{"id":157776,"date":"2024-01-17T10:18:45","date_gmt":"2024-01-17T15:18:45","guid":{"rendered":"https:\/\/44.250.171.167\/?p=157776"},"modified":"2024-01-17T10:18:47","modified_gmt":"2024-01-17T15:18:47","slug":"newgen-software-technologies-limited-q3-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q3-fy24-earnings-conference-call-insights\/","title":{"rendered":"Newgen Software Technologies Limited Q3 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Newgen Software Technologies Limited (NEWGEN) Q3 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Revenue at INR 324 crores, up 27% year-over-year.<\/li>\n<li>Profit after tax at INR 68 crores, up 45%.<\/li>\n<li>Healthy growth across geographies like India, EMEA, APAC, Americas.<\/li>\n<li>Annuity revenues comprise 59% of total at INR 191 crores.<\/li>\n<li>Growth from ATS\/AMC compounding and shift of licenses to subscription.<\/li>\n<li>Annuitized licenses expected to continue growing faster than company.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New Product Innovations<\/strong>\n<ul>\n<li>Launched NewgenONE Marvin powered by generative AI to enable faster, smarter application development.<\/li>\n<li>Received positive response from customers globally.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Growth Drivers<\/strong>\n<ul>\n<li>Added 11 new logos in Q3, 38 year-to-date.<\/li>\n<li>Expanding partnerships, like recent one with Duck Creek.<\/li>\n<li>Continued investments in R&amp;D; 10% of revenue, and sales and marketing; 21% of revenue.<\/li>\n<li>Strong cash flow from operations at INR 193 crores.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Order Book Growth and Revenue Outlook<\/strong>\n<ul>\n<li>Order book has grown around 20% in the first 9 months of FY&#8217;24, which will drive revenue growth over the next 2-3 quarters.<\/li>\n<li>Growth will be driven by larger deal sizes and multi-year contracts.<\/li>\n<li>Q3 and Q4 are significant growth quarters, so expect strong Q4 based on high Q3 growth.<\/li>\n<li>Growth momentum expected to continue based on deal velocity in India, Middle East and USA.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Subscription Revenue Growth Drivers<\/strong>\n<ul>\n<li>Subscription revenue grew 33% year-on-year.<\/li>\n<li>Larger subscription revenue base in USA, but adding new logos in other geographies for subscription deals.<\/li>\n<li>Overall subscription growth driven by total company revenue across geographies.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New AI Capabilities<\/strong>\n<ul>\n<li>Launched NewgenONE Marvin using generative AI to enhance product capabilities.<\/li>\n<li>Horizontal capabilities added across products to make them more competitive.<\/li>\n<li>Not a separate revenue stream, but bundled into overall product capabilities.<\/li>\n<li>New deals will include Marvin capabilities by default or as a priced component.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Growth Outlook and Seasonality<\/strong>\n<ul>\n<li>Faster growth creates challenge of even higher growth next quarter.<\/li>\n<li>Annuity revenue and long-term relationships provide compounding effect.<\/li>\n<li>Hard work ahead but no constraints seen on growth currently.<\/li>\n<\/ul>\n<\/li>\n<li><strong>US Market Performance<\/strong>\n<ul>\n<li>Grew 25% YTD but below company average and own expectations.<\/li>\n<li>Initiatives like GSI partnerships, larger banks, insurance in progress.<\/li>\n<li>Significant opportunity for higher growth in large U.S. market.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Product Partnerships<\/strong>\n<ul>\n<li>Partnerships with platforms like Duck Creek &amp; Guidewire in insurance.<\/li>\n<li>Integrations allow Newgen to tap into partner ecosystems.<\/li>\n<li>Early stage but opens up insurance use cases and joint go-to-market.<\/li>\n<li>Banking integrations with core platforms already established.<\/li>\n<\/ul>\n<\/li>\n<li><strong>License and Implementation Revenue<\/strong>\n<ul>\n<li>Implementation revenue growing faster recently, driven by larger deal sizes changing license vs implementation mix.<\/li>\n<li>Short term spike but expect balance as deal velocity increases.<\/li>\n<li>Annuity revenues expected to grow faster over mid-long term.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Logo Addition Strategy<\/strong>\n<ul>\n<li>Conscious pivot towards larger deals and customers, affecting logo rate.<\/li>\n<li>Aim to increase logo rate to 60-70 per year from current about 50.<\/li>\n<li>No concentration risk with 500+ customers and &lt;3% revenue per customer.<\/li>\n<li>Diversifying markets and verticals should help increase logos.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Newgen Software Technologies Limited (NEWGEN) Q3 FY24 Earnings Concall Financial Performance Revenue at INR 324 crores, up 27% year-over-year. Profit after tax at INR 68 crores, up 45%. Healthy growth across geographies like India, EMEA, APAC, Americas. Annuity revenues comprise 59% of total at INR 191 crores. Growth from ATS\/AMC compounding and [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,8],"tags":[10169,9124,8532],"class_list":["post-157776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-technology-stocks","tag-earnings","tag-software-technology-services","tag-technology"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":160721,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":157776,"position":0},"title":"Newgen Software Technologies Limited Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 1, 2024","format":false,"excerpt":"Key highlights from Newgen Software Technologies Limited (NEWGEN) Q4 FY24 Earnings Concall Revenue Growth Revenue increased by 28% year-over-year to INR 1,244 crores. Witnessed strong growth in EMEA, 39% and India, 33% markets. Secured largest project worth INR 97 crores in APAC region. Increased number of customers with billing over\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":154984,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":157776,"position":1},"title":"Newgen Software Technologies Limited Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"October 17, 2023","format":false,"excerpt":"Key highlights from Newgen Software Technologies Limited (NEWGEN) Q2 FY24 Earnings Concall Revenue Growth Across Geographies Newgen witnessed robust 30% YoY revenue growth to INR293 crores in Q2 FY24. Strong growth seen in India region with 38% YoY growth; significant orders from public and private banks. EMEA region grew 34%\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":126436,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q3-fy22-earnings-conference-call-summary\/","url_meta":{"origin":157776,"position":2},"title":"Newgen Software Technologies Limited Q3 FY22 Earnings Conference Call Summary","author":"Praveen","date":"January 19, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=lMWFAFWJzS0 Key highlights from Newgen Software Technologies Limited (NEWGEN) Q3 FY22 Earnings Concall Management Update: NEWGEN commented that it saw acceleration in business from existing customers and healthy operating margins. The company\u2019s subscription revenue continues to be the strongest component, seeing 20% growth YoY. Q&A Highlights: Analyst Dipesh Mehta asked\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":138726,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":157776,"position":3},"title":"Newgen Software Technologies Limited Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"January 18, 2023","format":false,"excerpt":"Key highlights from Newgen Software Technologies Limited (NEWGEN) Q3 FY23 Earnings Concall Management Update: [00:03:37] NEWGEN said it is seeing increased adoption of subscription based business model, with the company\u2019s overall subscription revenue growing 37% YoY. [00:09:44] The company said that FY23 is marked by the continuing impact of elevated\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":128927,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":157776,"position":4},"title":"Newgen Software Technologies Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 5, 2022","format":false,"excerpt":"https:\/\/youtu.be\/KGCQVEOvYGQ Key highlights from Newgen Software Technologies Limited (NEWGEN) Q4 FY22 Earnings Concall Management Update: NEWGEN said that of the 530-odd customers, 38 customers witnessed billing of over INR5 crores in FY22 compared to 26 customers in FY21. Q&A Highlights: Sarang Sanil from RW Investment asked about the GSI percentage\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":131560,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":157776,"position":5},"title":"Newgen Software Technologies Limited Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"July 22, 2022","format":false,"excerpt":"https:\/\/youtu.be\/le4H1ngVL68 Key highlights from Newgen Software Technologies Limited (NEWGEN) Q1 FY23 Earnings Concall Management Update: NEWGEN said it is increasingly seeing growth in cloud subscription business which grew by 33%. Cloud and subscription revenue put together have now reached 38% of total revenue. This shift, the company said, is expected\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/157776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=157776"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/157776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=157776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=157776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=157776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}