NETSOL inks $16 million deal with major automaker
Otoz, NETSOL's omnichannel digital retail platform, is designed to streamline the car sales and buying experience for dealerships and their customers. Naeem Ghauri, President of NETSOL Technologies and Founder of Otoz, expressed excitement about the partnership.
He noted that the deal builds on the US market momentum gained through initiatives like MINI Anywhere and AutoNation (NYSE:AN) Mobility, highlighting the platform's capacity to transform digital retail in the automotive sector.
Ghauri anticipates further expansion for Otoz within the fiscal year, positioning NETSOL to increase its market share in digital retail and auto finance solutions. The Otoz platform is known for its flexibility, headless, API-first architecture, which ensures easy integration with dealership operations while maintaining high security and compliance standards.
NETSOL Technologies, established in 1996, has a longstanding history of providing advanced solutions to the asset finance and leasing sector, working with automotive OEMs, autocaptives, and financial institutions in over 30 countries. The company prides itself on its industry expertise, customer-focused services, and commitment to ethical business practices.
This press release contains forward-looking statements regarding the company's product and service development and potential operational outcomes. These statements are subject to risks and uncertainties, and actual results may differ. NETSOL has not updated or revised these forward-looking statements to reflect new information or subsequent events or circumstances.
This announcement is based on a press release statement from NETSOL Technologies, Inc.
In other recent news, NetSol Technologies reported a strong third quarter for fiscal year 2024, with significant revenue growth and profitability. This marks the company's third consecutive quarter of robust performance, with earnings per share reported at $0.03.
The company is also focusing on expanding its sales pipelines in the United States, particularly in its Professional Services segment and AI-based products. NetSol's auto digital, retail, and mobility platform is currently operational in 58 MINI USA dealerships, opening new opportunities in the US retail and mobility sector.
NetSol expects to achieve at least $28 million in subscription and support revenues for the full fiscal year, targeting a total revenue range of $60 million to $61 million. The company is also planning to launch new AI-based offerings and establish itself as an AI-first company, with an AI lab and center of excellence under development.
In response to a question from Todd Felte of AGES Financial Services, company executives revealed that mergers and acquisitions are being considered as part of their growth strategy. Despite these recent developments, the company's stock is currently trading below book value.
InvestingPro Insights
NETSOL Technologies, Inc. (NASDAQ:NTWK), while securing significant contracts and striving for market expansion, presents a mixed financial picture according to recent metrics from InvestingPro. The company's market capitalization stands at a modest $30 million, and it is trading at a low revenue valuation multiple, which could indicate that the stock is undervalued relative to its sales. This could be attractive to investors looking for potentially overlooked opportunities in the tech sector.
One of the key InvestingPro Tips for NETSOL is its solid liquidity position, with liquid assets that exceed its short-term obligations. This suggests that the company has a safety net to cover its immediate liabilities, which is reassuring for investors considering the company's cash burn concerns. NETSOL's revenue has grown by 12.63% over the last twelve months as of Q3 2024, reflecting a positive trajectory in sales performance.
Still, it is important to note that NETSOL does not pay a dividend to shareholders, which may be a consideration for income-focused investors. Moreover, the company's negative P/E ratio of -7.04 indicates that it has not been profitable over the last twelve months. Investors seeking growth may find NETSOL's revenue growth appealing, while those prioritizing profitability might exercise caution.
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