Perfect Corp. Reports Unaudited Financial Results for the Three Months Ended March 31, 2024
Highlights for the Three Months Ended
-
Total revenue was
$14.3 million for the three months endedMarch 31, 2024 , compared to$12.1 million in the same period of 2023, an increase of 17.7%. The increase was primarily due to strong growth momentum in the revenue of AI- and AR- cloud solutions and mobile app subscriptions. -
Gross profit was
$11.2 million for the three months endedMarch 31, 2024 , compared with$9.6 million in the same period of 2023, an increase of 16.9%. -
Net income was
$0.6 million for the three months endedMarch 31, 2024 , compared to a net income of$0.7 million during the same period of 2023, a decrease of 9.4%. -
Adjusted net income (non-IFRS)1 was
$1.5 million for the three months endedMarch 31, 2024 , compared to adjusted net income (non-IFRS) of$1.3 million in the same period of 2023, an increase of 14.5%. -
Operating cash flow was positive
$3.5 million in the first quarter of 2024, compared to$3.8 million in the same period of 2023. -
The Company had 152 Key Customers as of
March 31, 2024 , compared with 162 Key Customers as ofDecember 31, 2023 . The decrease mainly resulted from non-renewal by some brand clients, including due to financial pressures. -
As of
March 31, 2024 , the Company’s customer base included 666 brand clients, with over 745,000 digital stock keeping units (“SKUs”) for makeup, haircare, skincare, eyewear, and jewelry products, compared with 645 brand clients and over 704,000 digital SKUs as ofDecember 31, 2023 .
Ms.
Financial Results for the Three Months Ended
Revenue
Total revenue was
-
AI- and AR- cloud solutions and subscription revenue was
$12.4 million for the three months endedMarch 31, 2024 , compared to$10.4 million in the same period of 2023, an increase of 19.6%. The double digit growth was driven by strong demand for the Company’s online virtual product try-on and skincare solutions from brand customers, the robust momentum in the growth of YouCam mobile beauty app subscription, and the growing popularity for its Gen AI technologies and AI editing features for photos and videos. The Company’s YouCam mobile beauty app active subscribers grew by 30.0% year over year, reaching a record high of over 902,000 active subscribers at the end of the first quarter of 2024. This increase reflected the continuous demand in the Company’s YouCam mobile beauty app services from subscribers and users. -
Licensing revenue was
$1.6 million for the three months endedMarch 31, 2024 , compared to$1.5 million in the same period of 2023, an increase of 7.1%. The increase was due to slightly higher demand from the legacy license product in this quarter. -
Advertisement revenue was
$0.3 million for the three months endedMarch 31, 2024 , which remained flat compared to the same period of 2023. The Company expects this revenue will gradually become immaterial as it continues to allocate less resources to advertisement services and focus on expanding the market leadership in providing AI- and AR-SaaS solutions to brand customers and mobile app subscribers.
Gross Profit
Gross profit was
Total Operating Expenses
Total operating expenses were
-
Sales and marketing expenses were
$7.2 million for the three months endedMarch 31, 2024 , compared to$6.0 million during the same period of 2023, an increase of 19.0%. This increase was due to an increase in marketing events and user acquisition costs. -
Research and development (“R&D”) expenses were
$3.0 million for the three months endedMarch 31, 2024 , compared to$2.6 million during the same period of 2023, an increase of 15.4%. The increase resulted from the increase in R&D headcount. -
General and administrative expenses were
$2.2 million for the three months endedMarch 31, 2024 , compared to$2.4 million during the same period of 2023, a decrease of 9.9%. The decrease was due to a lower directors and officers insurance expense in the first quarter of 2024 due to the lower rate of insurance fees.
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 strong momentum in both enterprise SaaS solution demands and YouCam mobile apps subscriptions, the Company anticipates a healthy recovery in 2024.
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/Q4I2167050350
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 costs2, 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.
PERFECT CORP. AND SUBSIDIARIES |
||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||
|
||||||
(Expressed in thousands of |
||||||
|
|
|
|
|
||
Assets |
|
Amount |
|
Amount |
||
Current assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
123,871 |
|
$ |
121,960 |
Current financial assets at amortized cost |
|
|
30,300 |
|
|
35,300 |
Current contract assets |
|
|
2,770 |
|
|
2,251 |
Accounts receivable |
|
|
6,992 |
|
|
7,699 |
Other receivables |
|
|
343 |
|
|
707 |
Current income tax assets |
|
|
311 |
|
|
344 |
Inventories |
|
|
33 |
|
|
28 |
Other current assets |
|
|
4,042 |
|
|
3,491 |
Total current assets |
|
|
168,662 |
|
|
171,780 |
Non-current assets |
|
|
|
|
||
Property, plant and equipment |
|
|
380 |
|
|
420 |
Right-of-use assets |
|
|
847 |
|
|
725 |
Intangible assets |
|
|
77 |
|
|
64 |
Deferred income tax assets |
|
|
257 |
|
|
692 |
Guarantee deposits paid |
|
|
140 |
|
|
139 |
Total non-current assets |
|
|
1,701 |
|
|
2,040 |
Total assets |
|
$ |
170,363 |
|
$ |
173,820 |
PERFECT CORP. AND SUBSIDIARIES |
||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS (continued) |
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|
||||||||
(Expressed in thousands of |
||||||||
|
|
|
|
|
||||
Liabilities and Equity |
|
Amount |
|
Amount |
||||
Current liabilities |
|
|
|
|
||||
Current contract liabilities |
|
$ |
15,346 |
|
|
$ |
18,216 |
|
Other payables |
|
|
10,331 |
|
|
|
9,720 |
|
Other payables – related parties |
|
|
50 |
|
|
|
49 |
|
Current tax liabilities |
|
|
21 |
|
|
|
225 |
|
Current provisions |
|
|
2,394 |
|
|
|
2,179 |
|
Current lease liabilities |
|
|
481 |
|
|
|
486 |
|
Other current liabilities |
|
|
277 |
|
|
|
224 |
|
Total current liabilities |
|
|
28,900 |
|
|
|
31,099 |
|
Non-current liabilities |
|
|
|
|
||||
Non-current financial liabilities at fair value through profit or loss |
|
|
1,566 |
|
|
|
1,670 |
|
Non-current lease liabilities |
|
|
387 |
|
|
|
266 |
|
Net defined benefit liability, non-current |
|
|
79 |
|
|
|
80 |
|
Guarantee deposits received |
|
|
25 |
|
|
|
25 |
|
Total non-current liabilities |
|
|
2,057 |
|
|
|
2,041 |
|
Total liabilities |
|
|
30,957 |
|
|
|
33,140 |
|
|
|
|
|
|
||||
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 |
|
|
|
511,000 |
|
Retained earnings |
|
|
|
|
||||
Accumulated deficit |
|
|
(380,472 |
) |
|
|
(379,842 |
) |
Other equity interest |
|
|
|
|
||||
Other equity interest |
|
|
(523 |
) |
|
|
(663 |
) |
|
|
|
(190 |
) |
|
|
— |
|
Total equity |
|
|
139,406 |
|
|
|
140,680 |
|
Total liabilities and equity |
|
$ |
170,363 |
|
|
$ |
173,820 |
|
PERFECT CORP. AND SUBSIDIARIES |
||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
||||||||
FOR THE THREE MONTHS ENDED |
||||||||
(Expressed in thousands of |
||||||||
|
||||||||
|
|
Three months ended |
||||||
|
|
|
2023 |
|
|
|
2024 |
|
Items |
|
Amount |
|
Amount |
||||
Revenue |
|
$ |
12,145 |
|
|
$ |
14,289 |
|
Cost of sales and services |
|
|
(2,569 |
) |
|
|
(3,095 |
) |
Gross profit |
|
|
9,576 |
|
|
|
11,194 |
|
Operating expenses |
|
|
|
|
||||
Sales and marketing expenses |
|
|
(6,027 |
) |
|
|
(7,170 |
) |
General and administrative expenses |
|
|
(2,413 |
) |
|
|
(2,175 |
) |
Research and development expenses |
|
|
(2,629 |
) |
|
|
(3,035 |
) |
Total operating expenses |
|
|
(11,069 |
) |
|
|
(12,380 |
) |
Operating loss |
|
|
(1,493 |
) |
|
|
(1,186 |
) |
Non-operating income and expenses |
|
|
|
|
||||
Interest income |
|
|
2,198 |
|
|
|
1,969 |
|
Other income |
|
|
2 |
|
|
|
2 |
|
Other gains and losses |
|
|
15 |
|
|
|
(316 |
) |
Finance costs |
|
|
(2 |
) |
|
|
(5 |
) |
Total non-operating income and expenses |
|
|
2,213 |
|
|
|
1,650 |
|
Income before income tax |
|
|
720 |
|
|
|
464 |
|
Income tax benefit (expense) |
|
|
(25 |
) |
|
|
166 |
|
Net income |
|
$ |
695 |
|
|
$ |
630 |
|
|
|
|
|
|
||||
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 |
|
$ |
2 |
|
|
$ |
(140 |
) |
Other comprehensive income (loss), net |
|
$ |
2 |
|
|
$ |
(140 |
) |
Total comprehensive income |
|
$ |
697 |
|
|
$ |
490 |
|
Net income, attributable to: |
|
|
|
|
||||
Shareholders of the parent |
|
$ |
695 |
|
|
$ |
630 |
|
Total comprehensive income attributable to: |
|
|
|
|
||||
Shareholders of the parent |
|
$ |
697 |
|
|
$ |
490 |
|
Earnings per share (in dollars) |
|
|
|
|
||||
Basic earnings per share of Class A and Class B Ordinary Shares |
|
$ |
0.006 |
|
|
$ |
0.006 |
|
Diluted earnings per share of Class A and Class B Ordinary Shares |
|
$ |
0.006 |
|
|
$ |
0.006 |
|
|
PERFECT CORP. AND SUBSIDIARIES |
|||||||
UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL MEASURES – ADJUSTED NET INCOME CALCULATION |
|||||||
FOR THE THREE MONTHS ENDED |
|||||||
(Expressed in thousands of |
|||||||
|
|
Three months ended |
|||||
|
|
2023 |
|
2024 |
|||
Items |
|
Amount |
|
Amount |
|||
Net Income (Loss) |
|
$ |
695 |
|
|
$ |
630 |
One-off Transaction Costs |
|
|
33 |
|
|
|
— |
Non-Cash Equity-Based Compensation |
|
|
650 |
|
|
|
784 |
Non-Cash Valuation (Gain)/Loss of financial liabilities |
|
|
(52 |
) |
|
|
104 |
Adjusted Net Income (Loss)1 |
|
$ |
1,326 |
|
|
$ |
1,518 |
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 three months ended
Category: Investor Relations
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 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240424298022/en/
Investor Relations
Investor Relations,
Email: Investor_Relations@PerfectCorp.com
Source: