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1. Company Snapshot

1.a. Company Description

Perfect Corp.provides SaaS artificial intelligence and augmented reality beauty and fashion tech business solutions.The company offers AR makeup virtual try-on, YouCam tutorial, AI foundation shade finder and matcher, AI virtual background changer, AI skin analysis, AI face analyzer, AI face reshape simulator, AI personality finder, in-store barcode try-on, AI virtual hair color try-on, AR hairstyle virtual try-on, AI beard dye and beard style virtual try-on, hat and headband virtual try-on, AI-powered virtual try-on for glasses, virtual try-on for nails, AR watch virtual try-on, AR ring virtual try-on, AR bracelet virtual try-on, and AR earring virtual try-on solutions and services.


It also provides YouCam makeup, YouCam perfect, YouCam video, YouCam cut, YouCam nails, and YouCam fun apps.The company was founded in 2015 and is based in New Taipei City, Taiwan.

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1.b. Last Insights on PERF

Perfect Corp.'s recent performance faced challenges due to intensifying competition in the AI and AR beauty and fashion technology space. Although the company has made significant strides in product innovation, such as the launch of YouCam AI Beauty Agent and expansion of YouCam AI Pro, increasing competition from established players may pressure its market share. Additionally, the company's partnership with Marini SkinSolutions and Erborian highlights its efforts to enhance customer experience, but sustaining growth amidst rising competition remains a concern.

1.c. Company Highlights

2. Perfect Corp. Delivers Strong Q1 2025 Earnings with AI and B2B Growth

Perfect Corp. reported a solid first quarter for 2025, with revenue growing 12.1% year-over-year to $16 million, driven by robust performance in AI/AR cloud solutions and subscription services. The company's net income surged 264% to $2.3 million, while adjusted net income rose 33.3% to $2 million, reflecting improved operational efficiency. Operating cash flow was $4.3 million, and the company maintained a strong cash position of $164.6 million, underscoring its financial stability. As Louis Chen noted during the earnings call, "WANNA added over a dozen key customers, offsetting some losses and highlighting our expanding B2B presence."

Publication Date: Apr -29

📋 Highlights
  • Revenue Growth: 12.1% YoY increase to $16 million, driven by AI/AR cloud solutions and subscriptions.
  • Net Income Surge: Net income rose 264% YoY to $2.3 million, with adjusted net income up 33.3% to $2 million.
  • B2C Subscriber Growth: B2C mobile app subscribers grew 7.9% to 973,000, despite pricing optimization.
  • WANNA Integration: WANNA acquisition expanded B2B presence, adding over a dozen key customers and enhancing sales processes.
  • Cash Position: Strong cash reserves of $164.6 million and $4.3 million in operating cash flow, supporting growth initiatives.

B2C Monetization and Pricing Strategy

The company's B2C segment showed resilience, with mobile app subscribers increasing 7.9% to 973,000. The launch of YouCam AI Chat and AI skin diagnostics through a major U.S. beauty retailer enhanced its competitive edge. A strategic price optimization, raising annual subscriptions from $39 to $79, was well-received, contributing to higher ASP and revenue growth.

B2B Expansion and Integration

Despite a slight drop in key B2B customers to 148 due to macroeconomic challenges, the integration of WANNA has bolstered Perfect Corp.'s position, especially in the shoe market. The company now serves 801 brands with 891,000 SKUs, showcasing its ability to expand despite economic pressures. Management remains confident, attributing client churn to financial constraints rather than competitive factors.

Valuation and Growth Outlook

With a P/S ratio of 3.31 and EV/EBITDA of 19.08, the stock is priced at a premium, reflecting high growth expectations. The free cash flow yield of 4.6% highlights its cash generation ability. Guidance for 2025 remains at 13-14.5% revenue growth, aligning with analyst estimates of 13.8%. EPS matched expectations at $0.02, reinforcing confidence in the company's strategy and execution.

3. NewsRoom

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A Near-Perfect Storm For FirstCash Is Driving Healthy Numbers

Dec -02

Source: seekingalpha.com

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I Am Betting Big On This Near-Perfect 8%-Yielding Income Machine For Early Retirement

Dec -02

Source: seekingalpha.com

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NUK® Expands Perfect Match™ Line to Help Make Feeding & Soothing Natural at Every Stage

Dec -02

Source: prnewswire.com

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Perfect Corp. Partners with Tom Ford Fashion to Deliver Ultra-Realistic 3D Virtual Try-On for Luxury Eyewear, Redefining the Digital Shopping Experience

Dec -02

Source: businesswire.com

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Hydreight Technologies Acquires 5% Equity Stake in Perfect Scripts, LLC, with Option to Increase up to 40%, and Establishes Strategic Partnership

Nov -28

Source: globenewswire.com

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History Says Now Is the Perfect Time to Buy Meta Stock

Nov -27

Source: fool.com

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ETF Prime: Nuclear Energy Sees Perfect Alignment of Tailwinds

Nov -26

Source: etftrends.com

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Perfect Corp. to Present at the Noble Capital Markets Twenty-First Annual Emerging Growth Equity Conference

Nov -25

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (22.97%)

6. Segments

Augmented Reality/Artificial Intelligence Cloud Solutions and Subscription

Expected Growth: 27.18%

Perfect Corp's 27.18% growth in Augmented Reality/Artificial Intelligence Cloud Solutions and Subscription is driven by increasing demand for virtual try-on and AI-powered beauty tech, expansion into new markets, strategic partnerships, and growing adoption of cloud-based services in the beauty and fashion industries.

Licensing

Expected Growth: 12.07%

Perfect Corp.'s 12.07% growth is driven by increasing demand for AI-powered beauty tech, strategic partnerships, and expansion into new markets. The company's innovative virtual try-on and skincare analysis solutions are resonating with consumers, leading to higher adoption rates. Additionally, the growing importance of digital transformation in the beauty industry is fueling demand for Perfect Corp.'s licensing services.

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Expected Growth: 10.95%

Perfect Corp's 10.95% growth is driven by increasing demand for augmented reality (AR) and artificial intelligence (AI) in the beauty industry, expansion into new markets, and strategic partnerships. Additionally, the company's innovative products and services, such as virtual try-on and AI-powered beauty consultations, are attracting a growing customer base.

Others

Expected Growth: 10.27%

Perfect Corp's 10.27% growth is driven by increasing demand for AI-powered beauty tech, strategic partnerships, and expansion into new markets. The company's innovative solutions, such as virtual try-on and skincare analysis, are resonating with consumers and beauty brands, leading to revenue growth.

7. Detailed Products

YouCam Makeup

A virtual try-on platform for makeup and beauty products

YouCam Nails

A virtual try-on platform for nail polish and nail art

YouCam Hair

A virtual try-on platform for hair colors and styles

Beauty Tech

AI-powered beauty technology solutions for businesses

AR Virtual Try-On

Augmented reality virtual try-on solutions for beauty and fashion

AI Skin Analysis

AI-powered skin analysis technology for personalized skincare

Digital Makeup Services

Digital makeup services for beauty and fashion brands

8. Perfect Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Perfect Corp. has a medium threat of substitutes due to the availability of alternative beauty and wellness products in the market.

Bargaining Power Of Customers

Perfect Corp. has a high bargaining power of customers due to the high demand for beauty and wellness products, giving customers the power to negotiate prices and quality.

Bargaining Power Of Suppliers

Perfect Corp. has a low bargaining power of suppliers due to the availability of multiple suppliers for raw materials and components.

Threat Of New Entrants

Perfect Corp. has a medium threat of new entrants due to the moderate barriers to entry in the beauty and wellness industry.

Intensity Of Rivalry

Perfect Corp. operates in a highly competitive industry with many established players, resulting in a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.62%
Debt Cost 3.95%
Equity Weight 99.38%
Equity Cost 5.49%
WACC 5.48%
Leverage 0.62%

11. Quality Control: Perfect Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Perfect

A-Score: 5.5/10

Value: 5.2

Growth: 7.6

Quality: 8.0

Yield: 0.0

Momentum: 6.0

Volatility: 6.0

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SYLA Technologies

A-Score: 5.3/10

Value: 7.5

Growth: 5.7

Quality: 5.4

Yield: 0.0

Momentum: 7.5

Volatility: 5.7

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HeartCore Enterprises

A-Score: 4.6/10

Value: 7.9

Growth: 4.2

Quality: 6.4

Yield: 1.7

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Xiao-I

A-Score: 4.2/10

Value: 9.8

Growth: 4.7

Quality: 6.5

Yield: 0.0

Momentum: 2.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
TROOPS

A-Score: 3.6/10

Value: 6.8

Growth: 5.1

Quality: 4.1

Yield: 0.0

Momentum: 3.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
MMTec

A-Score: 3.4/10

Value: 6.9

Growth: 4.9

Quality: 4.8

Yield: 0.0

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.79$

Current Price

1.79$

Potential

-0.00%

Expected Cash-Flows