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]

Core Viewpoint - The company, 玩美 (PERF), has shown significant financial growth and aims to enhance consumer shopping experiences through advanced technologies like AR and AI [1][2]. Financial Performance - As of June 30, 2025, 玩美 reported total revenue of $32.36 million, representing a year-on-year increase of 14.78% [1]. - The net profit attributable to the parent company reached $2.50 million, marking a substantial year-on-year growth of 79.34% [1]. Company Background - 玩美 is a limited liability company established in the Cayman Islands on February 13, 2015, and was spun off from Taiwan's CyberLink Corp [1]. - The company focuses on providing seamless and omnichannel shopping experiences through its advanced SaaS AI and AR solutions in the beauty and fashion sectors [1]. Product Offering - 玩美's immersive app has achieved over 1 billion global downloads, allowing consumers to virtually experience various products through smart devices [2]. - The company integrates its innovative solutions into brand websites, apps, and various social media platforms such as Instagram, Snapchat, and YouTube [1].

Core Viewpoint - The company, 玩美 (PERF), has shown significant financial growth, with a notable increase in revenue and net profit, reflecting its strong position in the AR and AI-driven beauty and fashion technology market [1]. Financial Performance - As of June 30, 2025, 玩美 reported total revenue of $32.36 million, representing a year-on-year growth of 14.78% [1]. - The net profit attributable to the parent company reached $2.5 million, marking a substantial increase of 79.34% compared to the previous year [1]. Company Background - 玩美 is a limited liability company incorporated in the Cayman Islands, established on February 13, 2015, as a spin-off from Taiwan's CyberLink Corp [1]. - The company aims to democratize shopping experiences for consumers and brands through augmented reality (AR), artificial intelligence (AI), and digital technologies [1]. Product Offering - 玩美商贸 (Shanghai) Co., Ltd. is a leading provider of SaaS AI and AR solutions for the beauty and fashion industry, focusing on creating seamless and omnichannel experiences [1]. - The company offers innovative, results-oriented, interactive, and sustainable metaverse solutions that can be easily integrated into brand websites, apps, and various social media platforms such as Instagram, Snapchat, and YouTube [1]. Market Reach - The global download count for 玩美's immersive app series has surpassed 1 billion, providing consumers with a convenient platform to virtually experience various products [2].

Group 1 - The article discusses a bold investment call aimed at building generational wealth, indicating a potentially high-risk, high-reward strategy [1] - The author claims that the article may be controversial, suggesting that it challenges conventional investment wisdom [1] Group 2 - There is a mention of a free 2-week trial for in-depth research on various investment vehicles, including REITs, mREITs, and ETFs, which may attract investors looking for diverse income alternatives [1]

Core Viewpoint - For retirees, focusing on dividend investing is about owning stocks that consistently generate cash and increase payouts, rather than chasing the highest yield. A diversified portfolio across stable industries is essential for reliable income. Group 1: Procter & Gamble - Procter & Gamble (P&G) has a strong track record of stability, with brands like Tide and Gillette being essential in households worldwide, making its business resilient even during recessions [2][7] - P&G has increased its dividend for 53 consecutive years, with a current yield of 2.7% [6] - The company has a low beta of 0.34, indicating less volatility compared to the broader market, and a payout ratio of around 63%, balancing shareholder rewards and reinvestment [6][5] Group 2: ExxonMobil - ExxonMobil is a major player in the energy sector, known for its ability to maintain and grow dividends even during economic downturns, benefiting from scale advantages and strong cash flows [8][9] - The company has paid and raised its dividend for 42 consecutive years, with a current yield of 3.7% [16] - ExxonMobil's beta is 0.50, reflecting lower volatility than many peers, and a payout ratio of around 55% provides a cushion during weaker commodity price environments [16][9] Group 3: Johnson & Johnson - Johnson & Johnson (J&J) is a leader in healthcare, with a diversified business model that ensures steady revenue growth across economic cycles [10][11] - J&J has raised its dividend for 62 consecutive years, with a current yield of around 3% [17] - The company has a beta of 0.59, providing stability while allowing for long-term growth, and a payout ratio of approximately 45%-50% balances shareholder returns with reinvestment in R&D [17][11] Group 4: Combined Strength - The combination of Procter & Gamble, ExxonMobil, and Johnson & Johnson offers retirees a diversified foundation across consumer staples, energy, and healthcare, reducing the risk of income disruption from economic downturns [12][13] - Each company features modest payout ratios and low volatility, reinforcing the safety and growth potential of their dividends, which can help combat inflation [14][15]

Core Insights - The company, 玩美 (PERF), experienced a stock price increase of 2.09% on August 18, reaching $1.95 per share, with a total market capitalization of $199 million [1] - As of June 30, 2025, 玩美 reported total revenue of $32.36 million, reflecting a year-over-year growth of 14.78%, and a net profit attributable to shareholders of $2.5 million, which is a significant increase of 79.34% [1] - 玩美, established on February 13, 2015, is a Cayman Islands limited liability company that spun off from Taiwan's CyberLink Corp, focusing on enhancing consumer shopping experiences through AR, AI, and digital technologies [1] Financial Performance - Total revenue for 玩美 as of June 30, 2025, is $32.36 million, showing a growth of 14.78% compared to the previous year [1] - The net profit attributable to shareholders is $2.5 million, which represents a substantial increase of 79.34% year-over-year [1] Business Model and Technology - 玩美商贸 (Shanghai) Co., Ltd. is a leading provider of SaaS AI and AR solutions for the beauty and fashion industry, aiming to create seamless and omnichannel experiences for consumers [1] - The company leverages cutting-edge technology to offer interactive, results-oriented, and sustainable metaverse solutions that can be easily integrated into brand websites, apps, and various social media platforms like Instagram, Snapchat, and YouTube [1] User Engagement - The global download count for 玩美's immersive app series has surpassed 1 billion, providing consumers with a convenient platform to virtually experience various products and feel their appearance and style [2]

Core Insights - Sin stocks, representing companies in industries like alcohol, tobacco, cannabis, and gambling, are often viewed as unethical but have a history of delivering strong returns due to consistent demand [2][3][4] - These stocks are characterized by their defensive nature, maintaining stable demand even during economic downturns, which allows for strong pricing power and consistent cash flows [3][4] - Despite their potential for robust returns, sin stocks face challenges such as heavy regulation, negative public perception, and ethical concerns that may deter some investors [5][10] Industry Overview - Sin stocks have shown resilience during both economic expansions and contractions, making them appealing for investors willing to overlook ethical concerns [4] - The alcohol sector is experiencing a shift towards premium and craft offerings, while tobacco companies are adapting to declining cigarette use by investing in vaping products [8] - The cannabis industry is rapidly expanding in regions where legalization is increasing, presenting both growth opportunities and volatility [8][9] Company Analysis - **Diageo Plc (DEO)**: Focuses on market share growth through innovation and premiumization in the alcohol sector [6] - **Las Vegas Sands (LVS)**: Concentrates on property upgrades and strategic investments to drive growth in the gambling sector [6][18] - **Turning Point Brands (TPB)**: Building a growth story around established brands and next-generation products, with a focus on smoke-free alternatives [12][13][14] - **Boston Beer Company (SAM)**: Maintains a strong position in the U.S. craft beverage market, emphasizing innovation and operational efficiency to adapt to consumer preferences [15][16][17] - **MGM Resorts International (MGM)**: Holds a leading position in global gaming, enhancing its competitive edge through capital investments and expansion in digital gaming [18][19][20]

Core Insights - The NEOS Nasdaq-100 Hedged Equity Income ETF (NASDAQ: QQQH) offers a unique approach to option income based on NDX holdings, distinguishing itself from traditional buy-write option strategies [1] Group 1: Product Overview - QQQH is characterized as an innovative variant of standard buy-write option strategies, making it a noteworthy option for income generation [1] Group 2: Analyst Background - The analysis is conducted by a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management, emphasizing expertise in equity valuation and market trends [1] - The analyst has a history of leadership in model validation, stress testing, and regulatory finance, showcasing a strong foundation in both fundamental and technical analysis [1] Group 3: Research Approach - The research approach combines rigorous risk management with a long-term perspective on value creation, focusing on macroeconomic trends, corporate earnings, and financial statement analysis [1]

Group 1 - The article discusses the inadequacy of Social Security for a decent retirement and suggests alternative retirement plans [1] - It highlights the importance of exploring various income alternatives such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs for retirement planning [1] Group 2 - The article emphasizes the need for in-depth research on investment options to secure financial stability in retirement [1]

Core Insights - The company, 玩美 (PERF), experienced a stock price increase of 2.32% on August 6, reaching $1.975 per share, with a total market capitalization of $20.1 million [1] - For the fiscal year ending June 30, 2025, 玩美 reported total revenue of $32.36 million, reflecting a year-over-year growth of 14.78%, and a net profit attributable to shareholders of $2.5 million, which is a significant increase of 79.34% [1][2] Company Overview - 玩美 is a limited liability company established in the Cayman Islands on February 13, 2015, and was spun off from the Taiwanese company CyberLink Corp. [2] - The company's mission is to democratize shopping experiences for consumers and brands through AR, AI, and digital technologies [2] - 玩美商贸 (Shanghai) Co., Ltd. is a leading provider of SaaS AI and AR beauty and fashion technology solutions, aiming to create seamless and omnichannel experiences that transform consumer shopping [2] Technological Innovations - The company leverages cutting-edge technology to offer results-oriented, interactive, and sustainable metaverse solutions that can be easily integrated into brand websites, apps, and various social media platforms such as Instagram, Snapchat, and YouTube [2] - 玩美's immersive app series has achieved over 1 billion global downloads, providing consumers with a convenient platform to virtually experience various products and feel their appearance and style [2]