CLPS, Inc. Q4 FY2022 earnings call

• Driven by dual-engine strategy, achieved record revenue.
• IT consulting services core competency supported client business growth, especially digital transformation.
• Customized IT solutions services revenue up 115.2% in fiscal 2022 due to product innovations and business development.
• Launched commercial edition of CAKU credit card system, new loan management system, and digital currency application solution.
• Partnered with Educare Global Academy for IT talent education program.
• Global expansion led to US revenue increasing 2443.1% to $0.9 million, appointed new CEOs for US and Southeast Asia.
• Addressed COVID-19 impact by optimizing operations and prioritizing employee welfare.
• Focus on wealth management area for future growth.

In fiscal year 2022, revenue from IT consulting services increased 17.8% to $144.1 million from $122.3 million. Customized IT solutions services revenue saw a significant jump of 115.2% to $6.7 million from $3.1 million. Other services revenue grew 81.2% to $1.2 million from $0.7 million. In the second half of fiscal 2022, IT consulting services revenue was $72.1 million from $65.2 million (10.6% increase), customized IT solutions services revenue was $3.5 million from $2.1 million (67.9% increase), and other services revenue was $508.9 thousand from $454.9 thousand (11.9% increase).

• For fiscal year 2023, expected total sales growth in the range of approximately 20% to 25%.
• Expected non-GAAP net income growth in the range of approximately 22% to 27% compared to fiscal year 2022 financial results.

• Forward-looking statements involve known and unknown risks, uncertainties, and other factors beyond control.
• Macro environment challenges like COVID-19 impact on operations.
• Regulatory risks related to PCAOB and China CSRC/Ministry of Finance protocol.
• Potential impact of floating exchange rate on financial numbers.

Q: Had a question on any updates on the electrical vehicle customer you had announced in the past, any further progress on that?

A: Revenue from automotive area increased by 22.7% to $10.4 million or 6.8% of the total revenues. Looking forward, we are committed to doing more business development with existing clients as well as attractive new clients on this areas and capture the growing business opportunities in electronic vehicle market.