Perfect Corp (PERF) 2023 Q3 法說會逐字稿

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to Perfect Corp's earning conference call. (Operator Instructions) Please note that today's event is being recorded.

早安，晚上好，女士們先生們。感謝您的耐心等待並歡迎參加 Perfect Corp 的獲利電話會議。 （操作員說明）請注意，今天的活動正在錄製中。

I will now turn the conference over to the first speaker for today, Mr. Rick Lee, Vice President of IR of the company. Please go ahead, sir.

現在請今天的第一位發言者，公司IR副總裁Rick Lee先生發言。請繼續，先生。

Thank you, [Ellie]. Hello, everyone, and welcome to Perfect Corp's Q3 earnings call. With us today are Ms. Alice Chang, Founder, Chairwoman and Chief Executive Officer; Mr. Louis Chen, our Executive Vice President and Chief Strategy Officer; and Mrs. Iris Chen, VP of Finance and Accounting.

謝謝你，[艾莉]。大家好，歡迎參加 Perfect Corp 第三季財報電話會議。今天與我們在一起的有創始人、董事長兼首席執行官張麗麗女士；陳路易先生，我們的執行副總裁兼首席策略長；以及財務與會計副總裁 Iris Chen 女士。

You can refer to our third-quarter 2023 financial results, our IR website or in the form of 6-K we filed with the SEC earlier. To Canadian oil sands and replay of this call on our IR website shortly after the conclusion of this call. You can later access a replay of this call on our IR website shortly after the conclusion of this call. For today's call, management will provide their prepared remarks first, then we will host a Q&A session.

您可以參考我們的 2023 年第三季財務業績、我們的 IR 網站或我們先前向 SEC 提交的 6-K 形式。加拿大油砂，並在本次電話會議結束後不久在我們的投資者關係網站上重播本次電話會議。本次通話結束後不久，您可以在我們的 IR 網站上查看本次通話的重播。在今天的電話會議中，管理層將首先提供他們準備好的發言，然後我們將主持問答環節。

Before we continue, I would like to refer you to our Safe Harbor statement in our earnings press release, which also applies to this call, as this call may contain forward-looking statements regarding Perfect Corporation's performance, anticipated plans, operational results and objectives.

在我們繼續之前，我想請您參閱我們的收益新聞稿中的安全港聲明，該聲明也適用於本次電話會議，因為本次電話會議可能包含有關Perfect Corporation 業績、預期計劃、營運結果和目標的前瞻性聲明。

Forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied on 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.

前瞻性陳述是基於管理層的預期，並受到許多風險和不確定性的影響，這些風險和不確定性可能導致實際結果與我們今天電話會議中明示或暗示的結果有重大差異。 Perfect Corp 不承擔更新任何前瞻性聲明的義務，除非在本次電話會議之後法律要求。

Please note that all numbers stated in the following management's prepared remarks are in US dollar terms, and we will discuss non-IFRS measures today.

請注意，以下管理層準備好的評論中所述的所有數字均以美元計算，我們今天將討論非國際財務報告準則措施。

Without further ado, I will now turn the call to our first speaker today, our CEO, Ms. Alice Chang.

話不多說，我現在將把電話轉給今天的第一位發言者，我們的執行長 Alice Chang 女士。

Hi, everyone. Thank you, Rick. Welcome to Perfect Corp's 2023 third-quarter earnings call. We have some exciting news to share today. So we get started. In the third quarter of 2023, our growth momentum from quarter two persisted, resulting in a total revenue of $14.5 million. This marks a 13.2% increase in revenue compared to the same period of last year and a 14.7% increase when compared to the previous quarter.

大家好。謝謝你，瑞克。歡迎參加 Perfect Corp 2023 年第三季財報電話會議。今天我們有一些令人興奮的消息要分享。所以我們開始吧。 2023 年第三季度，我們延續了第二季度的成長勢頭，總營收達到 1,450 萬美元。這標誌著營收較去年同期成長13.2%，較上一季成長14.7%。

The primary drivers of this quarter, we made from our AR/AI cloud solutions for enterprise brand business, B2B and the subscription services for our mobile beauty app business, B2C. We have seen very promising new developments in our AI skincare solutions and the AI hairstyle for [bridge] and the other innovative app features powered by GenAI, which I will elaborate more shortly.

本季的主要驅動力來自企業品牌業務 B2B 的 AR/AI 雲端解決方案以及行動美容應用業務 B2C 的訂閱服務。我們已經看到我們的 AI 護膚解決方案和 [bridge] 的 AI 髮型以及由 GenAI 提供支援的其他創新應用程式功能方面非常有前途的新發展，我將在稍後詳細闡述。

For the bottom line, our net income for the third quarter of 2023 was positive, standing at $3.5 million on an unadjusted basis and a $2.7 million when adjusted, underscoring our commitment to effective cost management while growing top-line revenue. Overall, we are very encouraged by our continued top-line growth and improvement in profitability as a result of our continuous effort to optimize our business in both B2B and B2C.

就利潤而言，我們 2023 年第三季的淨利潤為正，未經調整時為 350 萬美元，調整後為 270 萬美元，這突顯了我們在增加營收的同時對有效成本管理的承諾。總體而言，由於我們不斷努力優化 B2B 和 B2C 業務，我們對營收的持續成長和獲利能力的提高感到非常鼓舞。

Our strategic development focus in Generative AI has already shown a strong demand from both brand customers and consumers. Generative AI unlocks many new possibilities in visual imaging: video, beauty tech, skin tech and the fashion tech.

我們在產生人工智慧方面的策略發展重點已經顯示出品牌客戶和消費者的強烈需求。生成式人工智慧開啟了視覺成像領域的許多新可能性：影片、美容技術、皮膚技術和時尚技術。

Different uses [in cases]. These new use cases will extend our reach into an even bigger total addressable market in a rapidly evolving digital landscape where brands are investing more and more into digital transformation. Perfect is well positioned to help our brand partners with the latest in Generative AI models, in addition to a complete line of beauty tech, skin tech and the fashion tech offering.

[在情況下]不同的用途。這些新的用例將在快速發展的數位環境中將我們的觸角擴展到更大的總體目標市場，在這個環境中，品牌越來越多地投資於數位轉型。除了完整的美容技術、皮膚技術和時尚技術產品線之外，Perfect 還能夠利用最新的生成人工智慧模型來幫助我們的品牌合作夥伴。

Finally, our consistent rollout of a wide range of innovative features driven by GenAI technology has maintained the strong growth of our mobile app subscription business. This new AI features have not only drawn a new mobile app installations, but also effectively converted users into premium subscribers. Perfect is ready to capitalize on this new opportunity. And we are positioning ourselves as the beauty -- beautiful AI company for both B2B and for B2C.

最後，我們不斷推出由 GenAI 技術驅動的各種創新功能，保持了我們行動應用訂閱業務的強勁成長。這種新的人工智慧功能不僅吸引了新的行動應用程式安裝，而且有效地將用戶轉化為高級訂閱者。 Perfect 已準備好利用這項新機會。我們將自己定位為美麗的——美麗的 B2B 和 B2C 人工智慧公司。

Now let's shift to our focus to operational outcomes of the third quarter and discuss our most recent advancements. in the third quarter, on the B2B side, we secured several sizable new and renewal with beauty brand. Some of which included up sale opportunities such as expanding their skew offering and extending to additional countries.

現在讓我們將重點轉向第三季的營運成果，並討論我們的最新進展。第三季度，在B2B方面，我們獲得了幾個相當大的美容品牌的新品和更新。其中一些包括增加銷售機會，例如擴大其傾斜產品並擴展到其他國家。

This renewal not only underscores the growing reliance of this brand, of our solution to meet their evolving needs, but also reaffirm our leadership in the field of color cosmetics. It continues to be a very key differentiator and a core competence for our company.

此次更新不僅凸顯了品牌越來越依賴我們的解決方案來滿足其不斷變化的需求，也重申了我們在彩妝領域的領導地位。它仍然是我們公司的一個非常關鍵的差異化因素和核心競爭力。

In that front, we have continued to reinforce our omnichannel strategy through the expansion of strategic alliance with various distribution channels of beauty, skincare and fashion product to ensure comprehensive coverage of all customer touch points.

在此方面，我們持續強化全通路策略，擴大與美容、護膚及時尚產品各通路的策略聯盟，確保全面涵蓋所有顧客接觸點。

For example, we came up with Dufry, a key player in global travel and retail, to provide both in-store and web-based Virtual Makeup Try-On experiences for 15 beauty brands in airports across 27 countries worldwide.

例如，我們與全球旅遊和零售領域的主要參與者 Dufry 合作，為全球 27 個國家機場的 15 個美容品牌提供店內和基於網路的虛擬化妝試妝體驗。

Additionally, we are very excited to announce our partnership with Walmart, the world's largest retailer, to initially offer makeup Virtual Try-On experience for more than 1,400 beauty products in Walmart mobile app. This level of integration is made possible thanks to our existing relationship with over 600 global brands, enabling the effortless distribution of this brand's virtual product offerings across diverse retail platform.

此外，我們非常高興地宣布與全球最大的零售商沃爾瑪合作，首先在沃爾瑪行動應用程式中為 1,400 多種美容產品提供化妝虛擬試妝體驗。這種程度的整合之所以成為可能，得益於我們與 600 多個全球品牌的現有關係，使該品牌的虛擬產品產品能夠輕鬆地在不同的零售平台上分銷。

As we look to the future, it is clear that Virtual Try-On technology is becoming essential for all beauty and fashion brands and the retailers engaging with customers in delivering personalized shopping experiences for all. In the third quarter, a significant highlight was the accelerated penetration of skincare market, marked by notable increase in new deal flow from the skincare sector.

展望未來，很明顯，虛擬試穿技術對於所有美容和時尚品牌以及與客戶互動的零售商來說變得至關重要，為所有人提供個人化的購物體驗。第三季的一大亮點是保養品市場滲透加速，保養品產業新交易流量明顯增加。

We believe the skincare industry is going through a transformational change to adopt more digital technology and to offer consumer within a user-friendly and objective-driven diagnostic results. Our AI skin care technology distinguishes itself by delivering an unparalleled AI-powered skin analysis that encompasses 14 different skin concern in real time, providing users with comprehensive and instant feedback on their skin problems.

我們相信，護膚產業正在經歷一場變革，採用更多數位技術，為消費者提供用戶友好且客觀驅動的診斷結果。我們的人工智慧護膚技術的獨特之處在於提供無與倫比的人工智慧皮膚分析，即時涵蓋 14 種不同的皮膚問題，為用戶提供有關皮膚問題的全面、即時的回饋。

Secondly, we have introduced a new range of subscription plan tailored specifically for small and mid-sized skincare brands. And that's part on our website. This expanded strategy of skincare enables us to engage with a larger potential customer base of all sizes by providing tiered subscription plan for not only make our skincare technology more accessible, but also streamline the sales process. This approach will lead to a larger install base for our AI skin care services.

其次，我們推出了一系列專為中小型護膚品牌量身訂製的新訂閱方案。這是我們網站上的一部分。這種擴大護膚品的策略使我們能夠透過提供分層訂閱計劃來接觸更大的各種規模的潛在客戶群，不僅使我們的護膚技術更容易獲得，而且還簡化了銷售流程。這種方法將為我們的人工智慧皮膚護理服務帶來更大的安裝基礎。

Another new use case we launched in the market is our Generative AI Hairstyle, very new. We upgraded our AI Hairstyle solution by replacing the previous generation AI model to the latest diffusion Generative AI model. And the result is amazingly good. The realism of the hairstyle images is now hyper realistic. And the generic styles, variations unlock more choices for consumers to visualize more hairstyles to choose from.

我們在市場上推出的另一個新用例是我們的生成式人工智慧髮型，非常新。我們升級了AI髮型解決方案，將上一代AI模型替換為最新的擴散生成AI模型。結果出奇的好。髮型圖像的真實感現在非常真實。而通用的款式、變化為消費者提供了更多的選擇，讓他們想像更多的髮型可供選擇。

Going to the hairstyle AI development, we announced our partnership with Tresemmé, a Unilever brand of hair products. So offer AI Hairstyle generation for their consumers to try out. And the possibility is every [20].

在髮型人工智慧開發方面，我們宣布與聯合利華旗下美髮產品品牌 Tresemmé 建立合作關係。因此，提供人工智慧髮型生成服務供消費者嘗試。而可能性是每一個[20]。

We are also targeting [broad] their hair brand market address the weak visualization and the hair extension with the latest generation of AI upgrades. This is a testament to diverse subtlety, versatility and the broad applicability of our GenAI-powered Virtual Try-On technology, demonstrating their potential to cut -- to cater to a diverse range of market needs.

我們也瞄準[廣泛]他們的頭髮品牌市場，透過最新一代的人工智慧升級解決視覺化和接髮問題。這證明了我們的 GenAI 驅動的虛擬試戴技術具有多樣化的微妙性、多功能性和廣泛的適用性，展示了其滿足各種市場需求的潛力。

Another cutting-edge AI innovation we just launched in Q3 is in high-quality automated 2D-to-3D's new conversion technology for jewelry and watch VTO, Virtual Try-On. This resource can quickly enlarge the total numbers of use of our jewelry brands customers, they can offer on the website in a cost-effective and the 3D way. This new 2D-to-3D technology can help us expand to a broader jewelry and watch try-on market.

我們在第三季剛推出的另一項尖端人工智慧創新是針對珠寶和手錶 VTO 的高品質自動化 2D 到 3D 的新轉換技術，即虛擬試戴。此資源可以快速擴大我們珠寶品牌客戶的使用總數，他們可以以經濟高效的3D方式在網站上提供。這種新的 2D 轉 3D 技術可以幫助我們拓展到更廣闊的珠寶和手錶試戴市場。

Now let's shift focus to our B2C, mobile beauty app business. We had another strong quarter for our app business, as evidenced by 62.5% year-over-year increase in our mobile app active subscribers to 835,000. This upstands growth, very strong growth, firstly as a testament to the increasing demand and market expansion in the realm of photo, video and camera applications, including image and video creation, beautification and enhancements.

現在讓我們將焦點轉向我們的 B2C、行動美容應用程式業務。我們的應用程式業務季度表現又強勁，行動應用活躍用戶年增 62.5%，達到 835,000 人。這支持了成長，非常強勁的成長，首先證明了照片、影片和相機應用領域的需求不斷增長和市場擴張，包括影像和影片創建、美化和增強。

With our suite of the YouCam app, we are diversifying our product offering and expanding our avenues for monetization. To fully capitalize on the app market expansion train, we have implemented the following strategy. First, our team created a very rich roadmap of premium features for subscribers.

借助我們的 YouCam 應用程式套件，我們正在使我們的產品供應多樣化並擴大我們的獲利途徑。為了充分利用應用程式市場擴張列車，我們實施了以下策略。首先，我們的團隊為訂閱者創建了非常豐富的進階功能路線圖。

We introduced multiple AI-driven premium features by GenAI such as AI Avatar, AI Fashion, AI Hairstyle, AI Selfie and the more and more to come, offering our mobile users with a wide range of a photo and video beautification and enhancement solution.

我們推出了GenAI 的多項人工智慧驅動的高級功能，例如人工智慧頭像、人工智慧時尚、人工智慧髮型、人工智慧自拍以及越來越多的功能，為我們的行動用戶提供廣泛的照片和影片美化和增強解決方案。

We have a very active road map to include AI in all of our products and services. It will transform the whole industry with the power of a beautiful AI. And since, we have strengthened our cost promotion initiative across our suite of mobile apps. And executed marketing programs to increase of app discoverability to new users.

我們有一個非常積極的路線圖，將人工智慧納入我們所有的產品和服務中。它將用美麗的人工智慧的力量改變整個產業。此後，我們在行動應用程式套件中加強了成本促銷計劃。並執行行銷計劃以提高新用戶對應用程式的發現率。

The customer -- this consumer app market is very large and a growing market. More and more global consumers are opting to pay subscription for premium features. And Perfect is focusing to gain more market share in B2C mobile app business.

客戶——這個消費者應用程式市場非常大，而且是一個不斷成長的市場。越來越多的全球消費者選擇付費訂閱高級功能。 Perfect正致力於在B2C行動應用業務中獲得更多市場份額。

Third, we have expanded our B2C monetization opportunities by introducing a new app, like our new app, YouCam AI Pro. It is a GenAI tool app -- GenAI app for AI text-to-image creation and more other GenAI features collection. This new app has a very rich roadmap to include many of our future in AI innovation from our Perfect lab.

第三，我們透過推出新應用程式（例如我們的新應用程式 YouCam AI Pro）擴大了 B2C 獲利機會。它是一個 GenAI 工具應用程式——用於 AI 文字到圖像創建和更多其他 GenAI 功能集合的 GenAI 應用程式。這個新應用程式有一個非常豐富的路線圖，包括我們 Perfect 實驗室在人工智慧創新方面的許多未來。

We have also optimized our mobile app subscription prices, maintaining competitiveness by increasing our revenue in several markets. Collectively, this effort has been instrumental in driving the impressive expansion of our mobile app business. We are committed to sustaining these efforts to enhance the visibilities and the reputation of our YouCam app in a mobile app sector, while positioning us -- ourselves favorably for future expansion.

我們還優化了行動應用程式訂閱價格，透過增加在多個市場的收入來保持競爭力。總的來說，這項努力有助於推動我們行動應用業務的令人印象深刻的擴張。我們致力於持續這些努力，以提高 YouCam 應用程式在行動應用程式領域的知名度和聲譽，同時為我們自己的未來擴張做好準備。

In summary, our third quarter was robust, featuring double-digit revenue growth and the positive net earnings. Our observations suggest that we are well positioned to meet the revenue growth targets we shared in Q2, quarter two. Consequently, we affirm our project -- projected revenue goals for 2023, which is expected to range from 11.5% to 14.5% year over year in comparison to 2022.

總而言之，我們的第三季表現強勁，實現了兩位數的營收成長和正的淨利。我們的觀察表明，我們完全有能力實現第二季第二季的營收成長目標。因此，我們確認了我們的項目——2023 年的預期收入目標，預計與 2022 年相比，年增 11.5% 至 14.5%。

With that, I have now concluded my remarks and I will be handling the call over to Louis, who will discuss our financial details with you.

至此，我的演講結束了，我將接聽給路易斯的電話，他將與您討論我們的財務細節。

Thank you, Alice. Before I go into the details of our financial results, please note that all comparisons are on a year-over-year basis and that the reporting period is the third quarter of 2023 versus the comparable periods in 2022. And now, on top the IFRS measures, we will also discuss non-IFRS measures to provide greater clarity on the trend in our actual operations.

謝謝你，愛麗絲。在詳細介紹我們的財務業績之前，請注意，所有比較都是按年比較，報告期是 2023 年第三季度，而對比期是 2022 年。現在，除了 IFRS 之外，措施，我們還將討論非國際財務報告準則措施，以更清楚地了解我們實際營運的趨勢。

For the third quarter of 2023, our total revenue increased to USD14.5 million from $12.9 million in the same period of last year, representing a year-over-year double-digit growth of 13.2%. Among our revenue sources, AR/AI cloud solutions and subscription revenue, which constitutes 78.3% of our total revenue grew by 24.8% to $11.4 million in the third quarter of 2023.

2023年第三季度，我們的總營收從去年同期的1,290萬美元增至1,450萬美元，年比兩位數成長13.2%。在我們的營收來源中，AR/AI雲端解決方案和訂閱收入占我們總營收的78.3%，在2023年第三季成長了24.8%，達到1,140萬美元。

Its [rapid] expansion can be attributed to the strong demand of our online virtual try-on solutions from brand customers and the robust growth in our mobile beauty app subscription.

其[快速]擴張可歸因於品牌客戶對我們的線上虛擬試穿解決方案的強勁需求以及我們的行動美容應用程式訂閱的強勁成長。

In the current quarter, we have successfully renewed contract with prominent beauty brands, with some renewal offering up the opportunity to expand SKU offering and extend deployment to cover more regions. We also acquired several new customer in this quarter, including Walmart. Notably, our mobile beauty app business, active subscribers has been surged by 52.5% year over year, reaching an all-time high of over 835,000 at the end of the third quarter of 2023.

本季度，我們成功與知名美容品牌續約，其中一些續約提供了擴大 SKU 供應和擴大部署以覆蓋更多地區的機會。本季我們也獲得了幾位新客戶，包括沃爾瑪。值得注意的是，我們的行動美容應用業務的活躍用戶數年增 52.5%，於 2023 年第三季末達到超過 835,000 的歷史新高。

This significant expansion and this quarter increasing demand for photo and video editing application and the widespread acclaim of our innovative generated AI feature within our suite of mobility app.

這一顯著擴張以及本季對照片和影片編輯應用程式的需求不斷增加，以及我們的行動應用程式套件中創新生成的人工智慧功能的廣泛讚譽。

These premium AI features not only expand our mobility app user base, but also capture the attention of enterprise users resulting in a growth synergy between our mobile app and enterprise operation that may bring more revenue stream into our business.

這些優質的人工智慧功能不僅擴大了我們的行動應用程式用戶群，還吸引了企業用戶的注意力，從而導致我們的行動應用程式和企業營運之間的成長協同效應，可能為我們的業務帶來更多收入來源。

I think the revenue, which is now mostly from the traditional offline services decreased by 13.6% from $3.3 million to $2.8 million, representing 19.5% of our total revenue compared to 25.5% of total revenue in the third quarter of 2022.

我認為目前主要來自傳統離線服務的收入下降了 13.6%，從 330 萬美元降至 280 萬美元，占我們總收入的 19.5%，而 2022 年第三季佔總收入的 25.5%。

The lower revenue contribution from licensing, not only online, we managed the expectation, but also underscore customer continued elevated interest for online services rather than legacy offline offering.

授權帶來的收入貢獻較低，不僅是線上服務，我們達到了預期，而且也突顯了客戶對線上服務而不是傳統離線服務的興趣持續上升。

In the gross profit was USD11.8 million, while gross margin was 81.2% compared to 85.3% for the same period of last year. This change in gross margin primarily came from the higher platform fees paid to third-party distribution platform, Apple and Google, which can be attributed to the company's expansion accretion for its mobile app business, compared to the 80.6% gross profit margin for the second quarter of 2023. For that, the third quarter was 81.2%, showing a quarter-over-quarter improvement.

毛利為1,180萬美元，毛利率為81.2%，去年同期為85.3%。毛利率的變化主要是由於公司行動應用業務的擴張增加了向第三方分銷平台蘋果和谷歌支付的平台費用，而第二季度的毛利率為80.6% 2023 年第四季。第三季為81.2% ，環比有所改善。

Total operating expenses increased by 13.3% to $12.7 million from $11.2 million for the same period of last year. To break down operating expenses, sales and marketing expense were $6.4 million, representing 44.3% of our total revenue compared to $6.1 million and 47.8% of total revenue during the same period last year. The 4.9% year-over-year change was primarily due to the increase in marketing and user acquisition costs.

總營運費用從去年同期的 1,120 萬美元增加到 1,270 萬美元，成長 13.3%。按營運費用細分，銷售和行銷費用為 640 萬美元，佔總收入的 44.3%，而去年同期為 610 萬美元，佔總收入的 47.8%。年成長 4.9% 主要是由於行銷和用戶獲取成本的增加。

Research and development expenses were $3 million, representing 20.9% of total revenue compared to $2.6 million and 19.9% of total revenue during the same period last year. The 18.9% year-over-year change was resulted from the increase in R&D headcount expenses.

研發費用為 300 萬美元，佔總營收的 20.9%，去年同期為 260 萬美元，佔總營收的 19.9%。年增18.9%是由於研發人員費用增加所致。

General and administrative expense was $3.2 million, representing 21.8% of total revenue compared to $2.5 million and 19.3% of total revenue during the same period last year. The 28.1% year-over-year changes was primarily due to an increase in public company-related costs.

一般及行政費用為 320 萬美元，佔總營收的 21.8%，去年同期為 250 萬美元，佔總營收的 19.3%。年比變化 28.1% 主要是由於上市公司相關成本的增加。

The change in expense category signify a major increase in spending, a necessary step at our business plan to seek to grow our revenue. Looking ahead, we will maintain cautious oversight to implement effective expense control measures to ensure that our spending remains responsible and aligned with our growth objective.

費用類別的變化意味著支出的大幅增加，這是我們尋求增加收入的業務計劃的必要步驟。展望未來，我們將保持謹慎的監督，實施有效的費用控制措施，以確保我們的支出保持負責任並與我們的成長目標保持一致。

Net income was $3.5 million for the third quarter of 2023 compared to the net income of $1.6 million during the same period of 2022, showing a 126.7% year-over-year increase in our bottom line, excluding non-cash share-based compensation, foreign exchange impact and one-time non-recurring costs associated with our tech deals, adjusted net income was $2.7 million for the third quarter of 2023 compared to adjusted net income of $2.3 million in the same period of 2022.

2023 年第三季的淨利潤為 350 萬美元，而 2022 年同期的淨利潤為 160 萬美元，顯示我們的淨利潤同比增長 126.7%（不包括非現金股份薪酬），考慮到外匯影響以及與我們的技術交易相關的一次性非經常性成本，2023 年第三季調整後淨利為270 萬美元，而2022 年同期調整後淨利為230 萬美元。

Turning into our balance sheet, as of September 30, 2023, our company held $201.3 million in cash and cash equivalent and six months' time deposits, compared to $198 million as of June 30, 2023, reflecting a $3.3 million or 1.7% quarter-over-quarter increase.

進入我們的資產負債表，截至2023 年9 月30 日，我們公司持有2.013 億美元的現金和現金等價物以及六個月的定期存款，而截至2023 年6 月30 日為1.98 億美元，反映了330 萬美元或1.7% 的季度存款。季增。

The company's cash position remains sound and healthy. In total, our customer base has a net increase of 26 new brand clients since the end of last quarter, achieving a total of 627 brand clients with over 678,000 SKUs for makeup, skincare, eyewear and jewelry products as of September 30, 2023.

該公司的現金狀況仍然穩健。截至2023年9月30日，自上季末以來，我們的客戶群淨增加了26個新品牌客戶，截至2023年9月30日，品牌客戶總數超過678,000個，涉及化妝品、護膚品、眼鏡和珠寶產品的SKU超過627個。

This quarter, we grew our key customers for 163 at the end of last quarter to 169. The addition only came from our new win for more beauty and fashion brand, but also benefitted from a successful penetration into skincare, jewelry and hair market in the last quarter.

本季度，我們的主要客戶數量從上季度末的163 家增加到169 家。這一增長不僅來自於我們贏得了更多美容和時尚品牌，還得益於我們成功滲透到了護膚品、珠寶和美髮市場。上個季度。

In the third quarter of 2023, our total revenue has consistently exhibited strong growth, primarily driven by the impressive momentum in our AI/AR cloud solution and mobile app subscriptions; for premium features and AI-powered app, including the newly launched, YouCam AI Pro. Furthermore, our unwavering commitment to operational efficiency has resulted in a noteworthy uptick in our gross profit, showcasing our dedication to maintain a balance between revenue expansion and profitability.

2023年第三季度，我們的總營收持續呈現強勁成長，主要得益於我們的AI/AR雲端解決方案和行動應用程式訂閱的強勁勢頭；高級功能和人工智慧應用程序，包括新推出的 YouCam AI Pro。此外，我們對營運效率的堅定承諾導致我們的毛利顯著上升，展示了我們致力於維持收入擴張和獲利能力之間的平衡。

Concurrently, we continue our investment in talent acquisition and technology innovation. Despite a rise in operating expenses, our net income remains robust. We firmly believe our position within the thriving AI industry, equipped us to seize the opportunities ahead and deliver sustainable value to our shareholders.

同時，我們繼續在人才引進和技術創新方面進行投資。儘管營運費用增加，我們的淨利潤仍然強勁。我們堅信我們在蓬勃發展的人工智慧產業中的地位，使我們能夠抓住未來的機遇，為股東創造可持續的價值。

That concludes my prepared remarks. Operator, let's open up for questions.

我準備好的發言就到此結束。接線員，讓我們開始提問吧。

(Operator Instructions)

（操作員說明）

Clarke Jeffries, Piper Sandler.

克拉克·傑弗里斯，派珀·桑德勒。

Hello. Thank you for taking the question.

你好。感謝您提出問題。

A couple of here. Louis, you mentioned some renewals at some large customers or renewals of opportunities. Wondering if you could speak to the spending trends in the top, say, five customer cohort? I know that was nearly a third of the business last year. Just wanted to get an update on how your spend with the largest customers have changed year over year?

這裡有幾個。路易斯，您提到了一些大客戶的續約或機會的續約。想知道您是否可以談談前五個客戶群的消費趨勢？我知道這幾乎佔去年業務的三分之一。只是想了解您與最大客戶的支出逐年變化的最新情況？

And then maybe a follow up is, we've seen pretty promising brand and SKU growth at nearly 30% year over year, but brand revenues are maybe a little bit disconnected from that.

接下來也許是，我們看到了相當有前途的品牌和 SKU 同比增長近 30%，但品牌收入可能與此有點脫節。

Any expectation on whether we could see brand revenue accelerate here over the coming quarters now that licensing versus cloud revenues are dynamic here? But hoping you could comment on any other factors that might and play out such that brand and SKU growth would match revenue growth going forward? Thank you.

既然授權與雲端收入是動態的，那麼我們對未來幾季是否會看到品牌營收加速有什麼期望嗎？但希望您能評論一下可能導致品牌和 SKU 成長與未來收入成長相符的任何其他因素嗎？謝謝。

Thank you, Clarke, for your question. So we have seen the renewal for the large customers have been very, very healthy in this year. So I think the majority, if not all of the large customers, had renew their license with us on time.

謝謝克拉克的提問。因此，我們看到今年大客戶的續約非常非常健康。因此，我認為大多數（如果不是全部）大客戶都按時向我們更新了許可證。

So I think that is a strong testament that the feature, the functionality, the license is essential to their business. So they continue to offer the beauty tech and skin tech or fashion tech solution that we provide. I think from that perspective, we remain quite confident about the result for this year and also for next year as the renewals are mostly 2023, 2024.

所以我認為這有力地證明了特性、功能和許可證對他們的業務至關重要。因此，他們繼續提供我們提供的美容技術和皮膚技術或時尚技術解決方案。我認為從這個角度來看，我們對今年和明年的結果仍然充滿信心，因為續約大多是在 2023 年、2024 年。

I think in terms of a larger acceleration in the brand business, if that was your question, I think ultimately you come from the other future possible adoption of new innovations such as GenAI and other beauty care solution that we bring to the market.

我認為就品牌業務的更大加速而言，如果這是您的問題，我認為最終您來自未來可能採用的新創新，例如 GenAI 和我們推向市場的其他美容護理解決方案。

I think the first half of [the year] was particularly more challenging for brands into looking into additional spending. And the good news is they are spending their current assisting license as is. But there's no much impact in their renewal rates. And churn rate has been very well positive.

我認為，對於品牌來說，今年上半年在考慮額外支出方面尤其更具挑戰性。好消息是他們將按原樣使用目前的協助許可證。但他們的續訂率沒有太大影響。而且客戶流失率一直都非常高。

And then again, we'll remain very cautiously optimistic. We have been introducing quite a lot of new solutions, especially in the generic space to the brand. And I look forward to materialize data into better deals or bigger deals for next year, which only will encourage brands to onboard more SKUs in more territories. So I think the acceleration also is going through expansion to more distribution channel. So (inaudible) Omar or Amazon will allow [the importance] to these view their SKUs broader.

話又說回來，我們將保持非常謹慎的樂觀態度。我們已經推出了許多新的解決方案，特別是在品牌的通用領域。我期待明年將數據轉化為更好的交易或更大的交易，這只會鼓勵品牌在更多地區推出更多 SKU。因此，我認為加速還在於擴展到更多的通路。因此（聽不清楚）奧馬爾或亞馬遜將允許這些人更廣泛地看待他們的 SKU [重要性]。

So certainly they are -- investment, which believe that in the long term, it's going to pay off and accelerate our revenue once the data massive scales of SKUs across all touch points. And you transform the way that users shop online forever.

因此，他們肯定是投資，他們相信，從長遠來看，一旦所有接觸點的 SKU 數據規模龐大，它將帶來回報並加速我們的收入。您將永遠改變用戶在線購物的方式。

Thank you very much.

非常感謝。

Timothy Zhao, Goldman Sachs.

提摩西·趙，高盛。

Great. Thank you, management, for taking my question. Two questions here. One is on the, I think your revenue breakdown. Just wondering if your management can share what is the growth for each segment within the AI solutions, i.e., what is the growth rate, like for the revenue 2B versus 2C? I think that will be very helpful.

偉大的。謝謝管理層回答我的問題。這裡有兩個問題。其中之一是，我認為您的收入明細。只是想知道您的管理層是否可以分享人工智慧解決方案中每個細分市場的成長情況，即成長率是多少，例如收入 2B 與 2C 的成長率是多少？我認為這會很有幫助。

And secondly, I think it seems that you reiterate the full-year guidance. I think the revenue will be growing at around 11.5% to 14.5% for this year. Just wondering if there's any source of the growth rate into next year, should we expect a faster growth rate? As you mentioned I believe earlier this year, there's a delayed sales cycles or extended sales cycle because of macro environment. Just wondering how that has changed?

其次，我認為您似乎重申了全年指導。我認為今年的營收將成長11.5%至14.5%左右。只是想知道明年的成長率是否有任何來源，我們是否應該期待更快的成長率？正如您所提到的，我相信今年早些時候，由於宏觀環境的原因，銷售週期出現了延遲或延長。只是想知道這是如何改變的？

Thank you.

謝謝。

Thank you, Timothy, for the question. We remain quite confident about our yearly guidance for this year as we expressed. I think everything seems to be moving based on our plan, certainly the macro is too challenging to predict a more longer term. In other form, we are working internally to better understand each client's funnel and how we look into the next year. So that is not something that we have been able to complete here. We are in the process.

謝謝蒂莫西的提問。正如我們所表達的那樣，我們對今年的年度指導仍然充滿信心。我認為一切似乎都按照我們的計劃進行，當然宏觀經濟太具有挑戰性，無法預測更長期的情況。另一方面，我們正在內部開展工作，以便更好地了解每個客戶的管道以及我們對明年的展望。所以這不是我們在這裡能夠完成的事情。我們正在這個過程中。

As soon as we have data, we will certainly share a broader publicly of our view for 2024. I think if we look at -- the industry is moving in a positive direction via I think the digital transformation across all sector, it is the trend and it not stopping. So in certain categories, it go faster and other are a little bit more challenging, such as creating 3D SKUs. It takes more time in order to enable more brands, more SKU in a short period of time.

一旦我們掌握了數據，我們肯定會更廣泛地公開分享我們對2024 年的看法。我認為，如果我們看一下——透過我認為所有行業的數位轉型，該行業正在朝著積極的方向發展，這是趨勢而且它沒有停止。因此，在某些類別中，它進展得更快，而其他類別則更具挑戰性，例如創建 3D SKU。想要在短時間內啟用更多的品牌、更多的SKU，需要更多的時間。

And that is something that, for example, for the [acceleration] of our 2D-to-3D conversion is going to help. We believe that's going to help and potentially change the way that industry is typically operate. Our quality in our name. Our name of the company called Perfect. We want to deliver that protection to the clients, be able to create automatically more SKUs.

例如，這對於 [加速] 2D 到 3D 轉換將會有所幫助。我們相信這將有助於並可能改變行業的通常運作方式。我們的品質以我們的名義。我們公司的名字叫Perfect。我們希望為客戶提供這種保護，能夠自動建立更多 SKU。

I think you accelerate that and then subsequently, of course, you generate more revenue for us. High internal of the segment. I think the skincare segment component is the one that is growing both in the funnel that we receive across different geography. I think we see a lot more demand for skin tech relatively compared to other.

我認為你會加速這一進程，當然，隨後你會為我們創造更多的收入。該段的內部高度。我認為護膚品細分市場是我們在不同地區收到的漏斗中不斷增長的成分。我認為與其他技術相比，我們對皮膚技術的需求要大得多。

Of course, color cosmetic remain our core competence and remain a key part. Our category there raised about a little over half of our revenue coming from color cosmetic, but I think skincare, after investing in these three, four years now, we finally see some good, more movement.

當然，彩妝仍然是我們的核心競爭力，仍然是關鍵部分。我們的類別大約有一半多一點的收入來自彩妝，但我認為護膚品，在投資了這三四年之後，我們終於看到了一些好的、更多的動作。

For brand that's off dated, not only the top global skincare brand, how we also notice that a lot of regional or local beauty brand or skincare brand are also starting to adopt the skin diagnosis segment.

對於過時的品牌來說，不僅是全球頂級的護膚品牌，我們也注意到許多地區或本土的美容品牌或護膚品牌也開始採用皮膚診斷領域。

B2C, of course, is growing much, much stronger. We saw a number of assays that paying subscribers have grew year over year 65%, which is very, very encouraging. They're still a lot of room to grow in that market, it's a huge market. We are kind of a latecomer in the market, but it's a lot of room for us to grow, similar, much any type of app, they are in a much bigger scale. So we just gaining market shares, have quarter after quarter from them.

當然，B2C 正在變得越來越強大。我們看到許多分析顯示付費訂閱用戶年增了 65%，這是非常非常令人鼓舞的。他們在這個市場上還有很大的成長空間，這是一個巨大的市場。我們是市場上的後來者，但我們有很大的成長空間，類似的任何類型的應用程序，它們的規模都要大得多。因此，我們只是不斷地從他們那裡獲得市場份額。

The AI segment is very promising, although it is new. From a revenue contribution in this quarter, its SKU is personally small, but I think this is where we're looking. We are always looking for new innovations that will generate consumer interest up.

人工智慧領域雖然是新興領域，但前景非常廣闊。從本季度的收入貢獻來看，它的 SKU 個人很小，但我認為這就是我們正在尋找的地方。我們一直在尋找能夠激發消費者興趣的新創新。

So we are devoted and investing quite a lot in the development for GenAI. So in our roadmap, I think we have more than a dozen product in GenAI. Some already launched and some will be coming out very soon into the market.

所以我們在 GenAI 的開發上投入了大量精力。所以在我們的路線圖中，我認為我們在 GenAI 中有十多個產品。有些已經推出，有些很快就會進入市場。

Great. Thank you, Louis.

偉大的。謝謝你，路易斯。

Thank you, Tim.

謝謝你，提姆。

Brian Schwartz, Oppenheimer.

布萊恩·施瓦茨，奧本海默。

Hi, good morning. This is Camden Levy sitting in for Brian Schwartz. Thank you for taking my question. Thinking about 2024 in your go-to-market and sales organization, do you anticipate any adjustments in terms of the investment cadence? Or just how should we be thinking about the sales and marketing line heading into next year on the back of the Walmart partnership and the brand opportunity? Thanks.

早安.我是卡姆登·利維 (Camden Levy)，替補布萊恩·施瓦茨 (Brian Schwartz)。感謝您回答我的問題。考慮到 2024 年，您的上市和銷售組織在投資節奏方面是否預期會有任何調整？或者說，在與沃爾瑪的合作夥伴關係和品牌機會的支持下，我們應該如何考慮明年的銷售和行銷線？謝謝。

Hi, Cam. I think for our enterprise sales process, right, is the same formula we have been playing for years. I think certainly, there was a margin there. And as we get more brands starting to adopt how the sales cycle seems to be getting a little better compared to early this year. I think that's a good news. Of course, now we are addressing a broader market to go to new verticals like watches and jewelry and potentially other as well

嗨，卡姆。我認為對於我們的企業銷售流程來說，這與我們多年來一直在使用的公式相同。我想當然，那裡有一個餘地。隨著越來越多的品牌開始採用，與今年年初相比，銷售週期似乎有所改善。我認為這是一個好消息。當然，現在我們正在瞄準更廣泛的市場，進入手錶和珠寶等新的垂直領域，以及其他潛在的領域

For the investment, I think for expense perspective for next year, we certainly do want to increase and invest in R&D. I think that is a area where we want it to be doing the [investment]. On the sales marketing side, I think we remain more cautious.

對於投資，我認為從明年的費用角度來看，我們當然希望增加研發投資。我認為這是我們希望它進行[投資]的領域。在銷售行銷方面，我認為我們仍然更加謹慎。

I think our global team is capable of delivering and expanding our business for these new adjacent categories. So we are not looking at a much increased internal sales marketing headcount, for example. But engineering development, that is going to remain a core competence that we need to invest now in creating this new roadmap and try to address a broader market for 2024.

我認為我們的全球團隊有能力為這些新的相鄰類別提供和擴展我們的業務。因此，例如，我們並沒有考慮大幅增加內部銷售行銷人員數量。但工程開發仍將是我們現在需要投資的核心能力，以製定新的路線圖，並努力在 2024 年開拓更廣闊的市場。

So general, I think as I said in our remarks, we always look into our top-line trend when we are controlling our expenses to make sure that we are also delivering a positive profitability to investors, shareholders.

總而言之，我認為正如我在演講中所說，當我們控制開支時，我們總是會關注我們的營收趨勢，以確保我們也為投資者和股東帶來積極的獲利能力。

Perfect, thank you so much. And then just one follow-up question. If we were to think about the emerging industries and verticals that you guys are going after with VTO and beauty tech, is there -- if you were to stack rank maybe your top three new categories in terms of growth catalyst, how would you define those categories or which ones are most likely to contribute to 2024 and 2025?

完美，非常感謝。然後是一個後續問題。如果我們考慮一下你們透過 VTO 和美容技術追求的新興行業和垂直行業，是否存在 - 如果您要在增長催化劑方面排名前三名的新類別，您會如何定義這些哪些類別最有可能對2024 年和2025 年做出貢獻？

I think we certainly want to play around our target customer. Our primary target customer are always the female shoppers. So when we think about our roadmap and business expansion, we think about what shoppers, especially females, they're shopping online.

我認為我們當然想圍繞我們的目標客戶開展業務。我們的主要目標客戶始終是女性購物者。因此，當我們考慮路線圖和業務擴張時，我們會考慮購物者（尤其是女性）在網路上購物的內容。

Or what are the categories that they really need to try before they buy and I think they'll generate the most value. That's why your target, we started with makeup and then now expanding into jewelry and watches. So if you think about online, I think accessories, apparels, right?

或者他們在購買之前真正需要嘗試的類別是什麼，我認為它們會產生最大的價值。這就是為什麼你的目標是，我們從化妝品開始，然後現在擴展到珠寶和手錶。所以如果你想到網路上，我會想到配件、服裝，對嗎？

Anything that you can wear on your body, on your face, or your hand, and your body will be certainly in our radar. And rest assured, we are certainly working on many of these aspects, but we also are cautious that we want to deliver the perfection.

任何你可以戴在身上、臉上、手上和身體上的東西肯定都會在我們的關注範圍內。請放心，我們確實正在努力解決其中的許多方面，但我們也很謹慎，希望能做到盡善盡美。

So we don't want to rush in the market. We -- unfinished product or something that is not ready for prime time. So whenever we come to market, we really wow consumer and the brands to offer something that they have never seen before.

所以我們不想急於進入市場。我們－未完成的產品或尚未準備好迎接黃金時段的東西。因此，每當我們進入市場時，我們都會為消費者和品牌提供他們以前從未見過的東西。

And I think that is remain a solid belief on how we approach the market with expansion. So I think in a broader way, I think AR commerce, we are a strong believer in that. A one new area that it's going to take a little bit more significant is currently in our Generative AI, but that is something that was not possible before the technology assisted.

我認為這仍然是我們對市場擴張方式的堅定信念。所以我認為從更廣泛的角度來看，我認為 AR 商務，我們對此堅信不疑。目前，我們的生成人工智慧是一個更重要的新領域，但在技術輔助之前這是不可能的。

And now with the power of Generative AI, I think there's a lot of new potentials. For example, we talk about the hairstyle generation with Tresemmé, the Unilever brand, this is just one of the example of how we're able to really create real use cases that bring real business benefits to the brand by harnessing the power of GenAI. And that will remain in our core focus for now.

現在，借助生成式人工智慧的力量，我認為存在著許多新的潛力。例如，我們談論聯合利華品牌 Tresemmé 的髮型生成，這只是我們如何能夠真正創建真實用例的範例之一，透過利用 GenAI 的力量為品牌帶來真正的商業利益。目前這仍將是我們的核心關注點。

Perfect. Thank you so much.

完美的。太感謝了。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

As there are no further questions at this time, I'd now like to hand back the conference over to the management for closing remarks.

由於目前沒有其他問題，我現在想將會議交還給管理階層進行總結發言。

All right. Thank you, everyone, for joining our call today. Wish you have a good day. Bye-bye.

好的。謝謝大家今天加入我們的電話會議。祝你有美好的一天。再見。

Thank you.

謝謝。