EMRO (058970) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly revenue of ₩23.2 billion in Q3 2024, up 41.0% year-over-year, and cumulative revenue of ₩57.0 billion, marking six consecutive years of record sales.

• Specializes in AI-based supply chain management software, serving over 550 clients and 1,600 projects, with a strong domestic market position and expanding global presence, especially in SaaS solutions.

• Growth driven by new product launches, digital technology expansion, and large-scale project wins despite economic downturn.

• Major shareholder is Samsung SDS, holding 37% as of September 2024, following a change in control in 2023.

Financial highlights

• Q3 2024 revenue rose 41.0% year-over-year to ₩23.2 billion; cumulative revenue up 24.6% to ₩57.0 billion.

• Q3 2024 operating income surged 238.6% year-over-year to ₩4.4 billion; cumulative operating income up 73.2% to ₩6.2 billion.

• Q3 2024 net income reached ₩15.49 billion, reversing losses from the prior year; cumulative net income up 172.1%.

• Basic EPS for Q3 2024 was ₩1,367, compared to a loss of ₩2,385 in 2023 Q3.

• Cash and cash equivalents at Q3-end: ₩27.1 billion, up from ₩11.1 billion at 2023 year-end.

Outlook and guidance

• Continued investment in global expansion, AI, and integrated SCM SaaS platform development.

• Expectation of sustained revenue and margin growth from high-value projects and digital transformation demand.

• Expects ongoing demand for digital transformation in procurement and supply chain management, with SaaS and AI as growth drivers.