Perfect Corp.

Perfect Corp. reported Q1 2025 revenue of $16 million, up 12.1% from $14.3 million a year ago. Gross profit was $12.5 million, up 11.4%, and gross margin was 77.9% versus 78.3% in Q1 2024. Net income was $2.3 million, up 264% from $0.6 million, and adjusted net income was $2 million, up 33.3% from $1.5 million; adjusted net margin was 12.6%. AI/AR cloud solutions and subscription revenue grew 13.3% to $14.1 million, while licensing revenue was $1.6 million. For the balance sheet, the company had $164.6 million in cash and cash equivalents and six-month deposits as of March 31, 2025, versus $165.9 million at year-end 2024, and operating cash flow was a positive $4.3 million. Management said 2025 total revenue growth is expected to be 13% to 14.5% year over year.

Alice Chang said Q1 continued the company’s momentum from late 2024, with growth driven by mobile app subscriptions and AI/AR cloud solutions even amid macro uncertainty. She highlighted the launch of YouCam AI Chat, the smooth integration of WANNA, and expansion in AI skin diagnostics and enterprise APIs. Her tone was upbeat and execution-focused, emphasizing product innovation, geographic expansion, and a strategy to increase premium subscription value.

Louis Chen detailed that revenue grew to $16 million from $14.3 million, with AI/AR cloud solutions and subscription revenue up 13.3% to $14.1 million and gross margin at 77.9%. Operating expenses rose 2% to $12.6 million, with sales and marketing at $7.4 million, R&D at $3.6 million, and G&A down 21.6% to $1.7 million. He cited $2.3 million of net income, $2 million of adjusted net income, $4.3 million of operating cash flow, and $164.6 million in cash and deposits, and said the company will stay selective on M&A while investing in R&D and marketing.

Analysts focused on the new AI chat app launch, WANNA integration, acquisition strategy, B2C pricing changes, customer churn, and capital allocation. Management said AI Chat launched last month on Apple’s App Store and Google Play in eight languages, and that WANNA added a little over a dozen key customers after integration, though some beauty clients churned. On B2C monetization, Louis Chen said the company is raising pricing from about $39 a year to $79 a year for a premium plan, and on capital allocation he said holding cash is sensible in the current environment while the company remains selective on deals.