[Click eStock] "Polaris Office, Evolving into an Integrated Platform Company with 110 Million Subscribers"

[Asia Economy Reporter Jang Hyowon] On the 2nd, YuHwa Securities analyzed that Polaris Office, a company with 110 million global subscribers, has a market capitalization of only 70 billion KRW, and it is time to re-evaluate it as an integrated platform company encompassing commerce, OTT, NFT, and metaverse, rather than just a simple app developer. No investment opinion or target price was presented.

Researcher Yu Seungjun of YuHwa Securities explained, “The company succeeded in turning profitable in the first half of this year, and the profit trend is expected to continue. The number of Office subscribers is steadily increasing, and new revenue is expected to be generated by adding commerce and OTT services to the Office app, while cost reduction is anticipated due to a large-scale restructuring of the mobile game division.”

Polaris Office is an office platform company with 110 million global subscribers. The number of Polaris Office subscribers surged due to COVID-19 and continues to grow steadily. Polaris Office’s strength lies in its excellent document compatibility. It is compatible with MS Office, Hangul, PDF, and more. Due to its convenient compatibility, the proportion of individual users is high.

Researcher Yu said, “Polaris Office’s revenue model is divided into free and paid, with a ratio of about 5 to 5. The free service generates advertising revenue, and the paid service is a subscription model. As the number of service subscribers steadily increases, the sales scale is also expected to continuously expand.”

He added, “The Office app will evolve into an integrated platform including shopping malls, OTT, NFT, and metaverse. Utilizing 110 million users, it is expected to grow into an integrated platform company by incorporating various business models.”

According to Researcher Yu, Polaris Office will introduce new services by adding menus to the app similar to KakaoTalk messenger. Commerce and OTT services will be launched first. Mobile shopping will become possible within Polaris Office, and users will be able to watch digital content videos. The company is working with commerce and digital content partners, and the services are scheduled to be launched in the fourth quarter. Furthermore, the platform business will be expanded in the future to include NFT trading and metaverse office services.