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Perfect Corp (PERF)
NYSE:PERF
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Perfect Corp
(NYSE:PERF)
Rating:67Neutral
Price Target:
$2.00
▲(0.00% Upside)
Perfect Corp (PERF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$208.79M
Dividend YieldN/A
Average Volume (3M)227.50K
Price to Earnings (P/E)33.8
Beta (1Y)1.11
Revenue Growth13.19%
EPS Growth9.39%
CountryUS
Employees342
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)<0.01
Shares Outstanding85,059,950
10 Day Avg. Volume163,193
30 Day Avg. Volume227,495
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.75Price Target Upside87.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Perfect Corp Business Overview & Revenue Model
Company DescriptionPerfect Corp (PERF) is a technology company specializing in artificial intelligence (AI) and augmented reality (AR) solutions for the beauty and fashion industries. The company provides innovative software applications and platforms that enhance consumer engagement through virtual try-ons, personalized beauty consultations, and digital makeup experiences. Perfect Corp's core products include YouCam Makeup, YouCam Perfect, and YouCam Nails, which are designed to offer an interactive and immersive experience for users seeking to explore beauty products and styles in a digital format.
How the Company Makes MoneyPerfect Corp generates revenue through a combination of B2B and B2C models. The company licenses its AI and AR technology to beauty brands and retailers, enabling them to integrate virtual try-on features into their digital platforms and physical stores. This B2B revenue stream is bolstered by partnerships with major beauty brands who use Perfect Corp's technology to enhance their customer engagement and sales. Additionally, the company monetizes its consumer-facing apps through premium subscriptions, in-app purchases, and advertising. These apps offer advanced features and exclusive content to paying users, contributing to the company's overall earnings. Strategic partnerships with industry leaders further amplify Perfect Corp's market presence and revenue potential.
Perfect Corp Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and net income growth, successful integration of the WANNA acquisition, and a solid financial position. However, challenges included a decrease in key customers and mobile app subscribers amid macroeconomic conditions. Overall, the positive financial performance and strategic advancements offset the challenges faced.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Total revenue grew by 12.1% year-over-year to $16 million, in line with revenue guidance for 2025.
Significant Increase in Net Income
Net income increased by 264% year-over-year to $2.3 million, with an adjusted net income increase of 33.3%.
Expansion of Mobile App Subscription Business
Active paying subscribers grew by 7.9% to 973,000, with new Generative AI features introduced.
Successful Integration of WANNA Acquisition
Integration of WANNA is progressing smoothly, leading to new growth opportunities and geographic expansion.
Positive Operating Cash Flow
Operating cash flow generated a net inflow of $4.3 million, strengthening the company's financial position.
Strong Balance Sheet
The company holds $164.6 million in cash and cash equivalents, demonstrating strong financial health.
Negative Updates
Decrease in Key Customers
The number of key customers decreased from 151 to 148 due to contract churn amid financial challenges in the macroeconomic environment.
Expected Decline in Mobile App Subscribers
Active subscribers decreased from 1 million at the end of 2024 to 973,000, attributed to pricing optimization and introduction of higher-priced plans.
Impact of Macroeconomic Conditions
Some enterprise clients in the U.S. faced financial pressures and terminated contracts due to economic uncertainties.
Company Guidance
During Perfect Corp.'s first quarter 2025 earnings call, CEO Alice Chang highlighted several key financial metrics and strategic initiatives. The company reported a 12.1% year-over-year revenue increase to $16 million, with a significant net income jump of 264% to $2.3 million. Adjusted net income rose by 33.3% to $2 million. The mobile app subscription business, particularly in the AI/AR cloud solutions sector, was a major growth driver, contributing to an operating cash flow of $4.3 million and maintaining a robust balance sheet with $164.6 million in cash and cash equivalents. The B2C segment saw a 7.9% increase in active paying subscribers, totaling 973,000, while the B2B segment expanded to 801 brand clients with over 891,000 SKUs. Strategic developments included the launch of the YouCam AI Chat app and the integration of the newly acquired WANNA team, enhancing their market position, especially in the shoes vertical. The company's growth strategy remains focused on expanding the Generative AI functions and driving higher premium subscriptions, while also integrating new acquisitions to bolster their presence in the beauty and fashion markets.Perfect Corp Financial Statement Overview
Summary
Perfect Corp demonstrates strong revenue growth and profitability potential, with high gross profit margins. The balance sheet highlights financial stability with minimal debt and strong equity ratios. Cash flow generation is positive, though reliance on low capital expenditures could limit future expansion. Operational inefficiencies remain a concern, as reflected in negative EBIT margins.Income Statement
Perfect Corp demonstrates robust revenue growth with a TTM increase of 28.69% compared to 2020. Gross profit margins remain high at 77.89% TTM, underscoring strong profitability potential. However, the company faces challenges with EBIT margins in the negative, indicating operational inefficiencies. Net profit margins have improved, showcasing better cost management and a positive net income trajectory.75
Positive
Balance Sheet
The balance sheet is solid with a low debt-to-equity ratio of 0.0025 TTM, reflecting minimal leverage risk. The equity ratio is strong at 80.13% TTM, indicating a healthy reliance on equity financing and financial stability. The company has consistently increased stockholders' equity, suggesting robust asset growth and retained earnings.78
Positive
Cash Flow
Cash flow analysis reveals positive free cash flow growth, supported by a 6.63% increase in TTM free cash flow. The operating cash flow to net income ratio of 2.07 indicates efficient cash generation relative to earnings. However, the capital expenditure remains low, which might impact long-term growth potential.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 64.37M | 60.20M | 53.51M | 47.30M | 40.76M | 29.87M |
| Gross Profit | 49.50M | 46.94M | 43.10M | 40.17M | 35.02M | 25.91M |
| EBITDA | 6.17M | -2.05M | 6.26M | -160.68M | -155.78M | -3.94M |
| Net Income | 6.13M | 5.02M | 5.42M | -161.74M | -156.85M | -5.59M |
Balance Sheet | ||||||
| Total Assets | 190.15M | 181.17M | 170.36M | 210.27M | 88.90M | 86.24M |
| Cash, Cash Equivalents and Short-Term Investments | 167.79M | 165.87M | 154.17M | 192.62M | 80.45M | 79.02M |
| Total Debt | 722.00K | 510.00K | 868.00K | 338.00K | 638.00K | 340.00K |
| Total Liabilities | 39.53M | 34.16M | 30.96M | 28.31M | 279.35M | 121.98M |
| Stockholders Equity | 150.63M | 147.01M | 139.41M | 181.96M | -190.44M | -35.74M |
Cash Flow | ||||||
| Free Cash Flow | 15.16M | 12.61M | 13.26M | -3.56M | 1.36M | 1.90M |
| Operating Cash Flow | 15.46M | 13.00M | 13.58M | -3.31M | 1.55M | 2.19M |
| Investing Cash Flow | -10.83M | -8.88M | -637.00K | -30.26M | -213.00K | 7.84M |
| Financing Cash Flow | -588.52K | -525.00K | -51.50M | 118.03M | -63.00K | 39.81M |
Perfect Corp Technical Analysis
Negative
2.00
Price Trends
2.16
Negative
1.99
Positive
2.07
Negative
Market Momentum
-0.02
Negative
47.69
Neutral
59.77
Neutral
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 2 is above the 20-day moving average (MA) of 1.96, below the 50-day MA of 2.16, and below the 200-day MA of 2.07, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 59.77 is Neutral, 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $208.79M | 33.83 | 4.19% | ― | 13.19% | 9.39% | |
65 Neutral | $194.12M | 14.34 | 22.69% | ― | 2.37% | ― | |
61 Neutral | $35.45B | 8.20 | -10.60% | 1.91% | 8.56% | -9.51% | |
58 Neutral | $256.39M | ― | -28.14% | ― | 14.78% | 21.87% | |
58 Neutral | $278.34M | ― | -25.48% | ― | -28.45% | -224.48% | |
56 Neutral | $241.99M | ― | -22.60% | ― | -6.88% | 15.83% | |
49 Neutral | $337.73M | ― | -36.64% | ― | 4.05% | -100.64% |
* Technology Sector Average
Performance Comparison
PERF
Perfect Corp
2.00
0.13
6.95%
MAPS
WM Technology
1.14
0.19
20.00%
FRGE
Forge Global Holdings
17.92
-2.18
-10.85%
ONTF
ON24
5.56
-0.63
-10.18%
SMRT
SmartRent
1.45
-0.22
-13.17%
LAW
CS Disco
5.32
0.00
0.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.