Lucas Announces Fiscal Year 2023 Financial Results with 92.3% Growth, Reaching Revenue at $208M
Lucas, an AI technology-driven PaaS company, announced its fiscal year 2023 financial results with impressive growth, reaching a revenue of $208 million, a 92.3% increase from the previous year. The company achieved a net income of $11 million, a 115% increase compared to 2022. The active registered users grew by 48% to 638,020, and corporate customers increased to 582. Lucas also closed a successful IPO in March 2024 and obtained additional AI-related patents. The CEO highlighted strong revenue growth, profitability, and user base expansion, setting the stage for future growth and market disruption.
Impressive revenue growth of 92.3% in fiscal year 2023, reaching $208 million.
Net income increased by 115% to $11 million in 2023.
Active registered users grew by 48% to 638,020.
Gross profit margin improved to 28.4%, a 32bps increase.
Successful IPO in March 2024 with an offering size of $6.0 million.
Obtained additional AI-related patents, bringing the total to 17.
Total operating expenses increased by 91.1% in 2023 compared to 2022.
Selling and marketing expenses rose by 51.7% due to continuous investment in brand promotion.
General and administrative expenses increased by 127.1% due to user support operation expenses and professional services related to IPO activities.
Research and development expenses surged by 97.3% due to investments in AI-enabled technologies and proprietary platforms.
Insights
The substantial 92.3% increase in revenues is a notable highlight for Lucas GC Limited, reflecting significant growth for the company. More importantly, the 115% rise in net income signifies that this growth is not just top-line but also translating to the bottom line, improving profitability. The reported revenue is in line with the high growth rates seen in technology sectors, especially those involving AI and PaaS offerings.
As an investor, one might appreciate that Lucas, unlike many tech companies, is demonstrating profitability which is an encouraging sign for sustainability. However, it's important to note the rise in operating expenses, especially in R&D and G&A, likely due to the recent IPO and technology investments, which suggests the company is reinvesting heavily for future growth. These costs could pressure short-term earnings but potentially offer long-term benefits if the investments lead to new products or improved efficiency.
Lastly, the earnings per share (EPS) growth of 134% is an impressive figure and one that suggests shareholders are seeing real gains in value. However, investors need to consider whether such high growth rates are sustainable in the long term and how the company plans to maintain profitability amidst its scaling operations.
The integration of Large Language Models and Generative AI technologies positions Lucas as an innovator in the human capital management field. This is an attractive quality for investors seeking companies at the forefront of tech. Additionally, the significant 48% growth in active registered users is a strong indicator of the platform's market acceptance and potential for network effects to further drive growth.
From a market perspective, the strategic move to secure an additional 17 AI-related patents enhances the company's competitive moat, which may be a determining factor in an investor's assessment of the company's long-term market position. Further, the post-COVID recovery offers a positive macroeconomic tailwind that could benefit the company's performance in the near term.
Investors should keep an eye on the company's ability to maintain these growth levels as they expand outside China and how they manage the integration of any acquisitions to ensure they contribute positively to the company's revenue stream and do not detract from its core competencies.
Lucas' focus on digitalizing the human capital management process using AI, data analytics and blockchain reveals their commitment to staying at the cutting edge of PaaS offerings. The Gross margin improvement, albeit slight, indicates a continuous effort in optimizing their service delivery.
The strategic importance of Lucas' proprietary platforms, Star Career and Columbus, cannot be understated, as they are likely to be central to the company's ability to scale and capture additional market share. The substantial investment in R&D, particularly in AI and GPT technologies, is a prerequisite for maintaining a competitive edge in this rapidly evolving industry.
As a retail investor, understanding the implications of these technology investments is key. There's a balance to be struck between current profitability and future growth opportunities that these R&D expenses represent. The company's technological advancements in AI and its patent portfolio are both assets that could yield significant future benefits, though they also present a risk if the technologies fail to deliver as expected or become obsolete.
Conference call will be held today, Monday, April 29 at 4:30pm ET
NEW YORK, April 29, 2024 (GLOBE NEWSWIRE) -- Lucas GC Limited (NASDAQ: LGCL) (“Lucas” or the “Company”), an artificial intelligence (the “AI”) technology-driven Platform-as-a-Service (the “PaaS”) company currently focusing on offering human capital management services, today announced its financial results for fiscal year of 2023.
Full Year 2023 Financial Highlights
- Revenues of RMB1,474 million (US
$208 million ), representing a92.3% increase versus 2022. - Gross margin of
28.4% , representing a 32bps increase versus 2022. - Net income of RMB78 million (US
$11 million ), representing a115% increase versus 2022.
Recent Operational Highlights
- Active registered users increased by
48% to 638,020 in 2023 as compared to 2022. - Grew corporate customers to 582 in 2023, versus 391 in 2022.
- Pioneered a transformative approach in recruitment services by integrating Large Language Models (LLMs) with proprietary data to create Generative AI contents.
- Obtained two additional AI related patents in 2023 and one in 2024, bringing the total number of granted patents to 17.
- In March 2024, successfully closed the IPO with an offering size of
$6.0 million and began trading on the NASDAQ. - Announced Professor Wang-chan Wong and Dr. Michael Carter as members of the board of directors.
Management Commentary
Howard Lee, Chief Executive Officer of Lucas, said “We are excited to begin our journey as a public company following the successful completion of our initial public offering in March 2024. We are the largest technology-driven online agent-centric human capital management provider targeting professionals based on PaaS in China. As a company empowered by artificial intelligence, data analytics, and blockchain technologies, Lucas is currently focused on digitalizing and intellectualizing the entire human capital management process. We provide an industry disrupting platform to leverage trusted private social networks of professionals, through which we provide services consisting of recruitment, outsourcing, and other services such as information technology and training.”
“Our revenue growth remains strong. During 2023, total revenues grew by
Full Year 2023 Financial Results
Total revenue for the fiscal year ended December 31, 2023 was RMB1,474 million (US
- Recruitment services, which are services fees for filling individual open positions, increased by
59.6% to RMB659 million (US$92.8 million ). - Outsourcing services, which are services fees for providing overall IT project solutions, increased by
136.5% to RMB714 million (US$100.6 million ). - Other services, which include the selling of healthcare and training services, increased by
95.5% to RMB101 million (US$14.2 million ).
Gross profit margin for the fiscal year ended December 31, 2023 was
Total operating expenses for the fiscal year ended December 31, 2023 was RMB351 million (US
Selling and marketing expenses increased by
General and administrative expenses increased by
Research and development expenses increased by
Net income for the fiscal year ended December 31, 2023 was RMB78.2 million (US
Earnings per share in the fiscal year ended December 31, 2023 was US
Conference Call
Date and Time: Monday, April 29, 2024, at 4:30 p.m. ET
Call-in Information: Interested parties can access the conference call by dialing (844) 836-8745 or (412) 317-6797.
Webcast: Interested parties can access the conference call via a live webcast, which is available in the Investor Relations section of the Company's website at https://ir.lucasgc.com/ or at https://app.webinar.net/mDz45GVdeZl. For participants listening through the webcast, questions can be sent in through the portal using the “Ask a Question” link or by emailing questions to blum@lythampartners.com.
Replay: A teleconference replay of the call will be available until May 6, 2024 at (877) 344-7529 or (412) 317-0088, replay access code 9832113.
Non-GAAP Financial Measures
In addition to financial results reported in accordance with accounting principles generally accepted in the United States of America ("GAAP"), we have provided the following non-GAAP financial measure in this release and the accompanying tables: adjusted EBITDA. We use this non-GAAP financial measures internally to facilitate period-to-period comparisons and analysis of our operating performance and liquidity, and believe it is useful to investors as a supplement to GAAP measures in analyzing, trending and benchmarking the performance and value of our business. However, this measure is not intended to be a substitute for those reported in accordance with GAAP. This measures may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures. For reconciliations of historical non-GAAP financial measures to the most comparable financial measures under GAAP, see Table A accompanying this release.
About Lucas GC Limited
Lucas GC Limited, an AI technology-driven PaaS company currently focusing on offering human capital management services, is the largest AI technology-driven online agent-centric human capital management service provider targeting professionals based on PaaS in China in terms of the number of active users in the human resources industry as of June 30, 2022 and total net revenues for the year ended December 31, 2021. As a company empowered by artificial intelligence, data analytics, and blockchain technologies, Lucas is committed to digitalizing and intellectualizing the entire human capital management process. Lucas provides a platform to support trusted private social networks of professionals, through which it provides services consisting of recruitment services, outsourcing services, and other services such as information technology services and training services. The Company's users are primarily professionals who work in human resources related functions. The Company's corporate customers are corporations with recruitment, training, sales leads generation and outsourcing demands. For more information, please visit: https://www.lucasgc.com/.
Forward-Looking Statements
Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute 'forward-looking statements.' The words 'anticipate,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'project,' 'should,' 'target,' 'will,' 'would' and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions. Any forward-looking statements contained in this press release speak only as of the date hereof, and Syra Health specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
For more information, please contact:
Investors:
Ben Shamsian
Vice President
Lytham Partners, LLC
646-829-9701
shamsian@lythampartners.com
FAQ
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