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Perfect Corp (PERF)
NYSE:PERF
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Perfect Corp
(NYSE:PERF)
Rating:72Outperform
Price Target:
$2.50
▲(0.00%Upside)
Perfect Corp (PERF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$254.62M
Dividend YieldN/A
Average Volume (3M)317.10K
Price to Earnings (P/E)37.8
Beta (1Y)1.02
Revenue Growth11.28%
EPS Growth43.07%
CountryUS
Employees342
SectorTechnology
Sector Strength94
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.02
Shares Outstanding85,059,950
10 Day Avg. Volume198,307
30 Day Avg. Volume317,101
Financial Highlights & Ratios
PEG Ratio1.00
Price to Book (P/B)1.57
Price to Sales (P/S)0.00
P/FCF Ratio17.87
Enterprise Value/Market Cap0.44
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit2.33
Enterprise Value/Ebitda9.53
Forecast
1Y Price Target
$5.00Price Target Upside100.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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:Apr 28, 2025
(Q1-2025)
| % Change Since: 32.28%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call revealed a strong financial performance with significant revenue and net income growth, successful integration of acquisitions, and innovative product launches. However, challenges include a decrease in active subscribers and client churn in the U.S. market. Despite these challenges, the company's overall performance and growth prospects appear promising.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Total revenue grew by 12.1% year-over-year to $16 million, driven by the strong performance of the AI/AR cloud solution sector and mobile app subscription business.
Remarkable Increase in Net Income
Net income increased by 264% year-over-year to $2.3 million, with adjusted net income growing 33.3% to $2 million.
Strong Operating Cash Flow
The company generated a net operating cash flow of $4.3 million, demonstrating continuous cash flow generation to support business operations and growth strategy.
Successful Integration of WANNA Acquisition
The integration of WANNA is progressing smoothly, enhancing market position and expanding the addressable market, particularly in the shoes vertical.
Innovative Product Launches
Launched YouCam AI Chat app featuring personal AI assistance and powerful AI tools, fulfilling the growing demand for seamless digital interactions.
Expansion in Brand Clients
Enterprise customer base increased by 59 brand clients, totaling 801 brand clients with over 891,000 SKUs.
Negative Updates
Decrease in Active Subscribers
The number of active paying subscribers decreased from 1 million at the end of 2024 to 973,000 by the end of the first quarter of 2025.
Client Churn in the U.S.
Reduction in key customers from 151 to 148 due to unexpected U.S. clients contract churn amid rising financial challenges.
Company Guidance
During Perfect Corp.'s first quarter 2025 earnings call, management provided guidance reflecting positive financial performance and future growth strategies. The company reported a 12.1% year-over-year revenue increase to $16 million, with net income rising 264% to $2.3 million. The number of active paying subscribers grew by 7.9% to 973,000. Cash and cash equivalents stood strong at $164.6 million, with a net operating cash flow of $4.3 million. The company maintained its 2025 revenue growth guidance between 13% and 14.5%. Perfect Corp. is focusing on expanding its B2C revenue through new Generative AI features and premium subscription plans while integrating the WANNA acquisition to enhance its B2B offerings, particularly in the beauty and fashion market. Despite losing some medium-sized B2B clients due to macroeconomic pressures, the company remains optimistic about capitalizing on future opportunities.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 60.20M | 53.51M | 47.30M | 40.76M | 29.87M |
| Gross Profit | 46.94M | 43.10M | 40.17M | 35.02M | 25.91M |
| EBITDA | -2.05M | 6.26M | -160.68M | -155.78M | -3.94M |
| Net Income | 5.02M | 5.42M | -161.74M | -156.85M | -5.59M |
Balance Sheet | |||||
| Total Assets | 181.17M | 170.36M | 210.27M | 88.90M | 86.24M |
| Cash, Cash Equivalents and Short-Term Investments | 165.87M | 154.17M | 192.62M | 80.45M | 79.02M |
| Total Debt | 510.00K | 868.00K | 338.00K | 638.00K | 340.00K |
| Total Liabilities | 34.16M | 30.96M | 28.31M | 279.35M | 121.98M |
| Stockholders Equity | 147.01M | 139.41M | 181.96M | -190.44M | -35.74M |
Cash Flow | |||||
| Free Cash Flow | 12.61M | 13.26M | -3.56M | 1.36M | 1.90M |
| Operating Cash Flow | 13.00M | 13.58M | -3.31M | 1.55M | 2.19M |
| Investing Cash Flow | -8.88M | -637.00K | -30.26M | -213.00K | 7.84M |
| Financing Cash Flow | -525.00K | -51.50M | 118.03M | -63.00K | 39.81M |
Perfect Corp Technical Analysis
Positive
2.50
Price Trends
2.03
Positive
1.91
Positive
2.05
Positive
Market Momentum
0.11
Positive
66.23
Neutral
48.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PERF, the sentiment is Positive. The current price of 2.5 is above the 20-day moving average (MA) of 2.29, above the 50-day MA of 2.03, and above the 200-day MA of 2.05, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 48.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $254.62M | 37.82 | 4.60% | ― | 11.28% | 43.07% | |
63 Neutral | $34.60B | 5.43 | -11.64% | 2.14% | 5.30% | -18.55% | |
61 Neutral | $147.07M | 11.81 | 23.24% | ― | 0.20% | ― | |
58 Neutral | $224.62M | ― | -27.44% | ― | 16.03% | 30.99% | |
56 Neutral | $181.78M | ― | -22.66% | ― | -25.43% | -135.09% | |
54 Neutral | $249.31M | ― | -33.75% | ― | 3.84% | -76.01% | |
52 Neutral | $221.30M | ― | -24.47% | ― | -8.39% | 7.79% |
* Technology Sector Average
Performance Comparison
PERF
Perfect Corp
2.50
0.34
15.74%
MAPS
WM Technology
0.95
-0.08
-7.77%
FRGE
Forge Global Holdings
18.22
-3.38
-15.65%
ONTF
ON24
5.21
-1.28
-19.72%
SMRT
SmartRent
0.97
-1.45
-59.92%
LAW
CS Disco
4.10
-1.66
-28.82%
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.