HR tech firm Saramin (143240.KQ) saw its profitability improve sharply in the first quarter, with operating profit and net profit doubling and tripling, respectively. Cost efficiency from company-wide adoption of artificial intelligence (AI) drove the earnings turnaround.
According to a regulatory filing with the Financial Supervisory Service on Tuesday, Saramin posted consolidated revenue of 28.3 billion won, operating profit of 4.3 billion won, and net profit of 5 billion won in the first quarter. Revenue rose 0.9% from a year earlier, while operating profit and net profit surged 117.4% and 257.2%, respectively.
The key to the profitability improvement was cost reduction. The operating margin, a measure of operational efficiency, more than doubled to 15.1% in the first quarter from 7% a year earlier. The improvement came as company-wide AI adoption cut costs and boosted productivity, streamlining the cost structure.
"First-quarter operating profit rose from a year earlier thanks to improved work productivity and structural cost efficiency from company-wide AI adoption," a Saramin HR official said. "We plan to continue enhancing platform competitiveness through ongoing service upgrades using AI."
