EMRO Surpasses KRW 60 Billion in Annual Revenue for the First Time in 2023

- 2023 revenue reached KRW 63.17 billion, up 7.8% year-on-year; Q4 revenue rose 18.7% YoY to KRW 17.4 billion, marking all-time highs

- Secured new customers across key industries including defense, parts & materials, and secondary batteries; expansion projects for large conglomerates’ subsidiaries and overseas affiliates further fueled growth

- 2024 positioned as the first year of global expansion through an integrated SCM SaaS platform, alongside strengthened AI initiatives to accelerate transformation into a global software company

January 24, 2024 – Emro Inc. (KOSDAQ: 058970), Korea’s leading AI-based SRM software company, announced today that it has continued its solid growth trajectory by posting record-high revenue despite challenging domestic and global economic conditions.

According to its consolidated financial results disclosed on January 24, Emro reported 2023 revenue of KRW 63.17 billion, representing a 7.8% increase year-on-year and surpassing the KRW 60 billion mark for the first time in the company’s history. Fourth-quarter revenue totaled KRW 17.4 billion, up 18.7% year-on-year, setting a new quarterly record.

In particular, technology-based revenue in Q4 increased 2.2% quarter-on-quarter to KRW 5.4 billion. Recurring revenue streams—including annual license fees and cloud subscription fees—rose 9.7% and 13.5% quarter-on-quarter, reaching KRW 2.59 billion and KRW 1.25 billion, respectively, further strengthening the company’s foundation for stable revenue growth.

Amid the prolonged global economic slowdown and ongoing supply chain restructuring, demand for systematic procurement systems has continued to rise. As a result, Emro successfully secured new customers across a wide range of industries in 2023, including defense, parts and materials, secondary batteries, steel, and renewable energy. In addition, growing demand from large enterprises seeking to deploy SRM software across their subsidiaries and overseas affiliates to proactively manage global supply chain risks also contributed significantly to revenue growth.

Operating profit for 2023 amounted to KRW 4.66 billion, down 28.1% year-on-year, reflecting increased investments for global expansion, including development costs for the integrated SCM SaaS platform, expanded global business personnel, and rising developer labor costs. Net profit recorded a loss of KRW 26.45 billion, primarily due to KRW 29.3 billion in valuation losses on derivative financial instruments related to convertible bonds (CBs) and bonds with warrants (BWs) issued in May 2023. The company noted that these losses are non-cash accounting losses and do not involve actual cash outflows.

Looking ahead, Emro has designated 2024 as the inaugural year of its global expansion, accelerating the final stages of development for its integrated SCM SaaS platform in collaboration with Samsung SDS and o9 Solutions. Following the platform’s launch later this year, the company plans to initiate full-scale sales and marketing activities, primarily in the United States, to strengthen its position in the global SCM software market.

At the same time, Emro will continue to enhance its AI software portfolio aimed at improving efficiency and accuracy in procurement operations. In January 2024, the company participated in CES 2024 in Las Vegas alongside Samsung SDS, where it introduced its cloud-based SRM SaaS solution for procurement and supply chain management to global audiences. Emro also demonstrated its Auto-PO (Automated Purchase Order) functionality, which leverages AI to recommend optimal purchasing strategies by item and automate the entire procurement process—from purchase requests and quotation reviews to contracts and ordering.

“2024 will be a critical turning point for Emro as we take a major step forward toward becoming a global software company,” said an Emro spokesperson. “Together with Samsung SDS and o9 Solutions, we will make every effort to secure a competitive edge in the rapidly growing global SCM software market.”