Perfect Corp's Q4 Revenue Surges 12.4% as YouCam App Subscribers Reach Record High

Perfect Corp (PERF) announced its fourth-quarter FY24 financial results, revealing a 12.4% year-over-year increase in revenue to $15.9 million, marginally missing the consensus estimate of $16.40 million. The revenue increase was primarily driven by the growing demand for AI- and AR-powered cloud solutions and mobile app subscriptions.

AI- and AR-cloud solutions and subscription revenue increased by 25.4% to $15.1 million, while licensing revenue plunged by 72.25% to $0.5 million. Gross profit for the quarter improved by 2.5% to $11.8 million, with the gross margin contracting by 730 basis points to 74.2%. The decrease in gross margin was primarily due to the increase in third-party payment processing fees paid to digital distribution partners such as Google and Apple, related to the steady growth in the company's YouCam mobile app subscription revenue.

Total operating expenses decreased by 3.6% to $12.2 million, with general and administrative expenses falling by 41%. Net income was $1.1 million for the quarter, compared to a net income of $1.4 million last year. Adjusted net income was $2.3 million, an increase of 8.2% year-over-year, translating to an adjusted earnings per share of 2 cents, which missed the consensus estimate of 3 cents per share.

The operating cash flow for the three months totaled $3.3 million. The company held $127.1 million in cash and equivalents as of December 31, 2024. The company's YouCam mobile beauty app and web active subscribers grew by 14.3% year-over-year, reaching a record high of over 1 million active subscribers as of the end of 2024.

As of December 31, 2024, Perfect's cumulative customer base included 732 brand clients, with over 822,000 digital stock keeping units for makeup, haircare, skincare, eyewear, watches, and jewelry products, compared to 708 brand clients and over 806,000 digital SKUs as of September 30, 2024. Perfect Corp had 151 key customers as of December 31, 2024.

For FY25, Perfect anticipates a year-over-year total revenue growth rate of 13% to 14.5%, based on the growth momentum in both YouCam mobile apps and web subscriptions and enterprise SaaS solution demands. Price Action: At the last check on Wednesday, PERF shares were trading higher by 0.52% at $1.94 in the premarket.