Perfect Corp FY revenue up, but losses widen

Perfect Corp, a company that provides augmented reality (AR) and artificial intelligence (AI) Software-as-a-Service (SaaS) for global beauty and fashion businesses, has reported an increase in revenue but widening losses in its most recent full-year report.

In the 12 months to December 31, the company’s revenue increased 16 percent to 47.3 million dollars, which it said was primarily driven by an increase in AR/AI cloud solutions and subscription revenues.

That came as the company’s number of “key customers” - or brands that contributed revenue of more than 50,000 dollars in the trailing 12 months ended on the measurement date - increased to 152 from 124 the prior year.

Alice H Chang, the founder, chair, and CEO of Perfect Corp, told investors: “We finished 2022 with steady revenue growth, an expanded customer base, and positive cash flow, despite the worsening macro climate and elongated sales cycles in the second half of the year.”

On a less bright note, Perfect Corp’s net loss widened to 161.7 million dollars from 156.9 million dollars the prior year.

However, its gross profit increased to 40.2 million dollars from 35 million dollars.

Looking forward, the company said it expects to face continued challenges in 2023, including high inflation, elongated sales cycles, and fluctuations in foreign exchange rates, but “remains confident in its long-term growth prospects”.

Chang said: “We remain ideally positioned to seize growth opportunities generated by the intensifying digitalization of the beauty and fashion industries, brands’ pivot to online retail, and the rapid growth in use cases for AR/AI technology.

“Going forward, we remain committed to driving top-line growth while focusing on profitability in the face of an increasingly challenging environment, as we continue executing on our mission to transform the world with our digital tech innovations.”