On the 11th, Lunit Inc. announced that its consolidated revenue for the first half of this year reached 45.8 billion won. This represents a 23% increase compared to the same period last year and marks the company’s highest-ever first-half revenue.
Overseas revenue drove this growth. Overseas revenue for the first half totaled 43.4 billion won, accounting for approximately 95% of total revenue. Domestic revenue was recorded at 2.3 billion won.
Along with revenue growth, profitability also improved. The operating loss for the first half was approximately 29 billion won, a decrease of about 31% from the 41.9 billion won loss in the same period last year. The loss on an EBITDA basis also narrowed to 14.6 billion won, roughly half the 29.3 billion won loss recorded in the same period last year.
Since early this year, Lunit Inc. has reorganized its cost structure by establishing a company-wide dedicated cost-efficiency team to proactively refine budget plans and decisively eliminate unnecessary tasks and budget allocations. The company plans to continue this approach in the second half of the year to further reduce its losses. The company aims to reach its annual break-even point (BEP) on an EBITDA basis this year. Typically, medical AI companies, including Lunit Inc., tend to see revenue concentrated in the second half of the year due to a combination of factors, such as the timing of budget execution by medical institutions and pharmaceutical companies, as well as demand for health screenings.
By business segment, Lunit Inc.’s cancer screening business—centered on “Lunit Insight”—drove performance in the first half of this year. First-half revenue from the cancer screening business reached 42.8 billion won, a 20% increase compared to the same period last year.
In particular, revenue in North America rose by 30% during the same period. The company explained that this growth resulted from synergies created by combining the Lunit Inc. Insight product line—which assists in image interpretation—with the screening operations infrastructure of its subsidiary, Lunit International. Upselling efforts, which involve selling new products to existing Lunit International customers, are also continuing.
The growth of the AI biomarker platform Lunit Inc. SCOPE was even more significant. First-half revenue reached 2.9 billion won, a 114% increase compared to the same period last year. Revenue was concentrated in the Americas and Europe, with collaborations with global pharmaceutical companies accounting for the majority of this performance.
Lunit Inc. projected that the concentration of revenue in the second half of the year would be even more pronounced in the Lunit SCOPE business due to the nature of its collaborations with global pharmaceutical companies. In addition, as market interest in antibody-drug conjugates (ADCs) grows, the company noted that inquiries from pharmaceutical companies regarding “Lunit SCOPE uIHC” have recently increased significantly.
Seo Beom-seok, CEO of Lunit Inc., stated, “Along with revenue growth, we plan to continue our cost-efficiency initiatives to further reduce losses for the remainder of the year.” He added, “Our cancer screening business is maintaining stable growth, particularly in the North American market, and as collaborations with numerous global pharmaceutical companies are progressing smoothly, Lunit Scope is expected to show even stronger growth in the second half of the year, when revenue recognition is concentrated.”
