Sales of 30.7 Billion Won, First Operating Profit… Codeit Expands Beyond Coding Education to AI Recruitment

Starting out as an online coding education provider, Codeit recorded its first annual operating profit last year. By enduring deficits to grow its employment bootcamp, sales have surged more than seven-fold in just two years. This year, it is expanding its business scope into AI interviews and recruitment management. Most of its revenue still comes from education. The next challenge is whether the 'AI Talent Platform' touted by Codeit will actually establish itself as a new revenue stream.

Sales Multiply 7.5 Times in 2 Years, Operating Profit of 5.6 Billion Won

Codeit's sales in 2025 stood at 30.75 billion won, up 78.3% from 17.24 billion won the previous year. Compared to sales of 4.08 billion won in 2023, it has increased 7.5 times in two years. Its operating profit and loss turned around from a deficit of 6.74 billion won in 2023 and a deficit of 1.26 billion won in 2024 to a surplus of 5.63 billion won last year. The operating profit margin was 18.3%. Net income for the period was 6.65 billion won.

The operating profit under the Korean Generally Accepted Accounting Principles (K-GAAP) announced by the company was 6.5 billion won, which is about 870 million won higher than the Korean International Financial Reporting Standards (K-IFRS) figure in the audit report. Considering that the stock compensation expenses included in the K-IFRS operating expenses last year amounted to 850 million won, the difference between the two figures appears to mostly stem from the accounting treatment of stock options. The performance standard for the listing review is the K-IFRS operating profit of 5.63 billion won.

The fact that the net income exceeded the operating profit was also influenced by a corporate tax benefit of 1.12 billion won. There was no corporate tax currently payable, and the amount deemed realizable among past deficits and tax credits was recognized as a deferred tax asset. The deferred tax effect that has not yet been recognized as an asset also remains at 3.07 billion won.

81% of Sales Came From a Single Customer

The business that drove growth was the employment bootcamp 'Sprint'. Starting with online lectures for individuals, Codeit expanded its business into state-funded employment education and digital/AI education for corporations. However, sales concentration has intensified. Last year, sales generated from Customer A (the identity of the institution was not disclosed) amounted to 24.92 billion won, accounting for 81.1% of the total. In 2024, it was 12.98 billion won, or 75.3%. The company explains that its corporate client base, including major conglomerates like Samsung, Hyundai, SK, Lotte, and Hanwha, has expanded, but its financial statements indicate a growing dependence on a single customer instead.

Achieved a Surplus, but Did Not Reduce Hiring and Advertising

Even in the process of turning a profit, the company did not opt for cost-cutting measures. Employee benefits increased by about 33% from 4.24 billion won to 5.63 billion won. Workforce-related expenses, combining severance pay and welfare benefits, grew by about 27% from 5.52 billion won to 7.02 billion won. Advertising and promotional expenses more than doubled from 3.49 billion won to 7.28 billion won. Co-CEO Kang Young-hoon also announced while reporting earnings in March that they were hiring for 62 positions. Alongside sales growth, it is in a stage of reinvesting money to secure manpower and customers.

However, the profits did not immediately translate into cash. Last year's operating cash flow was 930 million won, significantly lower than the net income of 6.65 billion won. This was driven by a 6.01 billion won increase in trade receivables and an 840 million won increase in contract assets that had not yet met billing conditions. Year-end trade receivables stood at 7.85 billion won, corresponding to about a quarter of annual sales. Although this might be related to the settlement cycle of state-funded training projects, it is difficult to confirm the exact cause from the audit report alone.

From Teaching Trainees to Entering the Recruitment Process

Codeit's area of focus this year is AI recruitment. In March, it launched 'Cayde', a corporate AI interview solution, in Korea and English-speaking regions. In June, it introduced 'Ascent', an AI mock interview service that allows job seekers to practice interviews based on their resumes and cover letters. In the same month, it acquired Whattime, the operator of the recruitment management solution 'RoundHR'. This is Codeit's first strategic merger and acquisition. RoundHR offers services such as applicant management and interview scheduling, and its clients include Samsung Electronics, SK, LG, CJ, Hanwha, Daangn, Woowa Brothers, and Viva Republica. The acquisition amount was not disclosed.

Codeit's vision is to connect learning and evaluation data acquired through education into AI interviews and recruitment management. This means it intends to not only foster trainees but also take charge of applicant evaluation and recruitment operations. However, how much Cayde, Ascent, and RoundHR each contribute to current sales has not yet been disclosed.

Preliminary Review Withdrawn, but Listing Plans Not Abandoned

Codeit requested a preliminary review for listing on the KOSDAQ in November 2025, with Mirae Asset Securities as the lead underwriter. At the time, it chose the special listing track for profit-unrealized companies, where a loss-making enterprise lists based on growth potential. However, it voluntarily withdrew the review in March this year. The company explained that turning a profit in 2025 eliminated the need for a special listing, leading to a shift toward a regular listing. On the other hand, interpretations emerged within the investment industry that the securing of certain government education projects acted as a variable in the review.

In September last year, it attracted 9.8 billion won through a pre-IPO investment. Driven by the pre-IPO and the turnaround to a surplus, total equity improved from negative 970 million won at the end of 2024 to 16.49 billion won at the end of last year. About 1 billion won of the increase is attributed to a rise in capital related to stock compensation. Year-end cash was 11.67 billion won, and short-term borrowings stood at 4.1 billion won.

Codeit presented a target of 50 billion won in sales and 10 billion won in operating profit for this year. Upon announcing the acquisition of Whattime, it stated that it continues to prepare for a KOSDAQ listing. The listing plan has not been folded, but the company did not disclose when it will file for the regular listing preliminary review again.

What Codeit must demonstrate before pursuing relisting is clear. It needs to diversify its reliance on a specific customer and generate actual sales from the AI interview and recruitment management business. The evaluation that it has transformed from a coding education company into an AI talent platform will only then be confirmed through numbers.