Perfect Corp. reports third-quarter revenue up 10.8%, net income dips
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Highlights:
- Total revenue was $16.1 million for the three months ended Sept. 30, 2024, compared to $14.5 million in the same period of 2023, an increase of 10.8%. The increase was primarily due to growth momentum in the revenue of AI- and AR-cloud solutions and mobile app subscriptions.
- Gross profit was $13.0 million for the three months ended September 30, 2024, compared with $11.8 million in the same period of 2023, an increase of 9.6%.
- Net income was $2.5 million for the three months ended September 30, 2024, compared to a net income of $3.5 million during the same period of 2023.
- Adjusted net income (non-IFRS)1 was $3.2 million for the three months ended September 30, 2024, compared to adjusted net income (non-IFRS) of $2.7 million in the same period of 2023, an increase of 20.6%.
- Operating cash flow was $4.2 million in the third quarter of 2024, compared to $4.0 million in the same period of 2023, an increase of 6.3%.
- The company’s YouCam mobile beauty app active subscribers grew by 17.0% year-over-year, reaching a record high of over 977,000 active subscribers as of end of the third quarter of 2024.
- The company had 151 key customers as of September 30, 2024, compared to 151 Key Customers as of June 30, 2024. The number of key customers remained the same due to the stability of our enterprise business.
- As of September 30, 2024, the company’s cumulative customer base included 708 brand clients, with over 806,000 digital stock keeping units (“SKUs”) for makeup, haircare, skincare, eyewear, watches and jewelry products, compared to 686 brand clients and over 774,000 digital SKUs as of June 30, 2024.
Highlights for the Nine Months
- Total revenue was $44.3 million for the nine months ended September 30, 2024, compared to $39.4 million in the same period of 2023, an increase of 12.5%.
- Gross profit was $35.2 million for the nine months ended September 30, 2024, compared with $31.6 million in the same period of 2023, an increase of 11.2%.
- Net income was $3.9 million for the nine months ended September 30, 2024, compared to a net income of $4.0 million during the same period of 2023, a decrease of 2.2%.
- Adjusted net income (non-IFRS) was $6.0 million for the nine months ended September 30, 2024, compared to adjusted net income (non-IFRS) of $4.9 million in the same period of 2023, an increase of 23.2%.
- Operating cash flow was $9.8 million in the first nine months of 2024, compared to $10.4 million in the same period of 2023, a decrease of 6.5%.
“The company has managed to maintain a positive trajectory, demonstrating resilience in the face of market challenges,’ said Alice H. Chang, the Founder, Chairwoman, and Chief Executive Officer of Perfect. “This is bolstered by the strong performance of our consumer suite of apps, and improved operating efficiencies, which positioned the Company for sustainable success. As a result, we are confident in both the Company’s ability to navigate the current landscape and the long-term industry outlook. The combination of steady growth and operational improvements suggests a promising future, underscoring Perfect Corp.’s commitment to long-term value creation and innovation. Our advanced Generative AI technologies will continue to deliver value to customers and shareholders.”
Revenue
Total revenue was $16.1 million for the three months ended September 30, 2024, compared to $14.5 million in the same period of 2023, an increase of 10.8%.
- AI- and AR- cloud solutions and subscription revenue was $13.4 million for the three months ended September 30, 2024, compared to $11.4 million in the same period of 2023, an increase of 17.9%. The double digit growth was driven by robust demand for the Company’s online virtual product try-on solutions from brand customers, the healthy momentum in the growth of YouCam mobile beauty app subscriptions, and the consumer preference for Generative AI technologies and AI editing features for photos and videos. The Company’s YouCam mobile beauty app active subscribers grew by 17.0% year-over-year, once again reaching a record high of over 977,000 active subscribers as of the end of the third quarter of 2024. This increase reflected the sustained demand in the Company’s YouCam mobile beauty app services from subscribers and users.
- Licensing revenue was $2.4 million for the three months ended September 30, 2024, compared to $2.8 million in the same period of 2023, a decrease of 14.5%. The Company anticipates that this legacy non-recurring revenue will diminish in significance as it continues to prioritize enhancing its market leadership in offering AI- and AR-based SaaS subscription solutions for brands and customers.
Net income was $2.5 million for the three months ended September 30, 2024, compared to a $3.5 million during the same period of 2023. The positive net income in the third quarter of 2024 was supported by continued revenue growth and effective cost control.
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PERFECT CORP. AND SUBSIDIARIES |
||||||
|
UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||
|
DECEMBER 31, 2023 AND SEPTEMBER 30, 2024 |
||||||
|
(Expressed in thousands of United States dollars) |
||||||
|
|
|
December 31, |
|
September 30, |
||
|
Assets |
|
Amount |
|
Amount |
||
|
Current assets |
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
123,871 |
|
$ |
127,177 |
|
Current financial assets at amortized cost |
|
|
30,300 |
|
|
36,000 |
|
Current contract assets |
|
|
2,770 |
|
|
2,022 |
|
Accounts receivable |
|
|
6,992 |
|
|
8,036 |
|
Other receivables |
|
|
343 |
|
|
786 |
|
Current income tax assets |
|
|
311 |
|
|
281 |
|
Inventories |
|
|
33 |
|
|
21 |
|
Other current assets |
|
|
4,042 |
|
|
2,311 |
|
Total current assets |
|
|
168,662 |
|
|
176,634 |
|
Non-current assets |
|
|
|
|
||
|
Property, plant and equipment |
|
|
380 |
|
|
617 |
|
Right-of-use assets |
|
|
847 |
|
|
626 |
|
Intangible assets |
|
|
77 |
|
|
44 |
|
Deferred income tax assets |
|
|
257 |
|
|
1,563 |
|
Guarantee deposits paid |
|
|
140 |
|
|
148 |
|
Total non-current assets |
|
|
1,701 |
|
|
2,998 |
|
Total assets |
|
$ |
170,363 |
|
$ |
179,632 |
|
PERFECT CORP. AND SUBSIDIARIES |
||||||||
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UNAUDITED CONSOLIDATED BALANCE SHEETS (continued) |
||||||||
|
DECEMBER 31, 2023 AND SEPTEMBER 30, 2024 |
||||||||
|
(Expressed in thousands of United States dollars) |
||||||||
|
|
|
December 31, |
|
September 30, |
||||
|
Liabilities and Equity |
|
Amount |
|
Amount |
||||
|
Current liabilities |
|
|
|
|
||||
|
Current contract liabilities |
|
$ |
15,346 |
|
|
$ |
17,923 |
|
|
Other payables |
|
|
10,331 |
|
|
|
11,393 |
|
|
Other payables – related parties |
|
|
50 |
|
|
|
55 |
|
|
Current tax liabilities |
|
|
21 |
|
|
|
390 |
|
|
Current provisions |
|
|
2,394 |
|
|
|
1,822 |
|
|
Current lease liabilities |
|
|
481 |
|
|
|
484 |
|
|
Other current liabilities |
|
|
277 |
|
|
|
310 |
|
|
Total current liabilities |
|
|
28,900 |
|
|
|
32,377 |
|
|
Non-current liabilities |
|
|
|
|
||||
|
Non-current financial liabilities at fair value through profit or loss |
|
|
1,566 |
|
|
|
1,459 |
|
|
Non-current lease liabilities |
|
|
387 |
|
|
|
171 |
|
|
Net defined benefit liability, non-current |
|
|
79 |
|
|
|
81 |
|
|
Guarantee deposits received |
|
|
25 |
|
|
|
25 |
|
|
Total non-current liabilities |
|
|
2,057 |
|
|
|
1,736 |
|
|
Total liabilities |
|
|
30,957 |
|
|
|
34,113 |
|
|
|
|
|
|
|
||||
|
Equity |
|
|
|
|
||||
|
Capital stock |
|
|
|
|
||||
|
Perfect Class A Ordinary Shares, $0.1 (in dollars) par value |
|
|
8,513 |
|
|
|
8,506 |
|
|
Perfect Class B Ordinary Shares, $0.1 (in dollars) par value |
|
|
1,679 |
|
|
|
1,679 |
|
|
Capital surplus |
|
|
|
|
||||
|
Capital surplus |
|
|
510,399 |
|
|
|
512,397 |
|
|
Retained earnings |
|
|
|
|
||||
|
Accumulated deficit |
|
|
(380,472 |
) |
|
|
(376,546 |
) |
|
Other equity interest |
|
|
|
|
||||
|
Other equity interest |
|
|
(523 |
) |
|
|
(517 |
) |
|
Treasury shares |
|
|
(190 |
) |
|
|
— |
|
|
Total equity |
|
|
139,406 |
|
|
|
145,519 |
|
|
Total liabilities and equity |
|
$ |
170,363 |
|
|
$ |
179,632 |
|
|
PERFECT CORP. AND SUBSIDIARIES |
||||||||||||||||
|
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
|
FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2024 |
||||||||||||||||
|
(Expressed in thousands of United States dollars) |
||||||||||||||||
|
|
|
Three months ended |
|
Nine months ended |
||||||||||||
|
|
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||
|
Items |
|
Amount |
|
Amount |
|
Amount |
|
Amount |
||||||||
|
Revenue |
|
$ |
14,549 |
|
|
$ |
16,127 |
|
|
$ |
39,381 |
|
|
$ |
44,321 |
|
|
Cost of sales and services |
|
|
(2,729 |
) |
|
|
(3,171 |
) |
|
|
(7,753 |
) |
|
|
(9,142 |
) |
|
Gross profit |
|
|
11,820 |
|
|
|
12,956 |
|
|
|
31,628 |
|
|
|
35,179 |
|
|
Operating expenses |
|
|
|
|
|
|
|
|
||||||||
|
Sales and marketing expenses |
|
|
(6,444 |
) |
|
|
(7,090 |
) |
|
|
(19,029 |
) |
|
|
(21,274 |
) |
|
General and administrative expenses |
|
|
(3,172 |
) |
|
|
(2,128 |
) |
|
|
(8,599 |
) |
|
|
(6,742 |
) |
|
Research and development expenses |
|
|
(3,035 |
) |
|
|
(3,213 |
) |
|
|
(8,431 |
) |
|
|
(9,223 |
) |
|
Expected credit losses |
|
|
— |
|
|
|
(602 |
) |
|
|
— |
|
|
|
(602 |
) |
|
Total operating expenses |
|
|
(12,651 |
) |
|
|
(13,033 |
) |
|
|
(36,059 |
) |
|
|
(37,841 |
) |
|
Operating loss |
|
|
(831 |
) |
|
|
(77 |
) |
|
|
(4,431 |
) |
|
|
(2,662 |
) |
|
Non-operating income and expenses |
|
|
|
|
|
|
|
|
||||||||
|
Interest income |
|
|
2,335 |
|
|
|
1,923 |
|
|
|
6,944 |
|
|
|
5,875 |
|
|
Other income |
|
|
11 |
|
|
|
5 |
|
|
|
18 |
|
|
|
19 |
|
|
Other gains and losses |
|
|
2,034 |
|
|
|
422 |
|
|
|
1,575 |
|
|
|
131 |
|
|
Finance costs |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(10 |
) |
|
|
(14 |
) |
|
Total non-operating income and expenses |
|
|
4,375 |
|
|
|
2,346 |
|
|
|
8,527 |
|
|
|
6,011 |
|
|
Income before income tax |
|
|
3,544 |
|
|
|
2,269 |
|
|
|
4,096 |
|
|
|
3,349 |
|
|
Income tax benefit (expense) |
|
|
(17 |
) |
|
|
263 |
|
|
|
(80 |
) |
|
|
577 |
|
|
Net income |
|
$ |
3,527 |
|
|
$ |
2,532 |
|
|
$ |
4,016 |
|
|
$ |
3,926 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
||||||||
|
Components of other comprehensive income (loss) that will be reclassified to profit or loss |
|
|
|
|
|
|
|
|
||||||||
|
Exchange differences arising on translation of foreign operations |
|
$ |
(56 |
) |
|
$ |
257 |
|
|
$ |
(224 |
) |
|
$ |
6 |
|
|
Other comprehensive income (loss), net |
|
$ |
(56 |
) |
|
$ |
257 |
|
|
$ |
(224 |
) |
|
$ |
6 |
|
|
Total comprehensive income |
|
$ |
3,471 |
|
|
$ |
2,789 |
|
|
$ |
3,792 |
|
|
$ |
3,932 |
|
|
Net income, attributable to: |
|
|
|
|
|
|
|
|
||||||||
|
Shareholders of the parent |
|
$ |
3,527 |
|
|
$ |
2,532 |
|
|
$ |
4,016 |
|
|
$ |
3,926 |
|
|
Total comprehensive income attributable to: |
|
|
|
|
|
|
|
|
||||||||
|
Shareholders of the parent |
|
$ |
3,471 |
|
|
$ |
2,789 |
|
|
$ |
3,792 |
|
|
$ |
3,932 |
|
|
Earnings per share (in dollars) |
|
|
|
|
|
|
|
|
||||||||
|
Basic earnings per share of Class A and Class B Ordinary Shares |
|
$ |
0.030 |
|
|
$ |
0.025 |
|
|
$ |
0.034 |
|
|
$ |
0.039 |
|
|
Diluted earnings per share of Class A and Class B Ordinary Shares |
|
$ |
0.030 |
|
|
$ |
0.025 |
|
|
$ |
0.034 |
|
|
$ |
0.039 |
|
|
PERFECT CORP. AND SUBSIDIARIES |
||||||||||||||||
|
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
|
FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2024 |
||||||||||||||||
|
(Expressed in thousands of United States dollars) |
||||||||||||||||
|
|
|
Three months ended |
|
Nine months ended |
||||||||||||
|
|
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||
|
Items |
|
Amount |
|
Amount |
|
Amount |
|
Amount |
||||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
|
Profit before tax |
|
$ |
3,544 |
|
|
$ |
2,269 |
|
|
$ |
4,096 |
|
|
$ |
3,349 |
|
|
Adjustments to reconcile profit (loss) |
|
|
|
|
|
|
|
|
||||||||
|
Depreciation expense |
|
|
156 |
|
|
|
197 |
|
|
|
482 |
|
|
|
541 |
|
|
Amortization expense |
|
|
19 |
|
|
|
13 |
|
|
|
56 |
|
|
|
39 |
|
|
Expected credit losses |
|
|
— |
|
|
|
602 |
|
|
|
— |
|
|
|
602 |
|
|
Interest income |
|
|
(2,335 |
) |
|
|
(1,923 |
) |
|
|
(6,944 |
) |
|
|
(5,875 |
) |
|
Interest expense |
|
|
5 |
|
|
|
4 |
|
|
|
10 |
|
|
|
14 |
|
|
Net (gains) losses on financial liabilities at fair value through profit or loss |
|
|
(2,096 |
) |
|
|
(61 |
) |
|
|
(1,852 |
) |
|
|
(107 |
) |
|
Share-based payment transactions |
|
|
1,234 |
|
|
|
744 |
|
|
|
2,675 |
|
|
|
2,181 |
|
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
||||||||
|
Accounts receivable |
|
|
974 |
|
|
|
(1,501 |
) |
|
|
1,061 |
|
|
|
(1,635 |
) |
|
Current contract assets |
|
|
(1,603 |
) |
|
|
(462 |
) |
|
|
527 |
|
|
|
752 |
|
|
Other receivables |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
Inventories |
|
|
1 |
|
|
|
— |
|
|
|
12 |
|
|
|
12 |
|
|
Other current assets |
|
|
791 |
|
|
|
523 |
|
|
|
838 |
|
|
|
1,733 |
|
|
Current contract liabilities |
|
|
(1 |
) |
|
|
919 |
|
|
|
3,034 |
|
|
|
2,541 |
|
|
Other payables |
|
|
1,625 |
|
|
|
1,106 |
|
|
|
442 |
|
|
|
1,055 |
|
|
Other payables – related parties |
|
|
1 |
|
|
|
2 |
|
|
|
(11 |
) |
|
|
5 |
|
|
Current provisions |
|
|
181 |
|
|
|
(15 |
) |
|
|
501 |
|
|
|
(578 |
) |
|
Other current liabilities |
|
|
(15 |
) |
|
|
101 |
|
|
|
(122 |
) |
|
|
34 |
|
|
Net defined benefit liability, non-current |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
Cash inflow generated from operations |
|
|
2,482 |
|
|
|
2,519 |
|
|
|
4,810 |
|
|
|
4,665 |
|
|
Interest received |
|
|
1,648 |
|
|
|
1,875 |
|
|
|
5,979 |
|
|
|
5,433 |
|
|
Interest paid |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(10 |
) |
|
|
(14 |
) |
|
Income tax paid |
|
|
(142 |
) |
|
|
(158 |
) |
|
|
(347 |
) |
|
|
(334 |
) |
|
Net cash flows from operating activities |
|
|
3,983 |
|
|
|
4,232 |
|
|
|
10,432 |
|
|
|
9,750 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
|
Acquisition of financial assets at amortized cost |
|
|
(11,000 |
) |
|
|
(11,104 |
) |
|
|
(171,800 |
) |
|
|
(55,574 |
) |
|
Proceeds from disposal of financial assets at amortized cost |
|
|
85,500 |
|
|
|
13,074 |
|
|
|
115,500 |
|
|
|
49,874 |
|
|
Acquisition of property, plant and equipment |
|
|
(13 |
) |
|
|
(130 |
) |
|
|
(183 |
) |
|
|
(389 |
) |
|
Acquisition of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
(33 |
) |
|
|
(6 |
) |
|
Increase in guarantee deposits paid |
|
|
(15 |
) |
|
|
— |
|
|
|
(15 |
) |
|
|
(8 |
) |
|
Net cash flows from (used in) investing activities |
|
|
74,472 |
|
|
|
1,840 |
|
|
|
(56,531 |
) |
|
|
(6,103 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
|
Repayment of principal portion of lease liabilities |
|
|
(107 |
) |
|
|
(142 |
) |
|
|
(310 |
) |
|
|
(381 |
) |
|
Payments to acquire treasury shares |
|
|
(446 |
) |
|
|
— |
|
|
|
(875 |
) |
|
|
— |
|
|
Net cash flows used in financing activities |
|
|
(553 |
) |
|
|
(142 |
) |
|
|
(1,185 |
) |
|
|
(381 |
) |
|
Effects of exchange rates changes on cash and cash equivalents |
|
|
(101 |
) |
|
|
451 |
|
|
|
(363 |
) |
|
|
40 |
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
77,801 |
|
|
|
6,381 |
|
|
|
(47,647 |
) |
|
|
3,306 |
|
|
Cash and cash equivalents at beginning of period |
|
|
37,168 |
|
|
|
120,796 |
|
|
|
162,616 |
|
|
|
123,871 |
|
|
Cash and cash equivalents at end of period |
|
$ |
114,969 |
|
|
$ |
127,177 |
|
|
$ |
114,969 |
|
|
$ |
127,177 |
|
|
PERFECT CORP. AND SUBSIDIARIES |
||||||||||||||||
|
UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL MEASURES – ADJUSTED NET INCOME CALCULATION |
||||||||||||||||
|
FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2024 |
||||||||||||||||
|
(Expressed in thousands of United States dollars) |
||||||||||||||||
|
|
|
Three months ended |
|
Nine months ended |
||||||||||||
|
|
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||
|
Items |
|
Amount |
|
Amount |
|
Amount |
|
Amount |
||||||||
|
Net Income (Loss) |
|
$ |
3,527 |
|
|
$ |
2,532 |
|
|
$ |
4,016 |
|
|
$ |
3,926 |
|
|
One-off Transaction Costs |
|
|
— |
|
|
|
— |
|
|
|
33 |
|
|
|
— |
|
|
Non-Cash Equity-Based Compensation |
|
|
1,234 |
|
|
|
744 |
|
|
|
2,675 |
|
|
|
2,181 |
|
|
Non-Cash Valuation Gain of financial liabilities |
|
|
(2,096 |
) |
|
|
(61 |
) |
|
|
(1,852 |
) |
|
|
(107 |
) |
|
Adjusted Net Income (Loss)1 |
|
$ |
2,665 |
|
|
$ |
3,215 |
|
|
$ |
4,872 |
|
|
$ |
6,000 |
|
Note (1):
In accordance with the changed definition of “adjusted net income (loss)” that is detailed in the “Use of Non-IFRS Financial Measures” section above, we have made a retrospective adjustment to our adjusted net income for the nine months ended September 30, 2023 not adjusting for “foreign exchange gain (loss)” (which amounted to a loss of $277 thousand for the period, as previously disclosed in our Form 6-K furnished to the SEC on October 24, 2023).
Category: Investor Relations