Perfect(US:PERF)2025-02-27 06:54Financial Data and Key Metrics Changes - Total revenue for full year 2024 grew by 12.5% year-over-year to $60.2 million, with net income of $5 million and adjusted net income increasing by 18.6% to $8.3 million compared to 2023 [8][32] - Operating cash flow generated a net inflow of $13 million for the full year 2024, with cash and cash equivalents totaling over $165.9 million [9][34] - Gross profit for Q4 2024 increased by 2.5% to $11.8 million, but gross margin decreased to 74.1% from 81.3% in Q4 2023 [27] Business Line Data and Key Metrics Changes - The AI/AR cloud solutions and mobile app subscription revenue grew by 25.4% to $15.1 million in Q4 2024, representing 95% of total revenue for the quarter [25] - The B2C mobile app business saw active paying subscribers increase by 14.3% year-over-year, reaching over 1 million by the end of 2024 [9][35] - Licensing revenue decreased by 72.2% in Q4 2024 to $0.5 million, indicating a shift towards a recurring subscription revenue model [26] Market Data and Key Metrics Changes - Positive momentum was noted in North America, Western Europe, and developing markets like Brazil, with strong demand for AI-powered features [10] - The enterprise customer base increased by 24 brand clients, totaling 732 brand clients with over 822,000 SKUs onboarded [36] Company Strategy and Development Direction - The company aims to deepen its presence in the beauty, fashion, and skin segments while exploring cross-sell opportunities and broadening product offerings [22] - The acquisition of Wanna from Farfetch is expected to enhance market reach and strengthen competitive positioning in the beauty and fashion space [14][39] - The focus on R&D, particularly in Generative AI, is a key priority for the company moving forward [76] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the B2B market, noting challenges but also a solid pipeline and interest from brands [44][48] - The guidance for total revenue growth in 2025 is projected to range from 13% to 14.5% compared to 2024 [23][40] Other Important Information - The company is integrating Wanna into its operations, with expectations for a full integration timeline within the first half of the year [72] - The company is committed to maintaining financial discipline while continuing to invest in AI development and R&D [56][76] Q&A Session Summary Question: What is the situation with your enterprise clients regarding spending? - Management noted that while the B2B market remains challenging, there is still interest from brands to invest in digital solutions, although they are cautious about spending [44][46] Question: What was the B2B revenue contribution last year? - Last year, B2B revenue was approximately 40% of total revenue, but it is expected to decrease as B2C continues to grow [52][53] Question: How do you plan to manage operating expenses in light of reduced gross margins? - Management indicated that they will continue to invest in growth while maintaining financial discipline, ensuring that expenses do not create financial pressures [54][56] Question: Can you discuss the competitive landscape after acquiring Wanna? - Management stated that Wanna is a leader in the fashion space with significant brand partnerships, and the acquisition strengthens their position in the market [58][60] Question: What is the timeline for the full integration of Wanna? - Integration is expected to continue through the first half of the year, with a focus on aligning sales, marketing, and product development efforts [72] Question: Where will the company focus its investments in the coming year? - The primary focus will be on R&D for Generative AI, alongside digital marketing efforts to attract app users [76]