Aeries Technology (Nasdaq: AERT), a global professional services
and consulting partner, today announced financial results for the
quarter ended December 31, 2023.
“We saw strong topline results in the quarter driven by new
customer adoption of the Aeries platform,” said Sudhir Panikassery,
CEO of Aeries Technology. “We are seeing more mid-market prospects
interested in our solutions as the network effect of our clients
and their sponsors continues to pick up speed, and we believe that
the clear benefit of our differentiated Aeries engagement model is
a key factor.”
Three Months Ended December 31, 2023 (Third Fiscal
Quarter 2024) Financial Highlights
Revenues: Revenues for the third fiscal quarter
of 2024 were $18.9 million, up 49% compared to $12.7 million for
the third fiscal quarter of 2023.
Income from Operations: Income from operations
for the third fiscal quarter of 2024 was $0.7 million, up 150%
compared to $0.3 million for the third fiscal quarter of 2023.
Net Income (Loss): Net loss for the third
fiscal quarter of 2024 was $(16.3) million compared to $(0.3)
million for the third fiscal quarter of 2023. Net loss included a
$16.4 million dollar non-cash charge related to the Forward
Purchase Agreements in connection with our SPAC business
combination.
Adjusted EBITDA: Adjusted EBITDA for the third
fiscal quarter of 2024 was $2.4 million compared to $2.4 million
for the third fiscal quarter of 2023.
Financial Outlook
The Company is reiterating its previously stated guidance for
calendar year 2024:
- Revenue of between $95-105
million
- Adjusted EBITDA of between $16-20
million
The Company’s guidance contains forward-looking statements and
actual results may differ materially as a result of known and
unknown uncertainties and risks, including those set forth below
under the heading “Forward-Looking Statements.” The Company
previously provided a reconciliation of its guidance for adjusted
EBITDA to its most directly comparable GAAP measure and the Company
hereby withdraws that reconciliation and any associated guidance.
Forward-looking non-GAAP financial measures are presented on a
non-GAAP basis without reconciliations of such forward-looking
non-GAAP measures due to the inherent difficulty in projecting and
quantifying the various adjusting items necessary for such
reconciliations, such as stock-based compensation expense,
amortization and depreciation expenses and taxes, that have not yet
occurred, are out of Aeries’ control, or cannot be reasonably
predicted. Accordingly, a reconciliation of our guidance for
adjusted EBITDA is not available without unreasonable effort.
Conference Call Details
As previously announced, the company will host a conference call
to discuss their financial results on Thursday, February 22, 2024
at 8:00 AM ET. The call will be accessible by telephone at
1-877-300-8521 (domestic) or 1-412-317-6026 (international). The
call will also be available live via webcast on the company’s
investor relations website at https://ir.aeriestechnology.com.
A telephone replay of the conference call will be available
following its conclusion at 1-844-512-2921 (domestic) or
1-412-317-6671 (international) with access code 10186664 and will
be available until 11:59 PM ET, February 29, 2024. An archive of
the webcast will also be available on the company’s investor
relations website at https://ir.aeriestechnology.com.
About Aeries Technology
Aeries Technology (Nasdaq: AERT) is a global professional
services and consulting partner for businesses in transformation
mode and their stakeholders, including private equity sponsors and
their portfolio companies, with customized engagement models that
are designed to provide the right mix of deep vertical specialty,
functional expertise, and digital systems and solutions to scale,
optimize and transform a client’s business operations. Founded in
2012, Aeries Technology now has over 1,600 professionals
specializing in Technology Services and Solutions, Business Process
Management, and Digital Transformation initiatives, geared towards
providing tailored solutions to drive business success. Aeries
Technology’s approach to staffing and developing its workforce has
earned it the Great Place to Work Certification.
Non-GAAP Financial Measures
The Company uses non-GAAP financial information and believes it
is useful to investors as it provides additional information to
facilitate comparisons of historical operating results, identify
trends in its underlying operating results and provide additional
insight and transparency on how it evaluates the business. The
Company uses non-GAAP financial measures to budget, make operating
and strategic decisions, and evaluate its performance. The Company
has detailed the non-GAAP adjustments that it makes in the non-GAAP
definitions below. The adjustments generally fall within the
categories of non-cash items. The Company believes the non-GAAP
measures presented herein should always be considered along with,
and not as a substitute for or superior to, the related GAAP
financial measures. In addition, similarly titled items used by
other companies may not be comparable due to variations in how they
are calculated and how terms are defined. For further information,
see “Reconciliation of Non—GAAP Financial Measures” below,
including the reconciliations of these non-GAAP measures to their
most directly comparable GAAP financial measures.
The Company defines Adjusted EBITDA as net income from
operations before interest, income taxes, depreciation and
amortization adjusted to exclude stock-based compensation and
business combination related costs. Adjusted EBITDA is one of the
key performance indicators the company uses in evaluating our
operating performance and in making financial, operating, and
planning decisions. The Company believes adjusted EBITDA is useful
to investors in the evaluation of Aeries’ operating performance as
such information was used by the Company’s management for internal
reporting and planning procedures, including aspects of our
consolidated operating budget and capital expenditures.
Forward-Looking Statements
All statements in this release that are not based on historical
fact are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995 and the provisions
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Words such as “anticipate,” “believe,” “continue,” “could,”
“estimate”, “expect”, “hope”, “intend”, “may”, “might”, “should”,
“would”, “will”, “understand” and similar words are intended to
identify forward looking statements. These forward-looking
statements include but are not limited to, statements
regarding our future operating results, outlook, guidance and
financial position, our business strategy and plans, our objectives
for future operations, potential acquisitions and macroeconomic
trends. While management has based any forward-looking
statements included in this release on its current expectations,
the information on which such expectations were based may change.
These forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of risks,
uncertainties and other factors, many of which are outside of the
control of Aeries and its subsidiaries, which could cause actual
results to materially differ from such statements. Such risks,
uncertainties, and other factors include, but are not limited to,
changes in the business, market, financial, political and legal
conditions in India, Singapore, the United States, Mexico, the
Cayman Islands and other countries, including developments with
respect to inflation, interest rates and the global supply chain,
including with respect to economic and geopolitical uncertainty in
many markets around the world, the potential of decelerating global
economic growth and increased volatility in foreign currency
exchange rates; the potential for our business development efforts
to maximize our potential value; the ability to recognize the
anticipated benefits of the business combination with Worldwide
Webb Acquisition Corp., which may be affected by, among other
things, competition, our ability to grow and manage growth
profitably and retain its key employees; the ability to maintain
the listing of our Class A ordinary shares and our public warrants
on Nasdaq, and the potential liquidity and trading of our
securities; changes in applicable laws or regulations and other
regulatory developments in the United States, India, Singapore,
Mexico, the Cayman Islands and other countries; our ability to
develop and maintain effective internal controls, including our
ability to remediate the material weakness in our internal controls
over financial reporting; our success in retaining or recruiting,
or changes required in, our officers, key employees or directors;
our financial performance; our ability to continue as a going
concern; our ability to make acquisitions, divestments or form
joint ventures or otherwise make investments and the ability to
successfully complete such transactions and integrate with our
business; the period over which we anticipate our existing cash and
cash equivalents will be sufficient to fund our operating expenses
and capital expenditure requirements; the conflicts between Russia
and Ukraine, and Israel and Hamas, and any restrictive actions that
have been or may be taken by the U.S. and/or other countries in
response thereto, such as sanctions or export controls; risks
related to cybersecurity and data privacy; the impact of inflation;
the impact of the COVID-19 pandemic and other similar pandemics and
disruptions in the future; and the fluctuation of economic
conditions, global conflicts, inflation and other global events on
Aeries' results of operations and global supply chain constraints.
Further information on risks, uncertainties and other factors that
could affect our financial results are included in Aeries' periodic
and current reports filed with the U.S. Securities and Exchange
Commission. Furthermore, Aeries operates in a highly competitive
and rapidly changing environment where new and unanticipated risks
may arise. Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results.
Aeries disclaims any intention to, and undertakes no obligation to,
update or revise forward-looking statements.
Contacts
Ryan GardellaAeriesIR@icrinc.com
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except
percentages)(Unaudited) |
|
|
Three months ended December 31, |
|
Nine months ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues, net |
$ |
18,897 |
|
|
$ |
12,691 |
|
|
$ |
52,805 |
|
|
$ |
38,027 |
|
Cost of revenue |
|
12,851 |
|
|
|
10,373 |
|
|
|
37,488 |
|
|
|
28,685 |
|
Gross
profit |
$ |
6,046 |
|
|
$ |
2,318 |
|
|
$ |
15,317 |
|
|
$ |
9,342 |
|
Gross Margin |
|
32% |
|
|
|
18% |
|
|
|
29% |
|
|
|
25% |
|
Operating
expenses |
|
|
|
|
|
|
|
Selling, general &
administrative expenses |
|
5,313 |
|
|
|
2,025 |
|
|
|
12,321 |
|
|
|
7,898 |
|
Total operating
expenses |
$ |
5,313 |
|
|
$ |
2,025 |
|
|
$ |
12,321 |
|
|
$ |
7,898 |
|
Income (loss) from
operations |
$ |
733 |
|
|
$ |
293 |
|
|
$ |
2,996 |
|
|
$ |
1,444 |
|
Operating Margin |
|
4% |
|
|
|
2% |
|
|
|
6% |
|
|
|
4% |
|
Other income
(expense) |
|
|
|
|
|
|
|
Change in fair value of derivative liabilities |
|
(16,395 |
) |
|
|
- |
|
|
|
(16,395 |
) |
|
|
- |
|
Interest income |
|
83 |
|
|
|
80 |
|
|
|
217 |
|
|
|
175 |
|
Interest expense |
|
(115 |
) |
|
|
(52 |
) |
|
|
(314 |
) |
|
|
(166 |
) |
Other income (expense), net |
|
(50 |
) |
|
|
106 |
|
|
|
70 |
|
|
|
518 |
|
Total other income
(expense) |
|
(16,477 |
) |
|
|
134 |
|
|
|
(16,422 |
) |
|
|
527 |
|
Income before income
taxes |
|
(15,744 |
) |
|
|
427 |
|
|
|
(13,426 |
) |
|
|
1,971 |
|
Provision for income
taxes |
|
(557 |
) |
|
|
(742 |
) |
|
|
(1,454 |
) |
|
|
(1,150 |
) |
Net
income |
|
(16,301 |
) |
|
|
(315 |
) |
|
|
(14,878 |
) |
|
|
821 |
|
Net Margin |
|
-86% |
|
|
|
-2% |
|
|
|
-28% |
|
|
|
2% |
|
Less: Net income / (loss)
attributable to noncontrolling interest |
|
(44 |
) |
|
|
(45 |
) |
|
|
137 |
|
|
|
125 |
|
Less: Net income / (loss)
attributable to redeemable noncontrolling interests |
|
154 |
|
|
|
- |
|
|
|
154 |
|
|
|
- |
|
Net income
attributable to the shareholders’ of Aeries Technology,
Inc. |
|
(16,411 |
) |
|
|
(270 |
) |
|
|
(15,171 |
) |
|
|
696 |
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(In thousands, except
percentages)(Unaudited) |
|
|
Three months ended December 31, |
|
Nine months ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
(16,301 |
) |
|
$ |
(315 |
) |
|
$ |
(14,880 |
) |
|
$ |
821 |
|
Income tax expense |
|
557 |
|
|
|
742 |
|
|
|
1,454 |
|
|
|
1,150 |
|
Interest income |
|
(83 |
) |
|
|
(80 |
) |
|
|
(217 |
) |
|
|
(175 |
) |
Interest expenses |
|
115 |
|
|
|
52 |
|
|
|
314 |
|
|
|
166 |
|
Depreciation and
amortization |
|
343 |
|
|
|
285 |
|
|
|
1,004 |
|
|
|
873 |
|
EBITDA |
$ |
(15,369 |
) |
|
$ |
684 |
|
|
$ |
(12,325 |
) |
|
$ |
2,835 |
|
Adjustments |
|
|
|
|
|
|
|
(+) Stock-based
compensation |
|
- |
|
|
|
1,425 |
|
|
|
1,626 |
|
|
|
2,482 |
|
(+) Business combination
related costs |
|
1,333 |
|
|
|
325 |
|
|
|
2,504 |
|
|
|
550 |
|
(-) Change in fair value of
derivative liabilities |
|
16,395 |
|
|
|
- |
|
|
|
16,395 |
|
|
|
- |
|
Adjusted
EBITDA |
$ |
2,359 |
|
|
$ |
2,434 |
|
|
$ |
8,200 |
|
|
$ |
5,867 |
|
(/) Revenue |
|
18,897 |
|
|
|
12,691 |
|
|
|
52,805 |
|
|
|
38,027 |
|
Adjusted EBITDA Margin |
|
12.5% |
|
|
|
19.2% |
|
|
|
15.5% |
|
|
|
15.4% |
|
|
CASH FLOW(In
thousands)(Unaudited) |
|
|
Nine months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Cash at the beginning of period |
$ |
1,131 |
|
|
$ |
351 |
|
Net cash provided by operating
activities |
|
25 |
|
|
|
2,318 |
|
Net cash used in investing
activities |
|
(1,070 |
) |
|
|
(1,418 |
) |
Net cash provided by financing
activities |
|
6,474 |
|
|
|
444 |
|
Effects of exchange rates on
cash |
|
(17 |
) |
|
|
(51 |
) |
Cash at the end of
period |
$ |
6,543 |
|
|
$ |
1,644 |
|
Aeries Technology (NASDAQ:AERT)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Aeries Technology (NASDAQ:AERT)
Gráfica de Acción Histórica
De May 2023 a May 2024