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Perfect Corp (PERF)
NYSE:PERF
US Market

Perfect Corp (PERF) AI Stock Analysis

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Perfect Corp

(NYSE:PERF)

Rating:72Outperform
Price Target:
$2.50
▲(14.68%Upside)
The overall stock score of 72 reflects strong financial performance with solid revenue growth and profitability potential, despite operational inefficiencies. Technical analysis shows bullish momentum but suggests the stock is overbought. Valuation indicates overvaluation, while the earnings call provides a positive outlook with some challenges in subscriber retention and client churn.

Perfect Corp (PERF) vs. SPDR S&P 500 ETF (SPY)

Perfect Corp Business Overview & Revenue Model

Company DescriptionPerfect 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.
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: 15.34%|
Next Earnings Date:Jul 23, 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
75
Positive
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.
Balance Sheet
78
Positive
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.
Cash Flow
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue61.93M60.20M53.51M47.30M40.76M29.87M
Gross Profit48.22M46.94M43.10M40.17M35.02M25.91M
EBITDA6.06M-2.05M6.26M-160.68M-155.78M-3.94M
Net Income6.68M5.02M5.42M-161.74M-156.85M-5.59M
Balance Sheet
Total Assets187.27M181.17M170.36M210.27M88.90M86.24M
Cash, Cash Equivalents and Short-Term Investments164.60M165.87M154.17M192.62M80.45M79.02M
Total Debt368.00K510.00K868.00K338.00K638.00K340.00K
Total Liabilities37.23M34.16M30.96M28.31M279.35M121.98M
Stockholders Equity150.04M147.01M139.41M181.96M-190.44M-35.74M
Cash Flow
Free Cash Flow13.45M12.61M13.26M-3.56M1.36M1.90M
Operating Cash Flow13.81M13.00M13.58M-3.31M1.55M2.19M
Investing Cash Flow-7.00M-8.88M-637.00K-30.26M-213.00K7.84M
Financing Cash Flow-543.00K-525.00K-51.50M118.03M-63.00K39.81M

Perfect Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.18
Price Trends
50DMA
1.87
Positive
100DMA
1.90
Positive
200DMA
2.02
Positive
Market Momentum
MACD
0.10
Negative
RSI
66.80
Neutral
STOCH
85.55
Negative
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 2.18 is above the 20-day moving average (MA) of 1.94, above the 50-day MA of 1.87, and above the 200-day MA of 2.02, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 66.80 is Neutral, neither overbought nor oversold. The STOCH value of 85.55 is Negative, 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 (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$222.03M32.984.60%11.28%43.07%
69
Neutral
¥231.71B14.677.64%2.71%9.09%8.52%
58
Neutral
$234.24M-27.44%16.03%30.99%
58
Neutral
$175.08M-22.66%-25.43%-135.09%
58
Neutral
$231.91M-24.47%-8.39%7.79%
57
Neutral
$134.12M10.7723.24%0.20%
LALAW
53
Neutral
$269.98M-33.75%3.84%-76.01%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PERF
Perfect Corp
2.18
-0.03
-1.36%
MAPS
WM Technology
0.87
-0.25
-22.32%
FRGE
Forge Global Holdings
19.00
-2.60
-12.04%
ONTF
ON24
5.46
-0.41
-6.98%
SMRT
SmartRent
0.93
-1.43
-60.59%
LAW
CS Disco
4.44
-1.40
-23.97%
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.Date of analysis: Jun 27, 2025