The following is a summary of the Aeries Technology, Inc (AERT) Q3 2024 Earnings Call Transcript:
Financial Performance:
Aeries Technology reported Q3 revenue of $18.9 million, a 49% YoY growth which exceeded expectations with significant contribution from new client acquisitions.
The adjusted EBITDA came in at $2.4 million, in line with the company outlook.
Revenue for the first three quarters stood at $52.8 million, a 39% increase compared to the previous year.
Gross profit for Q3 was marked at $6 million, with gross margin rising to a significant 32% compared to 18% the previous year.
Despite a 150% rise in Q3 operating income to $733,000, the company reported a GAAP net loss of $16.4 million due to a non-cash charge related to change in fair value of a forward purchase agreement.
Projected total revenues for 2024 are between $95 million and $105 million with an adjusted EBITDA of between $16 million and $20 million.
Business Progress:
The company noted strong momentum in new client acquisition, even exceeding its internal forecast for the current quarter.
An effort to expand presence in North America, contributing 77% of the revenue, was made with a new center of excellence in Mexico.
The strategic initiative 'Dwell Shoring' is in focus, combining nearby centers of operation and maintaining excellence centers in India.
Two new centers of excellence were opened in Bangalore focusing on digital transformation and business process optimization.
The company reported a shift towards digital transformation, AI, and analytics by their new customers, expected to influence gross margins positively.
Aeries is actively supporting their existing clients in implementing generative AI and natural language processing for robotic process automation.
Expansion of relationships with 10 private equity stakeholders and portfolio companies is a key plan.
The company is setting up a sales and marketing team to accelerate growth and attract mid-sized U.S. companies.
The firm expects to exceed the 10 new clients acquired in 2023 in 2024, while reducing client turnover from 8% to 4%.
Aeries Technology's dual shoring strategy has resulted in partnerships with a leading investment management solutions provider in Bangalore and a global technology company in Mexico.
More details: Aeries Technology IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.