All right. Good morning, everybody. Sorry for the technical difficulties, but my name is Adam Zaghloul. I'm Vice President of Strategy and Planning for NTG Clarity I'm excited to spend a little bit of time telling you about our story this morning. We are, you know, what you can consider an IT services, software development, digital transformation company. What makes us unique is we're focusing on the Saudi Arabian market right now. Saudi Arabia, if you can see from the news flow now, they're really investing heavily in becoming a diversified economy. Traditionally, when people think about Saudi Arabia, they think about what's on page two of the slides there. It's the pumpjack, oil and gas, maybe not very much else going on.
In reality, flipping the page to the digital transformation slide, Saudi Arabia is going full steam ahead with investments into basically moving away from its oil and gas bias to becoming a diversified economy. They're making investments into technology, sports, and entertainment, into tourism as well. They've got about $1.3 trillion earmarked for investment into what they're billing as Vision 2030. That is that strategy to get away from oil and gas and become a more diversified economy. Now, digital transformation and software development are a huge part of that. That's really where NTG comes in. If you flip to the next slide now, the one right after that Vision 2030 slide, it talks about we've been in business for more than 20 years now, publicly listed. That's also the same amount of time that we've been in the Kingdom of Saudi Arabia.
As all of the investments have started to hit the road as a part of Vision 2030, we've been growing along with the economy there. Our three-year compounded annual growth rate for revenue is at over 60%. We're on track to reach our guidance for 2025, which will be CAD 78 million of revenue. That's Canadian dollars. All the financials are in Canadian dollars as well. If I were to sum up what we do as a company, NTG really builds the software development and engineering teams that help deliver the end-to-end software development projects for some of Saudi Arabia's largest telecom operators, financial institutions, and banks, and system integrators as well. We're really looking forward to growing with the Saudi market as a whole. What I'd say makes NTG really different is where our talent pool is based. At our core, we're a software development technology outsourcing company.
When you think about outsourcing or offshoring, you'll think about the classic destinations such as India and Pakistan, maybe the Philippines a little bit as well. What makes us different is we have a workforce that's based out of Egypt. That's just across the Red Sea from Saudi Arabia, basically neighbors with Saudi Arabia. Working out of Egypt, you get the cost savings that you'd expect when you offshore work. Hiring an Egyptian, our Saudi customers can save up to 50% when you compare to hiring a Saudi locally on site. At the same time, you get cultural benefits that you don't get with some other destinations, right? Egyptians will speak the same language, they'll work in the same time zone, and they have a shared general cultural background with the Saudi clients. It really makes for good collaboration, and the customers are recognizing that for sure.
Oh, I got the slides. Nice.
Sure. What's your?
Yeah, no problem.
I'll enter campus this table. Let's do your slide. Which one is it? Sorry.
Day one. It's going to be.
Hang on. I believe it's in their laptop.
Love to.
Which one was it? Sorry.
It would be NTG .
There we go.
Perfect. Oh, great. Thank you.
Yeah, good.
All right. Thank you very much. Thanks for sorting that out. Appreciate it, you guys. Right on. Just to get back into it, I'll jump into, you know, what our core lines of business are. You know, it breaks down into two buckets: digital transformation, software development services, as well as a line of our own proprietary software products. Now, the digital transformation services make up the vast majority of our revenue. As of 2024, it was about 94% of our revenue. This is the case where our customers, you know, they could be a big bank, a telecom operator, or a system integrator. They have digital transformation projects that they want to roll out, but they just don't have the manpower and the expertise to do it themselves. They'll engage with a company like NTG Clarity. We'll provide them all of the talent that they need.
It could be developers, analysts, or project managers. We'll work with them usually on a one-year engagement. More and more, we're seeing some three-year engagements come along. We'll bill our customers monthly based on the number of the resources that we have placed with them. In effect, we're building the software development teams for them. These resources can be based either on-site for our customers that like that higher touch in-person work experience. We'll work to relocate Egyptian resources over to Saudi Arabia to work at our customers' offices. More and more, what's becoming popular is, of course, the offshore model, where our employees will work based out of Egypt remotely for our customers in Saudi Arabia. That comes along with all the cost-saving benefits, as well as the cultural benefits that I was mentioning earlier before. Our second offering is our proprietary software products.
This is what we bill as NTG Apps. You know, if you're familiar with no-code/low-code, it's in that same paradigm. We help our customers roll out enterprise-grade applications without actually needing any programming knowledge themselves. It's been great gaining a lot of traction. It's probably one of the fastest growing pieces of our business recently, at least. Our customers are basically realizing, you know, they're coming to us saying that they have a software development project, but we're basically coming to them saying we can build it cheaper, faster, to the same degree of quality on NTG Apps. Instead of engaging us for services, they're engaging with us for these software products. As a result, just this past quarter, Q2, NTG Apps as a proportion of revenue grew 1,600% year over year. It's become 20% of our revenue for the quarter.
We're looking forward to continuing to push this line that'll bring software-style revenues that'll have, hopefully, a larger margin profile, as well as the revenue growth that we'll get from it as well. Really excited to push the NTG Apps line. I'll talk about the NTG advantage. We've been growing 60% compound annual growth over the last three years now. What's behind why we've been getting a lot of the business? I think it's all, to a certain extent, the amount of time that we've been in business in Saudi Arabia. It's been more than 20 years now. Therefore, it's hard to replicate really those relationships if you're a multinational who's just moving to town now. The first reason of the three is the deeply entrenched relationships that we've built in Saudi Arabia. For 20 years, we've been building a network of all the key decision makers.
They've seen the quality of work that we provide, and they're willing to give us more work for longer engagements. The network effect has been key for us in our growth. The second is, once we secure the sales pipeline through that network, how do we fill the seats of the contracts? It is recruiting and talent. We've been tackling that pretty effectively. In addition to the standard recruiting headhunting methods, we also have decades of experience running educational programs, universities and colleges in Egypt, letting the new grads know that we're a good place to work and that they can come get a job in the Gulf if they come and work for NTG. We've even taken it as far as opening up our own NTG School.
We run two physical brick-and-mortar high schools in Egypt in partnership with the Ministry of Education, offering a dual curriculum of regular high school and also more hands-on technical training in things like computer engineering and computer programming, really getting the next generation of students interested in working in IT and digital transformation so that they can come and work with us once they're done with their studies, if that's what they choose to do, for sure. The third pillar, I would say, is investing in decision makers of the future. This is also educational, but on the Saudi side instead of the Egypt side. We're actively working on rolling out the same types of college and university programs in Saudi that we ran in Egypt, with the understanding that these Saudis are going to be the business and technology leaders of tomorrow.
We effectively want to build our network even further to be getting more business with the Saudis down the line as well. I'll take a quick look at a case study of some of the actual work that we do. This is an example of a project that we worked on with a system integrator customer in Saudi Arabia. They're the ones who do a lot of the government work for the Ministry of the Interior, Ministry of Tourism, those kinds of things. We were building apps and internal government systems for tourism purposes. If you're familiar with the Hajj and Umrah pilgrimages to Mecca, the Hajj is probably the largest annual gathering of people anywhere in the world. It's a huge operation for sure. What we did was basically work on, number one, tourist and visitor-facing apps.
We did some work to build out the app that you log on to to book your visit to the holy sites. That would feed back into some internal government systems that we worked on that would basically deal with logistics and crowd management. You only want X number of people to be visiting a holy site at a given time, that kind of thing. When we take a step back and look at what NTG's advantages were on this project, it was probably number one, our network and our word-of-mouth referral system. A lot of our new work comes through referrals of satisfied customers, and this was no different. In this case, the CTO was the main decision maker, and he was basically recommended NTG from someone in his network who is an existing customer.
We have a strong referral network that's generating new engagements for us. It also showcases the talent pipeline that I mentioned in the previous slide. We were able to basically, within weeks, place 10 senior resources with this customer, and they were the types who are going to architect the system, build some early functionality, that kind of thing. Over the course of about two years, we were able to grow the engagement from that initial 10 resources to about 200, which is where it sits today. Definitely, especially when it comes to Egyptian offshore software development shops, there aren't very many who can field especially that many resources, definitely not on a single engagement. I think you can see us as probably a first mover in the Egyptian offshoring space for sure.
Case studies like that have resulted in basically what we're seeing, not just revenue growth, but also accelerating contract wins. Over the last year and a half or so, we've been seeing customers move from a traditional one-year engagement to being interested in signing more and more three-year contracts. They see the value that they get, they see the quality of work, and they want to engage us long term. It includes last August, the CAD 53 million over three-year contract that we signed, last December, the CAD 22 million contract that we signed. Even just three weeks ago, we news released a new three-year engagement with a brand new customer out of the Middle East as well. Very excited to see the engagements grow in duration as the customers continue to trust our quality of work.
All that goes into our track record that we've built for ourselves of 17 consecutive quarters of last 12 months' revenue growth and a backlog of purchase orders and contracts on hand exceeding CAD 100 million as of right now. Now, we track more than just the contracts, the backlog, the revenue. Our customer engagement and retention metrics are also pretty strong. These are for comparing the full year 2024, our most recent full year, with the full year 2023. Over that timeframe, we saw a 25% increase in the absolute number of customers. A lot of them are through word-of-mouth referrals. We're seeing customers continuing to come with us. We've also seen over that same time period about 90% customer retention. Of the customers that stayed, the majority of them, still 54%, increased the scope of their engagement, increased the level of services.
All in all, what we're seeing is customers being referred to us from satisfied existing customers. They're staying on with us year over year consistently. Not only are they staying on, but they're increasing the sizes of their contracts. All that plays into our metric that we track around recurring and reoccurring revenue, being at about 85% of our revenue. Now, that's either strict recurring revenue from multi-year signed contracts, but it also includes the recurring aspect of, you know, yes, customers are on one-year contracts, but they've been consistently renewing those contracts for, say, two years or more. I'll talk about our financials briefly. Definitely revenue growth is the headline of our story. Over the last three years, I mentioned a 60% compounded annual growth rate for revenue. 2024 was our breakout year where we saw 100% year-over-year revenue growth to bring us up to that CAD 56 million.
We're still expecting to see strong revenue growth into the future. Our guidance for 2025 is CAD 78 million in revenue, and we're on track to meet that as well. I think what's important to highlight is our ability to execute this growth while maintaining our profitability. Gross margins have typically been in the range of 35% - 40%, just depending on the proportion of our revenue coming from higher margin offshoring or software products versus the lower margin on-site services, that kind of thing. We've also been able to post some pretty consistent adjusted EBITDA numbers. In 2024, we had some pretty strong results. Adjusted EBITDA for the year was about 22%. This year, we're guiding slightly lower in the range of 16% 18% to give us some room to reinvest into the business, right?
We're going to hire resources that we're going to need for our next leg of contracts. We're going to bolster our sales team, including some sales teams that are focused on some geographies outside of Saudi Arabia. We have a strong presence or at least a growing presence in Oman and Iraq right now. Definitely seeing 2025 as a year to invest in continuing our growth for sure. I'll talk about the structure of the company a little bit. I think what is key to take away from this slide is of the 47 million shares outstanding, we have a 36% insider ownership. Management is definitely heavily invested in the company, and their interests are in line with investors. Management's got skin in the game, and we really want to see the company grow to its full potential. I think that's a good place to stop the summary.
I'd probably finish by saying we're a Canadian-listed company with exposure to the Kingdom of Saudi Arabia. I think we're pretty unique in that we can offer investors the opportunity to get exposure to a technology sector that's pretty uncorrelated to the North American market. Not just that, we've spent 20 years building the relationships we need to grow our company in the region. We've got a profitable, scalable business model that we're doing it with. We're basically an established first mover when it comes to the Egyptian offshore software development space. I think all in all, we're in a strong position to take advantage of all of the growth opportunities that Saudi Arabia has in store for us. I want to apologize again for the technical difficulties, but thank you very much for your time and attention. I'm not sure if we have time for any questions. That's it.
We'll be down at table 52 all day today and tomorrow. Feel free to stop me in the hall as well. It was a pleasure presenting to you. Thank you very much.