CLPS - Earnings call transcript Q2 2022

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Operator

Hello, everyone and welcome to the First Half of Fiscal Year 2022 Earnings Conference Call for CLPS Incorporation. Please note that [technical difficulty] I will turn the call over to Rhon Galicha from CLPS Investor Relations for opening remarks and introductions. Please note that today's call is being recorded. Please go ahead, Mr. Rhon.

Rhon Galicha

operator. you, Thank welcome year and Incorporation's half first Hello, earnings to conference fiscal XXXX call. of everyone, CLPS CLPS Incorporation announced results its first half of this fiscal morning. XXXX financial IR The at release is available the earnings now ir.clpsglobal.com. company’s on website

statements Securities please note provisions discussions include Safe Before we Act made U.S. of that the Private continue, under the Reform today our may forward-looking Litigation of Harbor XXXX.

number Forward-looking uncertainties. and statements of involve risks a

applicable and views respect, other results this I of XX-F may and Securities that in protections Securities risks, Act be expressed the amended. today. to of made the U.S. XXXX are other Certain and discussion of our from XXXX the the these amended included as Further Exchange Securities would the in filed statements of such, Section like statements. and our As uncertainties, to filed affect with meaning SEC. disclaimer different assumptions Act statements factors could as is following U.S. such financial within the regarding forward-looking information that of and materially of XXE In XXA Commission read documents with Section results the Form Exchange the our

well anticipations, are by the forward-looking expressly achievements us entirety to or from or the future results, materially unknown statements include of control expressed results, company which respect statements with be notice, this achievements the cautionary goals, intentions may and beyond their such in attributable other most beliefs, future are the statements. uncertainties reports this in uncertainties described may those in Commission, the Securities performance performance, limitation, related outlook company company’s risks, as company’s Such and such future and estimates, reports to ownership the capital upon in with statements operational Exchange risks presentation, implied objectives, as plans, expectations, and actual at Forward-looking performance available its involve from and and guidance company's cause the assumptions, of its the the future and and XXXX website SEC and qualified be company’s the filed financial known factors, performance first without and -- filings. which half All offered through from to or fiscal different including and expectations the company’s recently to request the performance, risks of SEC’s including, Internet the company’s www.sec.gov. and preliminary uncertainties or

not on after the today’s are as after undertake does CLPS respect We any of is to have and which revise the days earnings of to the information during date information under undertake applicable statements to or provided do today. related such statements, the forward-looking non-GAAP With respective statements call, forward-looking measures any no required any of discussed or release obligation update today be this hereof call, date reconciliation obligation issued correct any All company measures otherwise those not and the can update, any the in made. except to law. found earlier

mute detail. of Rui have Ms. Please will Officer financial by followed Financial in prevent Henry Mr. call results that to to introduce team review CLPS, background off on Officer company placed management Now on today. Chief recent who call Chief CLPS, Li, been operating the and discuss results; Yang, start lines will more allow all note of me noise. developments the a Operating the of with

the said, Wong, like session. I Mr. please remarks, the for turn Wilson Henry. a ahead. would to prepared management’s we’ll to With Executive -- the for will of call go -- Following Q&A CLPS up now will session. President join over Q&A Vice Henry, open also open we the call call up that

Li Li

fiscal pandemic, year the call global market has stronger economic under We positive and strong consistent year the emergency of Rhon. the business first execution well in you growth solid half into half performance. as of of achieved as another ongoing the consistent the the during all like we higher of gain strategic results, Thank translated impressive Omicron which today. the perspectives. variants operator. trend XXXX result progress, a you, the Thank joining CLPS and uncertainties different situations, achieved financial Despite and technological share, the for profitability, period you, financial financial still first a fiscal XXXX. Thank both In and and

able execution continued among management, have our improvement in the cooperation automobile the experience strong sustain our wealth success and been in-depth major due clients and to industries. and IT of to and banking, We capability services our high-quality ecommerce

and for for the achieve year-over-year revenue period. Ms. than solid in provide about able ability them now, to and well financial please of technical Since of talk listed been a high operations and details the Yang figures, the to XX%. But innovation later. me allow highlights quality has clients discuss in as during our capabilities efficient Rita our As CLPS services. the profitability, growth business with Thanks to IT as market, will NASDAQ rate CLPS more

attribute IT an our business portion proof performance to for and of of Our scenarios important competitiveness, Furthermore, existing systems reduce to our it role increase providing CLPS client's clients with current plays relationship costs. still our and diversified business, our business IT in the account operating long-term are and profitability improving and effectively well-built irreplaceable. of the we a them clients. currently our demonstrate to this large provide the We services that

training talent the a partnership with called and We helpful in through TCP which program to led program IT The strategic supply client the establishing [technical difficulty] Gained and the called is development factors end. clients ultimately which trust all these All talent is talent are especially ecosystem TDP. resource in clients. creation the talent professional for our programs.

Now, to aspects business. our I would key some like to core related discuss

NFT to system operation It blockchain First Kong. our LinkCrypto maintenance. IT based client's also supporting or has solution and committed company of overseas all, LinkCrypto token Hong non-fungible in platform. is been business promoting

the generated during of proactively in initially it has And revenue with are year fiscal Hong clients promoting first potential we half LinkCrypto Now, XXXX. Kong.

the our caliber It implementing acquisition. the Kong not more time, credit is This advanced generation product Qinson capabilities. office liquidation company clients new in on loan management has maintaining APIs. this performance, through business as aims This to financial banks business for venture management, system the Hong of next we Southeast our joint quickly begun and so will as the back during institutions and solution. customer better competitive the the company employee the for for team. have leverage MSCT the present, to management enable loan finance, bank marketed supply At research turnkey contents, in of gross that be deliver same operation integration. in also digital a integration online the is R&D potential the banks strive and and partnership well improve about with our MSCT. product. customers partnership it's the ecommerce, to Asia. system high reliable, Secondly, significantly Unified can clients card lunching intelligent several operation smart Well, that control new developed experience. contracts, risk while will strengthening At products in least, to period, Last, banks we but services. we China, and traction the end, a developing despite we our are expertise renminbi plenty the in safe, This and related while the leading the renminbi solution and solution gained intelligent since payments, flexible In with core and integrated flexible and chain their to mention products, challenging functionalities, have providing its enjoy banking, settlement, of China, worth marketing in discussions mobile with oversea to developments. the digital like CLPS

use renminbi. promote out We our digital digital run to a help of ecommerce also platform renminbi clients the

our Asia about Southeast talk business. Let's

to business presence the this increase our continued We market. investment in and

in the to Additionally, we Technological market for the our us This cross-selling of precision and allow increase company. business entering All highlight drive product as will these effect. achieve cross-industry and strategies, the innovation that progress effectiveness the for force will of the be the it of will education and I super profitability continue the have our to will two value our investment these and a competitive tourism shared long-term industries, industries. achievements share clients. also which the driving started advantages the growth and

our enhance operating then optimistic goal this the are achieve the and through Thank to and services products, capability between you. IT synergy We efficiency. service delivery the improve

I the financial discuss Now, fiscal turn to call please Rita like would to over our Yang, of to the ahead. results. go Rita, half CFO, XXXX first

Rui Yang

a $XX.X will XXX.X% was provide due IT million. strengthened The note services terms, consulting U.S. increased the by was from and due financial service to demand In mainly demand XX.X% increased increase I are $XX.X $X.X provided our clients to million made our in the existing relationships increase $XX to was update $X.X $X.X and $XX.X first with the due new and now was an customized to year-over-year to all Revenue increased you, from and XXXX. in XX.X% The million. million Thank due In million This increased Please million. increase improved clients. fiscal the million. of $XX.X dollar existing fiscal half $XX.X XXX.X% from services on The comparisons increase first $XX.X solutions from services. our primarily capability. delivery in including from revenue revenues of $X.X to from increased to on expanded are consulting primarily business year XXXX, increase Gross services. other million for consulting profit revenue in numbers or to Henry. to an half IT increased basis. services, performance all Revenue scope to IT that that our XX.X% from Okay. services from from other million for million. million our revenue increased particular, from

expenses, from salary of demand. as due improve of new to increase to operating expenses the capability marketing were company's expenses $X.X delivery and to for client As to meet million increased $X.X hired service XX.X% the staff savings million

was percentage a to as total and to development The of expenses in Research increase to of $X.X As due efficiency decreased revenue, X.X%. from operational and million. decreased decrease million primarily XX.X% result scale. economics from the of marketing expenses X% $X.X a savings

solution due of to optimization X.X% customized staff increased our for decrease was R&D structure IT a research allocating development of revenue, a to and total demand of deliver As percentage to to the expenses service. the XX.X%. meet from primarily the decreased by number staff The

expenses XX.X% expenses R&D As million. to $X.X from costs. the million and $X.X to shifted a General result, were salary administrative increased

prior general shareholders from year Operating $X.X of and income million period. million percentage the share-based million prior CLPS salary is by basic $X.X or revenue, of compensation, non-GAAP the from income impact increased net a share XX.X% net non-cash of from $X.X the million year-over-year a of Incorporation income, a compared net was to non-GAAP an increased was million income share-based of of to million to used period. to increase excluding impact Provision million. the attributable $X.X of $X.X and same was per impact income $X.X losses. primarily made or basic expenses, over basic expenses. share-based other diluted X.X% attributable increase period. million expenses taxes $X.XX and to $X.X XX.X% compared million the diluted After $X.X prior $X.X new to $X.X from $X.X other in XX% increased earnings $X.XX increase up CLPS to compensation net million $X.X year total the period year. was $X.X interest, excluding hired recoverable $X.X and income to net to to attributable margin was CLPS compensation the expenses excluding Total subsidiaries to and share. of to compared year or net After increased per last $X.X Incorporation earnings earnings in total After other XX.X% per non-controlling in This basic up million. and non-GAAP other for staff diluted XX.X% million income Incorporation As million we administrative million, of prior certain non-cash expenses The income to by Net income and shareholders million due earnings expenses, or shareholders profit share year XX.X%. Operating per in to $X.X mainly due diluted $X.XX share of compared from the period. of

June XXXX, we equivalents of compared cash XX, cash December XX, $XX.X of and million as As of $XX.X to had XXXX. million

by person. As $XX,XXX of of per employee X.X% XXXX, we of XXXX, employee had employees person. first half XX, to to XX.X% In X,XXX, year-over-year. up per December total up by up Net XX.X% income of the revenue numbers per fiscal per $X,XXX

of XX%, XXXX, growth ready of concludes to approximately to sales to now in forward in are and Operator, net year This fiscal Looking range remarks. financial XX% prepared total the the XX% fiscal range XXXX year for we non-GAAP expected results. compared for income questions. growth XX% we approximately our

Operator

Xu [Operator will ahead and Instructions] Tony take go [ph]. go from Please We first ahead. question our

Unidentified Analyst

performance, Hello. financial that further Congratulations on questions and strong I would to two explore. I your have like

our it What/s The that strategy overseas seems year-over-year? business reason keep expense first your G&A one the markets. second, increased is, your to And growing is momentum? what's the why have in

Wilson Wong

Hi. This Wilson. is

and the XXXX, overseas to the as in achieved the revenues our reach for we and mentioned in take fiscal have me half In XX.X% markets. market, Let first earlier, growing further are international overseas new regard presence our to question. of expanding industry year first growth we

region Singapore. Asia in Southeast in like invest to continue We

of In the opportunity U.S. to attract XXXX addition, for year and more this in is more our clients business goal create

So, answer turn CFO, over you. I would like to our Rita, Rita, have that. question, next to for the it to

Rui Yang

the your Wilson. during this expense I Okay. new the compensation increase strategies our questions. further staff staff. you, as the well answered and we increased business, salary increased year-on-year drive salary to to we we Thank second as Thank also period since question expense and G&A paid our About also hope hired expense, you. share-based the regarding in the

Unidentified Analyst

you. Thank

Operator

from our will go ahead we And Please move go Chang next on [ph]. and to question ahead. Rebecca

Unidentified Analyst

services. question customized Thank is your My IT you. about solutions

do in than we What to you. this revenue Thank highlighted segment's growth what more You XXX%. your segment and end percentage such drive to expect going forward? will increased that this

Li Li

Thank is you. This Henry.

Let take me questions. the

to services scope line dual-engine are business growth the our our new clients. in our think bringing plan for the to clients achieve is overseas we future by vertically, expanding through strategy order I And core strategy expansion. Horizontally, drive in top and and growth. existing we

this and business Thank opportunities going question. more consulting customized you. complementary, forward. IT answered IT services the which will solutions Hopefully, Our other each are bring your

Operator

back with that, does conclude like would additional closing to our to Li remarks. that now Henry over call the And session. question-and-answer I for any or hand

Li Li

on ongoing for and and appreciate updating Have us weeks Thank months good today's we call, Thank day. you ahead. in We you our you. forward on a to the joining look support. again progress your the

Operator

your participation. with you And that does that, conclude Thank today's call. for

now may disconnect. You

CLPS Incorporation (CLPS) 4 Mar 222022 Q2 Earnings call transcript