Perfect(US:PERF)2025-04-29 01:02Financial Data and Key Metrics Changes - Total revenue grew by 12.1% year over year to $16,000,000, with net income increasing by 264% to $2,300,000 [6][17] - Adjusted net income rose by 33.3% to $2,000,000 compared to the first quarter of 2024 [7][17] - Operating cash flow generated a net inflow of $4,300,000, with a strong balance sheet holding over $164,600,000 in cash and cash equivalents [7][18] Business Line Data and Key Metrics Changes - The AI and AR cloud solution and subscription revenue grew by 13.3% to $14,100,000, representing 88% of total revenue [14] - The mobile app subscription business maintained strong growth with active paying subscribers reaching 973,000, an increase of 7.9% from the previous year [7][19] - Licensing revenue increased by 1.5% to $1,600,000, although it is expected to become immaterial as it is phased out [14] Market Data and Key Metrics Changes - The enterprise customer base increased by 59 brand clients, totaling 801 brand clients with over 891,000 SKUs [19] - The number of key customers decreased to 148 from 151 due to unexpected contract churns in the U.S. market [19][20] Company Strategy and Development Direction - The growth strategy for 2025 focuses on expanding B2C revenue through new generative AI functions and higher premium subscription plans [11] - The integration of the Wana acquisition is progressing smoothly, aiming to leverage new growth opportunities and enhance market position [9][20] - The company is prioritizing organic growth while remaining open to acquisitions in new verticals, particularly in the luxury market [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities despite macroeconomic uncertainties, emphasizing the ability to increase customer engagement and basket size [21] - The 2025 revenue growth guidance remains intact, expected to range from 13% to 14.5% [21][22] Other Important Information - Gross profit for the first quarter grew by 11.4% to $12,500,000, with a gross margin of 77.9% [14][15] - Operating expenses increased by 2% to $12,600,000, primarily due to R&D expenses [15][16] Q&A Session Summary Question: Can you talk about the launch of the new AI chat app? - The app was launched last month on both the Apple App Store and Google Play, integrating various AI tools into one platform [24][25] Question: How did the Wana acquisition impact customer numbers? - The acquisition added over a dozen key customers, but there were also losses due to financial pressures in the macroeconomic environment [28][29] Question: What are the future acquisition plans? - The focus is on expanding into new verticals rather than acquiring competitors, particularly in the luxury business [30][32] Question: How does the Wana acquisition affect the sales process? - The acquisition has received positive feedback, allowing for a more complete solution for clients and easing the sales process [36][39] Question: What are the B2C monetization strategies? - The company is optimizing pricing, introducing a higher premium subscription plan, and early results show consumer willingness to upgrade [40][42] Question: What is the competitive landscape in the shoe and handbag markets? - There are few competitors in the handbag space, while the shoe market has leading brands, and the company is ready to support clients as market conditions improve [46][47] Question: What is the capital allocation strategy with the current cash reserves? - The company plans to hold cash for growth support, focusing on organic growth and selective acquisitions in the current environment [52][53]