In an impressive demonstration of growth and resilience, Aeries Technology has reported robust financial results for the third fiscal quarter of 2024, ending December 31, 2023. The earnings report highlights the company”s substantial revenue increase, operational performance, and strategic outlook for the future.
Financial Highlights
Aeries Technology’s revenues for the third fiscal quarter reached $18.9 million, marking a significant 49% increase compared to the same period in 2023, where revenues stood at $12.7 million. This growth is attributed to new customer adoption and the expanding network effect of the Aeries platform, which continues to attract mid-market prospects.
The company’s income from operations also saw a notable rise, reaching $0.7 million, a 150% increase from $0.3 million in the previous year. However, the net income for the quarter was impacted by a substantial non-cash charge of $16.4 million related to Forward Purchase Agreements tied to the company’s SPAC business combination, resulting in a net loss of $(16.3) million.
Adjusted EBITDA and Operating Performance
Despite the net loss, Aeries Technology maintained a stable Adjusted EBITDA of $2.4 million, consistent with the third fiscal quarter of 2023. This measure reflects the company’s ability to generate earnings before interest, taxes, depreciation, and amortization, adjusted for stock-based compensation and business combination-related costs.
The company’s gross profit for the quarter was $6.0 million, up from $2.3 million in the same period last year, reflecting a gross margin improvement from 18% to 32%. Operating expenses increased to $5.3 million, up from $2.0 million, primarily due to higher selling, general, and administrative expenses.
Strategic Outlook and Future Guidance
Looking ahead, Aeries Technology reiterates its revenue guidance for calendar year 2024, projecting revenues between $95 million and $105 million and Adjusted EBITDA between $16 million and $20 million. This optimistic outlook is based on the company’s continued success in scaling its business and the growing adoption of its solutions.
CEO Sudhir Panikassery expressed confidence in the company’s trajectory, emphasizing the strategic benefits of their differentiated engagement model and the growing interest from mid-market clients.\
About Aeries Technology
Founded in 2012, Aeries Technology is a global professional services and consulting partner specializing in technology services, business process management, and digital transformation. With over 1,600 professionals, the company provides tailored solutions to help businesses optimize and transform their operations.
Conclusion
Aeries Technology’s third fiscal quarter results demonstrate significant growth and operational efficiency, positioning the company for continued success in the coming year. With a strategic focus on expanding its customer base and enhancing its service offerings, Aeries Technology remains a key player in the global professional services and consulting sector.