## Perfect Corp Reports Q3 Earnings: Revenue Up 10.8% Year-over-Year, AI and AR Solutions Drive Growth
Perfect Corp (PERF), a leading provider of AI and AR beauty and fashion technology solutions, announced its third-quarter earnings for the period ending September 30, 2024. The company reported total revenue of $16.1 million, marking a 10.8% increase year-over-year, though falling slightly short of analyst estimates of $16.8 million.
This growth was primarily driven by the continued success of Perfect Corp’s AI- and AR-cloud solutions and mobile app subscriptions. The company’s AI and AR solutions, which offer virtual try-on experiences for beauty and fashion products, saw significant demand from brand customers. The YouCam mobile beauty app, which provides users with tools to enhance their appearance and experiment with different looks, also contributed to the revenue increase. The app saw a record high of over 977,000 active subscribers, reflecting a 17.0% year-over-year growth.
The company’s licensing revenue, which comes from traditional non-recurring revenue streams, decreased by 14.5% year-over-year. However, Perfect Corp is focused on transitioning towards its AI- and AR-based SaaS subscription solutions, which it believes will be a stronger and more sustainable source of revenue in the long term.
Key Highlights from Q3 2024:
*
Total revenue:
$16.1 million (up 10.8% year-over-year)*
AI—and AR—cloud solutions and subscription revenue:
$13.4 million (up 17.9% year-over-year)*
YouCam mobile beauty app active subscribers:
Over 977,000 (up 17.0% year-over-year)*
Licensing revenue:
$2.4 million (down 14.5% year-over-year)*
Gross profit:
$13.0 million (up 9.6% year-over-year)*
Net income:
$2.5 million*
Adjusted net income:
$3.2 million (up 20.6% year-over-year)*
Operating cash flow:
$4.2 million (up 6.3% year-over-year)*
Cash and cash equivalents:
$127.2 million*
Key Customers:
151 (steady Q/Q)*
Brand clients:
708 (up from 686 as of June 30, 2024)*
Digital SKUs:
Over 806,000 (up from 774,000 as of June 30, 2024)Business Outlook for 2024:
Perfect Corp is optimistic about its future growth prospects. Based on the current momentum in enterprise SaaS solution demand and YouCam mobile app subscriptions, the company anticipates a total revenue growth rate of 12% to 14% for 2024. This outlook underscores the company’s commitment to expanding its market leadership in the AI and AR beauty and fashion technology space.
Price Action:
PERF stock closed down 2.03% at $1.930 on Monday.
This strong performance in Q3 2024 highlights Perfect Corp’s commitment to providing innovative and engaging solutions to its brand customers and consumers. The company’s strategic focus on AI and AR technology, combined with the continued growth of its YouCam mobile app, positions Perfect Corp for continued success in the future.
