Perfect (PERF) Q4 2024 earnings summary

Executive summary

• Achieved double-digit revenue growth in 2024, with total revenue up 12.5% year-over-year to $60.2 million and net income of $5 million, driven by mobile app subscriptions and AI/AR cloud solutions.

• Adjusted net income increased 18.6% to $8.3 million, reflecting effective cost control despite a decline in net income due to one-time transaction costs.

• Completed acquisition of WANNA (Wannaby Inc.) from Farfetch in January 2025, expanding into luxury fashion tech and enhancing AR and 3D VTO capabilities.

• Maintained a robust balance sheet with $165.9 million in cash and equivalents at year-end.

Financial highlights

• Q4 2024 revenue rose 12.4% year-over-year to $15.9 million; full-year revenue reached $60.2 million, up from $53.5 million in 2023.

• Gross profit for 2024 was $46.9 million with a gross margin of 78%, down from 80.6% in 2023 due to higher third-party payment processing fees.

• Q4 net income was $1.1 million, down 21.8% year-over-year; full-year net income was $5.0 million, down 7.3%.

• Operating cash flow for 2024 was $13 million, slightly down from $13.6 million in 2023.

Outlook and guidance

• 2025 revenue growth projected at 13%-14.5% year-over-year, driven by continued B2C momentum, YouCam apps, and integration of WANNA.

• B2C expected to grow faster than B2B, with B2B contributing 30%-40% of total revenue in 2025, down from about 40% in 2024.

• Continued investment in AI innovation and R&D, focusing on generative AI and digital marketing.