Lunit posts record Q1 sales as overseas revenue drives growth

Lunit said Tuesday its first-quarter revenue rose 25 percent from a year earlier to a record quarterly high, supported by continued overseas growth and a narrower operating loss.

Lunit reported record first-quarter revenue of 23.95 billion won, driven by overseas sales that accounted for 97 percent of total revenue, while narrowing its operating loss and EBITDA deficit. (Credit: Korea Biomedical Review)

The medical AI company reported 23.95 billion won ($17.2 million) in consolidated revenue in the first quarter, compared with 19.2 billion won a year earlier. Overseas revenue increased 29 percent to 23.22 billion won, accounting for 97 percent of total revenue.

Lunit said the result was notable because medical AI sales tend to be concentrated in the second half of the year, adding that the first-quarter performancedemonstrated continued growth despite seasonal weakness.

The company’s operating loss narrowed to 13.59 billion won from 20.8 billion won a year earlier, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) deficit declined 54 percent to 6.82 billion won from 14.9 billion won. Net loss also narrowed 78.5 percent to 17.81 billion won from 82.7 billion won a year earlier.

Lunit attributed the improvement to revenue growth and cost-efficiency measures, including lower research and development expenses and reduced fixed costs.

The company said the narrower loss strengthened expectations that it could achieve EBITDA break-even this year.

Lunit’s cancer diagnosis business posted 22.27 billion won in first-quarter revenue, up 22 percent from a year earlier, as sales of Lunit Insight and products from subsidiary Lunit International both increased. The company said Lunit International’s contract extension with RadNet, one of the largest outpatient radiology operators in North America, helped drive performance.

North America accounted for about 70 percent of Lunit’s cancer diagnosis revenue, as business synergy between Lunit and Lunit International expanded in the region. In Japan, the company said its revenue share increased 70 percent from the previous quarter, supported by its partnership with Fujifilm.

The cancer treatment business recorded 1.68 billion won in first-quarter revenue, up 90 percent from a year earlier. Lunit said demand is rising for its AI biomarker technologies as the precision medicine market expands, particularly for Lunit Scope uIHC, an immunohistochemistry quantitative analysis solution used in antibody-drug conjugate development.

During the quarter, Lunit also signed a strategic collaboration with CellCarta, a global contract research organization, to accelerate the commercialization of companion diagnostics.

“This year’s first quarter showed both external growth and profitability improvement, with record first-quarter revenue and a significantly narrower loss,” Lunit CEO Brandon Suh said. “We will further accelerate market expansion and achieve EBITDA break-even this year.”