Perfect (PERF) Q2 2024 earnings summary

Executive summary

• First half 2024 revenue grew 13.5% year-over-year to $28.2 million, with Q2 2024 revenue at $13.9 million, up 9.6% year-over-year, driven by AI/AR cloud solutions and mobile app subscriptions.

• Net income for Q2 2024 reached $0.8 million, reversing a net loss of $0.2 million in Q2 2023; adjusted net income rose 43.8% to $1.3 million.

• Mobile beauty app active subscribers increased 18.3% year-over-year to over 919,000, reaching a historical high.

• Major product launches included PerfectGPT, BeautyGPT, SkincareGPT, and the world's first HD Skin Analysis and AI Makeup Transfer solutions.

• Management highlighted operational efficiencies, cost reductions, and productivity gains as key contributors to improved financial performance.

Financial highlights

• Q2 2024 total revenue: $13.9 million (up 9.6% year-over-year); subscription revenue: $12.9 million (up 17.4%), now 92.8% of total revenue.

• Gross profit for Q2 2024: $11 million (gross margin 79.3%), up from $10.2 million (80.6%) in Q2 2023.

• Operating expenses for Q2 2024: $12.4 million, up 0.7% year-over-year; sales and marketing up 7%, R&D up 7.5%, G&A down 19.1%.

• Cash, equivalents, and deposits as of June 30, 2024: $158.8 million, up from $157.3 million at March 31, 2024.

• Operating cash flow for Q2 2024: $2 million (down from $2.6 million in Q2 2023).

Outlook and guidance

• Full-year 2024 revenue growth projected at 12%-16% over 2023, reaffirmed based on current pipeline and market conditions.

• Management expects continued strong performance in both B2C and B2B segments, with potential upside if macroeconomic conditions improve.