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Perfect Corp. Class A (PERF)
:PERF
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Perfect Corp
(NYSE:PERF)
66Neutral
Perfect Corp (PERF) vs. S&P 500 (SPY)
Market Cap
$172.13M
Dividend YieldN/A
Average Volume (3M)143.58K
Price to Earnings (P/E)34.8
Beta (1Y)1.18
Revenue Growth12.52%
EPS Growth5.66%
CountryUS
Employees321
SectorTechnology
Sector Strength43
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.05
Shares Outstanding85,059,950
10 Day Avg. Volume81,932
30 Day Avg. Volume143,577
Financial Highlights & Ratios
PEG Ratio6.15
Price to Book (P/B)N/A
Price to Sales (P/S)3.67
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside195.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Perfect Corp Business Overview & Revenue Model
Company DescriptionPerfect Corp (PERF) is a technology company specializing in augmented reality (AR) and artificial intelligence (AI) solutions for the beauty and fashion industries. The company develops virtual try-on technology and beauty tech solutions that enhance customer experience through digital transformation. Perfect Corp's core products include the YouCam suite of apps, which allow users to virtually try on makeup, hairstyles, and accessories.
How the Company Makes MoneyPerfect Corp makes money through a combination of B2B and B2C revenue streams. The company licenses its AR and AI technology to beauty brands, retailers, and e-commerce platforms, enabling them to integrate virtual try-on features into their digital offerings. This B2B model is supported by subscription fees and service charges. Additionally, Perfect Corp generates revenue from its consumer-facing apps, such as YouCam Makeup, through in-app purchases and premium subscriptions. Key partnerships with major beauty brands and technology companies further bolster its earnings by expanding its reach and service offerings.
Perfect Corp Financial Statement Overview
Summary
Perfect Corp exhibits strong revenue growth and maintains a solid balance sheet with low leverage and high equity funding. Despite a challenging EBIT environment, the company achieves positive net profitability and generates sufficient cash flow to support operations. Continued focus on improving EBIT margins and sustaining free cash flow will be crucial for enhancing long-term financial stability.Income Statement
Perfect Corp has demonstrated strong revenue growth with a 9.2% increase in TTM (Trailing-Twelve-Months) compared to the previous annual period. Gross profit margin remains robust at 79.8%, indicating efficient cost management. However, the company is facing challenges in profitability with a negative EBIT margin of -6.7%. Despite this, the net profit margin is positive at 9.1%, supported by other income sources or cost efficiencies.78
Positive
Balance Sheet
The balance sheet shows a solid financial position with a debt-to-equity ratio of 0.0045, indicating minimal leverage. The equity ratio stands at 81.0%, reflecting a strong asset base funded by equity. Return on equity is a positive 3.7%, suggesting efficient use of shareholders' funds, though there is room for improvement in profitability.85
Very Positive
Cash Flow
Cash flows demonstrate a stable operational capacity with an operating cash flow to net income ratio of 1.2. Free cash flow has declined by 55.3% TTM, raising concerns over cash generation consistency. The free cash flow to net income ratio remains healthy at 1.1, suggesting that cash generation aligns well with reported earnings.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 58.45M | 53.51M | 47.30M | 40.76M | 29.87M | 22.93M | Gross Profit |
| 46.66M | 43.10M | 40.17M | 35.02M | 25.91M | 21.33M | EBIT |
| -3.89M | -5.66M | -71.07M | -5.02M | -2.66M | -750.00K | EBITDA |
| 2.59M | 6.26M | -160.68M | -155.78M | -3.94M | -1.10M | Net Income Common Stockholders |
| 5.33M | 5.42M | -161.74M | -156.85M | -5.59M | -1.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 36.08M | 154.17M | 192.62M | 80.45M | 79.02M | 36.46M | Total Assets |
| 0.00 | 170.36M | 210.27M | 88.90M | 86.24M | 44.46M | Total Debt |
| 0.00 | 868.00K | 338.00K | 638.00K | 340.00K | 426.00K | Net Debt |
| 36.08M | -123.00M | -162.28M | -79.81M | -78.68M | -27.86M | Total Liabilities |
| 0.00 | 30.96M | 28.31M | 279.35M | 121.98M | 65.66M | Stockholders Equity |
| -21.20M | 139.41M | 181.96M | -190.44M | -35.74M | -21.20M |
| Cash Flow | Free Cash Flow | ||||
| 5.92M | 13.26M | -3.56M | 1.36M | 1.90M | -1.49M | Operating Cash Flow |
| 6.23M | 13.58M | -3.31M | 1.55M | 2.19M | -1.25M | Investing Cash Flow |
| -1.02M | -637.00K | -30.26M | -213.00K | 7.84M | -7.77M | Financing Cash Flow |
| -265.00K | -51.50M | 118.03M | -63.00K | 39.81M | 26.16M |
Perfect Corp Technical Analysis
Negative
1.69
Price Trends
2.10
Negative
2.17
Negative
2.09
Negative
Market Momentum
-0.10
Negative
38.82
Neutral
12.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PERF, the sentiment is Negative. The current price of 1.69 is below the 20-day moving average (MA) of 1.82, below the 50-day MA of 2.10, and below the 200-day MA of 2.09, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 38.82 is Neutral, neither overbought nor oversold. The STOCH value of 12.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PERF.
Perfect Corp Risk Analysis
Perfect Corp disclosed 97 risk factors in its most recent earnings report. Perfect Corp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Perfect Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $10.98B | 58.40 | 21.24% | ― | 17.47% | 49.87% | |
75 Outperform | $164.39B | 25.40 | 47.28% | ― | 10.65% | 44.84% | |
75 Outperform | $259.44B | 42.43 | 10.26% | 0.59% | 8.72% | 51.47% | |
66 Neutral | $172.13M | 34.85 | 3.51% | ― | 12.52% | 5.66% | |
59 Neutral | $57.11B | ― | -32.59% | ― | 23.19% | 11.01% | |
58 Neutral | $21.03B | 10.28 | -16.29% | 2.47% | 4.45% | -23.80% | |
57 Neutral | $50.33B | ― | -31.43% | ― | 29.21% | -51.47% |
* Technology Sector Average
Performance Comparison
PERF
Perfect Corp
1.69
-0.72
-29.88%
ADBE
Adobe
385.71
-116.38
-23.18%
CRM
Salesforce
269.97
-31.00
-10.30%
TEAM
Atlassian
217.99
24.62
12.73%
SNOW
Snowflake
150.63
-9.89
-6.16%
DOCS
Doximity
58.51
32.10
121.54%
Perfect Corp Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -12.44% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong growth in revenue and active subscribers, strategic acquisitions, and expansion into new markets. However, there were challenges such as a significant decline in licensing revenue, ongoing difficulties in the B2B market, and a decrease in gross margin due to increased costs.Highlights
Double-Digit Revenue Growth
Perfect Corp. reported a 12.5% year-over-year revenue growth for the full year 2024, reaching $60.2 million, driven by strong growth in the mobile app subscription business under AI/AR cloud solutions.
Increase in Active Paying Subscribers
The number of active paying subscribers for Perfect Corp.'s mobile app business grew by 14.3% to over 1 million at the end of 2024 compared to 879,000 at the end of 2023.
Strategic Acquisition of Wanna
Perfect Corp. completed the acquisition of Wanna from Farfetch, expanding its market reach in the fashion sector, particularly in virtual try-on services for shoes, handbags, scarves, and clothes.
B2B Expansion and New Markets
Perfect Corp. deepened market penetration in skincare and makeup segments, expanded to aesthetic clinics, and reached 732 brand clients with over 822,000 SKUs onboarded.
Strong Cash Position
The company held $165.9 million in cash and cash equivalents at the end of 2024, demonstrating strong financial health.
Lowlights
Decrease in Licensing Revenue
Licensing revenue decreased by 72.2% in Q4 2024 to $0.5 million compared to $1.8 million during the same period in 2023.
Challenges in B2B Market
The B2B market remains challenging with clients being cautious about their spending plans due to economic factors like tariffs and inflation.
Gross Margin Decline
Gross margin decreased to 74.1% in Q4 2024 from 81.3% in the same period of 2023, primarily due to increased third-party payment processing fees.
Company Guidance
During the conference call, Perfect Corp. provided guidance for 2025, projecting total revenue growth between 13% and 14.5% compared to 2024. The company reported a strong financial performance in 2024, with total revenue increasing by 12.5% year-over-year to $60.2 million. The adjusted net income rose by 18.6% to $8.3 million, while operating cash flow generated a net inflow of $13 million. The company's mobile app subscription business saw significant growth, with active paying subscribers increasing by 14.3% to over 1 million. The B2B segment experienced challenges, but the acquisition of Wanna from Farfetch is expected to expand Perfect Corp.'s market reach and strengthen its position in the fashion and beauty sectors. Despite a decline in gross margin to 74.1% in the fourth quarter, the company remains optimistic about sustained growth through continued investment in AI technology and strategic expansions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.