Perfect Corp. Reports Unaudited Financial Results for the Three Months Ended September 30, 2024 and the Nine Months Ended September 30, 2024
Highlights for the Three Months Ended
-
Total revenue was
$16.1 million for the three months endedSeptember 30, 2024 , compared to$14.5 million in the same period of 2023, an increase of 10.8%. The increase was primarily due to growth momentum in the revenue of AI- and AR- cloud solutions and mobile app subscriptions.
-
Gross profit was
$13.0 million for the three months endedSeptember 30, 2024 , compared with$11.8 million in the same period of 2023, an increase of 9.6%.
-
Net income was
$2.5 million for the three months endedSeptember 30, 2024 , compared to a net income of$3.5 million during the same period of 2023.
-
Adjusted net income (non-IFRS)
1 was
$3.2 million for the three months endedSeptember 30, 2024 , compared to adjusted net income (non-IFRS) of$2.7 million in the same period of 2023, an increase of 20.6%.
-
Operating cash flow was
$4.2 million in the third quarter of 2024, compared to$4.0 million in the same period of 2023, an increase of 6.3%.
- The Company’s YouCam mobile beauty app active subscribers grew by 17.0% year-over-year, reaching a record high of over 977,000 active subscribers as of end of the third quarter of 2024.
-
The Company had 151 Key Customers2 as of
September 30, 2024 , compared to 151 Key Customers as ofJune 30, 2024 . The number of key customers remained the same due to the stability of our enterprise business.
-
As of
September 30, 2024 , the Company’s cumulative customer base included 708 brand clients, with over 806,000 digital stock keeping units (“SKUs”) for makeup, haircare, skincare, eyewear, watches and jewelry products, compared to 686 brand clients and over 774,000 digital SKUs as ofJune 30, 2024 .
Highlights for the Nine Months Ended
-
Total revenue was
$44.3 million for the nine months endedSeptember 30, 2024 , compared to$39.4 million in the same period of 2023, an increase of 12.5%.
-
Gross profit was
$35.2 million for the nine months endedSeptember 30, 2024 , compared with$31.6 million in the same period of 2023, an increase of 11.2%.
-
Net income was
$3.9 million for the nine months endedSeptember 30, 2024 , compared to a net income of$4.0 million during the same period of 2023, a decrease of 2.2%.
-
Adjusted net income (non-IFRS) was
$6.0 million for the nine months endedSeptember 30, 2024 , compared to adjusted net income (non-IFRS) of$4.9 million in the same period of 2023, an increase of 23.2%.
-
Operating cash flow was
$9.8 million in the first nine months of 2024, compared to$10.4 million in the same period of 2023, a decrease of 6.5%.
Ms.
Financial Results for the Three Months Ended
Revenue
Total revenue was
-
AI- and AR- cloud solutions and subscription revenue was
$13.4 million for the three months endedSeptember 30, 2024 , compared to$11.4 million in the same period of 2023, an increase of 17.9%. The double digit growth was driven by robust demand for the Company’s online virtual product try-on solutions from brand customers, the healthy momentum in the growth of YouCam mobile beauty app subscriptions, and the consumer preference for Generative AI technologies and AI editing features for photos and videos. The Company’s YouCam mobile beauty app active subscribers grew by 17.0% year-over-year, once again reaching a record high of over 977,000 active subscribers as of the end of the third quarter of 2024. This increase reflected the sustained demand in the Company’s YouCam mobile beauty app services from subscribers and users.
-
Licensing revenue was
$2.4 million for the three months endedSeptember 30, 2024 , compared to$2.8 million in the same period of 2023, a decrease of 14.5%. The Company anticipates that this legacy non-recurring revenue will diminish in significance as it continues to prioritize enhancing its market leadership in offering AI- and AR-based SaaS subscription solutions for brands and customers.
Gross Profit
Gross profit was
Total Operating Expenses
Total operating expenses were
-
Sales and marketing expenses were
$7.1 million for the three months endedSeptember 30, 2024 , compared to$6.4 million during the same period of 2023, an increase of 10.0%. This increase was largely due to an increase in marketing events and advertising costs related to our mobile apps and cloud computing.
-
Research and development expenses were
$3.2 million for the three months endedSeptember 30, 2024 , compared to$3.0 million during the same period of 2023, an increase of 5.9%. The increase primarily resulted from the increase in R&D headcount as we further lean into the development of Generative AI technologies.
-
General and administrative expenses were
$2.1 million for the three months endedSeptember 30, 2024 , compared to$3.2 million during the same period of 2023, a decrease of 32.9%. The decrease was primarily due to enhanced operational efficiencies in the third quarter of 2024.
Net Income
Net income was
Adjusted Net Income (Non-IFRS)
Adjusted net income was
Liquidity
As of
The Company had a positive operating cash flow of
Business Outlook for 2024
Based on the growth momentum in both enterprise SaaS solution demands and YouCam mobile apps subscriptions, the Company anticipates a year-over-year total revenue growth rate of 12% to 14% for 2024, compared to 2023.
Note that this forecast is based on the Company’s current assessment of the market and operational conditions, and that these factors are subject to change.
Conference Call Information
The Company’s management will hold an earnings conference call at
Registration Link: https://registrations.events/direct/Q4I516305131
A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.perfectcorp.com.
About
Founded in 2015,
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of Section 27A of the
Use of Non-IFRS Financial Measures
This press release and accompanying tables contain certain non-IFRS financial measures, including adjusted net income, as supplemental metrics in reviewing and assessing Perfect’s operating performance and formulating its business plan. Perfect defined these non-IFRS financial measures as follows:
Adjusted net income (loss) is defined as net income (loss) excluding one-off transaction costs3, non-cash equity-based compensation, and non-cash valuation (gain)/loss of financial liabilities. Starting from the first quarter of 2024, we no longer exclude foreign exchange gain (loss) from adjusted net income (loss). As we transitioned to using the
Non-IFRS financial measures are not defined under IFRS and are not presented in accordance with IFRS. Non-IFRS financial measures have limitations as analytical tools, which possibly do not reflect all items of expense that affect our operations. Share-based compensation expenses have been and may continue to be incurred in our business and are not reflected in the presentation of the non-IFRS financial measures. In addition, the non-IFRS financial measures Perfect uses may differ from the non-IFRS measures used by other companies, including peer companies, and therefore their comparability may be limited. The presentation of these non-IFRS financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with IFRS. The items excluded from our adjusted net income are not driven by core results of operations and render comparison of IFRS financial measures with prior periods less meaningful. We believe adjusted net income provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, such non-IFRS measures are used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.
_________________
1 Adjusted net income (loss) is a non-IFRS financial measure. See the “Use of Non-IFRS Financial Measures” section of this communication for the definition of such non-IFRS measure.
2 “Key Customers” refers to the Company’s brand customers who contributed revenue of more than
3 The one-off transaction cost in the first quarter of 2023 included professional services expenditures that the Company incurred in connection with the de-SPAC transaction. No such cost incurred in the same period of 2024.
PERFECT CORP. AND SUBSIDIARIES |
||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||
|
||||||
(Expressed in thousands of |
||||||
|
|
|
|
|
||
Assets |
|
Amount |
|
Amount |
||
Current assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
123,871 |
|
$ |
127,177 |
Current financial assets at amortized cost |
|
|
30,300 |
|
|
36,000 |
Current contract assets |
|
|
2,770 |
|
|
2,022 |
Accounts receivable |
|
|
6,992 |
|
|
8,036 |
Other receivables |
|
|
343 |
|
|
786 |
Current income tax assets |
|
|
311 |
|
|
281 |
Inventories |
|
|
33 |
|
|
21 |
Other current assets |
|
|
4,042 |
|
|
2,311 |
Total current assets |
|
|
168,662 |
|
|
176,634 |
Non-current assets |
|
|
|
|
||
Property, plant and equipment |
|
|
380 |
|
|
617 |
Right-of-use assets |
|
|
847 |
|
|
626 |
Intangible assets |
|
|
77 |
|
|
44 |
Deferred income tax assets |
|
|
257 |
|
|
1,563 |
Guarantee deposits paid |
|
|
140 |
|
|
148 |
Total non-current assets |
|
|
1,701 |
|
|
2,998 |
Total assets |
|
$ |
170,363 |
|
$ |
179,632 |
PERFECT CORP. AND SUBSIDIARIES |
||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS (continued) |
||||||||
|
||||||||
(Expressed in thousands of |
||||||||
|
|
|
|
|
||||
Liabilities and Equity |
|
Amount |
|
Amount |
||||
Current liabilities |
|
|
|
|
||||
Current contract liabilities |
|
$ |
15,346 |
|
|
$ |
17,923 |
|
Other payables |
|
|
10,331 |
|
|
|
11,393 |
|
Other payables – related parties |
|
|
50 |
|
|
|
55 |
|
Current tax liabilities |
|
|
21 |
|
|
|
390 |
|
Current provisions |
|
|
2,394 |
|
|
|
1,822 |
|
Current lease liabilities |
|
|
481 |
|
|
|
484 |
|
Other current liabilities |
|
|
277 |
|
|
|
310 |
|
Total current liabilities |
|
|
28,900 |
|
|
|
32,377 |
|
Non-current liabilities |
|
|
|
|
||||
Non-current financial liabilities at fair value through profit or loss |
|
|
1,566 |
|
|
|
1,459 |
|
Non-current lease liabilities |
|
|
387 |
|
|
|
171 |
|
Net defined benefit liability, non-current |
|
|
79 |
|
|
|
81 |
|
Guarantee deposits received |
|
|
25 |
|
|
|
25 |
|
Total non-current liabilities |
|
|
2,057 |
|
|
|
1,736 |
|
Total liabilities |
|
|
30,957 |
|
|
|
34,113 |
|
|
|
|
|
|
||||
Equity |
|
|
|
|
||||
Capital stock |
|
|
|
|
||||
Perfect Class A Ordinary Shares, |
|
|
8,513 |
|
|
|
8,506 |
|
Perfect Class B Ordinary Shares, |
|
|
1,679 |
|
|
|
1,679 |
|
Capital surplus |
|
|
|
|
||||
Capital surplus |
|
|
510,399 |
|
|
|
512,397 |
|
Retained earnings |
|
|
|
|
||||
Accumulated deficit |
|
|
(380,472 |
) |
|
|
(376,546 |
) |
Other equity interest |
|
|
|
|
||||
Other equity interest |
|
|
(523 |
) |
|
|
(517 |
) |
|
|
|
(190 |
) |
|
|
— |
|
Total equity |
|
|
139,406 |
|
|
|
145,519 |
|
Total liabilities and equity |
|
$ |
170,363 |
|
|
$ |
179,632 |
|
PERFECT CORP. AND SUBSIDIARIES |
||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
FOR THE THREE MONTHS AND NINE MONTHS ENDED |
||||||||||||||||
(Expressed in thousands of |
||||||||||||||||
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||
Items |
|
Amount |
|
Amount |
|
Amount |
|
Amount |
||||||||
Revenue |
|
$ |
14,549 |
|
|
$ |
16,127 |
|
|
$ |
39,381 |
|
|
$ |
44,321 |
|
Cost of sales and services |
|
|
(2,729 |
) |
|
|
(3,171 |
) |
|
|
(7,753 |
) |
|
|
(9,142 |
) |
Gross profit |
|
|
11,820 |
|
|
|
12,956 |
|
|
|
31,628 |
|
|
|
35,179 |
|
Operating expenses |
|
|
|
|
|
|
|
|
||||||||
Sales and marketing expenses |
|
|
(6,444 |
) |
|
|
(7,090 |
) |
|
|
(19,029 |
) |
|
|
(21,274 |
) |
General and administrative expenses |
|
|
(3,172 |
) |
|
|
(2,128 |
) |
|
|
(8,599 |
) |
|
|
(6,742 |
) |
Research and development expenses |
|
|
(3,035 |
) |
|
|
(3,213 |
) |
|
|
(8,431 |
) |
|
|
(9,223 |
) |
Expected credit losses |
|
|
— |
|
|
|
(602 |
) |
|
|
— |
|
|
|
(602 |
) |
Total operating expenses |
|
|
(12,651 |
) |
|
|
(13,033 |
) |
|
|
(36,059 |
) |
|
|
(37,841 |
) |
Operating loss |
|
|
(831 |
) |
|
|
(77 |
) |
|
|
(4,431 |
) |
|
|
(2,662 |
) |
Non-operating income and expenses |
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
|
2,335 |
|
|
|
1,923 |
|
|
|
6,944 |
|
|
|
5,875 |
|
Other income |
|
|
11 |
|
|
|
5 |
|
|
|
18 |
|
|
|
19 |
|
Other gains and losses |
|
|
2,034 |
|
|
|
422 |
|
|
|
1,575 |
|
|
|
131 |
|
Finance costs |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(10 |
) |
|
|
(14 |
) |
Total non-operating income and expenses |
|
|
4,375 |
|
|
|
2,346 |
|
|
|
8,527 |
|
|
|
6,011 |
|
Income before income tax |
|
|
3,544 |
|
|
|
2,269 |
|
|
|
4,096 |
|
|
|
3,349 |
|
Income tax benefit (expense) |
|
|
(17 |
) |
|
|
263 |
|
|
|
(80 |
) |
|
|
577 |
|
Net income |
|
$ |
3,527 |
|
|
$ |
2,532 |
|
|
$ |
4,016 |
|
|
$ |
3,926 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
||||||||
Components of other comprehensive income (loss) that will be reclassified to profit or loss |
|
|
|
|
|
|
|
|
||||||||
Exchange differences arising on translation of foreign operations |
|
$ |
(56 |
) |
|
$ |
257 |
|
|
$ |
(224 |
) |
|
$ |
6 |
|
Other comprehensive income (loss), net |
|
$ |
(56 |
) |
|
$ |
257 |
|
|
$ |
(224 |
) |
|
$ |
6 |
|
Total comprehensive income |
|
$ |
3,471 |
|
|
$ |
2,789 |
|
|
$ |
3,792 |
|
|
$ |
3,932 |
|
Net income, attributable to: |
|
|
|
|
|
|
|
|
||||||||
Shareholders of the parent |
|
$ |
3,527 |
|
|
$ |
2,532 |
|
|
$ |
4,016 |
|
|
$ |
3,926 |
|
Total comprehensive income attributable to: |
|
|
|
|
|
|
|
|
||||||||
Shareholders of the parent |
|
$ |
3,471 |
|
|
$ |
2,789 |
|
|
$ |
3,792 |
|
|
$ |
3,932 |
|
Earnings per share (in dollars) |
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share of Class A and Class B Ordinary Shares |
|
$ |
0.030 |
|
|
$ |
0.025 |
|
|
$ |
0.034 |
|
|
$ |
0.039 |
|
Diluted earnings per share of Class A and Class B Ordinary Shares |
|
$ |
0.030 |
|
|
$ |
0.025 |
|
|
$ |
0.034 |
|
|
$ |
0.039 |
|
PERFECT CORP. AND SUBSIDIARIES |
||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
FOR THE THREE MONTHS AND NINE MONTHS ENDED |
||||||||||||||||
(Expressed in thousands of |
||||||||||||||||
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||
Items |
|
Amount |
|
Amount |
|
Amount |
|
Amount |
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
Profit before tax |
|
$ |
3,544 |
|
|
$ |
2,269 |
|
|
$ |
4,096 |
|
|
$ |
3,349 |
|
Adjustments to reconcile profit (loss) |
|
|
|
|
|
|
|
|
||||||||
Depreciation expense |
|
|
156 |
|
|
|
197 |
|
|
|
482 |
|
|
|
541 |
|
Amortization expense |
|
|
19 |
|
|
|
13 |
|
|
|
56 |
|
|
|
39 |
|
Expected credit losses |
|
|
— |
|
|
|
602 |
|
|
|
— |
|
|
|
602 |
|
Interest income |
|
|
(2,335 |
) |
|
|
(1,923 |
) |
|
|
(6,944 |
) |
|
|
(5,875 |
) |
Interest expense |
|
|
5 |
|
|
|
4 |
|
|
|
10 |
|
|
|
14 |
|
Net (gains) losses on financial liabilities at fair value through profit or loss |
|
|
(2,096 |
) |
|
|
(61 |
) |
|
|
(1,852 |
) |
|
|
(107 |
) |
Share-based payment transactions |
|
|
1,234 |
|
|
|
744 |
|
|
|
2,675 |
|
|
|
2,181 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
|
974 |
|
|
|
(1,501 |
) |
|
|
1,061 |
|
|
|
(1,635 |
) |
Current contract assets |
|
|
(1,603 |
) |
|
|
(462 |
) |
|
|
527 |
|
|
|
752 |
|
Other receivables |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Inventories |
|
|
1 |
|
|
|
— |
|
|
|
12 |
|
|
|
12 |
|
Other current assets |
|
|
791 |
|
|
|
523 |
|
|
|
838 |
|
|
|
1,733 |
|
Current contract liabilities |
|
|
(1 |
) |
|
|
919 |
|
|
|
3,034 |
|
|
|
2,541 |
|
Other payables |
|
|
1,625 |
|
|
|
1,106 |
|
|
|
442 |
|
|
|
1,055 |
|
Other payables – related parties |
|
|
1 |
|
|
|
2 |
|
|
|
(11 |
) |
|
|
5 |
|
Current provisions |
|
|
181 |
|
|
|
(15 |
) |
|
|
501 |
|
|
|
(578 |
) |
Other current liabilities |
|
|
(15 |
) |
|
|
101 |
|
|
|
(122 |
) |
|
|
34 |
|
Net defined benefit liability, non-current |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
Cash inflow generated from operations |
|
|
2,482 |
|
|
|
2,519 |
|
|
|
4,810 |
|
|
|
4,665 |
|
Interest received |
|
|
1,648 |
|
|
|
1,875 |
|
|
|
5,979 |
|
|
|
5,433 |
|
Interest paid |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(10 |
) |
|
|
(14 |
) |
Income tax paid |
|
|
(142 |
) |
|
|
(158 |
) |
|
|
(347 |
) |
|
|
(334 |
) |
Net cash flows from operating activities |
|
|
3,983 |
|
|
|
4,232 |
|
|
|
10,432 |
|
|
|
9,750 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
Acquisition of financial assets at amortized cost |
|
|
(11,000 |
) |
|
|
(11,104 |
) |
|
|
(171,800 |
) |
|
|
(55,574 |
) |
Proceeds from disposal of financial assets at amortized cost |
|
|
85,500 |
|
|
|
13,074 |
|
|
|
115,500 |
|
|
|
49,874 |
|
Acquisition of property, plant and equipment |
|
|
(13 |
) |
|
|
(130 |
) |
|
|
(183 |
) |
|
|
(389 |
) |
Acquisition of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
(33 |
) |
|
|
(6 |
) |
Increase in guarantee deposits paid |
|
|
(15 |
) |
|
|
— |
|
|
|
(15 |
) |
|
|
(8 |
) |
Net cash flows from (used in) investing activities |
|
|
74,472 |
|
|
|
1,840 |
|
|
|
(56,531 |
) |
|
|
(6,103 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
Repayment of principal portion of lease liabilities |
|
|
(107 |
) |
|
|
(142 |
) |
|
|
(310 |
) |
|
|
(381 |
) |
Payments to acquire treasury shares |
|
|
(446 |
) |
|
|
— |
|
|
|
(875 |
) |
|
|
— |
|
Net cash flows used in financing activities |
|
|
(553 |
) |
|
|
(142 |
) |
|
|
(1,185 |
) |
|
|
(381 |
) |
Effects of exchange rates changes on cash and cash equivalents |
|
|
(101 |
) |
|
|
451 |
|
|
|
(363 |
) |
|
|
40 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
77,801 |
|
|
|
6,381 |
|
|
|
(47,647 |
) |
|
|
3,306 |
|
Cash and cash equivalents at beginning of period |
|
|
37,168 |
|
|
|
120,796 |
|
|
|
162,616 |
|
|
|
123,871 |
|
Cash and cash equivalents at end of period |
|
$ |
114,969 |
|
|
$ |
127,177 |
|
|
$ |
114,969 |
|
|
$ |
127,177 |
|
PERFECT CORP. AND SUBSIDIARIES |
||||||||||||||||
UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL MEASURES – ADJUSTED NET INCOME CALCULATION |
||||||||||||||||
FOR THE THREE MONTHS AND NINE MONTHS ENDED |
||||||||||||||||
(Expressed in thousands of |
||||||||||||||||
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||
Items |
|
Amount |
|
Amount |
|
Amount |
|
Amount |
||||||||
Net Income (Loss) |
|
$ |
3,527 |
|
|
$ |
2,532 |
|
|
$ |
4,016 |
|
|
$ |
3,926 |
|
One-off Transaction Costs |
|
|
— |
|
|
|
— |
|
|
|
33 |
|
|
|
— |
|
Non-Cash Equity-Based Compensation |
|
|
1,234 |
|
|
|
744 |
|
|
|
2,675 |
|
|
|
2,181 |
|
Non-Cash Valuation Gain of financial liabilities |
|
|
(2,096 |
) |
|
|
(61 |
) |
|
|
(1,852 |
) |
|
|
(107 |
) |
Adjusted Net Income (Loss)1 |
|
$ |
2,665 |
|
|
$ |
3,215 |
|
|
$ |
4,872 |
|
|
$ |
6,000 |
|
Note (1):
In accordance with the changed definition of “adjusted net income (loss)” that is detailed in the “Use of Non-IFRS Financial Measures” section above, we have made a retrospective adjustment to our adjusted net income for the nine months ended
Category: Investor Relations
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