Perfect Corp.

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to the Perfect Corp's first quarter 2025 earnings conference call. Please note that all lines have been placed on mute to prevent any background noise. We will be hosting a question and answer session after management's prepared remarks. 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 answer a question, Please press star followed by the number one again. Please note that today's event is being recorded. I will now turn the conference over to the first speaker today, Mr. Gina Shaw, IR Director of the company. Please go ahead.

Thank you. And hello, everyone. Welcome to Perfect Corp's first quarter 2025 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 first quarter 2025 financial results on our IR website or in the form 6K we filed with the SEC. 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 question and answer sessions. Before we continue, I would like to refer to our safe harbor statement in our earnings press release. This call may contain forward-looking statements regarding performance, anticipated plans, our original results, and objectives. Forward-looking statements are based on management's 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 numbers stated in management's prepared remarks are in U.S. dollar, and we will also discuss non-IFRS measures today. I will now turn the call to our second speaker, Ms. Alice Chen, our CEO.

Thank you, Jimmy, and welcome to Perfect Corp's 2025 First Quarter Earnings Conference Call. Let me start by providing some financial highlights, then share some exciting developments. After a strong end to 2024, we started the first quarter of 2025 with a double digit growth, which was in line with our revenue guidance for 2025. Total revenue grew by 12.1% year over year to 16 million. The net income for the same period was $2.3 million. an increase of 264% year over year. And the adjusted net income increased 33.3% to $2 million compared to the first quarter of 2024. The continuous growth in revenue and the positive net income is primarily driven by the strong performance of our mobile app subscription business. within the AIAR cloud solution sector, even under current microeconomic uncertainties. The first quarter of 2025, we saw our operating cash flow generate a net inflow of $4.3 million, and our balance sheet remains very strong with over $164.6 million in cash in the cash equivalent. All these results are testimony to the company robust business model as well as our agility to navigate under the fast changing world and its global economic uncertainty. Our B2C mobile app business has maintained strong growth with a number of active paying subscribers of 973,000 to end of the first quarter of 2025. an increase of 7.9% compared to 902,000 subscribers for the first quarter of 2024. Our UCAN mobile app suite continues to evolve with planned updates and AI features enhancement, powered by cutting-edge generative AI features for image and video creation. We recently unveiled a new mobile app called UCAM AI Chat, which features personal AI assistance to assist users with a wide range of topics, including fashion, dating, social science, travel, writing, financial advices, and more. Beyond this specialized AI assistance, the app also delivers powerful AI tools capable of generating images, as well as summarizing photos, websites and YouTube videos, just to name a few of its popular features. By merging convenience and personalization, Ucam AI Track app fulfills the growing demand for similar digital interactions. This app leverages multiple world-renowned AI LLM models, such as TrackGPT 4.0 and 4.0 Mini. Before Diving into our B2B performance, I would like to provide additional updates on the post-acquisition of WANA. The integration of both teams is progressing smoothly, with our operations, cultures, and strategy goals aligned seamlessly. This process will position us well and to leverage new growth opportunities and further enhance our market position as we work to expand our addressable market. At this first phase of integration, our global sales team have started to engage with new clients and prospects to explore additional contract opportunities with emphasis on geographic expansion and product expansion, particularly within the shoes vertical. In our B2B operations, we continue to deepen market penetration in beauty and fashion segments. Our platform now hosts over 801 brand clients with over 891,000 SKUs. These increases are contributed by organic growth and consolidating the newly acquired Wellness client base and shoe bags related SKUs for BTO. We are making very good progress in expanding our unique offering with AI-powered skin diagnostics, which extend across aesthetic clinics, dermatology centers, skin care facilities, med spa, and wellness centers. During the first quarter, we launched our AI skin analysis solution with one of the largest beauty retailers in the US. Now, users can scan their face with a smartphone allowing the app to deliver skin analysis in seconds, and it received a personalized four-step skin routine and products tailored to their specific needs. Offering our AI skin solutions to a wider global audience has been our priority, and this partnership will open the use case to millions of North American users. Additionally, our UKIM Online Editor SaaS API enable seamless integration of perfect AI features into client software. Brand developers can now embed advanced photo, portrait, and video editing, generative AI, and more, offering a user a rich, full-featured image editing experience within our product. During the first quarter of the year, we added AI hairstyle in the skin analysis API and made refinement to subscription plan and the subscription credit model. In conclusion, despite the global economic uncertainty, we continue to experience growth in the first quarter of 2025, driven by increased revenue, improved operational efficiency, and strong financial performance. Our growth strategy for 2025 remains on track, focusing on expanding our B2C revenue with the introduction of a newer generative AI function and to drive higher premium subscription plans to increase the value of our subscription. On the enterprise business side, we are focusing on fully integrating the Walmart team and their product into our business. expanding our presence in beauty, skincare, shoes, and the fashion market, exploring cross-selling opportunities, diversifying our product and service offers, strengthening leadership, accelerating revenue growth, and maximizing long-term shareholder value. Lastly, with the rise of more efficient and cost-effective AI models, specializing in specific functionalities, Perfect Core, is well positioned to benefit from evolving needs of clients and prospects thanks to our strong track record expertise and the deep integration in the beauty and fashion industry. With that, I have concluded my remarks and will now pass the call over to Luis, who will discuss our financial details with you.