Perfect Corp. Releases Financial Performance for the First Quarter Ended March 31, 2024

Perfect Corp. (NYSE: PERF), a leading provider of artificial intelligence (AI) and augmented reality (AR) Software-as-a-Service (SaaS) solutions for the beauty and fashion sectors, has unveiled its unaudited financial performance for the first quarter ending March 31, 2024.

Key Highlights for Q1 2024:

  • Total revenue reached $14.3 million, marking a notable increase of 17.7% compared to the same period in 2023. This growth was primarily fueled by the robust performance of AI- and AR- cloud solutions, as well as mobile app subscriptions.
  • Gross profit amounted to $11.2 million, reflecting a solid rise of 16.9% from Q1 2023.
  • Net income for the quarter was $0.6 million, demonstrating a slight decrease of 9.4% compared to Q1 2023.
  • Adjusted net income (non-IFRS) stood at $1.5 million, indicating a healthy increase of 14.5% compared to the same period in 2023.
  • Positive operating cash flow of $3.5 million was reported for Q1 2024.
  • The company’s customer base comprised 666 brand clients as of March 31, 2024, with over 745,000 digital stock keeping units (SKUs) across various product categories.

Alice H. Chang, Founder, Chairwoman, and CEO of Perfect Corp., expressed satisfaction with the company’s performance, highlighting the continued growth driven by their AI strategy. She emphasized the strong momentum in AI- and AR- cloud solutions, subscription revenue, and the rapid advancement in AI technologies.

Financial Performance Breakdown for Q1 2024:

Revenue:

  • Total revenue amounted to $14.3 million, with AI- and AR- cloud solutions and subscription revenue reaching $12.4 million, up by 19.6% compared to Q1 2023. This growth was attributed to increasing demand for virtual product try-on and skincare solutions, as well as the popularity of Gen AI technologies.
  • Licensing revenue saw a moderate increase of 7.1%, totaling $1.6 million.
  • Advertisement revenue remained flat at $0.3 million, with expectations of gradual immateriality as the company focuses more on AI- and AR-SaaS solutions.

Gross Profit:

  • Gross profit was $11.2 million, with a gross margin of 78.3%. Despite the increase in gross profit, a slight decrease in gross margin was observed due to higher third-party payment processing fees.

Operating Expenses:

  • Total operating expenses amounted to $12.4 million, reflecting an 11.8% increase from Q1 2023. This increase was primarily driven by higher sales and marketing expenses.
  • Sales and marketing expenses rose by 19.0% to $7.2 million, attributed to increased marketing events and user acquisition costs.
  • Research and development (R&D) expenses increased by 15.4% to $3.0 million due to an increase in R&D headcount.
  • General and administrative expenses decreased by 9.9% to $2.2 million, mainly due to lower directors and officers insurance expenses.

Net Income:

  • Net income for Q1 2024 was $0.6 million, supported by continued revenue growth and effective cost control measures.

Overall, Perfect Corp. remains optimistic about its growth prospects, leveraging its advanced AI capabilities and strong client partnerships to drive innovation and value for customers and shareholders in 2024 and beyond.

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