Summary of Perfect Corp Conference Call Company Overview - **Company Name**: Perfect Corp - **Ticker Symbol**: PERF - **Market Capitalization**: $175 million with 101 million shares outstanding at $1.75 per share [3] - **Cash Position**: $170 million with no debt [3] - **Founded**: 2015, based in Taipei, Taiwan [3] - **Employee Count**: Approximately 410, with about half in R&D [3] - **Revenue Distribution**: 50% from the US, 25% from the EU, and 20% from Japan [3] Business Model - **B2B and B2C Segments**: - B2B: Provides beauty and fashion software solutions to major brands (e.g., Estée Lauder, Shiseido) [3][5] - B2C: Offers apps available on iOS and Android, focusing on virtual try-on and photo/video editing [3][5] - **Revenue Shift**: - B2B revenue was approximately 75%-80% at the end of 2022, projected to drop to about 30% by the end of 2025 due to faster growth in B2C [5][29] Financial Performance - **Revenue Growth Guidance**: Expected growth of 13%-14.5% for the year, with a positive outlook for surpassing this guidance [26] - **Operating Income**: First positive operating income of $500,000 reported in the third quarter [27] - **Net Income**: Approximately $5 million with margins around 10% [28] - **Subscriber Count**: 940,000 paying subscribers, primarily from developed countries [11] - **Average Selling Price (ASP)**: Increased by $20 due to the introduction of a premium model [9] Technology and Innovation - **Focus on GenAI**: GenAI technology for photo and video editing is a key growth driver [4][20] - **Patents**: Over 55 patents related to their technology [13] - **AI Integration**: Plans to embed AI agents in all apps by 2026, focusing on personalized beauty and fashion advice [18] Market Dynamics - **B2B Challenges**: Financial pressures on brand clients due to macroeconomic factors have slowed B2B growth [5][6] - **B2C Growth**: Rapid growth in B2C driven by changing consumer habits, especially during the pandemic [5] - **Competitive Landscape**: Limited large competitors in the B2B space, with many smaller players in the B2C segment [34] Strategic Initiatives - **M&A Activity**: Recent acquisition of Wannabe, enhancing virtual try-on capabilities for luxury brands [21] - **API Business Growth**: Increased interest from non-beauty companies integrating Perfect Corp's API for virtual try-on solutions [26] Customer Engagement - **User Demographics**: 75%-80% of users are female, primarily in their teens to 20s [34] - **Retention Rate**: High retention rate of over 90% for B2B clients [12][25] Future Outlook - **Growth Avenues**: Continued focus on GenAI technology, skincare analysis, and virtual try-on for accessories [30] - **Potential for Dividends or Buybacks**: Management is considering options based on cash availability [30] Key Risks - **B2B Revenue Dependency**: Slower growth in B2B could impact overall revenue if not offset by B2C growth [6][29] - **Market Competition**: Potential for larger players to enter the market or acquire the company [34] This summary encapsulates the key points discussed during the conference call, highlighting the company's current status, market dynamics, financial performance, and future strategies.

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 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. 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]