Record Revenue Growth and Expansion Signal Promising 2025 Outlook
Perfect Corp (PERF), a global leader in AI and AR SaaS solutions for the beauty and fashion industries, has announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024. The company reported robust revenue growth, solid net income, and an expanding customer base, underscoring its strategic advancements and leadership in digital beauty technology.
Fourth Quarter 2024 Financial Performance
Perfect Corp. recorded total revenue of $15.9 million in Q4 2024, a 12.4% increase compared to $14.1 million in the same quarter of 2023. This growth was primarily driven by the expansion of AI- and AR-powered cloud solutions and mobile app subscriptions. Gross profit also saw an increase, reaching $11.8 million, up from $11.5 million in the previous year.
Despite revenue gains, net income for Q4 2024 was $1.1 million, a 21.8% decline from $1.4 million in Q4 2023. However, adjusted net income (non-IFRS) grew by 8.2% to $2.3 million. Operating cash flow rose 3.4% year-over-year to $3.3 million, reinforcing the company’s ability to generate consistent cash flow.
A key highlight of the quarter was the 14.3% year-over-year increase in YouCam mobile beauty app and web active subscribers, which exceeded 1 million users by the end of 2024. This growth underscores the rising consumer demand for digital beauty solutions.
Full-Year 2024 Performance
For the full year 2024, Perfect Corp. achieved total revenue of $60.2 million, up 12.5% from $53.5 million in 2023. The company’s AI- and AR-based cloud solutions and subscription revenue drove this increase, reaching $53.8 million, a 20.2% jump from $44.8 million in the previous year.
Gross profit for 2024 stood at $46.9 million, an 8.9% increase compared to $43.1 million in 2023. Net income was reported at $5.0 million, slightly down from $5.4 million in 2023, primarily due to increased investments in research and development (R&D) and sales and marketing efforts. Adjusted net income, however, rose 18.6% to $8.3 million, reflecting the company’s focus on improving profitability through scalable solutions.
Operating cash flow for 2024 was $13.0 million, compared to $13.6 million in 2023, a slight decline of 4.2%. Despite this, Perfect Corp. maintained a strong cash position, with $127.1 million in cash and equivalents as of December 31, 2024.
Strategic Expansions and Key Business Developments
Perfect Corp. continued its expansion efforts in 2024, increasing its brand client base to 732, up from 708 in Q3 2024. The number of digital stock-keeping units (SKUs) rose to 822,000, highlighting the company’s growing footprint in the beauty, skincare, eyewear, and jewelry industries. The company’s key customer base remained stable at 151, reflecting consistent enterprise engagement.
A major development was the acquisition of Wannaby Inc., a pioneer in augmented reality and computer vision technologies for virtual try-ons in the fashion industry. Completed on January 8, 2025, this acquisition strengthens Perfect Corp.’s position in AI-driven fashion technology and expands its digital product offerings beyond beauty.
Market Trends and Growth Drivers
Perfect Corp.’s sustained growth is fueled by increasing demand for AI-powered virtual try-on solutions, growing consumer adoption of digital beauty apps, and the rising popularity of generative AI technologies. The company’s YouCam app has seen significant traction, with an expanding user base and continued revenue contributions from mobile subscriptions and cloud solutions.
Despite a decline in licensing revenue, which fell by 30.8% year-over-year to $5.2 million, Perfect Corp. has strategically shifted focus toward recurring revenue models, ensuring long-term stability. The company’s ability to offset licensing losses with higher SaaS-based revenue indicates a successful transition to a more sustainable business model.
2025 Outlook: Continued Growth and Innovation
Looking ahead, Perfect Corp. projects a year-over-year revenue growth rate of 13% to 14.5% for 2025. This forecast is supported by the continued expansion of YouCam subscriptions, increasing enterprise SaaS demand, and new technological innovations in AI and AR.
Alice H. Chang, Founder, Chairwoman, and CEO of Perfect Corp., expressed confidence in the company’s future, stating, “We are pleased to report solid double-digit growth, positive net income, healthy cash flow, and a strong balance sheet for 2024, fully meeting our previous guidance. By capitalizing on market opportunities and expanding our total addressable market, we are not only attracting new clients but also laying the foundation for sustained long-term growth.”
With a strong foundation and a commitment to continuous innovation, Perfect Corp. is well-positioned to capitalize on emerging digital beauty trends and further solidify its leadership in AI and AR-powered beauty and fashion solutions.
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