Artificial Intelligence
NETSOL Technologies Reports Fiscal Second Quarter 2021 Financial Results
- Despite COVID-19 Related Challenges, Topline Improved Sequentially, Driven by Notable New Contract Signings, Ongoing Implementations Globally, Increased Demand within Existing Customer Base
- Steady, Double-Digit, Subscription and Support Revenue Growth from $5.1 Million to $5.7 Million Leading to $23+ Million Run Rate Over Coming Twelve Months with Opportunities for Upside
- Recurring Revenue Growth Accelerated by Further Cloud Adoption and Major Go Live Events as Customers Continue to Automate And Transform Business Processes In Response to Pandemic
- Long-Term Growth Outlook Aided by Ongoing Financial and Operational Improvement Through the Balance of Fiscal 2021, Partnership Pilots Through Otoz Innovation Lab, Record Cash Position of $32 Million to Fund Rebooted Global Sales and Marketing Activities
CALABASAS, Calif., Feb. 16, 2021 (GLOBE NEWSWIRE) — NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, reported results for the fiscal second quarter ended December 31, 2020.
Fiscal Second Quarter 2021 and Recent Operational Highlights
- Appointed Co-Founder, President of Global Sales and CEO of Otoz, Naeem Ghauri to serve as President of NETSOL Technologies, Inc., a newly created role that is responsible for P&L for all subsidiaries as well as developing a cohesive strategy to grow the company’s SaaS revenues and cloud offerings through digital product development and new complementary solutions to existing core offerings.
- Secured an agreement with an existing tier one finance customer in China to upgrade to the NFS Ascent® Retail and Wholesale platforms as part of a contract expected to generate $9.0 million over the multi-year life of the agreement.
- Successfully implemented the NFS Ascent® Retail Platform, including the Company’s proprietary Loan Origination System (LOS) and Contract Management System (CMS) for a tier-one German auto captive finance company in China in the second phase of a previously announced $30 million contract.
- Announced the successful implementation of the NFS Ascent® Retail Platform with Allica, a rapidly growing U.K. bank serving small and medium-sized enterprises, marking the first “Go Live” of a cloud-based NFS Ascent® Retail client in the region.
- Regarding previously announced 12-country, $110 million contract with German auto manufacturing giant, the Company made continued progress with respect to additional NFS Ascent® implementations. The Company had a successful October 2020 Go Live event in Thailand for its Retail Platform and is currently underway on implementation for the same offering in New Zealand.
- Signed an agreement with a renowned financial services company in the U.S. to implement the Company’s North American LeasePak Cloud offering, which is expected to generate approximately $1.0 million over the multi-year life of the contract.
- Subscription (SaaS and Cloud) and support revenues reached $5.7 million, a 12% increase over the prior year and a $23+ million run rate projected over the coming twelve months with opportunities for upside.
- Generated nearly $1.5 million by successfully implementing change requests from various customers across multiple regions during the fiscal second quarter.
- Introduced WRLD3D’s NXT: a COVID-aware smart workplace platform to support companies’ return to work safely.
- Otoz nearing completion of a pilot launch for a U.S. tier one automotive company with expected Go Live in the next few months. Backlog of potential new customers continues to grow.
Fiscal Second Quarter 2021 Financial Results
Total net revenues for the second quarter of fiscal 2021 were $13.1 million, compared with $15.7 million in the prior year period. The decrease in total net revenues was primarily due to a decrease in total services revenues of $5.6 million, which was offset by an increase in total license fees of $2.4 million and an increase in total subscription and support revenues of $620,000.
- Total license fees were $2.6 million, compared with $177,000 in the prior year period.
- Total subscription (SaaS and Cloud) and support revenues were $5.7 million, compared with $5.1 million in the prior year period.
- Total services revenues were $4.8 million, compared with $10.4 million in the prior year period.
Gross profit for the second quarter of fiscal 2021 was $6.0 million (or 46.0% of net revenues), compared to $7.8 million (or 49.7% of net revenues) in the second quarter of fiscal 2020. The decreases in gross profit and gross profit as a percentage of revenue were primarily due to a decrease in net revenue, offset by a decrease in cost of sales. The decrease in cost of sales was primarily due to a decrease in travel expense of $1.4 million, which was offset by an increase in salaries and consultant fees of $669,000.
Operating expenses for the second quarter of fiscal 2021 decreased 16.1% to $6.0 million (or 45.4% of net revenues) from $7.1 million (or 45.2% of net revenues) for the second quarter of fiscal 2020. The decrease in operating expenses was primarily due to decreases in selling and marketing expenses, professional services, research and development and general and administrative expenses.
GAAP net loss attributable to NETSOL for the second quarter of fiscal 2021 totaled $(242,000) or $(0.02) per diluted share, compared with GAAP net income of $586,000 or $0.05 per diluted share in the second quarter of fiscal 2020. GAAP net loss attributable to NETSOL included a $14,000 gain on foreign currency exchange transactions in the second quarter of fiscal 2021, which was a decrease from a gain of $61,000 in the prior year period.
Non-GAAP adjusted EBITDA for the second quarter of fiscal 2021 totaled $617,000 or $0.05 per diluted share, compared with non-GAAP adjusted EBITDA of $1.6 million or $0.13 per diluted share in the second quarter of fiscal 2020 (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).
At December 31, 2020, cash and cash equivalents were $32.0 million, an increase from $20.2 million at June 30, 2020.
Stock Repurchase Program
On July 30, 2020, NETSOL’s Board of Directors approved a stock repurchase program that authorized potential repurchases of up to $2 million of its common stock over a six-month period. After the expiry of the original program, the Company’s Board of Directors approved the extension of the repurchase program through June 28, 2021. Under the program, the Company may repurchase its common stock in the open market from time-to-time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions and federal and state laws governing such transactions. NETSOL expects to fund the repurchase with its existing cash balance and cash generated from operations.
As of December 31, 2020, the Company had repurchased 446,996 shares of its common stock at an aggregate value of $1,392,671.
Management Commentary
“Fiscal Q2 yielded incrementally improved results for our global business as we saw the early stages of return to work thanks to the initial rollout of COVID-19 vaccine treatments at the end of 2020,” said NETSOL Co-Founder, Chairman and Chief Executive Officer Najeeb Ghauri. “We have continued to lean into our technology strengths and are still operating remotely for the most part without missing a step. During the period we expanded our SaaS-based footprint through a multi-million-dollar upgrade as well as several large-scale implementations, driving our recurring revenue base close to $6 million for the quarter, nearly $11 million year to date. We also recorded nearly $1.5 million in change requests from current customers, another encouraging data point for the improving health of the industries we serve and the economy as a whole.
“Operationally, our recent appointment of Naeem Ghauri to President of NTI should allow us to accelerate progress within our core initiatives, namely driving more consistent topline growth through an increased focused on high-margin, SaaS opportunities which should also lead to sustained profitability. While the broader market cautiously begins to pick up in waves, we are continuing to execute against our near-term pipeline and current implementation schedule. We are being conservative in our cost structures, managing the business as owners, and will opportunistically look to deploy additional resources to high-value areas such as our Otoz Innovation Lab. We remain optimistic for the remainder of the year and even more bullish on the years ahead.”
Otoz Update
“Otoz is nearing completion of a pilot launch to fully digitize a U.S. tier one automotive company,” said Naeem Ghauri, President of NETSOL Technologies, Inc. and Otoz CEO. “This project has allowed us to create an amazing digital auto buying experience through a state-of-the-art app. Overall, this pilot is a door opener for Otoz to penetrate the rapidly growing digital mobility platform movement. Based on the sizeable prospect pipeline we have today, we are well on track to continue grow the Otoz client list by at least another few tier one mobility customers over the next twelve months.”
Conference Call
NETSOL Technologies management will hold a conference call today (February 16, 2021) at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these financial results. A question and answer session will follow management’s presentation.
U.S. dial-in: 1-877-407-0789
International dial-in: 1-201-689-8562
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.
The conference call will be broadcasted live and available for replay here and via the Investor Relations section of NETSOL’s website.
A replay of the conference call will be available after 12:00 p.m. Eastern time on the same day through March 2, 2021.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13715527
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of more than 1300 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent® – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete finance and leasing lifecycle.
About Otoz
Otoz provides business-to-business, white-label technology solutions for new mobility. Our suite of agile and customizable mobility solutions ranges from car sharing and subscription products to AI-enabled chatbots, allowing businesses to engage consumers and facilitate the complete transaction lifecycle intelligently and digitally. Otoz technologies empower automotive companies and start-ups to launch new mobility models quickly and efficiently. The technology Otoz has developed is cloud-native and supported by artificial intelligence (AI), machine learning (ML), internet of things (IoT) and blockchain. Our technology drives utilization, while supporting robust and efficient operations.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company’s products and services and future operating results, including statements regarding the Company that are subject to certain risks and uncertainties such as the effect of stay at home orders and social distancing imposed by COVID-19 and its resultant impact on our financials and the world economy that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company’s actual results include the progress and costs of the development of products and services and the timing of the market acceptance, as well as the delay in recovery or a prolonged economic downturn that effects our Company, our customers and the world economy. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Use of Non-GAAP Financial Measures
The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this press release.
Investor Relations Contact:
Matt Glover and Tom Colton
Gateway Investor Relations
1-949-574-3860
[email protected]
NETSOL Technologies, Inc. and Subsidiaries
Schedule 1: Consolidated Balance Sheets
As of | As of | ||||||||
ASSETS | December 31, 2020 | June 30, 2020 | |||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 32,003,647 | $ | 20,166,830 | |||||
Accounts receivable, net of allowance of $308,236 and $435,611 | 5,213,604 | 10,131,752 | |||||||
Accounts receivable – related party, net of allowance of $1,373,099 and $90,594 | – | 1,282,505 | |||||||
Revenues in excess of billings, net of allowance of $153,650 and $188,914 | 13,290,010 | 17,198,281 | |||||||
Revenues in excess of billings – related party, net of allowance of $8,163 and $0 | – | 8,163 | |||||||
Other current assets, net of allowance of $1,243,633 and $0 | 2,395,985 | 3,108,180 | |||||||
Total current assets | 52,903,246 | 51,895,711 | |||||||
Revenues in excess of billings, net – long term | 356,059 | 1,300,289 | |||||||
Convertible note receivable – related party, net of allowance of $4,250,000 and $0 | – | 4,250,000 | |||||||
Property and equipment, net | 12,209,500 | 11,329,631 | |||||||
Right of use of assets – operating leases | 1,937,907 | 2,360,129 | |||||||
Long term investment | 3,734,907 | 2,387,692 | |||||||
Other assets | 47,190 | 41,992 | |||||||
Intangible assets, net | 4,753,543 | 5,391,077 | |||||||
Goodwill | 9,516,568 | 9,516,568 | |||||||
Total assets | $ | 85,458,920 | $ | 88,473,089 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable and accrued expenses | $ | 6,327,192 | $ | 5,680,837 | |||||
Current portion of loans and obligations under finance leases | 10,383,572 | 9,139,561 | |||||||
Current portion of operating lease obligations | 1,169,960 | 1,111,912 | |||||||
Unearned revenues | 3,753,781 | 4,095,472 | |||||||
Common stock to be issued | 88,324 | 88,324 | |||||||
Total current liabilities | 21,722,829 | 20,116,106 | |||||||
Loans and obligations under finance leases; less current maturities | 1,554,317 | 1,539,975 | |||||||
Operating lease obligations; less current maturities | 962,724 | 1,339,965 | |||||||
Total liabilities | 24,239,870 | 22,996,046 | |||||||
Commitments and contingencies | |||||||||
Stockholders’ equity: | |||||||||
Preferred stock, $.01 par value; 500,000 shares authorized; | – | – | |||||||
Common stock, $.01 par value; 14,500,000 shares authorized; | |||||||||
12,147,458 shares issued and 11,452,959 outstanding as of December 31, 2020 and | |||||||||
12,122,149 shares issued and 11,874,646 outstanding as of June 30, 2020 | 121,476 | 121,222 | |||||||
Additional paid-in-capital | 128,823,181 | 128,677,754 | |||||||
Treasury stock (at cost, 694,499 shares and 247,503 shares | |||||||||
as of December 31, 2020 and June 30, 2020, respectively) | (2,848,640 | ) | (1,455,969 | ) | |||||
Accumulated deficit | (40,104,089 | ) | (34,269,817 | ) | |||||
Other comprehensive loss | (32,060,151 | ) | (34,085,047 | ) | |||||
Total NetSol stockholders’ equity | 53,931,777 | 58,988,143 | |||||||
Non-controlling interest | 7,287,273 | 6,488,900 | |||||||
Total stockholders’ equity | 61,219,050 | 65,477,043 | |||||||
Total liabilities and stockholders’ equity | $ | 85,458,920 | $ | 88,473,089 |
NETSOL Technologies, Inc. and Subsidiaries
Schedule 2: Consolidated Statement of Operations
For the Three Months | For the Six Months | ||||||||||||||||
Ended December 31, | Ended December 31, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Net Revenues: | |||||||||||||||||
License fees | $ | 2,586,504 | $ | 176,706 | $ | 2,589,979 | $ | 2,640,922 | |||||||||
Subscription and support | 5,724,802 | 5,104,736 | 10,896,665 | 9,711,112 | |||||||||||||
Services | 4,810,154 | 10,351,153 | 12,282,194 | 16,770,044 | |||||||||||||
Services – related party | – | 57,424 | – | 140,357 | |||||||||||||
Total net revenues | 13,121,460 | 15,690,019 | 25,768,838 | 29,262,435 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Salaries and consultants | 5,294,662 | 4,625,872 | 9,821,311 | 9,080,836 | |||||||||||||
Travel | 159,174 | 1,572,923 | 262,926 | 2,915,558 | |||||||||||||
Depreciation and amortization | 713,749 | 734,352 | 1,420,998 | 1,454,017 | |||||||||||||
Other | 911,566 | 954,912 | 1,839,719 | 1,899,436 | |||||||||||||
Total cost of revenues | 7,079,151 | 7,888,059 | 13,344,954 | 15,349,847 | |||||||||||||
Gross profit | 6,042,309 | 7,801,960 | 12,423,884 | 13,912,588 | |||||||||||||
Operating expenses: | |||||||||||||||||
Selling and marketing | 1,558,027 | 1,858,096 | 3,167,631 | 3,601,964 | |||||||||||||
Depreciation and amortization | 221,572 | 215,479 | 443,362 | 417,866 | |||||||||||||
General and administrative | 4,065,788 | 4,568,790 | 7,493,424 | 8,487,403 | |||||||||||||
Research and development cost | 110,419 | 454,605 | 196,408 | 1,127,575 | |||||||||||||
Total operating expenses | 5,955,806 | 7,096,970 | 11,300,825 | 13,634,808 | |||||||||||||
Income from operations | 86,503 | 704,990 | 1,123,059 | 277,780 | |||||||||||||
Other income and (expenses) | |||||||||||||||||
Gain (loss) on sale of assets | (52,531 | ) | 528 | (74,273 | ) | 239 | |||||||||||
Interest expense | (94,241 | ) | (88,006 | ) | (197,568 | ) | (151,669 | ) | |||||||||
Interest income | 210,854 | 435,682 | 411,675 | 834,911 | |||||||||||||
Gain (loss) on foreign currency exchange transactions | 13,981 | 61,061 | 310,022 | (1,699,129 | ) | ||||||||||||
Share of net loss from equity investment | (43,685 | ) | (164,796 | ) | (151,535 | ) | (354,020 | ) | |||||||||
Other income | 45,365 | 207,987 | 132,637 | 226,313 | |||||||||||||
Total other income (expenses) | 79,743 | 452,456 | 430,958 | (1,143,355 | ) | ||||||||||||
Net income (loss) before income taxes | 166,246 | 1,157,446 | 1,554,017 | (865,575 | ) | ||||||||||||
Income tax provision | (245,434 | ) | (610,510 | ) | (509,728 | ) | (848,748 | ) | |||||||||
Net income (loss) | (79,188 | ) | 546,936 | 1,044,289 | (1,714,323 | ) | |||||||||||
Non-controlling interest | (162,916 | ) | 39,039 | (568,839 | ) | 472,351 | |||||||||||
Net income (loss) attributable to NetSol | $ | (242,104 | ) | $ | 585,975 | $ | 475,450 | $ | (1,241,972 | ) | |||||||
Net income (loss) per share: | |||||||||||||||||
Net income (loss) per common share | |||||||||||||||||
Basic | $ | (0.02 | ) | $ | 0.05 | $ | 0.04 | $ | (0.11 | ) | |||||||
Diluted | $ | (0.02 | ) | $ | 0.05 | $ | 0.04 | $ | (0.11 | ) | |||||||
Weighted average number of shares outstanding | |||||||||||||||||
Basic | 11,580,030 | 11,724,606 | 11,683,631 | 11,694,423 | |||||||||||||
Diluted | 11,580,030 | 11,724,606 | 11,683,631 | 11,694,423 | |||||||||||||
NETSOL Technologies, Inc. and Subsidiaries
Schedule 3: Consolidated Statement of Cash Flows
For the Six Months | ||||||||||
Ended December 31, | ||||||||||
2020 | 2019 | |||||||||
Cash flows from operating activities: | ||||||||||
Net income (loss) | $ | 1,044,289 | $ | (1,714,323 | ) | |||||
Adjustments to reconcile net income (loss) | ||||||||||
to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 1,864,360 | 1,871,883 | ||||||||
Provision for bad debts | (175,575 | ) | (20,699 | ) | ||||||
Share of net loss from investment under equity method | 151,535 | 354,020 | ||||||||
Loss on sale of assets | 74,273 | (239 | ) | |||||||
Stock based compensation | 165,164 | 328,585 | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts receivable | 5,479,516 | 4,554,558 | ||||||||
Accounts receivable – related party | – | 2,229,695 | ||||||||
Revenues in excess of billing | 4,540,271 | (1,088,693 | ) | |||||||
Revenues in excess of billing – related party | – | 14,823 | ||||||||
Other current assets | (252,781 | ) | (208,065 | ) | ||||||
Accounts payable and accrued expenses | 313,869 | 490,875 | ||||||||
Unearned revenue | (554,077 | ) | (3,019,493 | ) | ||||||
Net cash provided by operating activities | 12,650,844 | 3,792,927 | ||||||||
Cash flows from investing activities: | ||||||||||
Purchases of property and equipment | (1,249,895 | ) | (785,999 | ) | ||||||
Sales of property and equipment | 123,194 | 32,524 | ||||||||
Convertible note receivable – related party | – | (535,000 | ) | |||||||
Investment in associates | (93,000 | ) | – | |||||||
Net cash used in investing activities | (1,219,701 | ) | (1,288,475 | ) | ||||||
Cash flows from financing activities: | ||||||||||
Proceeds from exercise of subsidiary options | – | 11,621 | ||||||||
Purchase of treasury stock | (1,392,671 | ) | – | |||||||
Dividend paid by subsidiary to non-controlling interest | – | (1,920,618 | ) | |||||||
Proceeds from bank loans | 705,338 | 2,074,341 | ||||||||
Payments on finance lease obligations and loans – net | (175,352 | ) | (102,499 | ) | ||||||
Net cash provided by (used in) financing activities | (862,685 | ) | 62,845 | |||||||
Effect of exchange rate changes | 1,268,359 | 2,149,923 | ||||||||
Net increase in cash and cash equivalents | 11,836,817 | 4,717,220 | ||||||||
Cash and cash equivalents at beginning of the period | 20,166,830 | 17,366,364 | ||||||||
Cash and cash equivalents at end of period | $ | 32,003,647 | $ | 22,083,584 | ||||||
NETSOL Technologies, Inc. and Subsidiaries
Schedule 4: Reconciliation to GAAP
For the Three Months Ended | For the Three Months Ended | For the Six Months Ended | For the Six Months Ended | ||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||
Net Income (loss) attributable to NetSol | $ | (242,104 | ) | $ | 585,975 | $ | 475,450 | $ | (1,241,972 | ) | |||||
Non-controlling interest | 162,916 | (39,039 | ) | 568,839 | (472,351 | ) | |||||||||
Income taxes | 245,434 | 610,510 | 509,728 | 848,748 | |||||||||||
Depreciation and amortization | 935,321 | 949,831 | 1,864,360 | 1,871,883 | |||||||||||
Interest expense | 94,241 | 88,006 | 197,568 | 151,669 | |||||||||||
Interest (income) | (210,854 | ) | (435,682 | ) | (411,675 | ) | (834,911 | ) | |||||||
EBITDA | $ | 984,954 | $ | 1,759,601 | $ | 3,204,270 | $ | 323,066 | |||||||
Add back: | |||||||||||||||
Non-cash stock-based compensation | 74,169 | 164,292 | 165,164 | 328,585 | |||||||||||
Adjusted EBITDA, gross | $ | 1,059,123 | $ | 1,923,893 | $ | 3,369,434 | $ | 651,651 | |||||||
Less non-controlling interest (a) | (441,853 | ) | (346,644 | ) | (1,140,697 | ) | (155,409 | ) | |||||||
Adjusted EBITDA, net | $ | 617,270 | $ | 1,577,249 | $ | 2,228,737 | $ | 496,242 | |||||||
Weighted Average number of shares outstanding | |||||||||||||||
Basic | 11,580,030 | 11,724,606 | 11,683,631 | 11,694,423 | |||||||||||
Diluted | 11,580,030 | 11,724,606 | 11,683,631 | 11,694,423 | |||||||||||
Basic adjusted EBITDA | $ | 0.05 | $ | 0.13 | $ | 0.19 | $ | 0.04 | |||||||
Diluted adjusted EBITDA | $ | 0.05 | $ | 0.13 | $ | 0.19 | $ | 0.04 | |||||||
(a)The reconciliation of adjusted EBITDA of non-controlling interest | |||||||||||||||
to net income attributable to non-controlling interest is as follows | |||||||||||||||
Net Income (loss) attributable to non-controlling interest | $ | 162,916 | $ | (39,039 | ) | $ | 568,839 | $ | (472,351 | ) | |||||
Income Taxes | 44,233 | 190,292 | 92,882 | 243,627 | |||||||||||
Depreciation and amortization | 264,535 | 270,003 | 529,100 | 529,638 | |||||||||||
Interest expense | 28,824 | 25,491 | 60,344 | 44,532 | |||||||||||
Interest (income) | (67,207 | ) | (115,670 | ) | (133,164 | ) | (221,171 | ) | |||||||
EBITDA | $ | 433,301 | $ | 331,077 | $ | 1,118,001 | $ | 124,275 | |||||||
Add back: | |||||||||||||||
Non-cash stock-based compensation | 8,552 | 15,567 | 22,696 | 31,134 | |||||||||||
Adjusted EBITDA of non-controlling interest | $ | 441,853 | $ | 346,644 | $ | 1,140,697 | $ | 155,409 | |||||||
Artificial Intelligence
Titans of Tech: GP Bullhound releases its annual report on the European tech ecosystem
LONDON, May 24, 2024 /PRNewswire/ — Titans of Tech: Unrivalled era of A.I. led innovation for European Tech – No more excuses. GP Bullhound is proud to announce the release of its Titans of Tech 2024 report. For the tenth year in a row, GP Bullhound has released its annual Titans of Tech report, highlighting and analysing the growth trends in Europe’s tech ecosystem. This comprehensive analysis underscores the resilience and growth of Europe’s tech sector, setting the stage for a new era of innovation and investment.
Key takeaways from our report include:
The funding frenzy is over, but the new normal is very healthy: Funding levels have normalised, averaging €15Bn per quarter over the last year, which is ~50% higher than 2019.The value of the ecosystem is growing despite the failures: 14 new unicorns were created in the last 12 months. Europe and Israel now have 323 unicorns, up from 311 a year ago and 283 the year before. The ecosystem’s total valuation has grown to $1.2Tr, an ~11x increase in billion-dollar companies and a ~14x increase in aggregate valuation since our first report in 2014.Megarounds are fewer but larger and still accessible: Access to capital rounds exceeding $50 million has tightened, but investors remain interested in supporting innovators. The deal count dropped 68% over the last two years due to a focus on profitability and conservative planning. Only 17% of European unicorns raised capital in 2023, as 93% had already raised funds during the 2021-2022 bull market.Software innovation continues, shaping the way we live and work: Despite funding challenges, technological developments, especially in artificial intelligence, continue to drive automation and cost savings. European AI companies received over €11Bn in funding in the last year, with 36% of new unicorns being AI/ML businesses.Category leaders and geographies: This year, the UK and France lead the startup arena with three unicorns each. The UK’s unicorns are valued at $3.4Bn, with significant contributions from AI leaders Synthesia and Builder.ai. France’s trio reaches a collective valuation of $7Bn, highlighted by innovators like Mistral AI. Germany, Israel, and the Netherlands each added two unicorns, while Sweden and Italy added one unicorn each.Europe’s most promising startups: GP Bullhound has analysed more than 100 European startups for scale, velocity, and sentiment, and ranked the top 50 companies with the most potential to become one-billion-dollar companies. The top 10 include Agicap, Brevo, Typeform, Homa, AMBOSS, Akeneo, Form3, Flo Health, Aidoc, and ConnexOne.Manish Madhvani, Managing Partner at GP Bullhound, said: “After ten years of issuing our Titans of Tech report, we have witnessed the highs and lows of the European tech ecosystem. A year ago, the situation was less encouraging for the fundraising environment, with macro uncertainty and with businesses more focused on layoffs than on growth and innovation.
Today, against the backdrop of negative headlines, we have cemented the building blocks for the next wave of innovation. Funding levels have stabilised, and are amazingly 50% higher than pre bull market levels. With Europe’s maturing base of engineering talent and the world’s fascination in its potential productivity gains, artificial intelligence offers a unique opportunity to create global leaders in record time. There is no shortage of funding for the best entrepreneurs and companies, as evidenced by the record $220m seed round for Paris based H announced this week. What was noticeable about the round was the range of the investor syndicate : from strategics such as Amazon, Samsung and UI Path, household names such as Bernard Arnault, Eric Schmidt and Xavier Niel, and leading VC’s.Looking ahead, we expect the next few years to represent an era of unprecedented innovation in the European ecosystem. Innovation is flowing, vast amounts of capital are available for the strong and the talent pool is expanding. No more excuses Europe!”
Expert interviewsWhat does it take to build a billion-dollar company? What are the critical success factors for European tech? How to remain resilient in a challenging market and benefit from economic downturns? This year’s report features expert views from leading founders and CEOs, including Synthesia, Quantexa, SEON, Flo Health, Zappi and CoverManager.
Download full report: www.gpbullhound.com/articles/titans-of-tech-2024
EnquiriesFor enquiries, please contact: [email protected]
About GP BullhoundGP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s best entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 12 offices spanning Europe, the US and Asia. For more information, please visit www.gpbullhound.com.
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Artificial Intelligence
Bybit Web3 Announces Upcoming IDO for Aperture Finance, Simplifying Web3 Finance
DUBAI, UAE, May 24, 2024 /PRNewswire/ — Bybit Web3, the Web3 division of Bybit – one of the top three global crypto exchanges by trading volume, today announced an upcoming Initial DEX Offering (IDO) for Aperture Finance ($APTR) on its Web3 platform.
“Bybit Web3 is thrilled to be partnering with Aperture Finance to bring their innovative IDO to our platform,” said Emily Bao, Bybit Web3 Evangelist. “Aperture Finance’s AI-powered solutions have the potential to revolutionize DeFi by simplifying complex transactions and making Web3 finance more accessible to a wider audience. We believe this IDO will be a great opportunity for our users to get involved in this groundbreaking project early on.”
Aperture Finance: Simplifying the complexities of Web3 finance
Aperture Finance is a pioneer in AI-powered intents. Featuring an IntentsGPT interface and an AI-driven smart solver simulation, Aperture’s solver network significantly reduces barriers for DeFi users and enhances transaction efficiency.
IDO Details
IDO Subscription Period: May 24, 2024, 10AM UTC to May 28, 2024, 10AM UTCSnap Period: May 28, 2024, 10AM UTC to May 31, 2024, 10AM UTCReveal and Purchase Period: May 31, 2024, 10:15AM UTC to June 1, 2024, 10AM UTCListing Date: May 31, 2024, 10AM UTCToken Details
Token: APTRTotal Supply: 1,000,000,000Total Allocated to Bybit IDO: 6,666,667 APTREligibility Requirements
Users must hold a Bybit Wallet with a minimum balance of 300 USDT (Arbitrum Chain) throughout the Snapshot Period to participate in the IDO.Three (3) snapshots will be taken daily during the Snapshot Period.Maximum number of winners: 3,000For detailed information on the IDO process and eligibility requirements, please visit the Bybit Web3 page: https://www.bybit.com/en/web3/ido
#Bybit / #TheCryptoArk / #BybitWeb3
About Bybit Web3
Bybit Web3 is redefining openness in the decentralized world, creating a simpler, open, and equal ecosystem for everyone. We are committed to welcoming builders, creators, and partners in the blockchain space, extending an invitation to both crypto enthusiasts and the curious, with a community of over 1 million wallet users, over 10 major ecosystem partners, and counting.
Bybit Web3 provides a comprehensive suite of Web3 products designed to make accessing, swapping, collecting and growing Web3 assets as open and simple as possible. Our wallets, marketplaces and platforms are all backed by the security and expertise that define Bybit as a top 3 global crypto exchange, trusted by 30 million users globally.
Join the revolution now and open the door to your Web3 future with Bybit.
For more details about Bybit, please visit Bybit Web3.
About Bybit
Bybit is one of the world’s top three crypto exchanges by trading volume with 30 million users. Established in 2018, it offers a professional platform where crypto investors and traders can find an ultra-fast matching engine, 24/7 customer service, and multilingual community support. Bybit is a proud partner of Formula One’s reigning Constructors’ and Drivers’ champions: the Oracle Red Bull Racing team.
For more details about Bybit, please visit Bybit Press.For media inquiries, please contact: [email protected] more information, please visit: https://www.bybit.comFor updates, please follow: Bybit’s Communities and Social Media
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Artificial Intelligence
Northern Data Group’s Peak Mining, announces purchase of a second 300MW data center location in Corpus Christi, Texas
The location expands on an adjacent 300MW site, purchased in December 2023 The site comes with an ERCOT-approved interconnect of 300MWConstruction already underway, with long-lead time items secured and energization scheduled for early 2025FRANKFURT, May 24, 2024 /PRNewswire/ — Peak Mining, part of the Northern Data Group, announces the purchase of a second 300MW ERCOT-approved site in Corpus Christi, Texas. The location is adjacent to the 300MW mining facility that is already under construction. The site also provides energy in the attractive low-cost power zone of Load Zone South of the ERCOT grid, known for its abundance of renewable (wind) energy.
The investment represents a significant step forward in Northern Data Group’s investment strategy, cementing expansion plans well beyond the current 2024 financial year.
The new site enables Peak Mining to accelerate its expansion plans to become one of the largest bitcoin miners globally. The company will be deploying indoor, custom-designed, fully-integrated and liquid-cooled HPC data center systems to drastically improve deployment time and infrastructure cost, bringing Peak Mining to a leading position in the industry and preparing it for the future of HPC compute.
Saxet Infrastructure Group (“Saxet”) will act as construction manager for the design, build and energization of the substation. The Saxet team brings a strong track record of project management and deep expertise with the construction of HPC infrastructure.
Niek Beudeker, Managing Director, Peak Mining, commented: “The purchase of this second large site will significantly shorten our time to hashing and kick off one of the fastest mining expansions globally. We now have almost 700MW of sites in active development, that when fully fitted with our latest-generation hardware, could potentially provide up to 40EH of hash rate.”
Aroosh Thillainathan, Northern Data Group’s Chief Executive Officer, commented:”This second data center location demonstrates how Northern Data Group is able to harness the power and opportunity of HPC. Sustainability has been at the core of this further expansion into the US and thanks to the center’s ERCOT approved status, we will be able to scale our operations at speed, as the demand for digital assets continues to grow.”
Steven Quisenberry, Chief Executive Officer at Saxet Infrastructure Group, commented: We are excited to support Northern Data Group’s expansion in the ERCOT market and specifically to welcome them to the Corpus Christi area. The combination of base load industrial demand and significant renewable resources creates a unique opportunity for their portfolio. This is a terrific example of one of the largest, most advanced liquid cooled data centers in North America and we are proud to partner with Northern Data Group to bring their data center online.
Northern Data Group was advised on the transaction by Katten Muchin Rosenman LLP (Legal Counsel) and BitOoda Technologies LLC.
About Peak MiningPeak Mining, part of the Northern Data Group, is powering the future of the blockchain network. We deliver industry-leading operating and energy efficiency in bitcoin mining through the latest hardware alongside innovative technology and infrastructure. With our mining heritage dating back to 2013, we’ve been innovating for over a decade and have been at the forefront of the industry ever since. Our high-quality infrastructure is purpose-built to power the mining network, and we’re driven to continuously find new efficiencies driving value for our investors. We’re delivering long term value in more responsible ways.
About Northern Data GroupNorthern Data Group (ETR: NB2) is a leading provider of High Performance Computing (HPC) solutions to businesses and research institutions, utilizing GPU- and ASIC-based solutions. Our flexible compute power fuels innovation in our three core business divisons: Taiga Cloud, Ardent Data Centers, and Peak Mining. Through our HPC solutions, we pioneer ambitious computing innovation that drives progress in the AI, ML and Generative AI industries. Our close collaboration with industry-leading manufacturers including Gigabyte, AMD, and NVIDIA is fundamental to the acceleration of innovation across sectors including life sciences, financial services, and energy.
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