Perfect Corp. Q3 FY2023 earnings call

• Revenue growth: Total revenue was $14.5 million, up 13.2% y-o-y and 14.7% q-o-q. Net income was positive at $3.5 million adjusted. - B2B: Secured new and renewal deals with beauty brands, expanded SKU offerings, and partnered with Dufry and Walmart. - AI advancements: Promising developments in AI skincare, hairstyle, and new 2D to 3D SKU conversion tech for jewelry. - B2C: Mobile app active subscribers grew 62.5% y-o-y to 835,000. YouCam app introduced AI-driven premium features and expanded monetization with apps like YouCam AI Pro.

In the third quarter of 2023, total revenue was $14.5 million, marking a 13.2% year-over-year increase and 14.7% quarter-over-quarter increase. The primary drivers were AI cloud solutions/B2B and mobile beauty app business/B2C subscription services. AI cloud solution and subscription revenue grew by 24.8% to $11.4 million, constituting 78.3% of total revenue. Licensing revenue, mostly from traditional offline services, decreased by 13.6% to $2.8 million, representing 19.5% of total revenue.

• Reaffirmed 2023 revenue growth projection: Expected to range from 11.5% to 14.5% year-over-year compared to 2022. - Confident in yearly guidance for 2023, with plans to assess 2024 growth internally but no specific near-term faster growth indication yet.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed. Perfect Corp. undertakes no obligation to update forward-looking statements except as required by law.

Q: Clarke Jefferies asked about spending trends in top 5 customer cohort and brand revenue acceleration.

A: Renewals with large customers are healthy; brand revenue acceleration expected from new AI innovations and expansion to more distribution channels.

Q: Timothy Zhao asked about growth rate of AI solutions segments (2B vs 2C) and 2024 guidance.

A: B2C mobile app active subscribers grew 60+% y-o-y; 2023 guidance reaffirmed, with internal work on 2024 growth but no specific faster growth indication yet.

Q: Camden Levy asked about go-to-market adjustments and emerging verticals.

A: No major increase in sales and marketing headcount; focus on female shoppers and categories like accessories, apparel; core focus on Generative AI and AR commerce with cautious approach to market entry