Summary of Perfect Corp. Presentation at Lithium Partners Fall 2025 Investor Conference Company Overview - **Company Name**: Perfect Corp. - **Ticker Symbol**: PERF - **Founded**: 2015 - **Employees**: Over 400, primarily in engineering roles - **Headquarters**: Taipei, Taiwan - **Market Focus**: Beauty and fashion industries, leveraging AI innovations for consumer shopping experiences [2][3] Financial Performance - **Revenue**: - Last year: $60 million - Current year projection: $68-70 million - First half of the current year: $32 million, with a growth rate of 14.8% [7][29] - **Gross Margin**: Approximately 78% [29] - **Net Adjusted Income**: - Last year: $8.3 million (13.8% margin) - First half of the current year: $2.4 million (7.5% margin) [31] - **Cash Position**: $167.8 million in cash and cash equivalents at the end of Q2 [30] Business Models - **B2C Model**: - Contributes 60-70% of total annual revenue - Six mobile apps and one online service on a freemium model [5][6] - Key apps: YouCam Makeup and YouCam Perfect, generating 80% of B2C revenues [7][8] - **B2B Model**: - Traditional enterprise SaaS model with 15 solutions across various beauty and fashion sectors [5][6] Market Presence - **Geographic Revenue Distribution**: - 50% from the U.S., followed by France and Tokyo [3] - **Client Base**: Over 800 brands, including major names like Estée Lauder and Dior [12][28] Technological Innovations - **AI and AR Solutions**: - Pioneered AI in beauty tech since 2015, with continuous updates every two years [6][7] - Generative AI for photo and video expected to grow 30-40% over the next decade [10] - **Product Features**: - Virtual try-on technology for makeup and skincare, enhancing consumer engagement and conversion rates [11][16][17] - New generative AI solutions for fashion, allowing users to visualize clothing on themselves with a single photo [21][23] Growth Opportunities - **Expansion in Generative AI**: Strong momentum in subscriber growth for YouCam Makeup apps [32] - **Cross-Selling Opportunities**: Potential to upsell to sister brands within top beauty groups [32] - **New Market Penetration**: Focus on skincare and fashion, including jewelry and accessories [33][34] - **Strategic Acquisitions**: Completed acquisition of WANNA to enhance fashion solutions [28] Conclusion - Perfect Corp. is positioned for continued growth through innovative AI solutions in the beauty and fashion sectors, with a strong financial foundation and expanding market presence [30][34]

Core Insights - The wealthiest 1% of Americans own nearly half of the stocks in the U.S, with baby boomers holding 53.5% of all stocks, while Gen Xers and millennials hold 21.9% and 8.5%, respectively [1] - Gen Z investors are often associated with speculative investments rather than blue-chip stocks, which may lead to short-term gains but are challenging to sustain long-term [2] Company Summaries Navitas Semiconductor - Navitas produces gallium nitride (GaN) and silicon carbide (SiC) chips, which are used in various applications including laptop chargers and EV chargers [4] - The company expects revenue growth from AI workloads processed using its chips, particularly after a deal with Nvidia, although significant revenue from this deal is not expected until 2027 [5] - Analysts predict a 42% revenue drop in 2025, but a CAGR of 40% from 2025 to 2027 as the company narrows net losses and benefits from increased adoption of its chips [6] SoundHound AI - SoundHound AI develops AI-powered audio and voice recognition tools, with significant growth coming from its Houndify platform [7] - The company serves diverse industries and has expanded through acquisitions, enhancing its ecosystem [8] - Analysts forecast a CAGR of 47% for revenue from 2024 to 2027, with adjusted EBITDA turning positive by the final year [9] Datadog - Datadog's platform helps IT professionals unify real-time data from various computing platforms, simplifying problem detection [10] - The company serves over 30,000 customers globally, positioning itself well in the expanding data observability market, which is expected to grow at a CAGR of 10.7% from 2024 to 2030 [11] - Analysts expect Datadog's revenue and adjusted EBITDA to grow at CAGRs of 22% and 19%, respectively, from 2024 to 2027 [12]

Core Viewpoint - Moncler is rated as a strong buy, indicating potential value generation for investors despite challenges in the global luxury industry [1]. Company Analysis - Moncler is positioned to navigate headwinds in the luxury sector, suggesting resilience and growth potential [1]. Analyst Background - The analyst has extensive experience in financial analysis, including roles in trading and data analysis, which supports the credibility of the investment recommendation [1].

Core Insights - Perfect Corp. has launched the AI Editing Agent in its YouCam Perfect app, enhancing user experience by allowing image edits through natural conversation [1] - The new version of the app supports the latest Gemini 2.5 Flash Image model, indicating a technological advancement in the company's offerings [1] Company Developments - The AI Editing Agent is designed as an intelligent assistant, streamlining the editing process by removing the need for manual tool selection [1] - This innovation positions Perfect Corp. as a leader in the AI and AR beauty and fashion tech sector, potentially attracting more users and increasing engagement [1] Industry Impact - The introduction of conversational AI in image editing reflects a broader trend in the tech industry towards more intuitive user interfaces [1] - By integrating advanced AI capabilities, Perfect Corp. is likely to enhance its competitive edge in the beauty and fashion technology market [1]

Core Insights - Warren Buffett is recognized as one of the most significant investors globally, known for his long-term buy-and-hold investment strategies [1] - He has a diverse portfolio that includes both public and private holdings [1]

Core Viewpoint - Gen Z investors show a strong preference for dividend stocks, particularly real estate investment trusts (REITs), which is significantly higher than that of retiring baby boomers [1] Group 1: American Tower - American Tower operates over 150,000 communication sites globally and owns several U.S. data center facilities, positioning itself at the intersection of real estate and technology [3] - The REIT's infrastructure supports mobile networks essential for Gen Z's communication needs, including texting and social media [4] - American Tower's current dividend yield is 3.5%, nearly triple that of the S&P 500, with expectations for future growth in dividend payments due to increasing demand for its infrastructure [5] Group 2: EPR Properties - EPR Properties focuses on experiential real estate, catering to Gen Z's preference for experiences over possessions, such as eat-and-play venues and wellness properties [6][7] - The REIT offers a monthly dividend yield of 6.3%, supported by predictable rental income from its properties [7] - EPR Properties sees a future investment opportunity exceeding $100 billion in experiential real estate and plans to invest $200 million to $300 million in new properties this year [8] Group 3: Invitation Homes - Invitation Homes addresses the rental trend among Gen Z, who face challenges in home buying due to high interest rates and prices, thus unable to build home equity [9][10] - The REIT manages over 110,000 single-family rental homes across 16 major U.S. housing markets, generating income to support a nearly 4% dividend yield [10] - Invitation Homes is actively expanding its portfolio through partnerships with homebuilders to create build-to-rent communities, catering to the housing needs of younger generations [11] Group 4: Investment Appeal for Gen Z - American Tower, EPR Properties, and Invitation Homes are well-positioned to meet the needs of Gen Z investors, providing a growing stream of passive income that can help achieve financial goals [12]

Group 1: Millennial Investment Trends - Millennials are less likely to automatically reinvest dividends compared to previous generations, with only 38% opting for automatic reinvestment [2] - A significant portion of millennials view dividend investing as a side gig rather than a retirement strategy, with 53% holding this perspective [2] - The survey indicates diverse goals among millennials for dividend use, including saving for specific financial goals (17%), cash income for everyday expenses (17%), and fun money (15%) [3] Group 2: Recommended Dividend Stocks - Realty Income is highlighted as a top pick for high-yield dividend stocks, currently offering a dividend yield of 5.4% and having raised its payout 132 times since 1994 [7][8] - Verizon Communications is noted for its stable business model and a dividend yield of 6.3%, with recent strategic moves including the sale of its media business and tower portfolio to focus on core operations [9][10][12] - Enterprise Products Partners, a major midstream energy company, offers a dividend yield of 6.1% and benefits from a stable revenue stream due to its extensive pipeline network [14][16]

Core Insights - Bath & Body Works demonstrates strong financial metrics, particularly in challenging retail sectors, highlighting the importance of understanding niche businesses and their financial health [4][6] - The company maintains a gross profit margin of 44.6%, indicating strong customer loyalty and effective pricing power [6][7] - Bath & Body Works has a return on invested capital (ROIC) of 28.3%, showcasing effective financial management and potential for compounding growth [9] Financial Performance - The company reported an operating cash flow of $145 million, a significant increase from $30 million the previous year, despite sales growth of less than 2% [11] - Bath & Body Works has engaged in stock buybacks amounting to $254 million, supporting shareholder value and market valuation [11] - The current stock price is $26.47, with a 12-month price forecast of $39.69, indicating a potential upside of 49.95% [10] Market Position - Analysts maintain a Moderate Buy rating for Bath & Body Works, with a valuation that is 63% of its 52-week high, suggesting it remains an attractive investment opportunity [12] - J.P. Morgan Chase increased its holdings in Bath & Body Works by 11.5%, reflecting confidence in the company's fundamentals [13] - Despite recent bearish price action, the company's strong fundamentals are expected to be reflected in its valuation over time [14]

Core Insights - The Lovesac Company has launched its first-ever couch and loveseat collection called Snugg, featuring actress Brittany Snow in the marketing campaign [2][3][4] - Snugg is designed to offer comfort, versatility, and durability, aligning with Lovesac's ethos of "Always Fits. Forever New." [3][4] Product Features - Snugg includes adaptable design, customizable options, and built-in storage, making it suitable for various living spaces [6][8] - The product line consists of three sizes: Sofa, Loveseat, and Chair, with multiple arm styles and washable covers [8] - Pricing starts at $1,450 for the Chair, $2,050 for the Loveseat, and $2,550 for the Sofa [8] Company Background - The Lovesac Company, based in Stamford, Connecticut, is known for its innovative, high-quality furniture designed to last a lifetime [7][9] - The company has received awards for sustainability and innovation, highlighting its commitment to responsible production [7][9]

Summary of Perfect Corp (PERF) FY Conference Call - August 26, 2025 Company Overview - Perfect Corp is a Taiwan-based company with approximately 400 employees, primarily focused on R&D in the beauty and fashion app space [2][3] - The company was founded a decade ago and initially operated as an app maker before transitioning to B2B software solutions for beauty brands [4][5] Revenue Breakdown - Revenue sources: Approximately 50% from the US, 30% from the EU, and 20% from Japan [4][5] - Initial revenue breakdown at listing (2022): 75% B2B and 25% B2C; as of 2023, it has shifted to roughly 50% B2B and 50% B2C, with projections for 2024 indicating 60% B2C and 40% B2B [7][8] - B2C apps operate on a freemium model, with subscription prices increasing from $5-$7 to $79 per year [8][9] Product Offerings - B2C apps include "You Can Makeup" and "You Can Perfect," focusing on photo editing and virtual try-ons [6][9] - B2B services include virtual try-ons for makeup and skin analysis, with clients such as Estee Lauder, LVMH, and Chanel [7][19] - The company has over 800 brand clients and 914,000 SKUs running on its software, showing a growth of over 20% in brand clients since 2021 [19][20] Financial Performance - 2024 growth rate: 12.5%; guidance for 2025 is 13% to 14.5% [25][26] - Gross margin decreased from 79% to 75% year-over-year due to lower margins in B2C compared to B2B [26][27] - Positive operating cash flow with $167 million in cash and cash equivalents [28] Strategic Initiatives - Recent acquisition of Wana for $6 million to enhance offerings in AIAR technology for luxury brands [24] - Focus on reinvesting in R&D for premium Gen AI features and expanding B2B client base [29][30] Market Challenges - The company faces macroeconomic pressures affecting clients like Estee Lauder and LVMH, leading to tighter budgets [42] - Currency exchange issues due to the appreciation of the Taiwanese dollar impacting operational costs [28][29] Competitive Landscape - The company maintains a 90% retention rate in B2B, indicating strong client loyalty [47] - Differentiation from competitors lies in continuous R&D investment and user-friendly app design [44][45] Technology and Innovation - The company is exploring advancements in 3D virtual try-ons for clothing, although current technology is not yet ready for full implementation [37][38] - Color calibration challenges exist across different devices, particularly on Android, requiring significant investment in accuracy [50][51] Conclusion - Perfect Corp is positioned for growth with a strong focus on B2C expansion and innovative technology solutions, despite facing market challenges and competitive pressures [30][42]