Newgen Software reports 28% annual revenue jump in FY24

Indian software company Newgen Software Technologies has reported encouraging annual and quarterly financial results. At a recent board meeting on April 30, 2024, the management announced revenues from operations at Rs $150.26 million in FY24, representing a 28% year-on-year increase. The company’s profit after tax rose by 42%, reaching $30.39 million, marking a significant milestone as the quarterly profit exceeded $12 million for the first time.

Mr. Diwakar Nigam, Chairman and Managing Director of Newgen Software Technologies, expressed pride in the firm's performance. He said, "We are delighted to close another good growth year in revenues and profits with strong growth in India and EMEA markets. Our large customer base has been increasing, leading to strong growth in revenue per customer. For the quarter, we have registered our highest-ever quarterly revenue at $43.33 million in Q4. Profit after tax crossed $12.08 million for the first time in a quarter.”

Newgen Software has successfully fused dedication to innovation and value delivery for its clients. Mr. Virender Jeet, CEO of Newgen Software, stated, "During the year, we worked constantly on refining and expanding the capabilities of our platforms and solutions. We have rolled out several new versions, with enhanced features, improved design and deployment journeys, enhanced AI/ML capabilities, improved security, and user-centric upgrades. We have increased revenues from existing customers as well as added 51 new logos in FY24."

The company's consolidated financial highlights for FY24 demonstrate robust growth. Revenue from operations rose 28% Year over Year, reaching $150.26 million compared to the previous year's $117.66 million. Time-tested revenue streams such as Annuity (ATS/AMC, support and cloud/SaaS and Subscription license) and product sales totalled $90.60 million and $26.82 million, respectively. In comparison, implementation and other revenues contributed $32.86 million.

In addition to an annual increase of 42% YoY ($30.39 Mn) in profit after tax, Newgen Software also reported a healthy cash flow, with net cash from operating activities standing at $34 million for the period.

The company's consolidated financial performance for Q4 FY24 was also noteworthy. Revenue from operations at $45.33 million showed an increase of 23% YoY. This growth, primarily driven by strong sales in the EMEA and Indian markets, was bolstered by total annuity revenue streams reaching $25.61 million. An impressive 24% YoY increase was seen in product revenue, which hit $8.94 million, and the profit after tax at $12.72 million was up 32% from the Q4 FY23 figure.

Newgen Software also welcomed 51 new customer logos in FY24, taking its large customer base to 54 customers, each billed over $0.60 million during the year. In February 2024, the company was recognised in Forrester’s Property & Casualty Claims Management Systems Landscape. The board has also approved a dividend of Rs 4 per equity share, adjusted for a bonus issue of 1:1.