Perfect Corp. Reports Unaudited Financial Results for the Three Months Ended June 30, 2023
- Total revenues grew by 11.9% YoY, reaching $12.7 million.
- Gross profit increased to $10.2 million.
- Mobile beauty app active subscribers reached a historical high of over 777,000.
- None.
Highlights for the Three Months Ended June 30, 2023
-
Total revenues grew to
, up$12.7 million 11.9% year over year, primarily due to strong growth momentum in AR/AI cloud solutions and subscription revenues. -
Gross profit was
, compared to$10.2 million in the same period of 2022.$9.7 million -
Net Loss was
, compared to a net income of$0.2 million in the same period of 2022.$27.4 million -
Adjusted net income (non-IFRS)1 was
, compared to adjusted net income (non-IFRS) of$1.1 million in the same period of 2022.$0.6 million - The Company had 163 Key Customers2 as of June 30, 2023, compared with 158 Key Customers as of March 31, 2023.
- As of June 30, 2023, the Company's customer base included 601 brand clients, with over 655,000 digital stock keeping units (“SKUs”) for makeup, haircare, skincare, eyewear, and jewelry products, compared with 525 brand clients and over 590,000 digital SKUs as of March 31, 2023.
Ms. Alice H. Chang, the Founder, Chairwoman, and Chief Executive Officer of Perfect, commented, “Throughout the previous quarter, we persistently utilized the latest AI & AR technologies, including generative AI, to consistently support our three primary areas of growth, BeautyTech, FashionTech, and SkinTech, to brands and to end users. Our objective is to enhance and expand our capabilities in these fields. As a result, we observed encouraging indications of increased product demand, indicating positive progress. Our mobile apps also continued to experience significant growth, maintaining their strong momentum in part thanks to new generative AI features. Furthermore, our AI skincare turnkey solution grew in popularity as we expanded our customer base. Our investments in generative AI, combined with our industry-leading experience and robust customer base, have positioned us for future success in the beauty and fashion tech space. We remain committed to delivering long-term, sustainable growth to our shareholders and providing our customers with the highest-quality services on the market.”
Mr. Pin-Jen (Louis) Chen, Executive Vice President and Chief Strategy Officer of Perfect, added, “In the second quarter, we saw sound momentum in our top-line growth, which was driven by continued demand for our online AR/AI cloud solutions and subscriptions, along with the rapid growth in our mobile beauty app subscribers. While we grew our revenue, we also managed to control our spending to ensure profitability. With the stable renewal rate for existing subscriptions, dedicated cost control, and healthy cash position, we affirm our unwavering confidence in generating long-term revenue growth.”
Financial Results for the Three Months Ended June 30, 2023
Revenue
Total revenue was
-
AR/AI cloud solutions and subscription revenue increased by
16.3% from in the same period of 2022 to$9.5 million , representing$11.0 million 86.7% of total revenue, mainly due to solid demand for the Company’s online virtual product try-on solutions from brand customers and robust growth in its mobile beauty app subscriptions. The Company’s mobile beauty app active subscribers grew by63.3% year over year, reaching a historical high of over 777,000 active subscribers at the end of the second quarter of 2023. This increase demonstrates the strong demand for the Company’s mobile beauty app services. -
Licensing revenue, which is mostly generated from traditional offline services, increased by
6.2% from in the same period of 2022 to$1.3 million , representing$1.4 million 10.9% of our total revenue, compared with11.5% of total revenue in the second quarter of 2022. This reflects relatively low demand for in-store services compared to online services from brands. -
Advertisement revenue was
, compared to$0.3 million in the same period of 2022. This change is consistent with the Company's strategic focus on delivering AR- and AI-SaaS solutions to customers while allocating fewer resources to advertisement services.$0.5 million
Gross Profit
Gross profit increased by
Total Operating Expenses
Total operating expenses increased by
-
Sales and marketing (“S&M”) expenses were
, representing$6.6 million 51.7% of our total revenue, compared to and$6.1 million 53.6% of total revenue during the same period last year. The7.9% year-over-year change was primarily due to increase in promotion and user acquisition expenses. -
Research and development (“R&D”) expenses were
, representing$2.8 million 21.8% of total revenue, compared to and$2.6 million 23.3% of total revenue during the same period last year. The4.6% year-over-year change was resulted from an increase in R&D people cost. -
General and administrative (“G&A”) expenses were
, representing$3.0 million 23.8% of total revenue, compared to and$2.2 million 19.8% of total revenue during the same period last year. The34.3% year-over-year change was primarily due to an increase in public company-related costs.
Net Loss
Net Loss was
Adjusted Net Income (Non-IFRS)
Adjusted net income was
Liquidity
As of June 30, 2023, the Company held
Recent Development
Share Repurchase Plan Update
On May 4, 2023, the Company’s board of directors authorized a share repurchase plan under which the Company may repurchase up to
Business Outlook
Based on the recent progress of the overall business status in the industry, the stable demand for the Company’s enterprise SaaS solutions, strong growth in the Company’s mobile beauty app subscriptions, and ongoing investment in R&D with generative AI, Perfect Corp. anticipates that for 2023 full year:
-
The Company's total revenue year-over-year growth rate is expected to range from
11.5% to14.5% compared to 2022.
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 7 a.m. Eastern Time on July 26, 2023 (7 p.m. Taipei Time on July 26, 2023) to discuss the financial results. For participants who wish to join the call, please complete online registration using the link provided below in advance of the conference call. Upon registering, each participant will receive a participant dial-in number and a unique access PIN, which can be used to join the conference call.
Registration Link: https://registrations.events/direct/Q4E60334
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 Perfect Corp.
Founded in 2015, Perfect is a global leader in providing AR and AI SaaS solutions to beauty and fashion industries. Utilizing facial 3D modeling, and AI deep learning technologies, Perfect empowers beauty brands with product try-on, facial diagnostics, and digital consultation solutions to provide consumers with an enjoyable, personalized, and convenient omnichannel shopping experience. Today, Perfect has the leading market share in helping the world’s top beauty brands execute digital transformation, improve customer engagement, increase purchase conversion, and drive sales growth while maintaining environmental sustainability and fulfilling social responsibilities. For more information, visit https://ir.perfectcorp.com/.
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, non-cash evaluation (gain)/loss of preferred shares, and foreign exchange (gain)/loss. For a reconciliation of adjusted net income (loss) to net income (loss), see the reconciliation table included elsewhere in this press release.
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 |
||||||
DECEMBER 31, 2022 AND JUNE 30, 2023 |
||||||
(Expressed in thousands of |
||||||
|
|
December 31,
|
|
June 30,
|
||
Assets |
|
Amount |
|
Amount |
||
Current assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
162,616 |
|
$ |
37,168 |
Current financial assets at amortized cost |
|
|
30,000 |
|
|
160,800 |
Current contract assets |
|
|
3,660 |
|
|
1,512 |
Accounts receivable |
|
|
7,756 |
|
|
7,641 |
Other receivables |
|
|
314 |
|
|
587 |
Current income tax assets |
|
|
77 |
|
|
124 |
Inventories |
|
|
45 |
|
|
34 |
Other current assets |
|
|
4,705 |
|
|
4,655 |
Total current assets |
|
|
209,173 |
|
|
212,521 |
Non-current assets |
|
|
|
|
||
Property, plant and equipment |
|
|
289 |
|
|
345 |
Right-of-use assets |
|
|
323 |
|
|
850 |
Intangible assets |
|
|
119 |
|
|
115 |
Deferred income tax assets |
|
|
244 |
|
|
222 |
Guarantee deposits paid |
|
|
125 |
|
|
124 |
Total non-current assets |
|
|
1,100 |
|
|
1,656 |
Total assets |
|
$ |
210,273 |
|
$ |
214,177 |
PERFECT CORP. AND SUBSIDIARIES |
||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS (continued) |
||||||||
DECEMBER 31, 2022 AND JUNE 30, 2023 |
||||||||
(Expressed in thousands of |
||||||||
|
|
December 31,
|
|
June 30,
|
||||
Liabilities and Equity |
|
Amount |
|
Amount |
||||
Current liabilities |
|
|
|
|
||||
Current contract liabilities |
|
$ |
13,024 |
|
|
$ |
15,976 |
|
Other payables |
|
|
9,308 |
|
|
|
8,095 |
|
Other payables – related parties |
|
|
63 |
|
|
|
49 |
|
Current tax liabilities |
|
|
155 |
|
|
|
52 |
|
Current provisions |
|
|
1,855 |
|
|
|
2,134 |
|
Current lease liabilities |
|
|
251 |
|
|
|
417 |
|
Other current liabilities |
|
|
261 |
|
|
|
149 |
|
Total current liabilities |
|
|
24,917 |
|
|
|
26,872 |
|
Non-current liabilities |
|
|
|
|
||||
Non-current financial liabilities at fair value through profit or loss |
|
|
3,207 |
|
|
|
3,451 |
|
Non-current lease liabilities |
|
|
87 |
|
|
|
457 |
|
Net defined benefit liability, non-current |
|
|
73 |
|
|
|
75 |
|
Guarantee deposits received |
|
|
25 |
|
|
|
25 |
|
Total non-current liabilities |
|
|
3,392 |
|
|
|
4,008 |
|
Total liabilities |
|
|
28,309 |
|
|
|
30,880 |
|
|
|
|
|
|
||||
Equity |
|
|
|
|
||||
Capital stock |
|
|
|
|
||||
Perfect Class A Ordinary Shares, |
|
|
10,147 |
|
|
|
10,147 |
|
Perfect Class B Ordinary Shares, |
|
|
1,679 |
|
|
|
1,679 |
|
Capital surplus |
|
|
|
|
||||
Capital surplus |
|
|
556,429 |
|
|
|
557,870 |
|
Retained earnings |
|
|
|
|
||||
Accumulated deficit |
|
|
(385,884 |
) |
|
|
(385,395 |
) |
Other equity interest |
|
|
|
|
||||
Other equity interest |
|
|
(407 |
) |
|
|
(575 |
) |
Treasury shares |
|
|
— |
|
|
|
(429 |
) |
Total equity |
|
|
181,964 |
|
|
|
183,297 |
|
Total liabilities and equity |
|
$ |
210,273 |
|
|
$ |
214,177 |
|
PERFECT CORP. AND SUBSIDIARIES |
||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2022 AND 2023 |
||||||||||||||||
(Expressed in thousands of |
||||||||||||||||
|
|
Three months ended June 30 |
|
Six months ended June 30 |
||||||||||||
|
|
2022 |
|
2023 |
|
2022 |
|
2023 |
||||||||
Items |
|
Amount |
|
Amount |
|
Amount |
|
Amount |
||||||||
Revenue |
|
$ |
11,339 |
|
|
$ |
12,687 |
|
|
$ |
23,379 |
|
|
$ |
24,832 |
|
Cost of sales and services |
|
|
(1,614 |
) |
|
|
(2,455 |
) |
|
|
(3,282 |
) |
|
|
(5,024 |
) |
Gross profit |
|
|
9,725 |
|
|
|
10,232 |
|
|
|
20,097 |
|
|
|
19,808 |
|
Operating expenses |
|
|
|
|
|
|
|
|
||||||||
Sales and marketing expenses |
|
|
(6,081 |
) |
|
|
(6,558 |
) |
|
|
(12,087 |
) |
|
|
(12,585 |
) |
General and administrative expenses |
|
|
(2,244 |
) |
|
|
(3,014 |
) |
|
|
(4,700 |
) |
|
|
(5,427 |
) |
Research and development expenses |
|
|
(2,646 |
) |
|
|
(2,767 |
) |
|
|
(5,358 |
) |
|
|
(5,396 |
) |
Total operating expenses |
|
|
(10,971 |
) |
|
|
(12,339 |
) |
|
|
(22,145 |
) |
|
|
(23,408 |
) |
Operating loss |
|
|
(1,246 |
) |
|
|
(2,107 |
) |
|
|
(2,048 |
) |
|
|
(3,600 |
) |
Non-operating income and expenses |
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
|
141 |
|
|
|
2,411 |
|
|
|
178 |
|
|
|
4,609 |
|
Other income |
|
|
1 |
|
|
|
5 |
|
|
|
11 |
|
|
|
7 |
|
Other gains and losses |
|
|
28,550 |
|
|
|
(474 |
) |
|
|
28,977 |
|
|
|
(459 |
) |
Finance costs |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
Total non-operating income and expenses |
|
|
28,690 |
|
|
|
1,939 |
|
|
|
29,161 |
|
|
|
4,152 |
|
Income (loss) before income tax |
|
|
27,444 |
|
|
|
(168 |
) |
|
|
27,113 |
|
|
|
552 |
|
Income tax expense |
|
|
(31 |
) |
|
|
(38 |
) |
|
|
(161 |
) |
|
|
(63 |
) |
Net income (loss) |
|
$ |
27,413 |
|
|
$ |
(206 |
) |
|
$ |
26,952 |
|
|
$ |
489 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss |
|
|
|
|
|
|
|
|
||||||||
Components of other comprehensive loss that will not be reclassified to profit or loss |
|
|
|
|
|
|
|
|
||||||||
Credit risk changes in financial instrument - Preferred shares |
|
$ |
(7 |
) |
|
$ |
— |
|
|
$ |
(7 |
) |
|
$ |
— |
|
Components of other comprehensive loss that will be reclassified to profit or loss |
|
|
|
|
|
|
|
|
||||||||
Exchange differences arising on translation of foreign operations |
|
|
(591 |
) |
|
|
(170 |
) |
|
|
(1,001 |
) |
|
|
(168 |
) |
Other comprehensive loss, net |
|
$ |
(598 |
) |
|
$ |
(170 |
) |
|
$ |
(1,008 |
) |
|
$ |
(168 |
) |
Total comprehensive income (loss) |
|
$ |
26,815 |
|
|
$ |
(376 |
) |
|
$ |
25,944 |
|
|
$ |
321 |
|
Net income (loss), attributable to: |
|
|
|
|
|
|
|
|
||||||||
Shareholders of the parent |
|
$ |
27,413 |
|
|
$ |
(206 |
) |
|
$ |
26,952 |
|
|
$ |
489 |
|
Total comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
|
||||||||
Shareholders of the parent |
|
$ |
26,815 |
|
|
$ |
(376 |
) |
|
$ |
25,944 |
|
|
$ |
321 |
|
Earnings (loss) per share (in dollars) |
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share of Class A and Class B Ordinary Shares |
|
$ |
0.477 |
|
|
$ |
(0.002 |
) |
|
$ |
0.469 |
|
|
$ |
0.004 |
|
Diluted earnings (loss) per share of Class A and Class B Ordinary Shares |
|
$ |
(0.006 |
) |
|
$ |
(0.002 |
) |
|
$ |
(0.014 |
) |
|
$ |
0.004 |
|
PERFECT CORP. AND SUBSIDIARIES |
|||||||||||||||
UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL MEASURES – ADJUSTED NET INCOME (LOSS) CALCULATION |
|||||||||||||||
FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2022 AND 2023 |
|||||||||||||||
(Expressed in thousands of |
|||||||||||||||
|
|
Three months ended June 30 |
|
Six months ended June 30 |
|||||||||||
|
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|||||||
Items |
|
Amount |
|
Amount |
|
Amount |
|
Amount |
|||||||
Net Income (Loss) |
|
$ |
27,413 |
|
|
$ |
(206 |
) |
|
$ |
26,952 |
|
|
$ |
489 |
One-off Transaction Costs |
|
|
1,225 |
|
|
|
— |
|
|
|
2,825 |
|
|
|
33 |
Non-Cash Equity-Based Compensation |
|
|
552 |
|
|
|
791 |
|
|
|
1,006 |
|
|
|
1,441 |
Non-Cash Evaluation (Gain)/Loss of financial liabilities |
|
|
(28,374 |
) |
|
|
296 |
|
|
|
(28,374 |
) |
|
|
244 |
Foreign Exchange (Gain)/Loss |
|
|
(176 |
) |
|
|
179 |
|
|
|
(603 |
) |
|
|
215 |
Adjusted Net Income |
|
$ |
640 |
|
|
$ |
1,060 |
|
|
$ |
1,806 |
|
|
$ |
2,422 |
_________________
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 second quarter of 2022 included professional services expenditures that the Company incurred in connection with the de-SPAC transaction. No such cost incurred in the same period of 2023.
Category: Investor Relations
View source version on businesswire.com: https://www.businesswire.com/news/home/20230725100937/en/
Investor Relations
Robin Yang, Partner
ICR, LLC
Email: Investor_Relations@PerfectCorp.com
Phone: +1 (646) 880 9057
Source: Perfect Corp.
FAQ
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