Perfect Corp (PERF) 2023 Q2 法說會逐字稿

Good morning and good evening, ladies and gentlemen.

早安，晚上好，女士們先生們。

Thank you for standing by and welcome to Perfect Corp.'s earning conference call.

感謝您的耐心等待並歡迎參加 Perfect Corp. 的獲利電話會議。

(Operator Instructions)

（操作員說明）

Please note that today's event is being recorded.

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, VP of IR of the company.

現在我將會議交給今天的第一位發言者，公司IR副總裁Rick Lee先生。

Please go ahead, sir.

請繼續，先生。

All right.

好的。

Thank you, Ellie.

謝謝你，艾莉。

Hello, everyone, and welcome to Perfect Corp.'s earnings call.

大家好，歡迎參加 Perfect Corp. 的財報電話會議。

With us today are Ms. Alice Chang, our Founder, Chairwoman and CEO; Mr. Louis Chen, our EVP and CSO; and Ms. Iris Chen, VP of Finance and Accounting.

今天與我們在一起的有我們的創辦人、董事長兼執行長 Alice Chang 女士； Louis Chen 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 second quarter 2023 financial results on our IR website or in the Form 6-K we filed with the SEC earlier.

您可以在我們的 IR 網站或我們先前向 SEC 提交的 6-K 表格中參考我們的 2023 年第二季財務業績。

You can later access a replay of this call on our IR website shortly after the conclusion of this call.

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。

For today's call, management will provide their prepared remark, first, and then we will host a Q&A session.

在今天的電話會議中，管理層將首先提供他們準備好的評論，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 apply to this call, as this call may contain forward-looking statement regarding Perfect Corp.'s performance, anticipated plans, operational result 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 Corp. 的業績、預期計劃、運營結果的前瞻性聲明和目標。

Forward-looking statement 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.

前瞻性聲明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. undertake no obligation to update any forward-looking statement, except as required by law, after the date of this call.

Perfect Corp. 不承擔在本次電話會議之後更新任何前瞻性聲明的義務，除非法律要求。

Please note that all numbers stated in the following management prepared remark are in US dollar terms.

請注意，以下管理層準備的評論中列出的所有數字均以美元計算。

And we will discuss non-IFRS measures today.

今天我們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。

Thank you, Rick.

謝謝你，瑞克。

Hi, everyone.

大家好。

Welcome to Perfect Corp.'s 2023 Second Quarter Earnings Conference Call.

歡迎參加 Perfect Corp. 2023 年第二季財報電話會議。

Today, I'm happy to share with you how Perfect Corp., a pioneer in AI and AR solutions for the beauty and fashion, is driving innovation and shaping the future for beauty tech, skin tech and in fashion tech.

今天，我很高興與您分享 Perfect Corp. 作為美容和時尚人工智慧和 AR 解決方案的先驅，如何推動創新並塑造美容技術、皮膚技術和時尚技術的未來。

For the second quarter of 2023, we generated $12.7 million in total revenue, representing year-over-year growth of 11.9%.

2023 年第二季度，我們的總營收為 1,270 萬美元，年增 11.9%。

The double-digit growth is mainly come from our AR/AI cloud solutions and the mobile beauty app subscription services.

兩位數的成長主要來自我們的AR/AI雲端解決方案和行動美妝應用訂閱服務。

In addition, we managed to improve our net income on an adjusted basis to $1.1 billion (sic - see press release, "$1.1 million") in the second quarter of 2023 from $0.6 million in the same period of 2022, reflecting a margin of -- improvement of 2.7%.

此外，我們設法將調整後的淨利潤從 2022 年同期的 60 萬美元提高到 2023 年第二季度的 11 億美元（原文如此 - 參見新聞稿，“110 萬美元”），反映出利潤率 - -提高2.7%。

Perfect Corp. has been an AI pioneer since its inception, utilizing AI and machine learning in 2015 for real-time make-up virtual try-ons.

Perfect Corp. 自成立以來一直是人工智慧先驅，並於 2015 年利用人工智慧和機器學習進行即時化妝虛擬試妝。

With over 50% our -- of our R&D developers specializing in AI, we continuously harness the latest AI advancement to push the boundary of beauty and fashion.

我們超過 50% 的研發開發人員專門從事人工智慧，我們不斷利用最新的人工智慧進步來突破美容和時尚的界限。

Over the years, we have expanded our AI applications, including face shape detection for foundation matching, real-time live hair color virtual try-ons, advanced selfie skin care diagnosis using AI deep learning models and the incorporation of AI GAN technology for various visual effects.

多年來，我們不斷拓展人工智慧應用，包括用於粉底匹配的臉型檢測、實時髮色虛擬試戴、使用人工智能深度學習模型的高級自拍皮膚護理診斷以及結合人工智能生成對抗網絡（AI GAN）技術進行各種視覺分析。

In the second half of 2022, we introduced generative AI to BeautyTech, such as AI Avatar, which allows each user to create his or her own digital twin.

2022年下半年，我們向BeautyTech引入了生成式AI，例如AI Avatar，它允許每個用戶創建自己的數位雙胞胎。

Now in 2023, we proudly unveil our range of innovative Generative AI products, including AI Fashion, AI Hairs, and more to come.

現在到了 2023 年，我們自豪地推出了一系列創新的生成式人工智慧產品，包括人工智慧時尚、人工智慧頭髮等等。

At Perfect, we are committed to utilizing the most advanced AI and AR technologies to provide continuous support for our three key growth pillars: BeautyTech, SkinTech, and FashionTech.

在Perfect，我們致力於利用最先進的AI和AR技術為我們的三大關鍵成長支柱：BeautyTech、SkinTech和FashionTech提供持續支援。

By harnessing these cutting-edge technology, we aim to enhance and further develop our capabilities in these domains.

透過利用這些尖端技術，我們的目標是增強和進一步發展我們在這些領域的能力。

Our AI advances are not only leading to more collaborations with brands and also enthusiasts in beauty and fashion, but also positioning us for the future success and the revenue growth.

我們的人工智慧進步不僅帶來了與品牌以及美容和時尚愛好者的更多合作，而且還為我們未來的成功和收入成長奠定了基礎。

This is especially true with Generative AI, where the combination of human creativity and AI allows us to develop products and experiences that captivate our customers.

對於生成式人工智慧尤其如此，人類創造力和人工智慧的結合使我們能夠開發出吸引客戶的產品和體驗。

It sets us apart from competitors and serves as a driving force for sustained financial growth in the long run.

它使我們從競爭對手中脫穎而出，並成為長期持續財務成長的驅動力。

Now let me turn to our operational results for the second quarter and explain how our focus in AI has contributed to our growth.

現在讓我談談我們第二季的營運業績，並解釋我們對人工智慧的關注如何促進我們的成長。

On the brand side, we have observed encouraging signs of improvements in product demand.

在品牌方面，我們觀察到產品需求改善的令人鼓舞的跡象。

It is evidenced through stable renewal, growth in key customers, and an increase in innovative projects, particularly those involving GenAI.

穩定的更新、主要客戶的成長以及創新項目（尤其是涉及 GenAI 的項目）的增加就證明了這一點。

Recently, we participated in the VivaTech Conference in Paris and hosted our 5th Annual Global Beauty Fashion Tech Forum in New York.

最近，我們參加了在巴黎舉行的 VivaTech 會議，並在紐約主辦了第五屆年度全球美容時尚科技論壇。

These events served as a platform for us to unveil and showcase our latest advances in BeautyTech, SkinTech, FashionTech and the creative usage model of Generative AI across the board.

這些活動為我們提供了一個平台，全面揭曉並展示我們在美容科技、皮膚科技、時尚科技以及產生人工智慧的創意使用模型方面的最新進展。

Several brand groups have shown high interest to start pilot programs using Gen AI for new collaboration.

多個品牌集團對使用 Gen AI 進行新合作啟動試點計畫表現出了濃厚的興趣。

On the other hand, our mobile beauty apps have sustained their impressive growth momentum since the first quarter.

另一方面，我們的行動美容應用自第一季以來一直保持著令人印象深刻的成長勢頭。

This is due to the introduction of various premium add-on features powered by Gen AI, such as AI Avatar and the AI Fashion.

這是由於引入了由 Gen AI 提供支援的各種高級附加功能，例如 AI Avatar 和 AI Fashion。

AI Fashion is our latest innovation, which enables users to explore different fashion styles, outfits and hairstyles through AI-generated image, which we just introduced in our mobile beauty app with very high engagement rate.

AI時尚是我們最新的創新，它使用戶能夠透過AI生成的圖像探索不同的時尚風格、服裝和髮型，我們剛剛在我們的行動美容應用程式中推出了這項功能，參與率非常高。

On the technological development front, in addition to the new features powered by Gen AI, Perfect has also been working on enhancing our virtual try-on for jewelries and watches, especially with multiple products stacking capability, so now we can combine rings, bracelets, and the watches virtual try-on at the same time, and together with the makeup virtual try-on to create a complete virtual try-on look in real time.

在技​​術發展方面，除了Gen AI支援的新功能外，Perfect還致力於增強我們對珠寶和手錶的虛擬試戴，特別是多產品堆疊能力，所以現在我們可以將戒指、手鍊、同時進行手錶虛擬試戴，並與妝容虛擬試戴一起即時打造完整的虛擬試妝造型。

This would allow consumers to try-on different makeup products and accessories together to see how they complement each other, helping them visualize a total look.

這將使消費者能夠一起嘗試不同的化妝品和配件，看看它們如何相互補充，幫助他們形象化整體外觀。

This is unique in the market for brands.

這在品牌市場上是獨一無二的。

This powerful tool would allow cross sell and build customer loyalty.

這個強大的工具將允許交叉銷售並建立客戶忠誠度。

Furthermore, in addition, in order to accelerate the adoption of virtual try-on technology for fashion and jewelry, Perfect announced in June the world’s first 3D VTO open format, with the release of a comprehensive white paper on a new open standard VTO file format.

此外，為了加速時尚珠寶虛擬試穿技術的採用，Perfect於6月宣布推出全球首個3D VTO開放格式，並發布了關於新開放標準的綜合白皮書VTO 文件格式。

The new format is to establish a standardized and a simplified process for integrating third-party 3D objects into our virtual try-on platform.

新格式旨在建立標準化且簡化的流程，將第三方 3D 物件整合到我們的虛擬試戴平台中。

In addition, we also launched a 2D to 3D new creation tool for jewelry.

此外，我們也推出了2D轉3D的全新珠寶創作工具。

This tool can convert from one 2D product image into a simplified 3D asset for virtual try-ons.

該工具可以將一個 2D 產品圖像轉換為簡化的 3D 資產以進行虛擬試穿。

Both initiatives aim to expedite the market adoption for jewelry virtual try-ons.

這兩項舉措都旨在加快珠寶虛擬試戴的市場採用。

It will greatly reduce the time and cost required for brands to integrate their products into our platform.

這將大大減少品牌將其產品整合到我們平台所需的時間和成本。

This breakthrough has the potential to revolutionize the fashion industry by enabling rapid integration of virtual try-on experiences, benefiting both brands and the consumers.

這項突破有可能透過快速整合虛擬試穿體驗來徹底改變時尚產業，使品牌和消費者都受益。

On the business development front, we have made significant progress in expanding our presence in the skincare market.

在業務發展方面，我們在擴大護膚品市場份額方面取得了重大進展。

Our diligent in business development effort has resulting notable progress.

我們在業務發展方面的努力取得了顯著的進展。

Specifically during the second quarter, we acquired over 10 new skincare clients across various business segments, including Pharma brands, MedSpa, and Beauty Clinics, also in different regions, including United States, Pan-Asia and the Middle East.

具體來說，在第二季度，我們在各個業務領域收購了 10 多個新的護膚客戶，包括製藥品牌、MedSpa 和美容診所，也分佈在不同地區，包括美國、汎亞和中東。

This demonstrates our strategy in penetrating key growth markets and establishing partnership with skincare vertical.

這顯示了我們滲透關鍵成長市場並與護膚品垂直產業建立合作關係的策略。

At the same pace, we have successfully introduced additional premium add-on features in our mobile beauty apps by incorporating advanced Gen AI technology into our offerings.

同時，我們透過將先進的 Gen AI 技術融入我們的產品中，成功地在我們的行動美容應用程式中引入了額外的高級附加功能。

This initiated -- initiative has allowed us to attract a great number of engaged mobile app users, resulting in incremental subscription revenue.

這項舉措使我們能夠吸引大量活躍的行動應用用戶，從而增加訂閱收入。

On the client success front in the second quarter, we have worked with several prestige brands. expand their existing VTO offerings in new cases.

在第二季的客戶成功方面，我們與多個知名品牌合作。在新案例中擴展其現有的 VTO 產品。

For example, Dior recently launched its new online and remote one-to-one consultation service to complement its existing digital beauty footprint.

例如，迪奧最近推出了新的線上和遠端一對一諮詢服務，以補充其現有的數位美容足跡。

This showcases that virtual try-on experience is multichannel and we expect that newer use cases will start adopting virtual try-on as the key experience in digital beauty.

這表明虛擬試穿體驗是多通路的，我們預計新的用例將開始採用虛擬試穿作為數位美容的關鍵體驗。

Another good example is TRESemmé, which is a prominent Unilever haircare brand.

另一個很好的例子是 TRESemmé，它是聯合利華著名的護髮品牌。

It recently introduced an exciting feature on its US website, an AI hairstyle virtual try-on.

它最近在其美國網站上推出了一項令人興奮的功能，即人工智慧髮型虛擬試戴。

This innovative tool empowers consumer to explore and visualize different hairstyles before making a commitment for a hair makeover.

這種創新工具使消費者能夠在做出髮型改造之前探索和想像不同的髮型。

By leveraging our AI technology, TRESemmé aims to provide a more engaging and a personalized experience for its customers.

透過利用我們的人工智慧技術，TRESemmé 旨在為其客戶提供更具吸引力和個人化的體驗。

It’s interactive and very user-friendly AI tool enable individuals to make more informed decisions about their desired hair transformation, eliminating any uncertainty that may arise when considering a new hairstyle.

它是一種互動式且非常用戶友好的人工智慧工具，使個人能夠就自己想要的髮型轉變做出更明智的決定，消除在考慮新髮型時可能出現的任何不確定性。

In addition, we also helped a well-known European luxury fashion brand in launching its first-ever, but comprehensive, virtual try-on services for -- from makeup to nail polish, nails stickers, bracelets, and watches.

此外，我們還幫助一家著名的歐洲奢侈時尚品牌推出了有史以來第一個全面的虛擬試穿服務——從化妝品到指甲油、指甲貼、手鐲和手錶。

At the same time, the largest luxury group in Europe also roll out its jewelry VTO on its website in the second quarter.

同時，歐洲最大的奢侈品集團也於第二季在其網站上推出了珠寶VTO。

Lastly, the world's largest e-commerce company has chosen Perfect to launch its VTO features for its nail brand on its shopping app and US web.

最後，全球最大的電子商務公司選擇 Perfect 在其購物應用程式和美國網站上為其美甲品牌推出 VTO 功能。

This innovative collaboration aims to revolutionize the way consumer experience and shop for nail and the jewelry products.

這項創新合作旨在徹底改變消費者體驗和購買美甲和珠寶產品的方式。

The introduction of virtual try-on services for beauty and the fashion jewelry highlights a significant shift in the industry.

美容和時尚珠寶虛擬試戴服務的推出凸顯了該行業的重大轉變。

It indicates that virtual try-on has now become an essential requirement, a table stake, for brands to stay relevant in consumer digital journey all the time.

這表明虛擬試穿現已成為品牌在消費者數位旅程中始終保持相關性的基本要求和賭注。

Consumer increasingly expect the ability to visualize how makeup and accessories will look and fit before making any purchase.

消費者越來越希望在購買之前能夠直觀地看到化妝品和配件的外觀和合身性。

And the virtual try-on fulfill that demand.

虛擬試穿滿足了這項需求。

Perfect Corp., as a pioneering force, is leading the market to provide AI-driven virtual try-on solutions across all categories.

Perfect Corp. 作為先鋒力量，正在引領市場，提供由人工智慧驅動的跨所有類別的虛擬試穿解決方案。

With a steadfast commitment to innovations and cutting edge technology, Perfect has been instrumental in revolutionizing the beauty and fashion industry to enhance consumer engagement and the consumer purchasing journey.

憑藉對創新和尖端技術的堅定承諾，Perfect 在革新美容和時尚產業、提高消費者參與度和消費者購買旅程方面發揮了重要作用。

In summary, we had a good second quarter with a double-digit revenue growth.

總而言之，我們第二季的營收成長良好，實現了兩位數的成長。

And as we look forward to the full-year 2023, we estimated a year-over-year total revenue growth ranging from 11.5% to 14.5% compared to 2020 (sic - see press release, "2022").

展望 2023 年全年，我們預計總收入較 2020 年同比增長 11.5% 至 14.5%（原文如此 - 請參閱新聞稿，“2022 年”）。

Throughout this journey, our team will diligently monitor and access key performance indicators to ensure we stay on track with our objective.

在整個過程中，我們的團隊將努力監控和存取關鍵績效指標，以確保我們始終朝著目標前進。

Perfect is well-positioned to benefit from the megatrend of Digital Transformation of beauty and fashion.

Perfect 處於有利地位，可以從美容和時尚數位轉型的大趨勢中受益。

Together with a new wave of innovation created by Generative AI technology, will continue to propel the growth of both our Brand SaaS business, as well as our mobile app consumer subscription business.

加上生成式人工智慧技術帶來的新一波創新浪潮，將持續推動我們的品牌 SaaS 業務以及行動應用消費者訂閱業務的成長。

Thank you for listening.

感謝您的聆聽。

And now I'm turning the call over to Louis to go over the financial details with you.

現在我將電話轉給路易斯，與您一起討論財務細節。

Thank you.

謝謝。

Thank you, Alice.

謝謝你，愛麗絲。

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 second quarter of 2023 versus the comparable period of 2022.

在詳細介紹我們的財務表現之前，請注意，所有比較均以同比為基礎，報告期為 2023 年第二季度，而同期為 2022 年第二季度。

And that, on top of the IFRS measures, we will also discuss non-IFRS measures to provide greater clarity on the trends in our actual operations.

除了 IFRS 措施之外，我們還將討論非 IFRS 措施，以更清楚地了解我們實際營運的趨勢。

For the second quarter of 2023, our total revenue increased from USD11.3 million in the same period of last year to USD12.7 million, representing a year-over-year growth of 11.9%.

2023年第二季度，我們的總營收從去年同期的1,130萬美元增至1,270萬美元，較去年同期成長11.9%。

Our AR and AI cloud solution and subscription revenue, which now contributes 86.7% of our total revenue, grew by 16.3% year over year, showing strong growth momentum in our core business.

我們的AR和AI雲端解決方案和訂閱收入目前占我們總營收的86.7%，年增16.3%，顯示出我們核心業務的強勁成長動能。

Meanwhile, legacy licensing revenue for physical stores, which now accounted for 10.9% of our total revenue, increased by 6.2%.

同時，實體店的傳統授權收入目前占我們總收入的10.9%，成長了6.2%。

This trend not only resonates with our continuous focus on prioritizing online services, but also underscore customer inclination to direct resources into our AR cloud solutions and subscriptions.

這一趨勢不僅與我們對優先考慮線上服務的持續關注產生共鳴，而且還強調了客戶傾向於將資源引導到我們的 AR 雲端解決方案和訂閱中。

Regarding customer order expansion and acquisition trends during the second quarter, renewal rate for existing subscription has remained strong and healthy, demonstrating continued customer engagement with our platform.

關於第二季的客戶訂單擴張和收購趨勢，現有訂閱的續訂率保持強勁和健康，顯示客戶與我們平台的持續互動。

Additionally, as the macroeconomic shows sign of recovery, our efforts in acquiring new customer have shown improvement.

此外，隨著宏觀經濟出現復甦跡象，我們的新客戶獲取工作也有所改善。

We remain cautiously optimistic about the long-term growth potential that they bring to our business.

我們對它們為我們業務帶來的長期成長潛力保持謹慎樂觀。

Among our great revenue sources, AR/AI cloud solution and subscription revenue grew by 16.3% to USD11 million, representing 86.7% of our total revenue in the second quarter of 2023, mainly due to solid demand of our online virtual try-on solutions from brand customers and robust growth in our mobile beauty app subscription.

在我們的重要收入來源中，AR/AI 雲端解決方案和訂閱收入增長16.3% 至1,100 萬美元，佔2023 年第二季度總收入的86.7%，這主要是由於我們的線上虛擬試穿解決方案的強勁需求品牌客戶以及我們的行動美容應用程式訂閱量的強勁成長。

Our mobile beauty app active subscribers have surged by 63.3% year over year, reaching a historical high of over 777,000 by the end of the second quarter of 2023.

我們的行動美容應用程式活躍用戶年增 63.3%，到 2023 年第二季末達到超過 777,000 人的歷史新高。

This remarkable growth shows a strong demand for innovative features powered by generative AI in our suite of mobile beauty apps and highlights the strong momentum we have generated in the market.

這一顯著的成長表明了對我們的行動美容應用程式套件中由生成人工智慧驅動的創新功能的強烈需求，並凸顯了我們在市場上產生的強勁勢頭。

Licensing revenue, which is mostly generated from our traditional offline services, increased by 6.2% to USD1.4 million, representing 10.9% of our total revenue compared to 11.5% of total revenue in the second quarter of 2022.

授權收入主要來自我們的傳統離線服務，成長了 6.2% 至 140 萬美元，占我們總收入的 10.9%，而 2022 年第二季佔總收入的 11.5%。

This reflects brand customers’ continued elevated interest in online services rather than traditional physical store deployment.

這反映出品牌客戶對線上服務而不是傳統實體店部署的興趣持續增加。

Our licensing revenue seems to stabilize at the current level.

我們的授權收入似乎穩定在當前水準。

AR/AI cloud solution and subscription revenue shows strong growth momentum in this quarter.

AR/AI雲端解決方案和訂閱營收本季呈現強勁成長動能。

This trend not only aligns with management’s continued strategy to prioritize new cloud-based subscription services, but also demonstrated the significant role that generative AI plays in driving business growth.

這一趨勢不僅符合管理層優先考慮新的基於雲端的訂閱服務的持續策略，而且還證明了生成式人工智慧在推動業務成長方面所發揮的重要作用。

As generative AI technology rapidly evolves, we expect to see even more creative and advanced applications to further drive our revenue growth.

隨著生成式人工智慧技術的快速發展，我們期望看到更多創意和先進的應用程序，以進一步推動我們的收入成長。

Gross profit of USD10.2 million, while gross margin was 80.6% compared to 85.8% for the same period of last year.

毛利為1,020萬美元，毛利率為80.6%，去年同期為85.8%。

The change in gross margin was due to an increase in the cost of goods sold, which was driven by the growth in the company’s mobile beauty app subscription.

毛利率的變化是由於銷售商品成本的增加，這是由公司行動美容應用程式訂閱量的成長所推動的。

This surge in subscription led to higher platform fee paid to third-party digital distribution platforms, namely Apple and Google.

訂閱量的激增導致向第三方數位發行平台（即蘋果和谷歌）支付的平台費用更高。

Compared with the 78.8% gross margin for the first quarter of 2023, at the second quarter was 80.6%, demonstrating a quarter-over-quarter improvement.

與2023年第一季78.8%的毛利率相比，第二季毛利率為80.6%，季增。

Total operating expenses increased by 12.5% to USD12.3 million from UDF11 million for the same period of last year.

總營運費用從去年同期的 1,100 萬美元增至 1,230 萬美元，成長 12.5%。

To break down operating expenses, sales and marketing expenses were USD6.6 million, representing 51.7% of our total revenue compared to USD6.1 million and 53.6% of total revenue during the same period last year.

按營運費用細分，銷售和行銷費用為 660 萬美元，佔總收入的 51.7%，而去年同期為 610 萬美元，佔總收入的 53.6%。

The 7.9% year-over-year changes was primarily due to increase in promotion and user acquisition expenses.

7.9%的年比變化主要是由於促銷和用戶獲取費用的增加。

Research and development expenses were USD2.8 million, representing 21.8% of total revenue, compared to USD2.6 million and 23.3% of total revenue during same period last year.

研發費用為280萬美元，佔總營收的21.8%，去年同期為260萬美元，佔總營收的23.3%。

General and administrative expenses were USD3 million, representing 23.8% of total revenue compared to USD2.2 million and 19.8% of total revenue during the same period last year.

一般及行政費用為 300 萬美元，佔總營收的 23.8%，去年同期為 220 萬美元，佔總營收的 19.8%。

The 34.3% year-over-year change was primarily due to an increase in public company related cost.

年比變動 34.3% 主要是因為上市公司相關成本的增加。

The change in expense category reflects a moderate increase in spending while our core business is growing.

費用類別的變化反映了我們核心業務成長的同時支出的適度成長。

Moving forward, we will carefully monitor and control our expenses to ensure responsible spending practices.

展望未來，我們將仔細監控和控制我們的支出，以確保負責任的支出實踐。

Net Loss was USD0.2 million for the second quarter of 2023 compared to a net income of USD27.4 million during the same period of 2022, mainly due to the USD28.4 million adjustment in non-cash valuation gain on financial liabilities at fair value through profit or loss in the second quarter of 2022.

2023 年第二季淨虧損為 20 萬美元，而 2022 年同期淨利為 2,740 萬美元，主要是由於以公允價值計量且其變動的金融負債非現金估值收益調整為 2,840 萬美元。第二季的損益價值。

Excluding non-cash share-based compensation, foreign exchange impact and one-time non-recurring costs associated with our de-SPAC deal, adjusted net income was USD1.1 million for the second quarter of 2023, compared to adjusted net income of USD0.6 million in the same period of 2022.

不包括非現金股份補償、外匯影響以及與去 SPAC 交易相關的一次性非經常性成本，2023 年第二季調整後淨利潤為 110 萬美元，而調整後淨利潤為 0 美元2022 年同期為60萬。

Turning to our balance sheet.

轉向我們的資產負債表。

As of June 30, 2023, our company held USD198 million in cash and cash equivalents and time deposits six months or longer, compared to USD196.1 million as of March 31, 2023, reflecting a USD1.9 million or 0.9% quarter-over-quarter increase.

截至2023 年6 月30 日，本公司持有1.98 億美元現金及現金等價物以及六個月或以上定期存款，而截至2023 年3 月31 日為1.961 億美元，較上一季增加190 萬美元，即0.9% -季度成長。

The company cash position remains healthy.

公司現金狀況保持健康。

In total, our customer base had a net increase of 76 new brand clients since the end of last quarter, achieving a total of 601 brand customers.

整體而言，自上季末以來，我們的客戶群淨增新品牌客戶76家，品牌客戶總數達到601家。

With over 655,000 SKUs for makeup, skincare, eyewear and jewelry products as of June 30, 2023.

截至 2023 年 6 月 30 日，擁有超過 655,000 個化妝品、護膚品、眼鏡和珠寶產品 SKU。

In this quarter, we grew our key customers to 163 from 158 at the end of last quarter.

本季度，我們的主要客戶從上季末的 158 個增加到 163 個。

The new acquisition came from the improvement in our [sales] cycle with larger funnels and increased inbound leads brought by the recovery in market conditions.

新的收購來自於我們[銷售]週期的改善，通路更大，以及市場狀況復甦帶來的入境線索增加。

In the second quarter, our revenue saw strong momentum due to the continued demand for our online AI/AR cloud solution and subscription, as well as the rapid increase in our mobile app subscribers.

第二季度，由於對線上 AI/AR 雲端解決方案和訂閱的持續需求以及行動應用用戶的快速成長，我們的營收出現強勁成長勢頭。

Concurrently, we effectively manage our expenditures to ensure profitability while achieving revenue growth.

同時，我們有效管理支出，確保獲利能力，同時實現收入成長。

The stable renewal rate of existing subscriptions, diligent cost control measures and a healthy cash position further reinforce our unwavering confidence in growing our revenue in the long term.

現有訂閱的穩定續訂率、嚴格的成本控制措施和健康的現金狀況進一步增強了我們對長期收入成長的堅定信心。

That concludes my prepared remarks.

我準備好的發言就到此結束。

Operator, let’s open up our call for questions.

接線員，讓我們開始提問吧。

(Operator Instructions)

（操作員說明）

Timothy Zhao, Goldman.

趙蒂莫，高​​盛。

Sure.

當然。

Thank you management for taking my question.

感謝管理層回答我的問題。

I think I have a question about your full-year revenue guidance.

我想我對你們的全年收入指導有疑問。

I think the guidance is quite helpful and -- which implies the revenue growth in the second half to be, I think by my calculation, close to 20% year on year compared to single-digit growth in the first half.

我認為該指引非常有幫助，而且根據我的計算，這意味著下半年的營收年增率接近 20%，而上半年的成長僅為個位數。

Just wondering if management could further elaborate the drivers behind the revenue acceleration into the second half.

只是想知道管理階層是否可以進一步闡述下半年營收加速成長的驅動因素。

And also, I think a related question is that I noticed the brand customers actually increased quite a lot in the second quarter to over 600 in June.

而且，我認為一個相關的問題是，我注意到第二季度品牌客戶實際上增加了很多，到 6 月已經超過 600 家。

But it seems that the revenue grows and the contract liability growth lag behind a little bit.

但似乎收入成長和合約負債成長有點滯後。

Wondering if you could help us understand what is the customer’s paying behavior of those newly acquired customers and when we can see more revenue contribution from these new customers?

想知道您是否可以幫助我們了解這些新客戶的付費行為以及我們何時可以看到這些新客戶帶來更多收入貢獻？

Thank you.

謝謝。

Thank you, Timothy.

謝謝你，提摩西。

Yes, so we have seen, certainly, more demand for the brand customers for all sizes.

是的，所以我們當然看到了對各種規模的品牌客戶的更多需求。

And as we have seen, typically, when the customers started to join our platform, initially, they'll start with more reasonable orders.

正如我們所看到的，通常，當客戶開始加入我們的平台時，最初他們會從更合理的訂單開始。

And over time, you grow with more up sell and cross sell..

隨著時間的推移，你會隨著更多的向上銷售和交叉銷售而成長。

So we do see some healthy signs that are more clients have the need for these beauty solutions, for BeautyTech, FashionTech and SkinTech coming to the solution.

因此，我們確實看到了一些健康的跡象，表明更多的客戶需要這些美容解決方案，BeautyTech、FashionTech 和 SkinTech 都在提供解決方案。

That's how you saw the increase of total brand customers to over 600 now for the first time.

這就是您現在首次看到品牌客戶總數增加到 600 多個的原因。

And certainly, that will be encouraging signs for us to continue to work with those customers so they understand our solution and grow to be a bigger spender over the time.

當然，這將是令人鼓舞的跡象，讓我們繼續與這些客戶合作，以便他們了解我們的解決方案，並隨著時間的推移成為更大的消費者。

In terms of the business outlook guidance, certainly the company, as we grow and, again, more maturity in our business and more robust business model, we also feel important to share the visibility and transparency with the market.

就業務前景指導而言，當然是公司，隨著我們的成長，我們的業務更加成熟，業務模式更加穩健，我們也認為與市場分享可見度和透明度很重要。

So we certainly seen indicators from the both the online solutions, as I explain, but also the mobile app subscription that's growing very, very, very fast.

因此，正如我所解釋的，我們當然看到了來自線上解決方案的指標，而且還看到了成長非常非常快的行動應用程式訂閱。

That is showing a strong confidence to the company, that second half of the year, we’ll be performing much better than the first half of the year.

這顯示我們對公司有很強的信心，下半年我們的業績會比上半年好得多。

Therefore, generating the guidance that we are putting forward at this time.

因此，產生了我們此時提出的指導意見。

I see.

我懂了。

Thank you, Louis.

謝謝你，路易斯。

Clarke Jefferies, Piper Sandler.

克拉克·傑弗里斯，派珀·桑德勒。

Hello.

你好。

Thank you for taking the question.

感謝您提出問題。

I just wanted to maybe dig into the sub components of AR and AI cloud solutions.

我只是想深入研究 AR 和 AI 雲端解決方案的子組件。

Louis, could I confirm if you -- what AR and AI cloud solutions are growing at right now?

Louis，我可以向您確認 AR 和 AI 雲端解決方案目前正在發展嗎？

And I -- maybe as a follow up to the prior question, it seems like the subscription business is growing quite well, in terms of active users, maybe growing in excess of 30%, maybe by my math.

我——也許作為上一個問題的後續，訂閱業務似乎增長得相當不錯，就活躍用戶而言，根據我的數學計算，可能增長超過 30%。

And so just -- could you just remind us my -- what are the dynamics of AR and AI cloud solutions that seems to be accelerating in the second part of the year, I would assume, based off of that guidance?

那麼，您能否提醒我們一下，根據該指導意見，我認為今年下半年 AR 和 AI 雲端解決方案似乎會加速發展，其動態是什麼？

Yes, Clarke.

是的，克拉克。

So the AI/AR cloud solutions includes all of BeautyTech, SkinTech solutions that are online.

所以AI/AR雲端解決方案包括所有線上的BeautyTech、SkinTech解決方案。

So mostly are helping brand on e-commerce journeys.

所以大多數都是在電子商務之旅中幫助品牌。

So consumers and virtual try-on or skin diagnosis or other -- these type of solutions.

因此，消費者和虛擬試穿或皮膚診斷或其他此類解決方案。

But also includes the mobile app subscription for the premium subscription, where the consumer are downloading our family of beauty apps and updating to unlock premium features, including some of these new generative AI features.

但還包括高級訂閱的行動應用程式訂閱，消費者可以下載我們的美容應用程式系列並更新以解鎖高級功能，包括其中一些新的生成人工智慧功能。

So both are certainly continues to grow, as we see these patterns.

因此，正如我們所看到的這些模式一樣，兩者肯定會繼續增長。

In this last quarter, the mobile app subscription, certainly, it was coming from that lower base, but it’s growing very rapidly.

在上個季度，行動應用程式訂閱量當然來自較低的基數，但成長非常迅速。

I think we have seen quarter after quarter hitting record-high number of active subscribers.

我認為我們已經看到活躍訂閱者數量一個又一個季度創下歷史新高。

And this time, we've over 60% active subscriber increase.

這一次，我們的活躍訂閱者成長了 60% 以上。

So that’s certainly giving management confidence that the trends seem to be very strong demand for the remaining of the year.

因此，這無疑讓管理層充滿信心，認為今年剩餘時間的趨勢似乎是非常強勁的需求。

But -- and because of these two primary driver, that we are confident to deriving our model for the whole year revenue projection.

但是，由於這兩個主要驅動因素，我們有信心推導出全年收入預測的模型。

Certainly.

當然。

And maybe a follow-up is, the SKU -- the SKU count and the brand count are both growing quite well.

也許後續是，SKU——SKU 數量和品牌數量都成長得很好。

Do you anticipate some of those SKUs and brand counts to see an inflection in monetization that you would expect the AR and AI cloud solutions to accelerate off of business you’ve already won and will start to build in terms of revenue contribution to -- over the coming year?

您是否預計其中一些 SKU 和品牌數量會出現貨幣化的變化，您是否希望 AR 和 AI 雲端解決方案能夠加速您已經贏得的業務，並將開始在收入貢獻方面建立——未來一年？

Does that make sense?

那有意義嗎？

Right.

正確的。

As I explained earlier, I think the brand customer business typically, it takes a few years to grow into scale and maturity.

正如我之前所解釋的，我認為品牌客戶業務通常需要幾年的時間才能成長為規模和成熟度。

I think we’ve seen already from the end of last year and early this year that the lead -- the funnel that we are developing is actually much larger and wider.

我認為我們從去年年底和今年年初就已經看到，我們正在開發的漏斗實際上更大更寬。

Although, it was taking longer to -- it was a very prolonged sales cycle.

不過，這需要更長的時間——這是一個非常漫長的銷售週期。

And I think we are certainly passing through these processes of six, nine months working on these deals that’s starting to see some more capitalizing on these results.

我認為我們肯定正在經歷六、九個月的這些交易過程，並開始看到更多地利用這些結果。

Certainly, these are the baseline where we want to grow our future business with, but I want the customer with us and they have their initial SKUs on the platform.

當然，這些是我們希望發展未來業務的基準，但我希望客戶與我們在一起，他們在平台上有他們的初始 SKU。

Then we open our opportunity to do more omnichannel cross sell to them.

然後我們提供向他們進行更多全通路交叉銷售的機會。

By once they have the SKU digitized on our system, we’re able to take that into different e-commerce and e-tailers or their own .com presence.

一旦他們在我們的系統上將 SKU 數位化，我們就能夠將其應用到不同的電子商務和電子零售商或他們自己的 .com 網站中。

In short, each of these represent an opportunity to monetize by increase our subscription revenue towards the brand.

簡而言之，每一個都代表了一個透過增加我們對該品牌的訂閱收入來獲利的機會。

So yes, you are right, I think we see a good recovery from a number of new brands and then number SKUs that is joining in this platform.

所以，是的，你是對的，我認為我們看到許多新品牌以及加入該平台的 SKU 數量都出現了良好的復甦。

And also, we also see more categories are being added here.

此外，我們還看到這裡新增了更多類別。

We have been working on the Beyond Beauty category for 12, 18 months just now.

到目前為止，我們在「超越美麗」類別上的工作已經有 12、18 個月了。

And we are starting to see, as I reported in our last quarter, that we now have over a dozen jewelry or watches brand already on the system.

正如我在上個季度所報告的那樣，我們開始看到系統上已經有十多個珠寶或手錶品牌。

And each quarter, as they pass, there are more SKUs that are also been injected through these new partnership and new client categories.

每個季度，隨著時間的推移，都會有更多的 SKU 透過這些新的合作夥伴和新的客戶類別注入。

Thank you very much.

非常感謝。

(Operator Instructions)

（操作員說明）

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

由於目前沒有其他問題，我想將會議交還給管理階層進行總結發言。

Thank you.

謝謝。

All right.

好的。

Thank you, Ellie.

謝謝你，艾莉。

Thank you, everyone, again, for joining our call today.

再次感謝大家今天加入我們的電話會議。

Have a good one.

祝你有個好的一天。

Thank you.

謝謝。