[Click eStock] "Flitto's AI Language Data Sought by Global Big Tech... Annual Orders Increasing"

On July 22, Kiwoom Securities analyzed that Flitto is expected to turn a profit in annual operating income this year, and that new businesses such as real-time translation and interpretation solutions are set to enter a full-fledged growth trajectory.

Flitto collects language data through its proprietary platform and sells it to research institutions and corporate clients across various industries. In a situation where even global big tech companies find it difficult to secure accurate language data for artificial intelligence training, Flitto's data is recognized for its rarity and reliability.

Oh Hyunjin, a researcher at Kiwoom Securities, explained, "Flitto is able to provide up-to-date language data obtained from its global platform of 14 million users in various formats, including text, voice, and images," adding, "The fact that there are no copyright issues thanks to user consent during the data collection process is also a factor driving demand for the company's data."

In fact, Flitto recently announced that it had signed a contract worth 6.4 billion KRW with a global IT company to supply "AI-based language model research and development data." This company has reportedly increased its order volume every year since its first supply contract with Flitto in 2022. In particular, as the scope of data supplied has expanded from text to include voice, conversation, and image data, both the contract size and profitability have increased.

Flitto is also pursuing solution businesses that allow customers to directly utilize language data. Its flagship products are LT (Live Translation), which provides real-time interpretation of presentations at conferences and events, and CT (Chat Translation), a bidirectional simultaneous interpretation solution. These are currently being piloted at Incheon International Airport and major department stores. In particular, demand for the CT product is reportedly increasing among related companies in response to the rising number of foreign tourists.

Researcher Oh stated, "Although the business is still in its early stages and sales volume is small, we are focusing on its future scalability and the synergy effect with the data sales business."

This year, Flitto's performance is projected to reach sales of 26.1 billion KRW and operating income of 3.5 billion KRW, marking a turnaround to profitability. Since the third quarter of last year, the company has also maintained a quarterly profit, which increases the visibility of improved profitability. In addition, technological advancement through collaboration with AI companies and shareholder-friendly management policies are expected to have a positive impact on the company's value.