Summary of Perfect Corp (NYSE: PERF) FY Conference Call - November 19, 2025 Company Overview - Perfect Corp is a software company focused on beauty and fashion, founded in 2015 and based in Taipei, Taiwan - Current share price is approximately $1.75 with a market cap of $175 million and $170 million in cash, no debt [1][25] - The company has around 410 employees, with about half in R&D [1][12] Revenue Breakdown - Revenue distribution: approximately 50% from the US, 25% from the EU, and 20% from Japan [2] - Business model includes B2B (providing software solutions to major brands) and B2C (consumer apps available on iOS and Android) [2][3] - Shift in revenue sources: B2B accounted for 75%-80% of revenue at the end of 2022, projected to drop to about 30% by the end of 2025 due to faster growth in B2C [3][36] Growth Drivers - GenAI technology for photo and video editing is a key growth driver for both B2B and B2C segments [3][8] - B2C apps have seen significant growth due to changing consumer habits, especially during the pandemic [4] - The introduction of a premium model for B2C apps has increased average selling price (ASP) by approximately $20 [7] B2B Segment Challenges - B2B growth has slowed due to financial pressures on brand clients from macroeconomic factors like inflation and interest rates [4][5] - Retention rate for B2B clients is over 90%, but cross-selling has become challenging due to client financial constraints [11][22] B2C Segment Insights - B2C apps have approximately 940,000 paying subscribers, primarily from developed countries [9] - Monetization model includes a freemium approach with various subscription options ranging from $5 to $70.99 annually [6][7] - Despite a slight decrease in the number of paid subscribers, ASP continues to grow [28] Technology and Innovation - The company holds over 55 patents and has developed technology in-house for over a decade [12] - Future plans include embedding AI agents in all apps by 2026 to enhance user experience [16][19] Financial Performance - Guidance for revenue growth is between 13%-14.5% for the year, with expectations to surpass this [25] - Operating cash flow is positive, with a net income of about $5 million and margins around 10% [26][27] - The company has increased its workforce by about a third over the past two years to support technology development [26] Market Position and Competition - The company is a leader in the B2B beauty and fashion software market, with limited large competitors [34] - There is potential for M&A activity, as seen with past interest from companies like Alibaba and L'Oréal [30][34] Future Outlook - Continued focus on GenAI technology and skincare analysis, with plans for potential dividends or buybacks depending on management decisions [28][29] - The company aims to leverage its existing data and technology to enhance both B2B and B2C offerings [35] Key Takeaways - Perfect Corp is positioned for growth in the beauty and fashion tech space, with a strong emphasis on AI-driven solutions - The shift from B2B to B2C revenue highlights changing consumer preferences and market dynamics - Financial health appears stable, with positive cash flow and strategic plans for future growth and innovation [25][26][27]

Core Viewpoint - Certain dividend stocks are considered valuable holdings regardless of the overall portfolio composition [1] Group 1 - Dividend stocks provide consistent income and can be a safe investment choice during market volatility [1] - The stability of dividend-paying companies often leads to lower risk compared to non-dividend stocks [1] - Investors are encouraged to focus on high-quality dividend stocks that have a history of increasing payouts [1]

Core Insights - Dividend-paying stocks are recommended for investors, particularly Baby Boomers aged 61 to 79, as they are more likely to own stocks [1][2] Group 1: Investment Opportunities - Berkshire Hathaway, led by incoming CEO Greg Abel, may introduce a dividend as the company holds a cash reserve of $382 billion [3][4] - Waste Management is considered a stable investment due to its essential services in trash collection and recycling, with a recent forward P/E ratio of 23.5, below its five-year average of 27.4 [6][8] - Realty Income, a REIT, offers a high dividend yield of 5.6% and has a strong track record of paying dividends for 664 consecutive months [10][12] Group 2: Financial Metrics - Berkshire Hathaway has a market cap of $1,077 billion, with a gross margin of 24.85% [4] - Waste Management has a market cap of $81 billion, with a gross margin of 28.92% and a dividend yield of 1.65% [8][9] - Realty Income has a market cap of $52 billion, a gross margin of 48.14%, and a 98.7% occupancy rate across its properties [12][14]

Core Insights - H&M collaborates with luxury ski and lifestyle brand Perfect Moment to launch a 28-piece capsule collection for the holiday season, featuring a mix of outerwear, knitwear, and accessories designed for après-ski and urban wear [1][2][3] Product Details - The collection includes key pieces such as a burgundy faux fur down-filled puffer jacket, a black and white star-print puffer jacket, burgundy leather trousers, a loop knit cardigan, and a matching knitted set [4] - Accessories feature in the collection include faux fur tall moon boots, short padded moon boots, pom-pom hats, wraparound sunglasses, and an oversized star-print wool and mohair scarf [4] Design and Aesthetic - The color palette incorporates Perfect Moment's signature black, white, and silver, along with new shades of burgundy and icy blue [5] - Materials used in the collection include faux fur, leather, lurex knit, merino wool, mohair, and cashmere blends, with design elements such as oversized hoods and jacquard trims enhancing both function and style [5]

Core Insights - ClearBlue Markets will host an event titled "The Perfect Storm Challenging Canada's Carbon Markets" during the inaugural Canada Climate Week Xchange (CCWX) from November 24 to November 30, 2025, aimed at addressing regulatory and market shifts in Canada's carbon pricing landscape [1][2]. Industry Overview - Canada's industrial carbon pricing is facing significant challenges due to a combination of domestic political divergence, fluctuating trade relations, and the European Union's Carbon Border Adjustment Mechanism (CBAM) [1]. - Provincial actions, such as Alberta's carbon price freeze and Saskatchewan's pause on industrial carbon tax, pose risks of non-compliance with federal regulations [1]. Regulatory Milestones - The EU's CBAM, which will enter its definitive phase on January 1, 2026, necessitates clarity regarding the recognition of Canada's sub-national carbon markets and the treatment of various industries [1]. - The 2026 interim review of the federal benchmark is a critical regulatory milestone that will address inconsistencies and promote harmonization within the carbon market [1]. Event Details - The session will utilize insights from ClearBlue's recently published Special Report, which includes an analysis of the current landscape and potential scenarios impacting Canada's carbon markets [1]. - The event will be held virtually on November 25, 2025, at 2:00 PM EST [7]. Company Profile - ClearBlue Markets is recognized as a leader in both compliance and voluntary carbon markets, providing strategic, data-driven solutions to help companies achieve their emission reduction goals [4]. - The company offers a range of services, including market intelligence, advisory, project development, and market access, supported by its AI-enabled carbon intelligence platform, ClearBlue Vantage [4].

Core Insights - Perfect Corp. is a leading provider of AI and AR beauty and fashion technology, known for its 'Beautiful AI' solutions and the YouCam suite of apps, which has surpassed 1 billion downloads globally [1] Group 1: Company Overview - Perfect Corp. has announced its 2025 Halloween activations across its YouCam apps, which include YouCam Makeup, YouCam Perfect, YouCam Video, YouCam Enhance, and YouCam AI Pro [1] - The upcoming activations will feature over 90 AI and AR-powered looks, avatars, fashion effects, and creative elements [1]

Summary of Perfect Corp Conference Call - October 20, 2025 Company Overview - **Company Name**: Perfect Corp (NYSE: PERF) - **Industry**: Software for Beauty and Fashion - **Headquarters**: Taiwan, with significant presence in North America, EU, Japan, and Mainland China - **Employee Count**: Approximately 400, with about half in R&D [3][4] Revenue Distribution - **Geographical Revenue Breakdown**: - North America: ~50% - EU: ~25% - Rest of the World: ~20% (majority from Japan) [4] Business Model - **Components**: B2B and B2C - **B2C**: Offers a suite of apps under the UCAM brand, including six mobile apps and one online editor [5][6] - **B2B**: Serves major clients like Estee Lauder, Dior, and Sephora, focusing on virtual reality and AI solutions for beauty and fashion [6][7] Product Offerings - **B2C Apps**: - UCAM Makeup and UCAM Perfect are flagship apps generating the most revenue - Newest app: UCAM AI Chat for photo and video editing [10][11] - **B2B Services**: - AI Makeup Virtual Try-On is a key offering - Expansion into skincare diagnostics, which is the fastest-growing segment [13][15] Financial Performance - **2025 Guidance**: Projected revenue growth of 13% to 14.5% - **2024 Performance**: Grew approximately 12.5% in 2023, with Q2 2025 growth over 17% [20][22] - **Gross Margin**: Decline due to increased B2C revenue share, which has lower margins compared to B2B [20] - **Cash Position**: Over $167 million in cash and cash equivalents, allowing for potential M&A and buybacks [21][25] Market Dynamics - **B2B Market**: - Currently facing headwinds due to clients' financial pressures and a slowdown in the beauty industry [24][31] - Potential for growth as many companies have yet to adopt software solutions [30] - **Competition**: - Limited large competitors; L'Oreal's internal software is a notable competitor [27][28] - Perfect Corp's technology is considered superior in accuracy and user experience [29] Strategic Initiatives - **Acquisition**: Acquired Wana Corp, enhancing AR and AI capabilities for luxury brands [19] - **Marketing Strategy**: Engaging with smaller influencers for B2C promotion [37] Key Challenges - **Currency Fluctuations**: Negative impact on margins due to exchange rate changes, particularly with the Taiwanese dollar [22] - **Market Awareness**: Need for increased visibility and understanding of the company's offerings among investors [40][41] Conclusion - Perfect Corp is positioned for growth in both B2B and B2C segments, leveraging AI and AR technologies. The company faces challenges from market dynamics and competition but has a strong cash position to pursue strategic opportunities.

Core Insights - Reaching retirement age presents both advantages and challenges for individuals in the U.S. [1] Group 1 - The transition to retirement can lead to financial uncertainty, impacting lifestyle choices and healthcare access [1] - Many individuals may underestimate the costs associated with retirement, leading to potential financial strain [1] - The reliance on Social Security benefits may not be sufficient for a comfortable retirement, necessitating additional savings and investments [1]

Core Insights - Perfect Corp will present at the LD Micro Main Event XIX on October 20th at 09:00 PT, showcasing its AI and augmented reality solutions for the beauty and fashion industries [1][4][6] Company Overview - Perfect Corp, founded in 2015, specializes in AI and AR-powered solutions aimed at transforming digital technology in the beauty and fashion sectors. It operates consumer apps and web-editing services under the YouCam brand, focusing on creativity enhancement through AI features [6] - The company also provides omnichannel shopping experiences for major brands in beauty, skincare, fashion, jewelry, and watches through AR product try-ons and AI skin diagnostics [6] Event Details - The LD Micro Main Event XIX will take place from October 19th to 21st at the Hotel del Coronado in San Diego, California, featuring around 120 companies presenting in half-hour increments [4][5] - The event will include registration, keynote speakers, and opportunities for one-on-one investor meetings, culminating in a closing reception [4]

Group 1: Millennials and Stock Ownership - Millennials own approximately $4.4 trillion in stocks, favoring U.S. and growth stocks [2] - Over half of Americans own stock, with millennials increasingly participating in wealth-building through investments [1] Group 2: CoreWeave - CoreWeave's stock has increased over 200% since its March IPO, driven by high demand for AI computing capacity [4] - The company's revenue tripled to over $1.2 billion in the most recent quarter, following a 420% year-over-year increase in the previous quarter [5] - AI infrastructure spending is forecasted to reach up to $4 trillion by the end of the decade, indicating potential for continued growth for CoreWeave [5] - Nvidia owns 7% of CoreWeave's stock, highlighting confidence in the company's strengths [6] Group 3: Chewy - Chewy is a profitable online retailer for pet products, with a debt-free status and a strong financial performance [7] - The company is expanding its e-commerce presence into Canada and opening veterinary clinics in the U.S. to create additional revenue streams [8] - Chewy's AutoShip service accounts for over 80% of total sales, providing visibility on sales performance [9] Group 4: Amazon - Amazon operates in e-commerce and cloud computing, generating billions in earnings and positioned for future growth [10] - The company is leveraging AI to enhance its fulfillment operations and customer experience, which is expected to improve efficiency and reduce costs [11] - AWS has reached a $123 billion annual revenue run rate, with significant opportunities for revenue growth through AI tools and services [12]