Perfect (PERF) Q4 2024 earnings summary

Executive summary

• Achieved double-digit revenue growth of 12.5% year-over-year to $60.2 million for full year 2024, driven by strong B2C mobile app subscriptions and AI/AR cloud solutions.

• Net income for 2024 was $5 million, with adjusted net income up 18.6% to $8.3 million, reflecting effective cost control and one-time transaction costs.

• B2C mobile app business saw active paying subscribers rise 14.3% to over 1 million, with robust demand and continued innovation in generative AI features.

• Completed acquisition of WANNA/Wannaby Inc. from Farfetch in January 2025, expanding into luxury fashion tech and virtual try-on for shoes, bags, and apparel.

• B2B business reached 732 brand clients and 822,000 SKUs, with strong demand for AI-powered skin diagnostics and virtual try-on solutions, though B2B growth remains challenging due to macroeconomic caution.

Financial highlights

• Q4 2024 revenue increased 12.4% year-over-year to $15.9 million; full year revenue up 12.5% to $60.2 million.

• AI/AR cloud solution and subscription revenue grew 25.4% year-over-year in Q4, now 95% of total revenue; licensing revenue declined 72.2% as the model is phased out.

• Q4 gross profit was $11.8 million (gross margin 74.1%), full year gross profit $46.9 million (gross margin 78%), with margin compression 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 $5 million, down 7.3%. Adjusted net income for the year was $8.3 million (adjusted net margin 13.8%).

• Operating cash flow for 2024 was $13 million; cash and equivalents at year-end totaled $165.9 million.

Outlook and guidance

• 2025 revenue growth guidance is 13%-14.5% year-over-year, driven by continued B2C momentum, integration of WANNA, and enterprise SaaS demand.

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

• Management remains cautiously optimistic, monitoring macroeconomic risks and client spending patterns.