Perfect Corp. Reports Unaudited Financial Results for the Three Months and Full Year Ended December 31, 2024
NEW YORK--(BUSINESS WIRE)--February 26, 2025--
Perfect Corp. (NYSE: PERF) ("Perfect" or the "Company"), a global leader in providing artificial intelligence ("AI") and augmented reality ("AR") Software-as-a-Service ("SaaS") solutions to beauty and fashion industries, today announced its unaudited financial results for the three months and the full year ended December 31, 2024.
Highlights for the Three Months Ended December 31, 2024
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Total revenue was $15.9 million for the three months ended December 31,
2024, compared to $14.1 million in the same period of 2023, an increase
of 12.4%. The increase was primarily due to growth momentum in the
revenue of AI- and AR- cloud solutions and mobile app subscriptions.
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Gross profit was $11.8 million for the three months ended December 31,
2024, compared with $11.5 million in the same period of 2023, an increase
of 2.5%.
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Net income was $1.1 million for the three months ended December 31,
2024, compared to a net income of $1.4 million during the same period of
2023, a decrease of 21.8%.
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Adjusted net income (non-IFRS)1 was $2.3 million for the three months
ended December 31, 2024, compared to adjusted net income (non-IFRS) of
$2.1 million in the same period of 2023, an increase of 8.2%.
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Operating cash flow was $3.3 million in the fourth quarter of 2024,
compared to $3.1 million in the same period of 2023, an increase of
3.4%.
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The Company's YouCam mobile beauty app and web active subscribers grew
by 14.3% year-over-year, reaching a record high of over 1 million active
subscribers as of end of 2024.
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As of December 31, 2024, the Company's cumulative customer base
included 732 brand clients, with over 822,000 digital stock keeping units
("SKUs") for makeup, haircare, skincare, eyewear, watches and jewelry
products, compared to 708 brand clients and over 806,000 digital SKUs as
of September 30, 2024. The number of Key Customers2 of the Company
remained stable at 151, as of both December 31, 2024, compared and
September 30, 2024 due to the stability of our enterprise business.
Highlights for the Year Ended December 31, 2024
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Total revenue was $60.2 million for the year ended December 31, 2024,
compared to $53.5 million in the same period of 2023, an increase of
12.5%.
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Gross profit was $46.9 million for the year ended December 31, 2024,
compared with $43.1 million in the same period of 2023, an increase of
8.9%.
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Net income was $5.0 million for the year ended December 31, 2024,
compared to a net income of $5.4 million during the same period of 2023,
a decrease of 7.3%.
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Adjusted net income (non-IFRS) was $8.3 million for the year ended
December 31, 2024, compared to adjusted net income (non-IFRS) of $7.0
million in the same period of 2023, an increase of 18.6%.
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Operating cash flow was $13.0 million for the year ended December 31,
2024, compared to $13.6 million in the same period of 2023, a decrease of
4.2%.
Ms. Alice H. Chang, the Founder, Chairwoman, and Chief Executive Officer of Perfect commented, "We are pleased to report solid double-digit growth, positive net income, healthy cash flow, and a strong balance sheet for 2024, fully meeting our previous guidance. This remarkable performance is a testament to our team's resilience and the visionary leadership of our management. By capitalizing on market opportunities and expanding our total addressable market, we are not only attracting new clients but also laying the foundation for sustained long-term growth. Our commitment to innovation ensures that we will continue to deliver cutting-edge solutions that meet evolving market demands. With a comprehensive strategy in place, we are excited about the future and confident in our ability to create ongoing value for all our stakeholders."
Financial Results for the Three Months Ended December 31, 2024 and for the Full Year 2024
Revenue
Total revenue was $15.9 million for the three months ended December 31, 2024, compared to $14.1 million in the same period of 2023, an increase of 12.4%. Full-year revenue was $60.2 million in 2024, compared to $53.5 million in 2023, an increase of 12.5%.
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AI- and AR- cloud solutions and subscription revenue was $15.1 million
for the three months ended December 31, 2024, compared to $12.0 million
in the same period of 2023, an increase of 25.4%. Full-year AI- and AR-
cloud solutions and subscription revenue was $53.8 million in 2024,
compared with $44.8 million in 2023, an increase of 20.2%. The double
digit growth was driven by the robust momentum in the growth of YouCam
mobile beauty app subscription, stable demand for the Company's online
virtual product try-on solutions from brand customers, and the growing
popularity among consumers of Generative AI technologies and AI editing
features for photos and videos. The Company's YouCam mobile beauty app
and web active subscribers grew by 14.3% year-over-year, once again
reaching a record high of over 1 million active subscribers as of the end
of the fourth quarter of 2024. This increase reflected the sustained
demand in the Company's YouCam mobile beauty app services from
subscribers and users.
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Licensing revenue was $0.5 million for the three months ended December
31, 2024, compared to $1.8 million in the same period of 2023, a decrease
of 72.2%. Full year licensing revenue was $5.2 million for 2024, compared
with $7.5 million for 2023, a decrease of 30.8%. The Company anticipates
that this legacy non-recurring revenue will become increasingly
immaterial as it continues to prioritize enhancing its market leadership
in offering AI- and AR-based SaaS subscription solutions for brands and
customers.
Gross Profit
Gross profit was $11.8 million for the three months ended December 31, 2024, compared with $11.5 million in the same period of 2023, an increase of 2.5%. Despite the increase in gross profit, our gross margin decreased to 74.1% for the three months ended December 31, 2024, from 81.3% in the same period of 2023. Full-year gross profit was $46.9 million in 2024, compared with $43.1 million in 2023, an increase of 8.9%. Full-year 2024 gross margin slightly decreased to 78.0% in 2024 from 80.6% in 2023. The decrease in gross margin was primarily due to the increase in third-party payment processing fees paid to digital distribution partners, such as Google and Apple, due to the steady growth in our YouCam mobile app subscription revenue.
Total Operating Expenses
Total operating expenses were $12.2 million for the three months ended December 31, 2024, compared with $12.7 million in the same period of 2023, a decrease of 3.6%. The decrease was primarily due to declines in research and development ("R&D") expenses and general and administrative ("G&A") expenses in the fourth quarter of 2024. Full-year total operating expenses were $50.1 million in 2024, compared with $48.8 million in 2023, an increase of 2.7%. The increase was primarily due to increases in sales and marketing expenses and R&D expenses, which were mostly offset by a decrease in general and administrative expenses.
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Sales and marketing expenses were $6.9 million for the three months
ended December 31, 2024, compared to $6.7 million during the same period
of 2023, an increase of 3.6%. Full-year sales and marketing expenses were
$28.2 million for 2024, compared to $25.7 million in 2023, an increase of
9.7%. This increase was primarily due to an increase in marketing events
and advertising expenses related to our mobile apps and cloud computing
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Research and development expenses were $2.8 million for the three
months ended December 31, 2024, compared to $3.0 million during the same
period of 2023, a decrease of 8.3%. The decrease primarily resulted from
streamlining of certain R&D processes and optimizing expenses. Full-year
R&D expenses were $12.0 million for 2024, compared to $11.5 million in
2023, an increase of 4.7%. The increases resulted from increases in R&D
headcount and related personnel costs.
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General and administrative expenses were $1.8 million for the three
months ended December 31, 2024, compared to $3.0 million during the same
period of 2023, a significant decrease of 41.0%. Full-year G&A expenses
were $8.5 million for 2024, compared to $11.6 million in 2023, a decrease
of 26.6%. The significant decrease was primarily due to reduced corporate
insurance premium and external professional service fees.
Net Income
Net income was $1.1 million for the three months ended December 31, 2024, compared to a $1.4 million during the same period of 2023. Full-year net income was $5.0 million for 2024, compared to $5.4 million for 2023. The positive net income was supported by our steady revenue growth and effective cost control.
Adjusted Net Income (Non-IFRS)
Adjusted net income was $2.3 million for the three months ended December 31, 2024, compared to $2.1 million in the same period of 2023, an increase of 8.2%. Full-year adjusted net income was $8.3 million for 2024, compared to $7.0 million for 2023.
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