000 on foreign currency exchange transactions compared to a gain of $5.4 million in the third quarter of 2023.

轉向我們的獲利指標。2024 財年第三季 NetSol 的 GAAP 淨利總計 328,000 美元，即稀釋後每股 0.03 美元，而 2023 財年第三季的 GAAP 淨利為 250 萬美元，即稀釋後每股 0.23 美元。我們本季的淨利潤包括外匯交易損失 964,000 美元，而 2023 年第三季的收益為 540 萬美元。

Because we operate in several geographical regions, a significant portion of our business is conducted in currencies other than the US dollar. A decrease in the value of the US dollar compared to foreign currency exchange rates generally has effect of increasing our revenues, but it also increases our expenses denominated in currencies other than the US dollar. Similarly, as the US dollar gains strength relative to foreign currency exchange rate, it tends to reduce our revenues, but it also reduces our expenses denominated in currencies other than the US dollar.

由於我們在多個地理區域開展業務，因此我們很大一部分的業務是以美元以外的貨幣進行。美元相對於外幣匯率的貶值通常會增加我們的收入，但也會增加我們以美元以外的貨幣計價的支出。同樣，隨著美元相對於外幣匯率走強，它往往會減少我們的收入，但也會減少我們以美元以外的貨幣計價的支出。

Moving to our non-GAAP metrics. Non-GAAP adjusted EBITDA for the third quarter of fiscal 2024 was $810,000 or $0.07 per diluted share compared with non-GAAP adjusted EBITDA of $3.3 million or $0.29 per diluted share in the third quarter of the previous fiscal year. Please see the reconciliation schedules contained in our earnings release for our revised calculations of adjusted EBITDA for the quarters ended March 31, 2024, and 2023.

轉向我們的非公認會計準則指標。2024 財年第三季非 GAAP 調整後 EBITDA 為 81 萬美元，即稀釋每股 0.07 美元，而上一財年第三季非 GAAP 調整後 EBITDA 為 330 萬美元，即稀釋每股 0.29 美元。請參閱我們的收益發布中包含的調節表，以了解我們對截至 2024 年 3 月 31 日和 2023 年的季度調整後 EBITDA 的修訂計算。

Turning to our balance sheet. At quarter end, we had cash and cash equivalents of approximately $12.3 million or approximately $1.08 per diluted common share. Total stockholders' equity -- total NetSol's stockholders' equity at March 31, 2024 was $35.3 million or $3.10 per share.

轉向我們的資產負債表。截至季末，我們的現金和現金等價物約為 1,230 萬美元，即每股稀釋普通股約 1.08 美元。股東權益總額－截至 2024 年 3 月 31 日，NetSol 的股東權益總額為 3,530 萬美元，即每股 3.10 美元。

That concludes my prepared remarks. I'll now turn the call back over to Najeeb.

我準備好的發言就到此結束。我現在將把電話轉回給納吉布。

Thank you, Roger. We are very pleased to have delivered another strong quarter for our business and remain committed to driving continued growth of value for our shareholders in the fourth quarter as we close out the fiscal year.

謝謝你，羅傑。我們很高興為我們的業務帶來另一個強勁的季度，並繼續致力於在本財年結束時推動第四季度為股東創造價值的持續成長。

With that, I'd like to turn this call over to the operator for any questions or Q&A. Operator?

因此，如果有任何問題或問答，我想將此電話轉給接線員。操作員？

(Operator Instructions) Todd Felte, AGES Financial Services.

（操作員指令）Todd Felte，AGES 金融服務公司。

Congratulations on a solid quarter and really nice to see the growth in the recurring revenues and improvement in margins. So just kind of breaking it down, every year since 2015, our annual revenue has been kind of stuck in the range of $51 million on the low side and $61 million on the high side. And we've been hearing about our healthy pipeline and sales for many quarters with tremendous potential for growth. So do you think that fiscal year 2025 is a year that we can break out of this revenue range that we've been in the last 10 years?

恭喜本季業績穩健，很高興看到經常性收入的成長和利潤率的提高。簡單來說，自 2015 年以來，我們的年收入每年都在 5,100 萬美元的低端和 6,100 萬美元的高端之間徘徊。我們在多個季度都聽說我們的產品線和銷售狀況良好，具有巨大的成長潛力。那麼您認為 2025 財年是我們可以突破過去 10 年營收區間的一年嗎？

First of all, thank you so much for your comment, Todd. I appreciate your comments. Absolutely, I'll have Naeem also jump in, in a minute. Look, we are very confident, we have turned the corner. This fiscal year is proof -- three quarters continuously. Yeah, we've gone through very difficult time COVID -- post-COVID and many other challenges. But our business is really picking up in a sense that customers keep calling us, the current customers, whether they're in APAC or China or North America or even Europe to continue to do business with us with the new markets and new locations.

首先，非常感謝您的評論，托德。我很欣賞你的評論。當然，我很快就會讓納伊姆也加入進來。看，我們非常有信心，我們已經渡過了難關。本財年就是證明－連續三個季度。是的，我們經歷了新冠疫情之後的非常困難的時期以及許多其他挑戰。但從某種意義上說，我們的業務確實在好轉，客戶不斷打電話給我們，無論他們是在亞太地區、中國、北美甚至歐洲，繼續在新市場和新地點與我們開展業務。

So there's a lot of excitement in the company, Todd, because there's new things opening up for our company. And this is why we feel that next fiscal year will be -- could be our strongest fiscal year, absolutely. And there's a very positive respond from some new prospects and pipeline is healthy. US market is strong for us, and we're making good progress in the US on some new developments, and they will be shared with you when they become material.

托德，公司裡有很多令人興奮的事情，因為我們公司正在開放新事物。這就是為什麼我們認為下一個財年絕對會是我們最強大的財年。一些新的潛在客戶做出了非常積極的反應，管道也很健康。美國市場對我們來說很強大，我們在美國的一些新進展取得了良好進展，當這些進展成為實質進展時，我們會與大家分享。

Let me have Naeem jump in here to give his color. Naeem, go ahead.

讓我讓納伊姆跳到這裡給他上色。納伊姆，繼續吧。

Hi, Todd. I think we -- you are right about just the last four to five years in terms of not getting above this -- the ceiling we have about the $60 million. And I think there's two or three very specific reasons for this. One was our product transition from our previous generation to Ascent that disrupted some sales. And by the time we hit inflection on Ascent, we were hit by COVID.

嗨，托德。我認為我們——你說得對，就在過去的四到五年裡，我們沒有突破這個上限——我們大約有 6000 萬美元。我認為這有兩三個非常具體的原因。其中之一是我們的產品從上一代產品過渡到 Ascent，這擾亂了一些銷售。當我們達到《Ascent》的轉折點時，我們受到了新冠病毒的打擊。

And then during COVID, we also then made a decision to start changing our financial model in terms of replacing SaaS -- sorry, replacing license income with SaaS. So these three periods had an impact. I really strongly believe now that we're out of those times of transition, and we are going to hit a tipping point where we will break out of the $60 million plateau, if you like.

然後在新冠疫情期間，我們也決定開始改變我們的財務模式，更換 SaaS——抱歉，用 SaaS 取代授權收入。所以這三個時期是有影響的。我真的堅信，現在我們已經走出了那些過渡時期，如果你願意的話，我們將達到一個臨界點，我們將突破 6000 萬美元的平台期。

I will add one more thing for Todd and for the -- all of the listeners. We've been focusing on organic growth and the new thing that Naeem just mentioned in the innovation and so forth. And so we have not done any M&A for many, many years by choice, we believe. Gradually, surely building organic business with amazing customer global references, and NetSol is most well-liked company in terms of our delivery record, even our competitors complement Naeem frequently in the different locations.

我還要為托德和所有聽眾補充一件事。我們一直專注於有機成長和 Naeem 剛才在創新中提到的新事物等等。因此，我們相信，我們已經很多年沒有選擇進行任何併購了。逐漸地，我們肯定會透過令人驚嘆的全球客戶參考來建立有機業務，就我們的交付記錄而言，NetSol 是最受歡迎的公司，甚至我們的競爭對手也經常在不同地點補充 Naeem。

So I think based on our record on trajectory, I think we are on the right track of natural growth. And right now, we're focusing on doing things organically. And when the time comes, when we are ready in terms of balance sheet, then we look into M&A opportunity. But for right now, organically, we're growing and we're pretty confident next fiscal year being a record year for us.

因此，我認為根據我們的軌跡記錄，我認為我們正走在自然增長的正確軌道上。現在，我們專注於有機地做事。當時機成熟時，當我們在資產負債表方面做好準備時，我們就會尋找併購機會。但就目前而言，我們正在有機成長，我們非常有信心下一財年將成為創紀錄的一年。

That's great to hear. And just to clarify, I'd said the revenue range was, I think, $51 million to $68 million. And I think that's -- I think $67.8 million was our high on revenue in the last 10 years. And I look forward to us getting in the 70s, 80s and hopefully above 100 in the next few years. So just a follow-up question.

聽到這個消息我很高興。為了澄清，我說過收入範圍是 5,100 萬美元到 6,800 萬美元。我認為 6780 萬美元是我們過去 10 年的最高收入。我期待著我們進入 70 年代、80 年代，並希望在未來幾年能夠突破 100 年代。所以只是一個後續問題。

Now that we're seemingly showing and forecasting consistent profitability moving forward, at least that's what I'm interpreting, why do you think our stock trades significantly below our book value, which is now over $3 a share while other companies that also kind of use and develop AI, and I know we're moving into that area. These other companies, especially the profitable ones are trading at multiples higher.

現在我們似乎正在展示和預測未來持續的獲利能力，至少這就是我的解釋，為什麼你認為我們的股票交易價格大大低於我們的帳面價值，現在每股超過3 美元，而其他公司也有類似的情況。這些其他公司，尤其是獲利的公司，其交易價格則高出數倍。

Well, I can say what I feel and so can Naeem and then I'll ask you, what do you think is the reason, coming from an outsider who can see market differently than we do. But look, yeah, it is -- we don't like it. This has been a company listed for many, many years on Nasdaq. And we remain focused. We don't go out extra mile other than higher program we have with IMF, they're doing a good job. But we don't go out of extra mile to do conferences and -- because we've been really focused on managing our business effectively and cost also efficiently.

好吧，我可以說出我的感受，納伊姆也可以，然後我會問你，你認為原因是什麼，來自一個對市場的看法與我們不同的局外人。但你看，是的，我們不喜歡它。這是一家在納斯達克上市多年的公司。我們仍然保持專注。除了我們與國際貨幣基金組織的更高計劃之外，我們沒有付出額外的努力，他們做得很好。但我們不會付出額外的努力來舉辦會議——因為我們一直專注於有效地管理我們的業務並有效地降低成本。

So there will be activities in the coming months that we can really start talking the stock in the conferences and John and [Walter] are putting a program together for the company for the next few months. Then -- now we feel comfortable, confident that we can go and tell the story again. So hopefully, that will have a positive impact.

因此，未來幾個月將會有一些活動，我們可以真正開始在會議上討論股票，約翰和[沃爾特]正在為公司未來幾個月制定一個計劃。然後——現在我們感到很舒服，有信心我們可以再次講述這個故事。希望這會產生正面的影響。

Okay. That's great to hear. That kind of emulates my thoughts, and I think that will change and I think the market will fairly value us once we can hit -- if we can hit a $20 million quarter, I don't think we've done that in quite some time, and show the potential for rapid growth a lot of these other AI companies are having. That's why they trade at these multiples because they expect the revenue growth. So hopefully, we're trending in that direction, and we can see the hockey stick growth.

好的。聽到這個消息我很高興。這有點像我的想法，我認為這種情況將會改變，而且我認為一旦我們能夠達到2000 萬美元的季度目標，市場就會對我們進行相當的估值，我認為我們在相當長的一段時間內都沒有做到這一點。這就是為什麼他們以這些倍數進行交易，因為他們預計收入會成長。因此，希望我們正朝著這個方向發展，我們可以看到曲棍球棒的成長。

Absolutely. Absolutely.

絕對地。絕對地。

Thank you. (Operator Instructions) [Christopher Vissioli], [Vissioli Capital Partners].

謝謝。（操作員說明）[Christopher Vissioli]，[Vissioli Capital Partners]。

Hey guys, thanks for taking the question. Provided a bit of color on this on the call, but can you provide any additional context or detail as to how AI is specifically interacting with and enhancing your products?

嘿夥計們，感謝您提出問題。在電話會議上對此進行了一些說明，但是您能否提供任何其他背景資訊或細節來說明人工智慧如何與您的產品進行具體互動並增強您的產品？

Yeah. Naeem is a champion of AI in the whole company, and there's a lot going on, and he'll give you some color where we are. Naeem, go ahead, please.

是的。Naeem 是整個公司人工智慧的擁護者，正在發生很多事情，他會給你一些關於我們的情況的資訊。納伊姆，請繼續。

Hi, Chris. We would like to handle AI very holistically. I think there's a lot of hype that's been created by a lot of companies. I think we looked at it totally differently, and we've been working on it quietly for some time now. So our approach is to, first of all, have a center of excellence and an AI lab internally, because internally we could benefit from building apps and products which will create efficiencies in our own internal delivery process.

嗨，克里斯。我們希望非常全面地處理人工智慧。我認為很多公司都進行了很多炒作。我認為我們對它的看法完全不同，而且我們已經悄悄地研究它有一段時間了。因此，我們的方法是，首先在內部擁有一個卓越中心和一個人工智慧實驗室，因為在內部我們可以從建立應用程式和產品中受益，這些應用程式和產品將提高我們自己的內部交付流程的效率。

So from project management to software testing, automation, automated testing, software engineering, human resources, project planning, resource management, there's so many different horizontal areas that we can touch with AI within the company. So there's first the benefit of leveraging AI for our own business.

因此，從專案管理到軟體測試、自動化、自動化測試、軟體工程、人力資源、專案規劃、資源管理，公司內部有很多不同的橫向領域我們可以接觸到人工智慧。因此，首先是利用人工智慧為我們自己的業務帶來好處。

Secondly, within the AI lab, we will provide a service to all of our clients to build their own POCs and use cases using our expertise and thought leadership. So our practice will leverage the relationships we've built over the last three-plus years. So instead of our clients investing into their own AI initiatives organically, we are able to provide that service to them. So we will be reaching out to our clients in the course of the next quarter or two with our offering.

其次，在人工智慧實驗室內，我們將向所有客戶提供服務，利用我們的專業知識和思想領導力來建立自己的 POC 和用例。因此，我們的實踐將利用我們過去三年多建立的關係。因此，我們的客戶無需有機地投資自己的人工智慧計劃，而是能夠為他們提供該服務。因此，我們將在接下來的一兩個季度內向客戶提供我們的產品。

And last, not the least, within our lab, we're also building use cases products that will have a direct impact on our clients' businesses and improving their business efficiencies and so on. So these are complementary products that stand next to Ascent and OTOZ. These could be within our API-first approach, where we give -- plug and play them into the infrastructure. And we also want to be known as an AI-first company, where Ascent and OTOZ have in-built AI modules that allow the customers to do so much more with less people as opposed to they're doing now.

最後，在我們的實驗室中，我們也正在建立用例產品，這些產品將對客戶的業務產生直接影響並提高他們的業務效率等。因此，這些是與 Ascent 和 OTOZ 相鄰的互補產品。這些可以在我們的 API 優先方法中，我們將它們插入基礎架構中並使用。我們也希望成為一家人工智慧優先的公司，Ascent 和 OTOZ 擁有內建的人工智慧模組，讓客戶能夠用更少的人員做更多的事情，而不是現在。

So I think we are doing a very comprehensive program trying to build AI into our product set, also into our business and how we deliver. So I think you start to see those impacts and how our operating cost is affected by being more efficient, how we could be faster in delivery, higher quality. And then at some point, you'll start to see an impact of us selling products to our clients in addition to our traditional products.

所以我認為我們正在做一個非常全面的計劃，試圖將人工智慧建置到我們的產品集中，也建置到我們的業務以及我們的交付方式中。所以我認為你開始看到這些影響，以及我們的營運成本如何透過提高效率而受到影響，我們如何能夠更快地交付、更高的品質。然後在某個時候，您將開始看到除了傳統產品之外我們還向客戶銷售產品的影響。

Thank you. At this time, this concludes our question-and-answer session. If your question was not addressed during the Q&A session, please contact NetSol's Investor Relations team by e-mailing them at netsol@imsinvestorrelations.com or by calling them at 949-574-3860. I would now like to turn the call over to Mr. Ghauri for his closing remarks.

謝謝。至此，我們的問答環節就結束了。如果您的問題在問答環節中沒有得到解答，請透過電子郵件 netsol@imsinvestorrelations.com 或致電 949-574-3860 聯絡 NetSol 的投資者關係團隊。現在我想請高里先生作總結發言。

Thank you for joining us today. I'm especially more excited to see our global team executing in every front as it reflects in our quarterly performance and the future direction. I want to thank our investors for their continued support, our very loyal customers and, of course, our dedicated employees worldwide for their ongoing contributions. I look forward to updating you in our next call. Thank you and have a good day.

感謝您今天加入我們。我特別興奮地看到我們的全球團隊在各個方面都在執行，這反映在我們的季度業績和未來方向中。我要感謝我們的投資者的持續支持，感謝我們非常忠誠的客戶，當然還有我們遍布全球的敬業員工的持續貢獻。我期待在下次通話中向您通報最新情況。謝謝你，有美好的一天。

Thank you for joining us today for NetSol's fiscal third quarter 2024 earnings call. You may now disconnect.

感謝您今天加入我們參加 NetSol 2024 年第三季財報電話會議。您現在可以斷開連線。