On Wednesday, Perfect Corp (NYSE:PERF) announced financial results for the fourth quarter ended December 31, 2024.

The company reported fourth-quarter FY24 sales growth of 12.4% year over year to $15.9 million, compared to $14.1 million last year, marginally missing the consensus of $16.40 million.

The revenue increase is primarily driven by the growing demand for AI- and AR-powered cloud solutions and mobile app subscriptions.

AI- and AR- cloud solutions and subscription revenue increased 25.4% to $15.1 million and the Licensing revenue plunged 72.25 to $0.5 million.

Gross profit for the quarter improved 2.5% to $11.8 million, and the gross margin contracted by 730 basis points to 74.2%.

The decrease in gross margin was primarily due to the increase in third-party payment processing fees paid to digital distribution partners, such as Google and Apple, due to the steady growth in our YouCam mobile app subscription revenue.

Total operating expenses decreased 3.6% to $12.2 million, with general and administrative expenses falling 41%.

Net income was $1.1 million for the quarter, compared to a net income of $1.4 million last year.

Adjusted net income was $2.3 compared to adjusted net income of $2.1 million in 2023, an increase of 8.2%. This translates to an adjusted earnings per share of 2 cents, missing the consensus of 3 cents per share.

The operating cash flow for the three months totaled $3.3 million. The company held $127.1 million in cash and equivalents as of December 31, 2024.

The company's YouCam mobile beauty app and web active subscribers grew by 14.3% year-over-year, reaching a record high of over 1 million active subscribers as of end of 2024.

As of December 31, 2024, Perfect's cumulative customer base included 732 brand clients, with over 822,000 digital stock keeping units for makeup, haircare, skincare, eyewear, watches and jewelry products, compared to 708 brand clients and over 806,000 digital SKUs as of September 30, 2024.

Perfect Corp had 151 key customers as of December 31, 2024.

Outlook: For FY25, Perfect anticipates a year-over-year total revenue growth rate of 13% to 14.5%, based on the growth momentum in both YouCam mobile apps and web subscriptions and enterprise SaaS solution demands.

Price Action: At the last check on Wednesday, PERF shares were trading higher by 0.52% at $1.94 in the premarket.

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This article Perfect Corp's Q4 Revenue Jumps 12.4%, YouCam App Subscribers Hit Record High originally appeared on Benzinga.com

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