CrowdWorks "Driving Growth through LLM-Centered Business Restructuring"

CrowdWorks announced on the 14th that it recorded cumulative sales of 6.7 billion KRW in the third quarter of this year. Compared to the same period last year, third-quarter sales decreased by approximately 58%. This was due to the conclusion of the Ministry of Employment and Labor's ‘Platform Worker Specialized Vocational Training’ in the education business sector this year.

Sales in the AI solutions sector, which develops customized AI, showed triple-digit growth. Third-quarter sales increased by 112% compared to the second quarter. This was attributed to the expansion of the enterprise AI market, with 55% of the cumulative AI solution orders as of the end of September this year concentrated in the third quarter alone. New contracts surged during the quarter. As companies that had remained in the technology verification stage before AI adoption began transitioning to full projects from the second half of this year, a gradual increase in sales was anticipated.

In the data sector, the proportion of highly profitable LLM projects increased. The share of LLM data contracts in the third quarter was 55%, up 29 percentage points (P) from the 26% share of annual LLM data contracts last year. LLM data contracts are about 25% more expensive than general data projects. It is expected to improve profitability. Recently, many companies have been developing LLM services using internal corporate data to ensure AI response reliability, so LLM data contracts are expected to increase significantly.

CrowdWorks is accelerating the expansion of its LLM solution business to diversify revenue types and stabilize cash flow. By building AI solutions in various fields such as finance, public sector, manufacturing, and distribution, it has identified common demands across companies. An AI solution targeting market needs is scheduled to be launched in the first quarter of next year.

CrowdWorks is pursuing partnerships with global big tech companies. In addition to Naver Cloud, which developed the generative AI HyperCLOVA X, expansion of partnerships with global leading companies is anticipated.

Kim Woo-seung, CEO of CrowdWorks, said, "The AI solution order flow accelerated in the third quarter, allowing us to secure various references," adding, "Based on this, we are expanding into new business areas." He continued, "As explosive growth in the global AI market is expected, we will establish early diversification of our business to continue corporate growth."