Perfect Corp. third-quarter revenues up 13%

GaryPageau
Getting your Trinity Audio player ready...
AR/AI software SaaS provider Perfect Corp. announced financial results for the three months ended Sept. 30, 2023. Total revenues grew to $14.5 million, up 13.2% year over year, primarily due to strong growth momentum in AR/AI cloud solutions and subscription revenues, the company said. Gross profit grew from $11.0 million in the third quarter of 2022 to $11.8 million in the same period of 2023. Net income more than doubled to $3.5 million, compared to a net income of $1.6 million in the same period of 2022.

As of September 30, 2023, the company’s customer base included 627 brand clients, with more than 678,000 digital SKUs for makeup, haircare, skincare, eyewear, and jewelry products, compared with 601 brand clients and over 655,000 digital SKUs as of June 30, 2023.

Alice Chang, Perfect

“In the third quarter, our robust performance continued, underscoring the continuous top line revenue growth momentum of 13.2% year over year and our dedication to operational efficiency has led to an increase in gross profit and positive bottom-line earnings,” said Alice H. Chang, founder, CEO and chair, Perfect. “The strong demand for our AR/AI cloud solutions and mobile app subscription affirms the effectiveness of our strategic initiatives and our continuous investment in talent acquisition and technology innovation. We are also thrilled to report significant progress in our skincare solutions, where we’ve accelerated market adoption. Furthermore, we believe that our unwavering dedication to harnessing the power of artificial intelligence (AI) to pioneer innovative, state-of-the-art features positions us with confidence for sustained and prosperous growth.”

Revenue detail

  • AR/AI cloud solutions and subscription revenue increased to $11.4 million, representing 78.3% of total revenue, compared to $9.1 million in the same period of 2022. The 24.8% year-over-year increase was mainly due to robust demand for the company’s online virtual product try-on and skincare solutions from brand customers and strong growth momentum in its mobile beauty app subscriptions. The company’s mobile beauty app active subscribers grew by 62.5% year over year, reaching a record high of over 835,000 active subscribers at the end of the third quarter of 2023.
  • Licensing revenue, which is mostly generated from traditional offline services, decreased by 13.6% from $3.3 million in the same period of 2022 to $2.8 million, representing 19.5% of our total revenue, compared with 25.5% of total revenue in the second quarter of 2022. This indicates a comparatively lower demand for in-store services in contrast to online services from brands.
  • Advertisement revenue was $0.3 million, compared to $0.4 million in the same period of 2022. This change aligns with the company’s strategic emphasis on providing AR- and AI-SaaS solutions to customers, and allocating less resources to advertising services, the company said.