Management Talks: Inside the Engine Room at NTG Clarity Networks
A 1:1 with NTG Clarity’s VP Strategy on Saudi growth, sticky contracts and what keeps them up at night.
If you’re new to the NTG story ($NCI.V), check out my earlier write-up here — it covers the Saudi-centric model, backlog momentum, and why I started a position.
Since then, I sat down for a 1:1 call with Adam Zaghloul (VP Strategy) and another IR team member. We walked through the company’s evolution, contract structure, growth strategy and execution risks. What follows is a distilled account of that conversation — chronologically structured, directly quoted, and with personal reflections woven throughout.
“Am I Already Late?”
When a stock’s up 10x, it's natural to ask: is there any upside left?
That was my first question going in. Vision 2030 headlines were everywhere. Every other week brought another contract PR. It looked like the story was fully priced in.
But as I dug deeper, it became clear: the stock may have rerated, but the business still feels early. There’s visibility. Stickiness. High returns on capital. And a model that could scale well beyond Saudi borders.
What follows is my unfiltered take on that call.
The Saudi Boom Wasn’t Overnight. It Just Looks That Way.
Vision 2030 was announced in 2016. Why did NTG only start breaking out in the last 12–18 months?
“The real pivot was in late 2019. We moved beyond telecom and repositioned NTG as a digital transformation partner — someone who could embed with the client, not just ship code offshore.”
Execution followed: 15 straight quarters of revenue growth. 9 straight profitable quarters. A $105M backlog. A client base that’s renewing, expanding, and in at least one case — boosting billing mid-contract by 50%.
But none of that was overnight.
“We spent two decades building trust in Saudi. What changed recently is recognition — from clients and investors.”
“Are You Just a Staffing Company?”
One of the biggest surprises from the call was how broad NTG’s scope really is.
“You can think about the work we do as sort of an intersection between staffing and resourcing, as well as IT consulting — system integration, system design, system implementation.”
This isn’t just about placing coders. The Saudi market has a deep tech talent gap — and NTG has positioned itself as the bridge.
“Saudi Arabia is in a pretty unique position... They’ve got all of these software projects they want to build... They don’t necessarily have a lot of homegrown talent for it. What companies like NTG bring is... not just the manpower, but also technical expertise and experience that’s not present locally on the ground.”
Because of that, NTG’s role often extends beyond execution. They’re shaping strategy, defining systems, and embedding at every level.
Saudi Arabia’s tech ecosystem is still young. Most clients don’t have in-house software teams or mature infrastructure. And because NTG embeds talent, they’re not fighting for every project — they’re already inside.
Private Clients, Public Dollars
After digging into NTG’s delivery model, I wanted to understand who’s actually paying the bills. Is this a government story—or a private sector one?
Adam laid it out:
“About 64% of our revenue is from banks and financial institutions. Another 25% is from system integrators. Telcos are around 8%. So while we don’t have many direct government clients, there’s definitely a lot of government flavor in the mix.”
That “flavor” comes from ownership and funding. Many of NTG’s enterprise clients — especially in banking and telecom — are heavily regulated, partially state-owned, or benefit from public subsidies. And NTG’s largest customer? A system integrator delivering directly to Saudi ministries.
“Our largest customer is a system integrator that does all the work for the Saudi government. So in some cases, the government is a customer by proxy.”
So yes, the dollars are often public. But the relationships — and contracts — are squarely with the private sector. That distinction gives NTG room to scale without being boxed into rigid RFP cycles or exposed to direct government procurement volatility.
Recurring vs. Reoccurring — Why Visibility Is High
That led to a natural follow-up: how confident is NTG in its forward revenue?
Adam broke it down clearly:
“Our base model is monthly billing for the resources each client is using.”
That sounds transactional at first — but in practice, it’s sticky.
“These aren’t one-off projects. We’re building full software development teams for our clients — developers, business analysts, project managers. They’re working across a full roadmap.”
Instead of project-by-project wins, NTG embeds deeply — often across multiple systems, phases, and departments.
“They roll off Project A, and immediately start on Project B, C, D... It just continues.”
The contract structure has evolved with those relationships:
“A few years ago, most of our contracts were one year. Now we’re signing three-year deals. In 2024 alone, we signed three multi-year contracts that added $80M to our backlog.”
That’s the recurring piece — long-term, committed contracts.
The reoccurring piece? It’s about behavior.
“Some customers haven’t gone to a three-year yet — but they’ve been renewing annually for two years or more. That’s how we define reoccurring.”
And once NTG’s engineers get embedded, the switching cost is high.
“These developers get deeply familiar with the client’s stack, their architecture, how everything connects. It’s not easy to swap them out.”
What’s Actually in Demand?
Once I understood the contract structure, I wanted to get a feel for what NTG is actually delivering. Is this mostly raw developer staffing — or is it evolving into higher-value work?
Adam was clear:
“It’s a mix. Yes, we’re placing developers — but we’re also placing system architects, business analysts, and project managers.”
It’s not just about filling seats. NTG is increasingly helping clients shape the systems themselves.
“A lot of our clients don’t have in-house teams or mature infrastructure. So we’re not just building software — we’re helping them design the roadmap.”
That includes strategy, architecture, and long-term implementation — not just dev resourcing.
“We act as an embedded extension of their team. That’s why most of our contracts are direct — not through formal RFPs.”
It’s the difference between being a vendor and being a partner. NTG has quietly staked out the latter.
Vision 2030: How Early Are We, Really?
Every Saudi bull thesis eventually hits this concern: are we near peak investment?
Adam doesn’t think so.
“I’d say we’re still early to mid-innings. We’re really just starting to see the investment hit the ground.”
Some clients are even raising spend mid-cycle.
“The whole point [of Vision 2030] is to create a larger tech sector. Even if government funding tapers, demand from newly digitized enterprises and SMBs should pick up where it left off.”
Can NTG sustain 20%+ top-line growth?
“We’ve posted 60%+ CAGR over the past few years. That won’t hold forever… but 0.1% share of a $50B ICT market leaves a lot of room.”
Long term, they expect to converge toward Saudi ICT market growth (~8–9%).
But the short- and mid-term? Still room to run.
Customer Concentration Is Improving — By Design
Five customers make up ~70% of NTG’s revenue. I asked how they’re managing that risk.
“There was a time when 25–30% from one customer was the norm. As of 2024, our largest customer is around 17%.”
Growth — not pruning — is driving the diversification.
“We’re not turning away work. But the customer base is naturally expanding through referrals. That’s helping normalize the concentration.”
Competition and Egypt as a Strategic Edge
NTG competes with players like TCS. Many use Indian or other offshore resources. NTG has a different lever:
“Our ability to field Egyptian labor is a real edge — language, culture, operational compatibility. Saudi is like Silicon Valley to Egypt — every Egyptian engineer wants to get there.”
Their Egypt presence even took over an IBM-run school:
“One of our vocational high schools used to be an IBM school… the ministry gave it to us because of our better presence in the community.”
While 99% of talent is still sourced through traditional recruiting, their high school pipeline could eventually bring 20% of grads directly into NTG — a potential long-term advantage.
Expansion Beyond Saudi: Not If, But When
Early revenue is trickling in from Iraq and Oman (~3%), but Saudi remains the focus.
“Iraq is exciting — it reminds us of Saudi five or ten years ago. But we’re still in the early innings.”
And the model to enter?
“It’s very much about who you know. You can try building from scratch, or shortcut that through partnerships or M&A.”
On deal criteria:
“We’re looking for customer exposure. A company that’s basically NTG five years ago.”
No formal pipeline yet — but they’re starting to explore.
NTGapps: Quiet, Early, Promising
47% of clients are piloting NTGapps, which contributed 6% of 2024 revenue at 50% gross margin.
NTGapps grew 18% YoY… One recent deal was $2M — about two-thirds of all 2024 NTGapps billing.
It’s not the core focus — yet.
“Services will remain primary over the next two years. But NTGapps has potential. We can spin up a proof of concept fast and pitch it to clients we’re already embedded with.”
Because NTG is already embedded via services, it can introduce NTGapps from the inside — reducing CAC and accelerating adoption.
Margin Guidance: Talent First
NTG guided to 16–20% EBITDA margins for 2025. What drives the spread?
“We’re hiring ahead — even if that means employees sit on payroll before deployment. In 2024, we timed it tightly. This year, we want flexibility — even if it hits margins.”
It’s the right call, given how much of the model depends on quality talent and continuity.
High Returns, Low Capital Needs
NTG runs a capital-light model:
“It’s equipment, it’s leased office space. So there’s not much there.”
“As long as you get the right card [resource], most of the revenue is going to be pretty profitable.”
I urged them to start disclosing ROIC, as it reflects the quality of growth — not just quantity. They’ve been tracking it internally:
“We’ve been calculating it… just haven’t published it yet.”
What Keeps Them Up at Night
I ask every management team I meet: What’s the one thing that could derail the story?
Adam didn’t hesitate:
“Talent. We’ve done the hard part — building customer relationships and securing work. But the make-or-break question is: can we keep supplying high-quality resources that meet our clients’ expectations?”
NTG’s entire flywheel — recurring revenue, referrals, reputation — depends on execution.
“The one thing that keeps us up at night is ensuring the recruiting pipeline stays strong.”
He’s confident, citing their education programs, Egypt brand equity, and recruiting infrastructure. But the stakes are clear:
“It really is a matter of keeping up the good work.”
Odds and Ends
Customer count: ~40 active clients.
Salesforce: ~36 people, with account managers and on-site reps feeding hiring needs back to HQ.
Product mix: 99% of work is bespoke — they’re Microsoft and Oracle partners, but don’t rely heavily on third-party systems.
Egypt revenue: Used to be 11%, now just 2%, mainly due to FX and economic slowdown. “You can sell something for 1,000 EGP in Egypt or 1,000 SAR in Saudi — and get 30x the value.”
OTC uplisting: Considering QB or QX to broaden access. TSXV still works for now.
Acquisition interest: Could happen — PwC and Accenture have made similar moves. But NTG’s focus remains on organic growth.
Final Thoughts
NTG Clarity has found a model that works — embedding talent with large clients — and they’re focused on doing it well. Growth has been steady, contracts are sticky, and returns on capital are strong.
There’s still risk, as with any small cap. But the upside? It’s not just about Saudi. It’s about what happens when a company earns trust, delivers consistently, and scales from the inside.
This isn’t a “get in before the news” kind of stock. It’s a “stick around and watch them keep executing” kind of story.
Disclaimer:
This is not financial advice. I hold what I write about — but I’ve learned the hard way that being early and being wrong can look a lot alike. Do your own homework. All opinions are my own. I haven’t been compensated by any company to write this.
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