Q4 2022 Perfect Corp Earnings Call
Speaker 1: The and.
Speaker 2: Question and Answer session after management paper marks.
Speaker 2: Please note that today's event is being recorded.
Speaker 2: I will now turn the conference over to the first speaker today, Mr Rick Lee, VP of IIR of the company. Go ahead, sir.
Speaker 3: Thank you. Hello everyone and welcome to Perfect Cope's Turning Call. We serve today on Ms. Abby Chen, our founder, chairwoman, and chief executive officer. Mr. Lu Chen, our president and chief executive officer.
Speaker 3: and meet Irish Pan, Vice President of Finance and Accounting. You can refer to our four-year 2022 financial results on our IIR website at IIR.com, or on the phone with a furnished Q&A yesterday afternoon.
Speaker 3: You can know that as a replay of the call, I went with that when we come back out of the pool a few hours at the decomposition. But till they did call, they may come and provide the appear-remarvers. Then we will be holding them a caution and instant action.
Speaker 3: Before we continue, I would like to refer you to our CIFIP statement in our early interest release, which also applies to this hall. But this call may contain a rewarding statement regarding perfect performance, anticipated demands, and original results and objectives.
Speaker 3: forlooking mainment plations risks and MES at the call every result ity on those P prem hold takes no obligation to any working statement.
Speaker 3: is that as required by law after the date of the call.
Speaker 3: We know that our own numbers, stated in the following maintenance prepare remarks, are in U.S. dollar returns. We will discuss now IIFIS measures today, which are more thoroughly compared and recognized to the most comparable measures reported in our earnings release.
Speaker 3: and the phone number is 28 for an early student at GE. I will now turn the call to our first speaker today. How there is to no woman and she will be glad that it will be our perfect call. Thank you, Ray. Hello everyone. Welcome to our fifth floor of the two year. I'm continuing our learning conference for all.
Speaker 4: Despite all the selling events happening around the world in Hong Kong, Hong Kong B2, through the subsequent eligibility, we achieved revenue growth, positive cash flow, and a common basic intention for the full year. During Hong Kong, Hong Kong B2, we grew our total revenue by 616 per cent year over year.
Speaker 4: 100 gram hummers on our platform, applied our technologies to over 550,000 digital cubes for makeup, skin care, hair dye, eyewear, and jewelry products, and facilitated over 10 billion virtual products by our annually.
Speaker 4: Such an accomplishment is not out of small piece. We are considering the CD change in the market conditions throughout 2022.
Speaker 4: At the beginning of 2022, we involved a town hall journey called IBO. Interest rates were at its all-time low. Consumer confidence was high. The labor market was high. All providers are listening to by related technology to start their digital initiatives.
Speaker 4: I have everyone's of the Federal Reserve started raising the interest rates in the middle of the year. We started noting the changing of movement in our marketplace.
Speaker 4: The reach of potential global synchronized sessions started to serve it. Probably with Russia's prank war, economic uncertainty started to weigh on corporate buyers' nerves. During the third quarter, we experienced the beginning stage of the prolonged sales cycle. Such a low-sale cycle inevitably impacted dollar operations.
Speaker 4: Even though we account for $113 million of low-cost proceeds in the fourth quarter through the 5 transactions, concurrently with our disaster closing, we did not allow such a test to go to our heads. Instead, we enacted stringent expense controls.
Speaker 4: and adopted a more prudent approach towards our costs during the fourth quarter. At the same time, although we incurred net loss in 2022, we were able to achieve revenue growth of 16% year over year and a positive adjusted EBITDA on a four-year basis in E Scale.
Speaker 4: have manifested in three aspects.
Speaker 4: We are in a strong relationship with existing customers. We are helping to facilitate their online offline offers.
Speaker 4: But helpful are the rate of rent improvement or our geolaritization We are at&? to sustainable measures throw the pechos bond and have rated a toll and more or extra five content August 18th in Denver
Speaker 4: To facilitate online user engagement and sales, we help beauty and jewelry brands engage consumers through our best in-class AR by deploying our AR AI platform as they grow part of their website and mobile app.
Speaker 4: We are focusing more on resources on research in productivity categories.
Speaker 4: Sorry, evening, evening. New steering head bipolar hmm here probably.
Speaker 4: such as creating variants, tailored to the synopsis, AI solutions for makeup, hair salon, aesthetic beauty clinics, and expanding our events, AI Senior Style Solutions.
Speaker 4: Slide six. See you in a couple of minutes. Bye. Bye. Bye. Bye. Bye. Bye-bye.
Speaker 4: We are also talking new growth, young building industry.
Speaker 4: Our SaaS services now also cover fashion cases. Our new service inventions focus includes jewelry, watches, eyewear, nail designs, and accessories. We have already partnered with about 10 luxury brands around the world for our industry-leading AR, virtual pylons, and earrings.
Speaker 4: We aim to accelerate growth by investing more in emerging markets, such as the Southeast Asia and the Middle East.
Speaker 4: Our business in Indonesia, as an example, has been growing organically very well. We can further local presence in the emerging markets.
Speaker 4: Our long-term competitive advantage is secured by heavily investing into R&D.
To innovate new beauty tech and fashion tech solutions, the continuous development in AI and AR technology
ourHello, welcome to Twoö year in chats!
Deploying AI learning models into our product features are now further elevated with the addition of new AI training techniques such as the AI Generative Content, AIGC. With such technological enhancements, windsurfing processes have become smart solutions for AI alien related innovation.
to continue helping brands and customers in our digital beauty transformation and to open new doors and address a wider market of opportunities, especially for our team's analysis online that can help a new group of clients, such as SADC, Clinit, MI
Our confidence in achieving our goals is grounded in our primary research and the assessment of the long-term market trend. Despite near-conceptiveness in corporate demand, we have learned to close down our laws with our customers and prop up our tech.
At the Loco Pembrane, before we leave the U.L.A. and Indie Hat, for Aurora, the current non-linear challenge, as a cost-all of the five concomprumerant determinations to transform their own living and the student technology. We see trends that are in concern, the Loco Pembroros for our revenue.
The first make-up prank is the exponential growth in the celebration and digitalization of beauty and fashion industry across all available platforms.
As beauty and fashion brands expand beyond their traditional, more costumer base of everyone's medium-aged customers to test their millennials' organics, it became very imperative for them to implement an optional digitization strategy, benefacing our customers' needs andInterShar Plation, online discount,
Friends can no longer rely solely on corporate websites, SEO, social networks, or in the traditional brick and mortar experience to reach them, their customers, or grow their sales. Rather, they begin to fully engage consumers with a personalized virtual client experience.
through a universal platform like ours.
Because our platform has the capability to be deployed across all sales channels in the social network, we are able to provide brands with the peace of mind that systems that are fused only need to be configured once. And then it can be easily and inflexibly deployed at scale across sales channels for consistent
platforms including alphabet, Google and YouTube, Snap, and in China, like platform like Taobao, Tmall, and Wecat. Such a truly similar integration across all platforms, this is not only a very high PACpart affect me automatically driver
but also a compelling concern on the back end.
The second trend is the increase of online services for all touchpoints. New consumer behavior has embraced digital, physical plus digital more than ever. Shoppers are using digital online services where they are doing offline or online shopping journey.
This trend helps increase the need for more online services for both offline retailers or online commerce.
All in a positive way to disperse, voting demand for our AAR AI cloud solutions, given an impact on the pandemic.
The third plan is the increasing diversification of AI technology in the UK. Upgrading our mission to transform the world with digital technology innovation. We started to invest resources into developing our proprietary AI technology five years ago.
Since the end of last year, we expanded our horizon, further by incorporating AI GT into our development roadmap. I am incorporating various new AI techniques, such as AI-powered generative diffusion models, into our product alumnus process.
We can generate a function of realistic images for virtually anything in combination with our AR Virtual Fire App. This will open an even wider window of opportunities for consumers and for brands.
In addition to those three plans, we are continuously uncovering new emerging opportunities as we grow them and deepen our technology applications to expand our market reach.
We are committed to generating innovation, T A I T R S S odds solutions and ??? julautres and Clear Imagine static solutions and IBM has atlanti with our ??ter ideas to react to friendly education and develop and train overseas in primary research and implementation. ideally other system issues are
With our rev-taste events in UMass R, Cleanly, and Fashag Tech, we plan to replicate our success from the beauty market and dominate the fashion vertical as well. We strive to be a full 363 beauty tech brand that is emerging in the Part interchangeable brands with swirls and
To conclude, we remain committed to driving top-line growth while focusing on profitability in the face of an increasingly challenging environment.
This is a combination of rules and the top-off key to top-off ability. If we raise a dose from the other group oriented top-off companies, that has dropped ago with the clear-ya suit of top-off ability. We have upgraded with the disabling, efficiently and then global first.
with a view to generate profitable growth and we will continue to do so. Regardless of market conditions, we firmly uphold our mission to transform the world with AI technology innovation and we aim to achieve this by helping brand commerce, utilizing our leading technology to improve.
There are numerous shocking theories in Omni channel.
We have the team, the product, the technology and the action plan to win the market. Tremendous opportunities on closing fund out.
We are well positioned to capitalize at the A.I.R. of which is Niki. As a more and more and more, living in the rooms, self-sufficient decision to need, we did you product our waste and enjoy the growth along with the emergency total frame. We will amend FFB in our effort to expand off of the delivery.
So I have organic growth and the lead would be efficiency over the long term.
With that, I will now turn the call over to Louis to go over the financial details. Thank you.
Thank you, Ali.
Before I go into detail of our financial results, please note that all comparisons are online here over your bases. At the reporting period is the full year of 2022 versus the comparable period of 2021.
In the last one, publicizing IFRF measures, we will be also discussing non-IFRF measures to provide greater clarity on trends in our act operations.
So of we, by sing ion before seven mion from four mion.
Among the revenue, the ARDI Cloud solution subscription revenue grew by 25.33% to 36.9M or 78% of all revenue. Mainly, we use a continuous strong demand of our online virtual trial on solutions for underlying customers.
and an increase among active subscribers for our consumer app. I think revenue decreased by 4.8% to 8.4 million or 17.8% of our revenue.
Primarily called by our brain customer management and portaging board are offline solutions while the brain customer is giving their banking into online virtual ion.
For the full year of 2022, we are at $40.2 million, while growth margin decreased slightly to $884.9% from $885.9%.
For auto operating expenses increased to 111.2 million from 40.1 million, mainly due to the one-time professional service fee and de-facto modulated costs incurred during our public data processing process.
to break down. Total monitoring, getting an inch Civic, graded by 29 continent, to 2,424.025 million. That's where we reviewed and using the?? qualified incoming into the nation of global southels operational. We've got the Ohio State Development so again you got a digital image that's about out taking delivery.
As a percentage of the revenue, the marketing decreased to 51.9% from 62% The more revenue, the more efficiency in our sales and marketing activities.
Research and development expenses increased by 6.5% to 10.5 million as a result of strategic investing in product development and spending on new re-iss talent pool.
General and administrative expenses increased to $60.2 million, mainly due to the professional service we include in the course of our DEPEC presentations publicly.
Excluding all transactions that were one-time in nature, recurring DNA expenses were 5 million in the full year of 2022.
Red light is easy flat compared to a 4.9 million twitch.com.
OIP is a category that shows very good control by the management team, to increase our team's productivity under the humanitarian and micro-nomine environment and to take a competitive team in the market.
Net loss in the full year of 2022 increased to $161.7 million from $156.9 million. Excluding non-cash, share-based compensation, foreign exchange impact, and one-time non-recurring costs associated with our DCSAT deal, a traffic net income of $4.1 million.
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Adjust the data for positive 3.1 million for the year 2022 compared to a loss of 0.9 million one year ago, mainly due to the strong subscription rate in growth or increasing in content growth across all functions, especially in the auto marketing phase as a right-wing emphasis. 24 balance sheets. 24 balance sheets.
As of December 31, 2022, our company held 192.60 million in cash and cash equivalents and 61 mankind deposits compared to 80.5 million as of December 31, 2021. As of December 31, 2022, our company held 192.60 million in cash and cash equivalents compared to 80.5 million as of December 31, 2021.
Third as a significant source of capital. In total, our customer base has an increase of 75 grand fine, achieving a total of 509 grand fine, with over 550,000 views across makeup, in-hair, eyewear, and jewelry products as of December 2021-22.
The company has adopted the net increase of 28 e-commerce in 2022. Now serving a total of 152 e-commerce as of September 31, 2022.
While they are tied that the macro situation may improve in the quarter to come, the present situation is one of them.
the supporters and welcome, my name is Raymond drummer and thank you for your film and watching every
I can't conclude my period remarks.
I conclude my period remarks. Operator, let's open up the floor for questions.
We will now begin the question and answer session. If you wish to ask questions, please press star followed by 1 on your telephone and wait for an entry announced. It is a star if you wish to ask questions.
And your first session comes on the line of Mr Jahl of Goldkopf and Saxe. Your line is open. Your next session comes on the line of Brian Schwartz of Upper Heimler Group.
Yeah, thanks for taking my questions. Good morning. Alice, can you share with your hearing and release an update from the brand and the E.P. customers about prioritizing virtual drive and solution in their 2023 I.P. project?
And does the prioritization of these type of illusions vary between beauty and some of the newer categories that you've entered? Thanks.
For beauty groups, from what we've discussed with them, the virtual child is a must-have, very essential. So we're also looking forward to more beauty innovation, beauty path innovation.
which we are working in the POC. And if you're talking about the young beauty and we are getting into besides the makeup and thinking down on stage, personalized representation is the next line for beauty brands and for beauty brands and also...
For, as I said, new market aesthetic cliques or meth box. It also has this strong demand for a different market than the brain. For jewelry, we worked hard for the past one year. And finally, we, uh, successfully weaned, uh, can last...
We servative about to thing we have for.
Thank you.
Thank you. Thank you.
Your next question is 9 o'clock, Jeffries. Hi to Sandra. Your line is open.
Thank you for giving me a question. First question is, profitability came up multiple times in the period of March. I was just wondering if I could ask maybe, looking into 2023, how do you think about even the margins? I mean, is it fair to say that...
Profitability on a significant basis would be something to expect for the full year of 2023 or how should we think about that?
I agree with Deloy. So, we've heard a lot in the CEO . We can work on the growth of the company, but also look at profitability. So, we're seeing more importance for CEO in 2022 that we are going to have a positive EVM market and that's the target for 2022.
I still do a sense of investing in the new opportunity, not to address the new segment, but certainly I think there's an energy based on what we have already built. We continue to contribute into a market there, while we continue to expand in all the new categories.
Perfect. And then maybe Paul, you mentioned over $190 million in cash. Pretty small. You used a cash flow here on your late visit. What kind of opportunities are you contemplating to maybe accelerate the advantage beyond New York or any other potential that you use of that cash? It feels like...
I time go other Cris, So ly, I think I.
who come from the R&D side of the existing and obviously development of customer-based functions who do a well-based overall. Or we have always been paying attention to you know, the digital MMA or the investment. And again, we don't want to do the project they're going with. We will continue the uplift of the Azure Fool.
With the demand for a tenant file on or to crap hack wrong goal because it may take mine when it's your transformation.
It makes a lot of it and that after do I with a lot lot M ortility kind of comp said she re go go So.
As a reminder, this is one question please refer to our one and we're winning in and out. And can you make a question on the line of the digital of Google facts? You'll like to open.
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customer retention rate or dollar retention rate among key customers. Thank you.
Thank you, Timothy. In 2022, US region remain number one region and internal US dollar-based is also the fastest growing region. I'm glad you're here and continue the Anglo-Luck
Yeah the opinion runs elevated plan. We plan in ation be opention.
and we turn to that. But the moral of the story is that you may be very strong in all categories, and we are additional, you know, drawing current details.
For 2020-23, we are very cautious about the environment and the 30th year we have set in our remarks. The company is in the mood to put a clearer forecast to the investor at this point. So I think we want to remain more cautious with our customers.
I have need then reing Tion, have metric.
Thank you.
Thank you. Thank you. You're welcome.
As a reminder, if you wish to ask questions, please press star followed by 1 on your telephone and wait for your name to be announced.
That is all for one and a few questions.
As there are no further suggestions at this time, I'd like to hand over to the Black Management for closing remarks.
All right, thank you again for joining our talk today. If you have any further questions, please feel free to contact us or require to do our website. We look forward to speaking with anyone in our network. Have a good day.
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