Perfect Corp. posts quarterly sales growth of 9.7 percent

Perfect Corp. reported revenue growth of 9.7 percent to 12.1 million dollars for the quarter and up 0.9 percent year over year, primarily due to strong growth momentum in AR/AI cloud solutions and subscription revenues.

The company, provider of augmented reality (AR) and artificial intelligence (AI) Software-as-a-Service (SaaS) solutions to beauty and fashion industries, said gross profit was 9.6 million dollars compared to 10.4 million dollars in the same period of 2022.

Net Income for the period was 0.7 million dollars compared to a net loss of 0.5 million dollars, while adjusted net income was 1.4 million dollars compared to 1.2 million dollars in the same period of 2022.

Commenting on the trading update, Alice H. Chang, founder, chairwoman, and chief executive officer of Perfect, said: “During the quarter, we offset the impact of the prolonged sales cycle by fine tuning our strategies and expanding our sales pipeline, bringing in additional brand customers from a variety of regions. In addition, we shifted our focus to grow our online services as driven by stronger market demand. At the same time, our mobile beauty app business continues its strong growth momentum, stabilising and balancing our revenue streams.”

The company had 158 key customers as of March 31, 2023, compared with as of December 31, 2022. The company’s customer base included 525 brand clients, with over 590,000 digital stock keeping units (SKUs) for makeup, haircare, skincare, eyewear, and jewellery products.

The company’s AR/AI cloud solutions and subscription revenue increased by 18.7 percent to 10.4 million dollars, representing 85.4 percent of total revenue in the first quarter of 2023, mainly due to stable demand for online virtual product try-on solutions from brand customers and strong growth in the mobile beauty app subscriptions. The company’s mobile beauty app active subscribers grew by 53.3 percent, reaching over 694,000 active subscribers at the end of the first quarter.

Licensing revenue was 1.5 million dollars, representing 12.3 percent of the total revenue and a change of 47.1 percent, primarily due to brand customers’ elevated interests in digital e-commerce rather than traditional physical store deployment, despite the pandemic coming to an end.

Advertisement revenue was 0.3 million dollars, compared to 0.5 million dollars in the same period of 2022.