Medical artificial intelligence (AI) company Lunit said Thursday that its third-quarter revenue reached 22.215 billion won on a consolidated basis, up 13% from the same period last year. The operating loss narrowed to 10.685 billion won, a 50.4% decrease from 21.556 billion won in the previous year.
With the majority of Lunit’s revenue generated overseas, the company achieved its highest-ever third-quarter revenue despite a stronger Korean won. Lunit’s overseas revenue for the third quarter increased by 15% compared to the same period last year and by 3% compared to the immediately preceding quarter.
The cumulative third-quarter revenue for the cancer screening business segment was 63.17 billion won, representing a 20% growth over the same period last year. Revenue from North America accounted for 71% of the total.
The company explained that subscription-based software (SaaS) revenue and cross-selling to existing customers by its subsidiary Lunit International (formerly Volpara), which handles U.S. operations, contributed to the revenue increase.
The cumulative third-quarter revenue for the cancer treatment business was 4.81 billion won, up 19% from the same period last year.
Lunit is expanding collaborations with pharmaceutical companies, centered on its immunohistochemistry (IHC) analysis solution “Lunit SCOPE uIHC” and tumor microenvironment analysis solution “Lunit SCOPE IO.”
A Lunit official stated, “If there had been no impact from exchange rates, the third-quarter deficit would have narrowed further,” adding, “While revenue is increasing, cash operating expenses have continued to decline for three consecutive quarters, establishing a structure where costs are steadily decreasing.”
Driven by increased revenue and cost reductions, the company’s Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) loss in the third quarter of this year hit its lowest level in 14 quarters.
According to Lunit, the third-quarter EBITDA loss was 3.501 billion won, a 77% decrease from 14.925 billion won in the same period last year.
This is the lowest level since the first quarter of 2023. Considering that the results at that time included one-time milestone revenue received from U.S.-based Guardant Health, it effectively recorded the smallest quarterly loss since its listing on KOSDAQ in 2022.
Lunit CEO Suh Beom-seok said, “Despite challenging external conditions such as the decline in the won-dollar exchange rate, we achieved record-high revenue for both the third quarter and cumulative periods since our founding.”
He added, “As we have significantly reduced EBITDA losses through cost efficiency, we will continue this momentum into the fourth quarter and next year.”
Meanwhile, Lunit disclosed on the same day that it had completed the payment (deposit) of new convertible bonds (CBs) worth 47.7 billion won issued to refinance existing CBs.
The existing CBs were issued with a coupon rate of 1% and a yield-to-maturity of 8% per annum, while the new CBs were issued with a coupon rate of 0% and a yield-to-maturity of 4% per annum.
in THEBIO
