Lunit Posts Cumulative Q3 Revenue of 56.7 Billion KRW and Operating Loss of 63.4 Billion KRW

Lunit, a medical artificial intelligence (AI) company, announced on November 13 that it recorded a cumulative consolidated revenue of 56.653 billion KRW for the third quarter of this year. This represents a 66% increase compared to 34.14 billion KRW in the same period last year, marking the highest cumulative third-quarter performance since the company’s founding.

Revenue for the third quarter of this year was 19.576 billion KRW, up 16.7% from 16.77 billion KRW in the same period last year. Of this, overseas sales amounted to 18.105 billion KRW, accounting for approximately 92% of total revenue, reaffirming the company’s dominance in the global market. Cumulative operating loss for the third quarter was 63.46685 billion KRW, a 32 percentage point improvement compared to 67.9472 billion KRW in the same period last year.

The key driver behind this performance was the full completion of integration with Volpara, which was acquired in May last year. Volpara recorded cumulative revenue of 36.573 billion KRW for the third quarter, growing 17% year-on-year.

In particular, joint marketing and cross-selling of products with Lunit have been underway, leading to five consecutive quarters of growth in digital breast tomosynthesis (DBT) related sales in the North American market. Notably, 98% of total revenue is based on a subscription-based software-as-a-service (SaaS) model, establishing a predictable recurring revenue structure despite high growth rates.

Recently, the organizational structure has also been fully reorganized into a 'One Lunit' system. Volpara’s parent company has been renamed 'Lunit International,' and the U.S. subsidiary has been renamed 'Lunit Americas,' with each entity responsible for sales outside the Americas and in North, Central, and South America, respectively. Through the unification of brand and operational systems, the company aims to simultaneously enhance regional market access and operational efficiency.

The pace of profitability improvement is also accelerating. Lunit International has already achieved a turnaround to positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) on a cumulative basis for the third quarter of this year, and the growth of Lunit Scope is also contributing to improved profitability.

Seo Bumseok, CEO of Lunit, stated, "Not only have we achieved record-high results, but our profit and loss indicators, such as the operating loss ratio, are also improving, signaling that the company is entering a phase of qualitative growth. In particular, as we are simultaneously pursuing revenue growth and operational efficiency, our goal of turning profitable by 2027 is progressing smoothly without any issues."