EMRO Surpasses KRW 33 Billion in H1 Revenue for the First Time, Continuing Record-Breaking Momentum in Q2 2024

- Q2 2024 revenue reaches KRW 19.2 billion, up 27.8% year-on-year; H1 cumulative revenue hits KRW 33.83 billion, surpassing KRW 33 billion for the first time in company history and raising expectations for strong full-year performance

- Revenue growth driven by expansion of the SRM software market, increasing demand for advanced procurement systems among large enterprises, rollouts to subsidiaries and overseas affiliates, and rising adoption of cloud services

- Large-scale project contracts secure a solid foundation for revenue growth through next year, with global expansion expected to fuel a quantum leap as a global software company

August 1, 2024 – Emro Inc. (KOSDAQ: 058970), Korea’s leading AI-based SRM software company, announced that it has surpassed KRW 33 billion in first-half revenue for the first time since its founding, further raising expectations for its sixth consecutive year of record-high annual revenue.

According to its preliminary earnings disclosure released on August 1, Emro reported consolidated Q2 2024 revenue of KRW 19.2 billion, representing a 27.8% increase year-on-year. First-half revenue totaled KRW 33.83 billion, up 15.4% compared to the same period last year. The company continued to set new records for both quarterly and first-half revenue, reaffirming its strong growth momentum. Q2 operating profit rose 50.7% year-on-year to KRW 1.75 billion.

Emro’s revenue growth was driven by several factors amid the expansion of the SRM software market, including growing demand for procurement systems powered by advanced digital technologies such as AI and cloud computing, an increase in system enhancement and rollout projects for subsidiaries and overseas affiliates of large enterprise customers, and rising adoption of cloud-based supply chain management services. Recurring revenue streams—including annual technical support fees and cloud subscription fees from existing customers—continued to expand, reaching KRW 3.2 billion (up 31.3% year-on-year) and KRW 1.2 billion (up 15.2% year-on-year), respectively, in Q2 2024. Technology-based revenue, which includes high-margin software licenses, technical support fees, and cloud subscription fees, amounted to KRW 6.38 billion, representing a 18.7% increase year-on-year and a 17.6% increase quarter-on-quarter.

In addition, Emro secured a large-scale next-generation procurement system implementation contract with one of Korea’s largest corporations in May, laying a solid foundation for stable revenue growth through next year. The project further validates the technological competitiveness of Emro’s procurement solutions and AI software, while also providing a strong global reference to support successful overseas expansion.

Emro plans to further accelerate its entry into overseas markets in the second half of the year. The company has finalized the brand name “Caidentia” for its global SRM SaaS solution being developed jointly with Samsung SDS and is actively pursuing sales and marketing initiatives, particularly in the North American market. After identifying numerous potential customers through participation in major global events such as ISM World 2024 and the Gartner Supply Chain Symposium, Emro will continue to strengthen its local customer network and secure new business opportunities by attending additional global supply chain events in collaboration with Samsung SDS, starting with the USC Global Supply Chain Excellence Summit to be held in the United States on August 15.

Meanwhile, convertible bonds (CBs) and bonds with warrants (BWs) issued to Samsung SDS in May last year were converted and exercised on July 25, increasing Samsung SDS’s ownership stake in Emro from 33.4% to 37.0%. As a result, the elimination of derivative financial instrument valuation gains and losses is expected to reduce volatility in net income, while improvements in the company’s debt ratio are also anticipated.

“Through the upgraded release of SMARTsuite v10.0 in the first half of this year, we have further strengthened our leadership position in the domestic market,” said an Emro official. “In the second half, we will continue to focus on delivering visible results by leveraging our differentiated procurement solutions and AI software to acquire new customers in overseas markets.”