NexGen Technologies Corporation Fourth Quarter and Full Year 2024 Financial Results February 5, 2025
NexGen Technologies Corporation (NASDAQ: NXTG), a leading provider of enterprise software solutions, today announced financial results for its fourth quarter and full fiscal year ended December 31, 2024. The company reported record quarterly revenue of $1.87 billion, representing a 28% increase compared to the same period in 2023, significantly exceeding analysts' consensus estimate of $1.74 billion.
For the full year 2024, NexGen generated total revenue of $6.92 billion, up 31% year-over-year, with subscription-based recurring revenue accounting for 78% of total revenue, compared to 71% in 2023. This shift toward predictable recurring revenue streams reflects the company's successful transition to cloud-based service delivery models. Operating income for the year reached $1.24 billion, yielding an operating margin of 17.9%, a substantial improvement from the 14.2% margin achieved in 2023.
"Our fourth quarter performance demonstrates the strength of our strategic initiatives and the growing demand for our integrated platform solutions," stated Jennifer Park, Chief Executive Officer. "We successfully expanded our customer base by 42% to reach 8,750 enterprise clients, while simultaneously achieving a remarkable 96% customer retention rate. Our focus on delivering measurable business value through data analytics and artificial intelligence capabilities has resonated strongly with organizations seeking to accelerate digital transformation."
Key business metrics showed robust performance across all segments. The company's flagship Enterprise Resource Planning (ERP) suite generated $4.2 billion in annual revenue, growing 26% year-over-year. The Customer Relationship Management (CRM) division contributed $1.8 billion, representing 35% growth, while the emerging Analytics and AI division achieved $980 million in revenue with an impressive 58% growth rate. International markets now represent 47% of total revenue, up from 41% in 2023, with particularly strong growth in the Asia-Pacific region.
The company's balance sheet remains exceptionally strong, with $3.8 billion in cash and short-term investments and zero long-term debt. This financial flexibility enabled NexGen to execute three strategic acquisitions during 2024, totaling $650 million, which have already begun contributing to revenue growth. Additionally, the company returned $420 million to shareholders through share repurchases and initiated a quarterly dividend of $0.18 per share in the third quarter.
Looking ahead to 2025, NexGen projects full-year revenue between $8.6 billion and $8.9 billion, representing growth of 24-29%. The company anticipates operating margins will expand to approximately 19-20% as economies of scale from the growing subscription base offset continued investments in research and development. "We are entering 2025 with exceptional momentum and a clear strategic roadmap," concluded Ms. Park. "Our pipeline of innovation, combined with strong market demand, positions us well to deliver sustained value creation for all stakeholders."