EXCLUSIVE: Perfect Corp's Q2 Revenue Jumps 9.6%, YouCam App Subscribers Hit Record High

Perfect Corp PERF announced financial results for the three months ended June 30, 2024, the second quarter.

Total revenue was $13.9 million, compared to $12.7 million year ago, an increase of 9.6%. The increase was primarily due to growth in the revenue of AI- and AR-cloud solutions and mobile app subscriptions.

Gross profit was $11.0 million compared with $10.2 million in the year-ago quarter, an increase of 7.8%.

Despite the increase in gross profit, the gross margin slightly decreased to 79.3% for the second quarter, from 80.6% last year, primarily due to the increase in third-party payment processing fees paid to digital distribution partners such as Google and Apple related to the growth in its mobile app subscription revenue.

Net income was $0.8 million for Q2 compared to a net loss of $0.2 million. Adjusted net income was $1.3 million compared to adjusted net income of $0.9 million in 2023, an increase of 43.8%.

Operating cash flow was $2.0 million in the second quarter of 2024, compared to $2.6 million a decrease of 24.6%.

As of June 30, 2024, Perfect Corp held $120.8 million in cash and cash equivalents, compared to $122.0 million as of March 31, 2024.

Perfect Corp had 151 key customers as of June 30, 2024, compared with 152 as of March 31, 2024. The slight decrease in the number of key customers primarily resulted from specific brand clients’ non-renewal of customer contracts due to financial pressure, among other factors.

As of June 30, 2024, Perfect Corp’s cumulative customer base included 686 brand clients, with over 774,000 digital stock-keeping units for makeup, haircare, skincare, eyewear, and jewelry products, compared to 666 brand clients and over 745,000 digital SKUs as of March 31, 2024.

Perfect Corp’s YouCam mobile beauty app active subscribers grew by 18.3% year-over-year, reaching a record high of over 919,000 active subscribers at the end of the second quarter of 2024.

Perfect Corp expects such legacy non-recurring revenue to become increasingly insignificant as it continues strengthening its market leadership in providing AI—and AR-based SaaS subscription solutions for brands and customers.

Based on the growth momentum in enterprise SaaS solution demands and YouCam mobile app subscriptions during the first half of 2024, Perfect Corp reiterates its expectation that the year-over-year growth rate of total revenue in 2024 would range from 12% to 16% compared to 2023.

Price Action: PERF shares closed higher by 1.85% at $2.20 at Tuesday.