Perfect Corp. says app subscription revenue is driving the business

AI imaging software provider Perfect Corp. announced its unaudited financial results for the three months ended June 30, 2025 and the six months ended June 30, 2025.

For three months, total revenue was $16.3 million, compared to $13.9 million in the same period of 2024, an increase of 17.6%. The increase was primarily due to strong growth momentum in the revenue of mobile app and web services subscriptions.

• AI- and AR- cloud solutions and subscription revenue was $14.9 million for the three months ended June 30, 2025, compared to $12.9 million in the same period of 2024, an increase of 15.6%. The increase was driven by the continued revenue growth of YouCam mobile app and web services subscriptions, the growing popularity among consumers of Generative AI technologies and AI editing features for photos and videos, and the stable demand for the Company’s online virtual product try-on solutions from brand customers.
• Licensing revenue was $0.9 million for the three months ended June 30, 2025, compared to $0.7 million in the same period of 2024, an increase of 36.5%.

Gross profit was $12.3 million for the three months ended June 30, 2025, compared with $11.0 million in the same period of 2024, an increase of 11.6%. Gross margin was 75.3% for the three months ended June 30, 2025, slightly down from 79.3% in the same period of 2024. 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, driven by the steady growth in the YouCam mobile app subscription revenue. In addition, the increases in AI server computing cost, resulting from the growing demand for premium features powered by generative AI services, also contributed to the decrease in gross margin.

“Our mobile app and web subscription business continues to demonstrate strong momentum, now growing significantly faster than our enterprise segment,” said Alice H. Chang, founder, chairwoman and CEO. “B2C subscriptions have become the primary driver of our overall revenue growth, fueled by sustained demand for our photo- and video-based generative AI features. While the enterprise business remains strategic, many clients are approaching new AI initiatives with caution amid broader macroeconomic uncertainty. As such, we maintain a prudent near-term outlook for B2B.

“2025 is shaping up to be a transformative year for Perfect Corp. Artificial intelligence is no longer a supporting capability. It is the foundation of both our product roadmap and operational strategy. Our expanded investment in generative AI is delivering tangible results. The YouCam product family now integrates cutting-edge features such as text-to-video, photo-to-video, and AI-powered image and video enhancements, making it an essential tool for mobile-first creators. These innovations are enabling users to produce high-quality content in minutes, accelerating engagement across our platforms.

“Internally, AI is driving operational excellence. From workflow automation and advanced analytics to virtual assistants and enhanced forecasting, AI is helping us scale more efficiently and deliver greater value. These gains benefit both our global subscriber base and the 800+ beauty and fashion brands that rely on Perfect Corp. to power their digital experiences.”

Total operating expenses were $13.8 million for the three months ended June 30, 2025, compared with $12.4 million in the same period of 2024, an increase of 10.8%. The increase was primarily due to increases in research and development and sales and marketing expenses, which were partially offset by a decrease in general and administrative expenses in the second quarter of 2025.

• Sales and marketing expenses were $7.8 million for the three months ended June 30, 2025, compared to $7.0 million during the same period of 2024, an increase of 11.3%. This increase was primarily due to an increase in marketing events and advertising expenses related to our mobile apps and web services subscription.

• Research and development expenses were $4.0 million for the three months ended June 30, 2025, compared to $3.0 million during the same period of 2024, an increase of 35.5%. The increase was caused by two main factors: (i) the foreign exchange impact caused by the depreciation of the U.S. dollar against New Taiwan dollar elevated personnel costs for our Taiwan-based development team, and (ii) the increase in research and development headcount and related compensation expenses following the acquisition of Wannaby Inc. (“Wannaby”).

• General and administrative expenses were $2.0 million for the three months ended June 30, 2025, compared to $2.4 million during the same period of 2024, a decrease of 18.0%. The decrease was primarily due to reduced corporate insurance premium and external professional service fees.

Net Income

Net income was $0.2 million for the three months ended June 30, 2025, compared to $0.8 million during the same period of 2024, a decrease of 72.9%. The decrease in net income was primarily due to higher third-party payment processing fees, higher Taiwan personnel costs due to foreign exchange impact by a weaker U.S. dollar, increases in operating expenses after the acquisition of Wannaby, and lowered interest income due to decreases in interest rates on the company’s cash reserve.

Financial Results for the Six Months Ended June 30, 2025

Revenue

Total revenue was $32.4 million for the six months ended June 30, 2025, compared to $28.2 million in the same period of 2024, an increase of 14.8%.

• AI- and AR- cloud solutions and subscription revenue was $29.0 million for the six months ended June 30, 2025, compared to $25.3 million in the same period of 2024, an increase of 14.5%. The increase was driven by the continued revenue growth of the YouCam mobile app and web services subscriptions.

• Licensing revenue was $2.6 million for the six months ended June 30, 2025, compared to $2.3 million in the same period of 2024, an increase of 12.1%.

Gross profit was $24.8 million for the six months ended June 30, 2025, compared with $22.2 million in the same period of 2024, an increase of 11.5%. Gross margin was 76.6% for the six months ended June 30, 2025, slightly down from 78.8% in the same period of 2024.

Total operating expenses were $26.4 million for the six months ended June 30, 2025, compared with $24.8 million in the same period of 2024, an increase of 6.4%. The increase was primarily due to increases in research and development and sales and marketing expenses, which were partially offset by a decrease in general and administrative expenses during the period.

• Sales and marketing expenses were $15.2 million for the six months ended June 30, 2025, compared to $14.2 million during the same period of 2024, an increase of 7.0%.

• Research and development expenses were $7.6 million for the six months ended June 30, 2025, compared to $6.0 million during the same period of 2024, an increase of 26.4%.
• General and administrative expenses were $3.7 million for the six months ended June 30, 2025, compared to $4.6 million during the same period of 2024, a decrease of 19.7%.

Net income was $2.5 million for the six months ended June 30, 2025, compared to $1.4 million during the same period of 2024, an increase of 79.3%.