Good morning. Welcome to NETSOL Technologies second quarter 2023 earnings conference call. On the call today are Najeeb Ghauri, Chairman and Chief Executive Officer, Roger Almond, Chief Financial Officer, and Patti McGlasson, General Counsel. Please note this call is being recorded. 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 the management during this call. Please proceed. Good morning, everyone, and thank you for joining us. Following a 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. 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 could differ materially from those stated or implied. 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 quarterly report, reports on Form 10-Q. 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 the 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. Now I'd like to turn the call over to Najeeb. Najeeb? Thank you, Patti, and good morning, everyone. We made a lot of strategic progress this quarter, which I look forward to sharing with you. That said, our second quarter financial results were not where we wanted them to be. There were various reasons for this, some within our control and some outside of our control. First, it is important to understand that in the second quarter last year, we had $3.5 million in one-time revenue due to one-time cumulative catch-up on a large contract, which impacted our comparisons. Second, approximately $2 million in revenue that we expected to realize in the quarter was delayed, and we expect to realize it in the third fiscal quarter. With this lower revenue, our margin and profitability were below our expectations. As such, we have reexamined our cost structure to not only better align it with today's revenue but also reprioritize our capital allocation to the most attractive parts of our business with the greatest opportunity to drive sustained growth in revenue and profitability. We expect to at least $4 million in cost cut of the business by the end of the fiscal year. In short, we will be a more focused company, better positioned to achieve a return to positive cash flow for our shareholders. Before we get into the details of the quarter, let's keep a few things in mind. Number one, we have a hard-fought market-leading position in Asia, a growing market share in Europe, and a unique opportunity to grow in the U.S. Number two, the higher margin recurring revenue portion of our business is doing well, and there's opportunity for it to do better. Three, we are at the front end of some of the most innovative technology for our clients. For example, we were ahead of the curve on integrating AI and machine learning into our customer products and are laser-focused on delivering this to our customers. Four, our balance sheet is rock solid with a competitive advantage of a strong cash position built from good old-fashioned cash generation. We have every intention to get back to positive cash generation and have a clear plan to get there. We are focused on expanding our presence in the North American market, particularly in the U.S., which is our most vibrant market. We are very excited about the opportunities we are seeing for our products and services in this region. For example, Otoz, our mobile and AI and machine learning-based solution, has emerged as a very attractive product in this market. We continue to develop and evolve our product range to specifically target North American customers. We're also growing our partnership with consultants, system integrators, and tech partners, including Amazon Web Services and a tier-1 automotive company through Otoz that will further help to scale our North American operations. During this quarter, we went live with our 37th dealer. We now have dealers in 16 states. Our sales pipeline remains strong and increased to $250 million in the second quarter. The sales cycles can be very long in our business, particularly for some of the larger deals. We are enhancing our positioning to compete for some of these larger deals and quite optimistic about many of the opportunities we are pursuing. Before I provide a more in-depth overview of our business, I'd first like to turn the call over to Roger Almond, our CFO, who will walk you through our financials for the quarter. Go ahead, Roger. Thanks, Najeeb. Turning to our fiscal second quarter 2023 financial results for the period ended December 31st, 2022. Our total net revenues for the second quarter of fiscal 2023 were $12.4 million, compared with $15.5 million in the prior year period. On a constant currency basis, net revenues were $14.6 million. License fees were $15,900 compared with $1.9 million in the prior year period and were $16,200 on a constant currency basis. Recurring revenue or subscription and support revenues were $6.5 million, compared with $9.4 million in the prior year period. The decrease in total subscription and support revenues for the second quarter of 2023 was primarily due to the recording of approximately $3.5 million as a one-time cumulative catch-up in the second quarter of 2022 due to our amendment to our 10-year contract with Daimler Financial Services. On a normalized basis, excluding the one-time cumulative catch-up in the same quarter last year, we actually saw an increase in our total subscription and support revenue for the quarter on both a GAAP and a constant currency basis. Total services revenues were $5.9 million, compared with $4.1 million in the prior year period. On a constant currency basis, total services revenues were $6.9 million. Services revenues derive from services provided to both current customers as well as pro-services provided to new customers as part of the implementation process. Total cost of revenues was $9.3 million for the second quarter, an increase of $1.4 million from the second quarter of fiscal year 2022. On a constant currency basis, total cost of revenues was $11.3 million. Gross profit for the second quarter of fiscal 2023 was $3.1 million or 25.4% of net revenues, compared to $7.6 million or 49.4% of net revenues in the second quarter of fiscal 2022. On a constant currency basis, gross profit was $3.3 million. Operating expenses for the second quarter were $6.2 million or 50% of sales, compared to $6 million or 38.7% of sales in the same period last year. On a constant currency basis, operating expenses for the second quarter were $7.2 million or 49.4% of sales. Turning to our profitability metrics. For the second quarter of fiscal 2023, we had a net loss from operations of $3 million, compared to net income from operations of $1.7 million in the prior year period. On a constant currency basis, the net loss from operations was $3.9 million. Our GAAP net loss attributable to NETSOL for the second quarter of fiscal 2023 totaled $2.1 million or $0.19 per diluted share, compared with GAAP net income of $1.4 million or $0.13 per diluted share in the second quarter of last year. On a constant currency basis, our net loss attributable to NETSOL totaled $2.7 million or $0.24 per diluted share. As always, it's important to point out that included in our net loss this quarter was a gain of $657,000 on foreign currency exchange transactions, compared to a gain of $901,000 in Q2 of last year. On a constant currency basis, we realized a gain of $827,000 on foreign currency exchange transactions. Because we operate in several geographical regions, a significant portion of our business is conducted in currencies other than the U.S. dollar. A decrease in the value of the U.S. dollar compared to foreign currency exchange rates generally has the effect of increasing our revenues, but it also increases our expenses denominated in currencies other than the U.S. Dollar. Similarly, as the U.S. dollar gains strength relative to foreign currency exchange rates, it tends to reduce our revenues, but it also reduces our expenses denominated in currencies other than the U.S. dollar. We plan our business accordingly by deploying additional resources to areas of expansion while continuing to monitor our overall expenditures given the economic uncertainties of our target markets. Moving to our non-GAAP metrics. Non-GAAP adjusted EBITDA for the second quarter of fiscal 2023 was a loss of $1.3 million or $0.12 per diluted share, compared with non-GAAP adjusted EBITDA of $2.1 million or $0.19 per diluted share in the second quarter of last year. Please see the reconciliation schedules contained in our earnings release for our revised calculations of adjusted EBITDA for the quarters ended December 31st, 2022 and 2021. Turning to our balance sheet. At the quarter end, we had cash and cash equivalents of approximately $21 million or approximately $1.86 per diluted common share. The NETSOL stockholders' equity at December 31st, 2022 was $44.4 million or $3.93 per share. That concludes my prepared remarks. Turn this time back over to Najeeb for an overview of our business updates. Najeeb? Thank you, Roger. As I mentioned earlier, we are implementing cost reduction initiatives that we believe will drive efficiency and better align our resources. We expect that our efficiency measures will add at least $4 million in EBITDA in the next fiscal year and accelerate our path to return to profitability. Perhaps the most exciting component in our growth strategy right now is our expansion into the North American market. This market represents a robust growth opportunity for our business, particularly as we exit the coronavirus pandemic, which created accelerated demands for modernization and digitization in the industry. Specifically, we are seeing demand related to customers that required a digital entry point to their financial services provider and employees who were suddenly shifted to remote work and required the ability to digitally provide financial services to customers. Our core customers, financial institutions, automotive and equipment OEMs, and automotive dealers realized that their IT infrastructure needed to adapt to these changes, and our products are ideally suited to meet their needs. The increased demand for cloud-based services has positioned our NETSOL Cloud Services division to capture increased market share as we support both new and existing customers in modernizing their IT infrastructures. Otoz offerings continue to see excellent traction in the United States, which illustrates the power of NETSOL's commitment to innovation. Since last quarter, Otoz has expanded its U.S. presence to include 37 dealers across the 16 states, showcasing the healthy and growing demand for SaaS and AI-based platforms in this region. Additionally, in the second quarter of fiscal 2023, we entered into a new multi-million dollar agreement with a tier 1 automotive company in the U.S., which will implement and license our Otoz mobility solution to manage back-office operations for vehicle subscriptions. Otoz penetration in the U.S. has been an excellent catalyst for our growth in this market, and we are further accelerating our expansion by investing in our partnerships with consultants, system integrators, and other technology partners. In the second quarter, we were pleased to expand our partnership with Amazon Web Services or AWS and became an API Gateway Delivery Partner. We expect this partnership to position NETSOL to expand our cloud capabilities by providing us with a fully managed service for developers to create, publish, maintain, monitor, and secure application programming interfaces at any scale. We're making good progress establishing a support and delivery system center in Austin, Texas, which is quickly becoming a hotspot for tech businesses in the U.S. This planned location is expected to accommodate a sales and support staff which will accommodate a number of people in the coming months. Let me talk about APAC and Europe region. Our business in the Asia Pacific and European markets continue to provide stable and reliable revenues. In APAC, our revenues decreased compared to the second quarter of 2022. This is our largest and most established market, and with the progress that we continue to make on our multi-year, multi-country implementation roadmap, we are confident that we are positioned with sustainable positive results in this region. Our European operations provide us with more growth opportunities as compared to APAC, where we are already established as the leading provider of finance leasing software in the region. Our cloud-based and SaaS offerings continue to gain traction in the European market, contributing to our recurring subscription and support-based revenues, which we believe represent a very attractive opportunity for NETSOL going forward. Our second-quarter revenues in the European market increased slightly compared to the prior year period. We anticipate that through a combination of our cloud-based and SaaS offerings and the implementation of NFS Ascent for a major Scandinavian bank across four countries in 2024, we are well positioned to deliver improved results. In summary, while our second-quarter results were not where we wanted to be, we are enthusiastic about the value-driving initiatives underway. We are making significant progress executing our strategy to grow in the U.S. We are initiating a cost reduction plan that will cut over $4 million out of the business while not impacting key growth areas such as the U.S. Our technology partnerships and technology offerings continue to grow. Finally, with strong market share and a healthy balance sheet, we have a very strong foundation upon which we wish to build on. With that, we can open the call for questions. Operator? Thank you. Ladies and gentlemen, at this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while we poll for questions. Our first question comes from the line of Todd Feltes from Aegis Financial Services.. Please go ahead. Hey, good morning. A few times during the call you referred to your market-leading position in Europe. I was wondering if you could give us kind of a estimate of your percentage market share in Europe, Asia Pacific region and the North America? Okay, thank you for asking this question, Todd. As you know, this market is very fragmented in all the three regions, and it's very difficult to. There's no, I think, any kind of monitoring or gauge to see where exactly is the market position. Nevertheless, the way we look at it, we've been in Europe since 2005, with office in North, Horsham, by Gatwick. We have a sizable team there. We've been securing new contract like the one we announced recently about a Scandinavian bank. This was a new account, and there were many other progress in this area. I believe in the Europe, we are growing our market share because we can see the number of companies operating as our competitor, and we have been invited in most of all the opportunities in RFPs, and we are participating in a lot of different new bits in the European market. APAC, in China, we are the leading company, still maintaining our leadership position. The way you look at it in the OEM multinationals and leasing finance companies, according to CBRC, which is a regulatory authority in Beijing, China, we've been the leading company with a number of contracts we have. By far, we are in a very strong position in China. Overall in APAC, we still believe we're still in a leading position. It's very hard to say what the percentage is, but Our position in Japan and China and Australia and New Zealand and other markets in the APAC is very strong. We're pretty comfortable, and as I mentioned in my comments, that our China market will continue to ramp up exactly because we have added a new vertical in to cater to the local Chinese market, which we call it professional services. Our Head of the Operation, Amanda Lee, has a very bullish program, planned to promote this new offering, which means we hired about 45, 47 new employees in China in the last six months, all Chinese local, to go towards the local Chinese companies, and whether they're in auto sector or truck sector or whatever, there's opportunity for us to grow in the professional services on a very impressive daily rate. Coming to your question on the North America. North America is the most exciting thing happening for us, and simply because, yes, we have not seen the results as of this quarter, but the reality is this: we are now, for over 1.5 years, we brought in a few very senior executives into this market, including Peter Minshall and a few others. What are we noticing here? In our core business, which is Ascent, flagship Ascent and Mobility, we have signed one major contract, I'll share the name, AutoNation, is a household name. We just announced that about a couple of months ago. In addition to that, we are pretty much in all the major opportunities, RFPs. We mentioned a quarter billion dollar sales pipeline. It's mostly in the United States. The U.S. strategy is by design. We're now investing because we realized that we've done enough in the APAC market, and we don't want to invest too much more other than one, in one time investment in China. In U.S., this is the time. Despite of the fact other economies are struggling, U.S. economy is still strong. We are investing in a new office in Austin, Texas. That'll be our hub for the U.S. customers in U.S. market. I believe given the activities, for last 12 months, yes, sales cycle is very long, but at the same time, the values are also pretty attractive. We believe, this second half, we're pretty confident, there will be good progress. I can't give you the timeline. As you know, Todd, our business is lumpy, and you cannot guarantee the results. We are leading candidates in a couple of major opportunities, maybe the top two now. We're excited. We are fully committed about the U.S. market, and we believe this is the market which will change the total landscape of this company in the coming quarters and coming years. We're investing in this market, and we believe this is the right thing to do. Okay, thanks for the color on that. I mean, when I look at the 30,000 foot view, I see that we've hired on over 500 employees the last few quarters. You know, our revenue has decreased the last few quarters, our sales pipeline has gone... You know, I remember it was under $200 million. Now we're at, you know, $250 million. When, when we do finally have this breakthrough, do you expect the revenues to jump from, you know, $12 million? Are we gonna start having $20 million-$25 million dollar quarters, given that our pipeline is $250 million? You know, it's, you know, when can we see this occur? It's just a little frustrating that, you know, salaries and consultant expenses have now grown to over 50% of revenue. We've got all these new employees on and we're kind of hoping that the, you know, the dam breaks, so to speak, and we see this jump in revenues. I was hoping you could kind of add some color to that. You know, Todd, I really understand your frustration. I think I recognize not just you, but all the investors. They're really important to me that they should see the real results, and you can have an impressive ROI eventually at some point. The color in, on the U.S., the hiring of the people, I think it's I'll give you three categories. Look, in the COVID period, things were really tough. You know the story. Everybody was going through the same thing. Now we are way over one year beyond the COVID pandemic. What we have done is there are three key areas that we added as a new additional verticals to grow our revenue. We didn't want to depend completely on the flagship Ascent. It is a long sales cycle. We want to go into some more Digital mobility platform where you have more sale opportunities, more higher sales volumes. AWS is one area. We hired almost, what? 75 or 80 people in the last nine months. We're investing them in their certification and the training. There's doors opening up. That's a brand-new investment within, like, six or nine months. We hope to see some results. There's a lot of activity going on. Second area is the professional services. China is a key right now, where we really invested in. We've never invested so much in the local Chinese sales force or team, especially in the professional services. What it does is that this is the time, I believe, to invest in growing the business in different verticals, which is linked to fintechs and our core business. China is another place we're investing. Of course, in the U.S., we will continue to bring people from across our company globally and hire local. You can imagine the magnitude and the size of the U.S. market. We believe the reason we are late in the market, because we have now enough implementations or Ascent, particularly in China and the 12 markets of Asia Pacific, and then some now in the Europe. What it does is it has given us a much better ability to position ourselves on a multimillion-dollar projects because we have experience in the Chinese market with large OEMs like BMW and Daimler Financial Services. These are top-notch names, and these are great reference point to position ourselves to bid for the local U.S. customers. In addition to not just this core business that we're trying to position ourself where the pipeline is, we own cloud, building our SaaS revenues, mobility. There's a lot of action and a lot of front, and you see the numbers. You're right. We have added 450-500 people. At the same time, this exercise, I'm in actually Lahore right now for the last two weeks. We started this exercise a few weeks earlier, before this quarter ended, is to find ways to be a more efficient company, to be more leaner, to be more productive. The reason is, we had to put a lot of bench. I mean, the number I just mentioned, this is the largest bench we have ever had in our history, simply because these are new opportunistic verticals. We believe strongly about that we can really do a good job. Given that our experience as a IT company and now fintech, we have the ability to reach out to larger customers and show them that we can build a new opportunity in the U.S. market, not just our main business, but the new opportunity like AWS and professional services and so forth. I think these are investment-driven. It's tough. We watch our cash very carefully. We watch our hiring. Now we're in the process aggressively to at least take out 20% of the headcount and be more efficient company. The number that I just mentioned, my goal is to at least have $4 million improved bottom line in EBITDA and in the net income. These are hard decisions, but they're tough decisions. Given the environment we are in, there's inflation everywhere, there's issues everywhere. You mentioned rightly this, that is. We have to maintain our the core team in Lahore and other offices around the world to make sure that we don't lose them because of high inflation. Everybody's, at least the middle class, they're suffering. We do whatever it takes to not lose our good employees, bring fresh, new people to build, invest for the new, the future in the U.S. I think these are all right points for us, data point, to make sure that not only we grow the revenue in the coming quarters, but also become very profitable, gross profit and the net income. Okay. If I was trying to model this out, given the $250 million backlog, given the long sales cycle and also given all the exciting opportunities you just discussed, I mean, a year from now, are we hoping to be doing, you know, $20 million-$25 million in revenue a quarter, or is that too optimistic or is the growth gonna be, you know? No, it's. Where is the growth coming? It's not too optimistic. You're right on the money. It's not too optimistic. It is actually our own wish and goals to achieve those, double the numbers. I think when we talk about these high pipelines. Look, I'm sure you're familiar, I don't know how much you understand how long the sales cycle is. In our kind of business, we're not off-the-shelf company which has a ready-made. These customers spend days, weeks, months in narrowing shortlisting from 10 to five to three to now two. I'm giving a generic example. Now some of them want to visit Lahore, which is a very good sign. One of these deals or two of these deals in next six months can hit the number that you're talking about. I'm pretty confident. One way to look at it is our current revenue is pretty stable, because this quarter you didn't see any growth, and we obviously could not recognize at least $2 million in this Q2 because the timeline, but the deal was signed, and this is based in Australia, and I think we can recognize that in the Q3. The real, I think, excitement is the big deal we are working day and night. I mean, Perry follows through with these customers and go through all these detailed legal agreements. That means that across the globe, U.S., people sitting in Lahore doing the calls day and night with these customers, 30, 40 at a time from this side and our side. It is a very, very active office in Lahore right now. I'm here, and I can see that. Then we need some good luck also. We're excited. We're not missing any opportunity, and we like to turn the corner. We know we've disappointed the market. I admit that. You know, sometimes you don't have a lot of control. You know, you do your best and you think you're gonna make it, and then it's gonna get delayed or something else happen. We are very confident we will have some new contract in the coming months that will change our numbers dramatically. Okay, well, that's great to hear on the potential upcoming revenue growth. I hope you keep us all informed and announce some of these contracts and revenue as they come in, and I'll get off the call. I've taken enough of your time, and I thank you for answering the questions. You're always welcome, Todd. Thank you, and have a good day. Thank you. Ladies and gentlemen, if you wish to ask a question, please press star one. Our next question comes from the line of Nick Webber from Swift Rock Capital. Please go ahead. Hey, guys. Thanks for taking my questions. First one, could you just provide a little more insight concerning the timing of the implementation of the $4 million in cost reductions? You know, will this be immediate or implemented over, you know, the balance of the year? We have started the process a few weeks ago. Really work in progress with our HR and our each head of departments been given the targets to implement these across their division and department in the companies. I think, the timeline is you'll see some value, tangible value, if not in the third, in the fourth quarter. By the time you have some severances in the timeline, all that happen. The real, I think, benefit will be in the fiscal 2024, beginning of twenty, which is about two quarters from now. Got it. Okay. Just to make sure I'm understanding, will the efficiency measures impact your strategic investment in the U.S., or are they mostly focused on other parts of your business? U.S. is the one we invest in actually. We are very lean, both in the my U.S. operation, and NTA, North America, and our corporate team is very lean. Actually, we also downsizing our U.S. corporate offices to a bit more leaner instead of investing in the business side of it. We will be investing in the people, in the infrastructure, travel back and forth. That is really I see, and everybody knows in my team and the board, this is where the big opportunity is, the U.S. market. I'm very, very bullish in the U.S. simply because I know what is happening in Europe. They're struggling a lot more than U.S. U.S. has the ability to control the inflation. They can't control the inflation in the European market. China is a bit better. Other parts of APAC are really struggling. Despite that, I believe the U.S. is the only place that we feel it is the market for us. We'll put all our best talents, best more energy and financial investment to get some penetration in this market and see some real result that we've been working for many, many years. The U.S. will continue- Got it. Thanks. -to be investing and nothing will affect in the U.S., except the investment continue. Okay, great. Thank you. Just my last question. You mentioned AI and machine learning in your offerings. Just wondering if you could provide, you know, a little more color around how this technology is implemented into your solutions? Well, you know, AI is very popular worldwide, as you know, and in our business, customers are benefiting from our different modules. We implemented AI and machine learning into our offerings on a case-by-case basis, depending on the need of the customers. Our algorithm is capable of identifying risk on application during the evaluation process for legal loan. To that end, we are able to train our people in specific data provided by the bank or financing company and so forth. I think there's lots going on in this new tool that is becoming one of the hottest tool right now in all the developing and technology sectors. I am confident that AI will be a leading force in many, many ways to help our customers build into the product and make the product more quick and efficient. Of course, what it's supposed to do is to create a different models altogether in this company. Customers are going to benefit very aggressively because we are in it. We've hired some couple of MIT PhDs, and we've brought them to our facility in Lahore, and they're playing a big part in building this up that, for our customers' basis. It's a very good thing happening for the company. Okay, great. Thanks. Yeah, that's it for me. Thanks for taking my questions. Thank you. 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 investor relations team by emailing them at investors@netsoltech.com or by calling them at nine four nine five seven four three eight six zero. I'd now like to turn the call back over to Mr. Ghauri for his closing remarks. Thank you for joining us today. I especially want to thank our investors for their continued support, our loyal customers, and our most dedicated employees for their ongoing contributions. We look forward to updating you on our next call. Operator. Thank you for joining us today for NETSOL's fiscal second quarter 2023 earnings call. You may now disconnect your line.