Perfect Corp.

Hello, ladies and gentlemen. This conference will begin momentarily. Thank you. Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to Perfect Corp's fourth quarter 2024 and full year 2024 earnings conference call. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. And please limit yourself to one question and one follow-up. You can rejoin the queue again if you have more questions. We'll be hosting a question and answer session after the management's prepared remarks. Please know that today's event is being recorded. I will now turn the conference over to first speaker today, Mr. Jimmy Sha, IR director of the company. Please go ahead.

Thank you. Hello, everyone. Welcome to Perfect Corp's fourth quarter 2024 and full year 2024 earnings call. With us today are Ms. Alice Chang, our founder, chairwoman, and chief executive officer. Mr. Louis Chen, our executive vice president and chief strategy officer. And Ms. Iris Chen, vice president of finance and accounting. You can refer to our fourth quarter 2024 and full year 2024 financial results on our IR website or in the link or in the form 6K we filed with SEC earlier. A replay of this call will also be available on our website shortly after its conclusion. For today's call, management will provide our prepared remarks followed by a question and answer session. Before we continue, I would like to refer you to our safe Harper statement in our earnings press release. This call may contain forward-looking statements regarding performance, anticipated plans, our original results, and our objectives. Forward-looking statements are based on management expectations and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our call today. Perfect Corp undertakes no obligation to update any forward-looking statements except as required by law after the date of this call. Please note that all members stated in management's prepared remarks are in U.S. dollars, and we will also discuss non-IFRS measures today. I will now turn the call over to our CEO, Ms. Alice Chen.

Thank you, Jimmy, and welcome to PerfectCorp 2024 Fourth Quarter Earnings Call. Let me start by giving you some updates on our financials and our progress in product business development around the world in 2024. and share our view for the year of 2025. First of all, we completed the full year 2024 with a double digit growth in revenue as anticipated by our guidance. The total revenue grew by 12.5% year over year to $60.2 million. The bottom line net income for the same period was $5 million and the adjusted net income increased 18.6% to $8.3 million compared to 2023. This continuous increase in revenue and the positive net income is mainly due to strong growth within our mobile app subscription business under AIAR cloud solution business. For year 2024, our operating cash flow generated a net inflow of $13 million and our balance sheet remains very strong with over $165.9 million in cash in the cash equivalent. Our B2C mobile app business has maintained very strong growth with a number of active paying subscribers continuing to breach on-time records with over 1 million to end 2024. It is a 14.3 percent increase compared to 879,000 subscribers at the end of 2023. This sustained growth in paying subscribers, highlighting the ongoing global demand of AI-powered photo and video editing, creation, enhancing, and verification features appealing to all age groups and the regions. As we mentioned, we have seen positive momentum from our North American and the Western Europe markets, as well as developing markets in Brazil. Our UK mobile app suite continues to evolve with frequent updates and feature enhancements, powered by cutting-edge generative AI for image and video creation. Among the most popular innovations, our GenAI hair experiences have become a major hit within our user community. These features, including AI hairstyle, hair lengthening, hair wavy, hair volume, hair color, and more, provide ultra-realistic stimulus previews, transforming how consumers and the retailers make style decisions. Beyond hair transformation, our AI technology extends to other exciting innovations, such as the AI face swap, AI face expression, AI photo enhance, video enhance, and more. delivering next-level creativity and personalization to our growing user community. Beyond our mobile apps, we are also expanding our web-based generative AI solution with UCAM Online Editor. Consumers now can enjoy the latest AI innovation not only through their mobile apps, but also via a web browser on their laptops and PCs. ensuring a seamless and accessible experience across the platform. We are focused on harnessing the power of GenAI to deliver engaging new features from text, image, audio, and video. That is becoming an integral part of the premium subscription offering for our B2C users on app and on web. By integrating state-of-the-art models and algorithms, We aim to create immersive, personalized experience that go beyond traditional functionality, driving deeper user engagement and loyalty. Our strategy in B2C app and the web involves a continuous R&D to refine generative AI content model and enabling features such as AI enhancement in photo and video, as well as AI creation, personalized image and video. Through this relentless innovation, coupled with the robot user feedback and the deep data analytics, we strive to deliver subscription-based service that offer clear, tangible value, positioning us as a leading provider for cutting-edge image and video in AI solutions in consumer markets. Before I go to our B2B performance, I want to go over the recent acquisition of Wanna from Farfetch and its impact on PerfectCore. The transaction was completed in early January, and we anticipate spending the next 6 to 12 months similarly integrating Wanna into our team. Wanna's core competence gives us access to new markets and customers within luxury brands. where it offers virtual try-on services for shoes, handbags, scarves, and clothes. This acquisition perfectly aligns with our AI service offering to brand partners and will expand our total addressable market beyond our career reach. Together with PerfectCorp, we'll strengthen our competitive position in the beauty and the fashion space, leveraging our synergistic solution enhanced capabilities, and experienced team members. In our B2B business in 2024, we have prioritized deepening market penetration in skincare in the makeup segment. We reached over 732 brand clients with over 822,000 SKUs onboarded in our platform. We continue to make significant steps in expanding our portfolio with AI-powered skin diagnostics. Beyond core beauty and skincare brands, we have actively expanded into new markets and reaching aesthetic clinics, dermatology clinics, skincare centers, mass spots, and awareness centers, broadening our reach and impact to the industry. We continue to see strong demands in the skin diagnostics sector from brands retailers, clinics, and med spots. Our AI-powered skin analysis detects up to 15 major concerns in HD, providing personalized treatment and product recommendations tailored to each user's unique skin profile. The technology has enabled precise treatment measures, tracking progress with a before and after comparison to showcase improvements by combining advance diagnostics with data-driven insights. Our solution enhances client engagement, trust, and long-term loyalty in the evolving world of AI-driven skincare. Our Makeup Virtual Try-On solution remains as a global leader, delivering strong results for brand customers. We have secured key licenses renewal with top beauty conglomerates and retailers. proving our impact on boosting online engagement in e-commerce conversion rates. While the B2B sales cycle has its challenges, our pipeline remains strong and we remain focused on helping enterprise clients adopt AI-driven solutions to elevate consumer engagement and the digital experience. On the fashion tech side of our business, we continue to make strong progress in luxury fashion tech with luxury brands, particularly in watches and jewelry VTO. In January 2025, we acquired Walnut from Farfetch to accelerate our B2B growth with fashion brands and retailers. This strategic move expands our 3D VTO solution to shoes, baths, clothes, and scarves, enhancing digital shopping experience and reshaping how brands engage with customers in the era of AI-powered fashion retail. Additionally, our new web-based AI service, UCAM Online Editor Soft API, integrates GenAI technology for advanced image and video editing. While initially we designed for beauty and fashion professionals, it has gained traction across diverse industries. Significantly expanding our total addressable market, The SaaS API is simplified web and mobile app development, handling complex processing without requiring server maintenance from the clients. Its flexibility makes it suitable for businesses of all sizes, with new clients spanning convenience store chains, telecom carriers, and mobile phone companies. In conclusion, we achieved a solid business growth throughout 2024. highlighted by increased revenue, enhanced operational efficiency, and strong financial performance. We are confident that Perfect Corp is positioned strategically to capitalize on expanding market opportunities and sustain long-term growth by continuously developing new technologies and leveraging our leadership position in beauty and fashion space for our consumer from our app, web, as well as our B2B enterprise brand clients. Our strategy for long-term growth in 2025 and beyond focuses on deepening our presence in the beauty, fashion, and the skin segments and expanding into new segments, exploring cross-sale opportunities, broadening our product service offerings, strengthening of leadership accelerating revenue growth, and maximizing long-term shareholder value. Driven by the positive demand for both our mobile beauty app subscriptions and the enterprise SaaS solution, our outlook for the full year 2025 projects total revenue growth recognized under IFRS to range from 13% to 14.5% compared to the full year's 2024 results. With that, I have concluded my remarks and will now pass the call over to Louis, who will discuss our financial details with you. Thank you.