[Click eStock] "Flitto, AI Advancement Drives Increased Demand for Language Data"

Shinhan Investment Corp. analyzed on the 6th that Plitto is expected to see increased demand for language data due to the advancement of artificial intelligence (AI), and that the growth momentum in data sales is becoming visible.

Plitto is a company specializing in its own translation app platform service and language data sales. As of 2021, Plitto's translation platform is used by over 10 million people in 173 countries. It supports 25 languages and generates 500,000 data entries daily. The main revenue models are translation services and language data sales. As of last year, the revenue composition was 65.9% from data sales, 25.6% from platform services, and 8.5% from others.

Researcher Byunghwa Lee of Shinhan Investment Corp. stated in the report, “We expect benefits from the expansion of the AI market,” and forecasted, “For AI services, which are centered on personalization, demand for language data that can train AI to express language differently depending on the user or situation will increase.”

Plitto is described as having high competitiveness in the AI market due to its possession of language data linked with meta data (age, gender, occupation, etc.) and situational data, as well as its ability to build language data quickly and inexpensively through its platform.

Additionally, researcher Byunghwa Lee analyzed, “It is also positive that Plitto has many global IT companies as clients,” and added, “The structure leads from an increase in AI-applied services → rising importance of personalized data learning for translation engines → increased demand for Plitto’s language data, making the growth momentum in data sales visible.”

Furthermore, he judged that Plitto will succeed in turning a profit this year and achieve substantial external growth. He predicted, “This year, Plitto’s sales and operating profit will be 22 billion KRW and 200 million KRW respectively, representing a 61.7% increase compared to the previous year and a turnaround to profitability.”

He continued, “In December last year, Plitto signed a corpus sales contract worth 1.8 billion KRW with a global IT company, and the order announcement of 2.66 billion KRW last month is estimated to be a follow-up order related to that contract,” and analyzed, “If the project succeeds, it can serve as a reference for additional orders from other large IT companies. The possibility of additional orders is expected.”