Perfect Corp (PERF) 2024 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 third quarter, 2024 earnings conference call.

早安，晚上好，女士們、先生們，感謝你們的耐心等待，歡迎參加 Perfect Corp 2024 年第三季財報電話會議。

(Operator Instructions)

（操作員說明）

I will now turn the conference over to the first speaker today, Mr. Jimmy Shu, IR Director of the company, please go ahead.

現在我將會議交給今天的第一位發言者，公司IR總監舒吉米先生，請繼續。

Thank you and hello, everyone.

謝謝大家，大家好。

Welcome to Perfect Corp's third quarter, 2024 earnings call.

歡迎參加 Perfect Corp 2024 年第三季財報電話會議。

With us today are Ms. Alice Chang, our Founder, Chairwoman and Chief Executive Officer; Mr. Louis Chen, our Executive Vice President and Chief Strategy Officer and; Ms. Iris Chan, Vice President 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；我們的執行副總裁兼首席策略長 Louis Chen 先生；陳慧儀女士，財務及會計副總裁。

You can refer to our third quarter, 2024 financial results on our ION website or in the Form 6-K, we filed with SEC earlier, a replay of this call will also be available on our website shortly after its conclusion.

您可以在我們的 ION 網站或我們先前向 SEC 提交的 6-K 表格中參考我們 2024 年第三季的財務業績，本次電話會議的重播也將在會議結束後不久在我們的網站上提供。

For today's call management will provide our prepared remarks followed by a question-and-answer session.

對於今天的電話會議，管理階層將提供我們準備好的發言，然後進行問答環節。

Before we continue, I would like to refer you to our safe harbor statement in our earnings press release.

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。

This call may contain forward-looking statements regarding performance, anticipated plans, our original results and our objectives, forward-looking statements are based on management's expectations and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our call today.

本次電話會議可能包含有關業績、預期計劃、我們的原始結果和目標的前瞻性陳述，前瞻性陳述基於管理層的預期，並受到眾多風險和不確定性的影響，可能導致實際結果與所表達或表達的結果有重大差異。

Perfect Corp undertakes no obligation to update any forward-looking statements except as required by law after the date of this call.

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 management's prepared remarks are in US Dollars and we will also discuss non-IFRS measures today.

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

I will now turn the call over to our second speaker today.

我現在將把電話轉給今天的第二位發言者。

Our CEO, Ms. Alice Chang.

我們的首席執行官，Alice Chang 女士。

Good morning.

早安.

Good evening.

晚安.

Thank you, Jimmy and welcome to Perfect Corp 2024 third quarter earnings conference call.

謝謝吉米，歡迎參加 Perfect Corp 2024 年第三季財報電話會議。

Let me start by giving you some updates on our financials and then share our view for the remainder of the year as well as our progress in product and business development around the world.

讓我先向您介紹我們的財務狀況的一些最新情況，然後分享我們對今年剩餘時間的看法以及我們在全球產品和業務開發方面的進展。

Our first nine months revenue grew by 12.5% year over year to $44.3 million.

我們前 9 個月的營收年增 12.5%，達到 4,430 萬美元。

Our net income for the same period was $3.9 million and the adjusted net income increased 23.2% to $6 million compared to the same period of last year.

我們同期的淨利為390萬美元，調整後淨利比去年同期成長23.2%，達到600萬美元。

This continuous increase in revenue and a positive net income resulted from strong growth in our mobile app subscription business under the AI/AR cloud solution business the first nine months of 2024, so our operating cash flow generate a net inflow of $9.8 million and our balance sheet remains very strong with over $163.2 million in cash and the cash equivalent.

營收的持續成長和淨利潤的正數源自於2024年前9個月我們在AI/AR雲端解決方案業務下的行動應用訂閱業務的強勁成長，因此我們的營運現金流產生了980萬美元的淨流入，我們的餘額資產負債表仍然非常強勁，擁有超過 1.632 億美元的現金及現金等價物。

In the third quarter, our revenue growth in the business efficiency contributed to the company's bottom line with a net income of $2.5 million.

第三季度，我們在業務效率方面的收入成長為公司的淨利潤做出了貢獻，淨利潤為 250 萬美元。

This net income bottom line results comes from the continuous efficient cost management initiative while allowing the management to focus investing in AI and the AR services to expand our market footprint in both B2B and the B2C.

這項淨利潤底線結果來自持續且有效率的成本管理舉措，同時允許管理層專注於人工智慧和擴增實境服務，以擴大我們在 B2B 和 B2C 的市場足跡。

Furthermore, in terms of adjusted net income, we delivered $3.2 million in the third quarter of 2024 versus $2.7 million in the same period of 2023 an increase of 20.6%.

此外，就調整後淨利潤而言，我們在 2024 年第三季實現了 320 萬美元的淨利潤，而 2023 年同期為 270 萬美元，成長了 20.6%。

Our B2C mobile business has maintained strong quarter over quarter growth with the number of active paying subscribers reaching an all-time high of over 977,000 representing a 17% year over year increase.

我們的 B2C 行動業務維持強勁的季度環比成長，活躍付費用戶數量達到歷史新高，超過 977,000 人，較去年同期成長 17%。

This sustained growth in paying subscribers underscores the enduring global demand for AI photo and video, editing, creation enhancement and identification features spanning all age groups and the geography.

付費用戶的持續成長凸顯了全球對跨越所有年齡層和地理區域的人工智慧照片和影片、編輯、創作增強和識別功能的持久需求。

Notably, our expansion efforts have yielded positive results.

值得注意的是，我們的擴張努力取得了積極成果。

In addition to North America, Western Europe and Japan, we also see notable growth in new markets, such as Brazil and Italy.

除了北美、西歐和日本之外，我們還看到巴西和義大利等新市場的顯著成長。

Further validating the universal appeal of our app offering this broadening geographic footprint presents a promising outlook for our mobile beauty apps as we continue to focus on growing our user base in new regions.

隨著我們繼續專注於在新地區擴大用戶群，進一步驗證我們的應用程式提供的不斷擴大的地理覆蓋範圍的普遍吸引力，為我們的行動美容應用程式帶來了光明的前景。

A new revenue stream has emerged through the introduction of our B2C web-based services accessible via mobile, laptop, PC, Mac and iPad, providing user options besides IOS and the Android mobile app.

透過推出可透過手機、筆記型電腦、PC、Mac 和 iPad 存取的基於 Web 的 B2C 服務，出現了新的收入來源，為用戶提供了 IOS 和 Android 行動應用程式之外的選擇。

This services operate under a credit-based billing model where consumer prepurchase credits each month to access a wide range of AI features including photo and video creation editing, enhancement and beautification.

該服務在基於信用的計費模式下運行，消費者每月預購信用以訪問廣泛的人工智慧功能，包括照片和影片創建編輯、增強和美化。

This initiative has expanded our total addressable market via mobile apps tapping into a broader consumer base.

這項舉措透過行動應用程式進入更廣泛的消費者群體，擴大了我們的整體潛在市場。

Additionally, we shift the shift to direct web-based service offers a higher margin by avoiding services fee imposed by Apple stores in the Google Store.

此外，我們轉向直接基於網路的服務，避免了 Google 商店中 Apple 商店徵收的服務費，從而提供更高的利潤。

Our suite of AI you can mobile app continues to receive frequent updates and the feature enhancement integrating innovative AI digital solution powered by cutting edge AI technology for photos and videos.

我們的 AI you can 行動應用程式套件不斷收到頻繁的更新和功能增強，整合了創新的 AI 數位解決方案，該解決方案由用於照片和影片的尖端 AI 技術提供支援。

This update empower users to explore and express their creativity, offering new ways to showcase personal style.

此更新使用戶能夠探索和表達他們的創造力，提供展示個人風格的新方法。

Through the latest advancement in AI driven content creation and editing.

透過人工智慧驅動的內容創建和編輯的最新進展。

Now shifting to our B2B operation in quarter three, we have prioritized a deepening market penetration across several new verticals.

現在，我們將在第三季轉向 B2B 業務，並優先考慮在幾個新的垂直領域深化市場滲透。

Most notably, we made significant strides in expanding our portfolio with AI Power skin diagnostics including updating, upgrading our industry leading HD skin analysis solution.

最值得注意的是，我們在透過 AI Power 皮膚診斷擴展我們的產品組合方面取得了重大進展，包括更新、升級我們行業領先的高清皮膚分析解決方案。

With up to 15 skin concerns ready for consumers to learn all the details about their skin concerns in the individual simulation.

多達 15 個皮膚問題可供消費者在個人模擬中了解有關其皮膚問題的所有詳細資訊。

This initiative positions us strategically in a skin tier market that is projected to grow significantly in the next few years.

這項舉措使我們在皮膚層市場中處於戰略地位，預計該市場將在未來幾年內大幅成長。

Driven by increasing consumer awareness of the skin health and the pursuit for better skin and aesthetic beauty.

受消費者對皮膚健康意識的增強以及對更好的皮膚和美學的追求的推動。

With particular emphasis on the aesthetic clinic sector, where we introduce our new upgraded skin care pro product designed with the ease of deployment.

我們特別強調美容診所領域，推出易於部署的全新升級皮膚護理專業產品。

And for small medium sized clinic chain skincare pro has been instrumental in its establish of photo in this growing market and newly enhanced solution with AI aesthetic simulation capability.

對於中小型診所連鎖店 Skincare Pro 在這個不斷增長的市場中建立照片和具有 AI 美學模擬功能的新增強解決方案發揮了重要作用。

This advanced feature allows both aesthetic practitioners and patients to visualize the potential outcome and the procedures thereby reducing the likelihood of misunderstanding prior to making a treatment decision.

這項先進功能使美容從業者和患者能夠直觀地看到潛在的結果和程序，從而減少在做出治療決定之前產生誤解的可能性。

This represents a pivotal area where AI technology plays a critical role in align with expectations with realistic results.

這是一個關鍵領域，人工智慧技術在滿足期望與現實結果方面發揮關鍵作用。

Our core make a virtual try on product continues to perform well across all regions, particularly in the brand sectors.

我們的核心產品虛擬試用繼續在所有地區表現良好，特別是在品牌領域。

We successfully renewed major licenses with key beauty conglomerates and retailers for both this year and the next, highlighting the essential role our solutions play in enhancing online shopper engagement and the driving higher conversion rates for ecommerce.

今年和明年，我們成功地與主要美容集團和零售商續簽了主要許可證，突顯了我們的解決方案在提高線上購物者參與度和提高電子商務轉換率方面所發揮的重要作用。

This renewal have also enabled us to strategically cross sale to affiliated brands and extending our offerings including broader skill selections and expanding our market reach.

此次更新也使我們能夠策略性地對附屬品牌進行交叉銷售，並擴展我們的產品範圍，包括更廣泛的技能選擇和擴大我們的市場範圍。

While the B2B sales cycle continue to present some post recovery challenges.

儘管 B2B 銷售週期繼續面臨一些復甦後的挑戰。

Our pipeline remains robust.

我們的管道仍然強勁。

Our team is diligently focused on guiding prospective enterprise clients in adopting our online solutions, helping them implement their consumer engagement strategy.

我們的團隊致力於引導潛在企業客戶採用我們的線上解決方案，幫助他們實施消費者參與策略。

And we are pleased to provide an update on our Perfect GPT services which we were announced in June.

我們很高興提供有關我們在 6 月宣布的 Perfect GPT 服務的更新。

Since this introduction.

自從有了這個介紹。

The service has garnered high interest from numeral global beauty brands and the skin care brands.

該服務引起了全球數位美容品牌和護膚品牌的高度興趣。

We anticipate that AI powered personalized beauty assistant will become a dangerous feature on all brands website in the coming future, enable 24/7 AI beauty consultation services.

我們預計人工智慧驅動的個人化美容助理將在未來成為所有品牌網站上的危險功能，實現24/7人工智慧美容諮詢服務。

This AI assistance will offer professionally tailored recommendations that address the unique needs of consumers including skin type, skin concerns, beauty makeup preferences and the fashion style productivity is distinctly designed with a robust focus on the retrieval augmented generation.

這種人工智慧輔助將提供專業客製化的建議，滿足消費者的獨特需求，包括皮膚類型、皮膚問題、美容化妝偏好和時尚風格生產力，其設計重點是檢索增強一代。

We call [R AR A G framework] where the recommendations are all supported by factual information and not merely derived from a standard large language model LLM.

我們稱之為 [R AR A G 框架]，其中的建議均由事實資訊支持，而不僅僅是源自標準大語言模型 LLM。

This enables our brands to provide factual authoritative documents that train our AI model, ensuring that all recommendations are accurate, reliable and consistent, meeting the highest quality standard.

這使我們的品牌能夠提供事實權威文件來訓練我們的人工智慧模型，確保所有建議準確、可靠和一致，符合最高品質標準。

We expect the commercial [poc] proof of concept will launch early next year and followed by larger scale deployment in late 2025.

我們預計商業 [poc] 概念驗證將於明年初啟動，並於 2025 年底進行更大規模的部署。

In conclusion, we achieved consistent business growth in the third quarter of 2024 marked by increased revenue, enhanced operational efficiency and a strong financial performance.

總之，我們在 2024 年第三季實現了持續的業務成長，其特點是營收增加、營運效率提高和財務業績強勁。

While our B2C segment continues to demonstrate rapid and organic expansion.

同時，我們的 B2C 業務繼續呈現快速、有機的擴張。

We are confident that Perfect Corp is just is strategically positioned to capitalize on expanding market opportunities and sustain long term growth by diligently developing new AI technologies and leveraging our leadership position in the beauty and the fashion space.

我們相信，Perfect Corp 的策略定位是透過努力開發新的人工智慧技術並利用我們在美容和時尚領域的領導地位來利用不斷擴大的市場機會並維持長期成長。

As a company, we remain deeply committed to driving AI innovation that address both consumer and the brand pinpoint through our comprehensive pursuit of AI services.

作為一家公司，我們仍然堅定地致力於透過對人工智慧服務的全面追求，推動人工智慧創新，滿足消費者和品牌的需求。

A key advantage that we offer is our ability to leverage a unified AI engine that serves both our consumer facing app and enterprise start solution enabling us to maximize innovation across diverse sectors driven by the positive demand for both our mobile beauty app subscription and enterprise start solution.

我們提供的一個關鍵優勢是我們能夠利用統一的人工智慧引擎，為我們面向消費者的應用程式和企業啟動解決方案提供服務，使我們能夠在對我們的行動美容應用程式訂閱和企業啟動解決方案的在積極需求的推動下，最大限度地實現跨不同領域的創新。

Look for the full year 2024 project total revenue growth recognized under IFRS to range from 12% to 14% compared to the full year 2023 result.

與 2023 年全年結果相比，根據 IFRS 確認的 2024 年全年專案總收入成長將在 12% 至 14% 之間。

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

至此，我的演講結束了，現在將電話轉接給路易斯，他將與您討論我們的財務細節。

Thank you.

謝謝。

Thank you, Alice.

謝謝你，愛麗絲。

Please note that all financial comparisons are on a year over year basis and the reporting period is the third quarter of 2024 versus the comparable period in 2023.

請注意，所有財務比較均以同比為基礎，報告期間為 2024 年第三季度，而同期為 2023 年。

And that on top of the international financial reporting standard are AFI measures.

除了國際財務報告標準之外，還有 AFI 措施。

We will also discuss some non-IRS measures to provide greater clarity on the trend in our operations.

我們還將討論一些非國稅局措施，以更清楚地了解我們的營運趨勢。

In the third quarter of 2024 our total revenue increased to [$16.1 million from $14.5 million] for the same period in 2023 representing a year over year increase of 10.8%.

2024 年第三季度，我們的總營收從 2023 年同期的 1,450 萬美元增至 1,610 萬美元，年增 10.8%。

The growth stem from the original continued growth of our AI & AR cloud solutions and mobile app subscription business.

這一成長源自於我們原有的AI&AR雲端解決方案和行動應用訂閱業務的持續成長。

The AI/AR cloud solution and subscription revenue grew 17.9% to $13.4 million compared to $11.4 million from the year ago period which represented 83% of the total revenue in the quarter.

AI/AR 雲端解決方案和訂閱收入成長 17.9%，達到 1,340 萬美元，而去年同期為 1,140 萬美元，佔本季總營收的 83%。

This growth is attributed to the continued expansion of our mobile beauty app subscription and the positive momentum from our online skincare diagnosis solution as well as our virtual trial business.

這一成長歸功於我們的行動美容應用程式訂閱的持續擴大以及我們的線上護膚診斷解決方案以及虛擬試用業務的積極勢頭。

As we continue to expand our services offering through Gena technologies, we should see improvement in service quality and pain point resolutions for both brand clients and consumers.

隨著我們繼續透過 Gena 技術擴展我們的服務範圍，我們應該會看到品牌客戶和消費者的服務品質和痛點解決方案得到改善。

The licensing revenue decreased by 14.5% in the third quarter of 2024 to $2.4 million compared to $2.8 million during the same period in 2023.

2024 年第三季授權收入下降 14.5%，至 240 萬美元，而 2023 年同期為 280 萬美元。

As previously mentioned, this portion of the business is mostly generated from our traditional offline services and that we are converting this type of legacy non-recurring revenue into AI/AR sub subscription revenue from brands and consumers.

如前所述，這部分業務主要來自我們傳統的離線服務，我們正在將此類傳統非經常性收入轉化為來自品牌和消費者的 AI/AR 子訂閱收入。

The licensing revenue will gradually become immaterial as they continue to be phased out and replaced by new subscription revenue model.

隨著授權收入不斷被淘汰並被新的訂閱收入模式所取代，授權收入將逐漸變得無關緊要。

Gross profit for the third quarter of 2024 grew by 9.6% to $13 million with gross margin of 80.3% compared to $11.8 million and gross margin of 81.2% for the same period in 2023.

2024 年第三季毛利成長 9.6%，達到 1,300 萬美元，毛利率為 80.3%，而 2023 年同期毛利為 1,180 萬美元，毛利率為 81.2%。

The decrease in gross margin was mainly due to the increase in third party payment processing fee paid to distribution partners such as Google and Apple.

毛利率下降主要是由於支付給谷歌和蘋果等分銷合作夥伴的第三方支付處理費增加所致。

Due to the increase in the mobile app subscription revenue.

由於行動應用訂閱收入增加。

The total operating expenses for the third quarter of 2024 increased by 3% to $13 million compared to $12.7 million for the same period last year.

2024年第三季的總營運支出成長3%，達到1,300萬美元，去年同期為1,270萬美元。

The increase were mainly due to the higher sales and marketing expenses and research and development expense but were mostly offset by the decline in general and administrative expenses in the third quarter of 24 as the company continued to operate more efficiently as a public company.

這一增長主要是由於銷售和營銷費用以及研發費用增加，但大部分都被 24 年第三季度一般和管理費用的下降所抵消，因為該公司作為一家上市公司繼續更有效率地運營。

Going into details for operating expenses, sales and marketing expense for the third quarter of '24 was $7.1 million compared to $6.4 million during the same period of 2023 an increase of 10%.

進一步了解營運費用，2024 年第三季的銷售和行銷費用為 710 萬美元，而 2023 年同期為 640 萬美元，成長了 10%。

This was mainly due to the increase in marketing events, advertising cost for our mobile app, research and development expenses were $3.2 million for the third quarter of 2024.

這主要是由於2024年第三季行銷活動、我們的行動應用程式的廣告費用、研發費用增加了320萬美元。

Compared to $3 million during the same period in 2023 an increase of 5.9%.

與 2023 年同期的 300 萬美元相比，成長了 5.9%。

The increase were mainly for the head counts and also for the development into Gen AI computing technologies and related costs.

增加的主要原因是人員數量以及Gen AI計算技術的開發和相關成本。

General and administrative spend were $2.1 million for the third quarter of '24 compared to $3.2 million during the same period of 2023, a decrease of 32.9%.

2024 年第三季的一般和行政支出為 210 萬美元，而 2023 年同期為 320 萬美元，下降了 32.9%。

The decrease were mainly due to the increased operational efficiencies as we are approaching the two-year mark of our listing [on nyse] net income was $2.5 million for the third quarter of 2024.

下降的主要原因是我們的營運效率有所提高，因為我們即將進入上市兩年大關（在紐約證券交易所），2024 年第三季的淨利潤為 250 萬美元。

Compared to a net income of $3.5 million during the same period of 2023.

相較之下，2023 年同期的淨利為 350 萬美元。

The positive net income in the third quarter of 24 was supported by continuous revenue growth and efficient cost control.

24年第三季淨利為正，得益於持續的營收成長和高效率的成本控制。

This result represents a net income margin of 15.7% in the third quarter of 2024 excluding noncash share-based compensation, noncash valuation gain and loss of financial liability.

此結果代表 2024 年第三季的淨利潤率為 15.7%，不包括非現金股份補償、非現金估值收益和金融負債損失。

The adjusted net income was $3.2 million for the third quarter of the year compared to the adjusted net income of $2.7 million in the same period of last year, an increase of 20.6%.

第三季調整後淨利為320萬美元，較去年同期調整後淨利270萬美元成長20.6%。

This represents an adjusted net margin of 19.9% in the third quarter of 2024.

這意味著 2024 年第三季調整後淨利率為 19.9%。

As of September 30, 2024, the company held $163.2 million in cash and cash equivalent in six months deposit compared to $158.8 million.

截至 2024 年 9 月 30 日，該公司持有六個月現金和現金等價物 1.632 億美元，而同期存款為 1.588 億美元。

As of June 30, 2024, the increase in cash and cash equivalent including six months time deposit was a result of the positive operating cash flow and the interest income received from the company's bank deposit.

截至2024年6月30日，現金及現金等價物（包括六個月定期存款）的增加是由於經營性現金流為正以及從公司銀行存款收到的利息收入所致。

We had a positive operating cash flow of $4.2 million in the third quarter of 2024 compared to $4 million during the same period in 2023.

2024 年第三季度，我們的營運現金流為 420 萬美元，而 2023 年同期為 400 萬美元。

The positive cash flow demonstrated the company's continuing ability to generate cash flow to support its business operations and growth strategy.

正現金流顯示該公司持續產生現金流以支持其業務營運和成長策略的能力。

Of note, our mobile app subscription subscriber increased 17% year over year reaching an all-time high of 977,000.

值得注意的是，我們的行動應用程式訂閱用戶年增 17%，達到 977,000 人的歷史新高。

By the end of the third quarter of this year, our suite of beauty app has once again shown its capability to offer both enjoyment and practical value to users, effectively turning them into paying subscribers.

到今年第三季末，我們的美容應用套件再次向用戶展示了其為用戶提供享受和實用價值的能力，有效地將他們轉變為付費用戶。

In total our enterprise customer base had a net increase of 22 brand clients since the end of last quarter, achieving a total of 708 brand clients with over 806,000 skews for makeup, skin care, eyewear, watches and jewelry products as of September 30, 2024. this represent a record for this metric showing the continuous increase in customer penetration and skill suspension.

截至2024年9月30日，我們的企業客戶群自上季末以來淨增品牌客戶22個，品牌客戶總數達到708個，涉及彩妝、護膚、眼鏡、手錶和珠寶產品超過806,000個這代表了該指標的記錄，顯示了客戶滲透率和技能暫停的持續成長。

In the third quarter Perfect Corp had 151 key customers compared to 151 in the second quarter of 24.

第三季 Perfect Corp 擁有 151 名主要客戶，而第二季為 151 名 24 名。

Demonstrating the stability of our enterprise business in this quarter.

體現出我們本季企業業務的穩定性。

In the third quarter of 2024 the AI/AR cost solution and mobile app subscription business continued to drive our growth.

2024年第三季度，AI/AR成本解決方案和行動應用訂閱業務持續推動我們的成長。

We also continue to focus on operational efficiencies and financial prudence which saw a significant increase in adjusted net income of 20.6% year over year and adjusted net margin rate of 19.9%.

我們也持續關注營運效率和財務審慎，調整後淨利潤年增 20.6%，調整後淨利率達 19.9%。

Following up on recent quarters, we have been, and we'll continue to invest in developing of AI technologies in order to strengthen our core capabilities.

近幾個季度以來，我們一直並將繼續投資人工智慧技術的開發，以增強我們的核心能力。

Our software is at the forefront of developing innovative Gen AI solutions that enhance user experiences and streamline operations within the beauty and fashion space.

我們的軟體處於開發創新 Gen AI 解決方案的前沿，這些解決方案可增強用戶體驗並簡化美容和時尚領域的運作。

We anticipate growth as our cutting-edge technology continue to attract new clients and expand our market reach both in existing and new verticals.

隨著我們的尖端技術繼續吸引新客戶並擴大我們在現有和新垂直領域的市場範圍，我們預計會出現成長。

By prioritizing research and development in AI.

優先考慮人工智慧的研究和開發。

We are well positioned to meet the evolving needs of our customers and capitalize on the emerging opportunity in this beauty and fashion landscape.

我們有能力滿足客戶不斷變化的需求，並充分利用美容和時尚領域的新興機會。

We believe that there are additional opportunity both within our B2B & B2C business.

我們相信我們的 B2B 和 B2C 業務中還有更多機會。

While the overall macroeconomic rebound has not been apparent, there are clear signs from our customer base which make us feel optimistic about the future of Perfect work.

雖然整體宏觀經濟的反彈尚未明顯，但我們的客戶群的明顯跡象讓我們對Perfect work的未來感到樂觀。

Finally, our 2024 guidance for total revenue year over year growth will range from 12% to 14%.

最後，我們對 2024 年總收入年增率的指導範圍為 12% 至 14%。

The [4K] is based on company current assessment of the market and operational conditions.

[4K] 基於公司目前對市場和營運狀況的評估。

The management will closely monitor business progress and provide updates in order to offer better transparency to the market.

管理層將密切監控業務進展並提供最新信息，以便為市場提供更好的透明度。

That concludes my prepared remark operator please open up the call for questions.

我準備好的評論到此結束，請撥打電話提問。

(Operator Instructions)

（操作員說明）

Aashi Shah, Sidoti & Co.

Aashi Shah，Sidoti & Co.

Thank you, management, for taking my question.

謝謝管理層回答我的問題。

Two questions here.

這裡有兩個問題。

One is on the revenue breakdown side like just wondering if management can share, what is the growth for each segment within the AI solution?

一個是收入細分方面，就像只是想知道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是多少？

Like what is the growth rate like for B2B versus B2C?

B2B 與 B2C 的成長率如何？

I think that would be very helpful.

我認為這會很有幫助。

And also, another question is on the I see you reiterated the full year guidance.

另外，另一個問題是關於我看到你重申了全年指引。

So, the revenue will be growing about 12% to 14% for the this year.

因此，今年的營收將成長約 12% 至 14%。

Just wondering if there are any thoughts on the growth rate into next year.

只是想知道是否對明年的成長率有任何想法。

Thank you.

謝謝。

Hi, nice talking to you again.

你好，很高興再次與你交談。

So, we can see the trend for this year.

所以，我們可以看到今年的趨勢。

The B2C business is growing at a faster rate compared to the B2B.

與 B2B 相比，B2C 業務的成長速度更快。

The metric you can see, for example, the key clients you know, remain the same at 151.

您可以看到的指標（例如您認識的關鍵客戶）保持不變，為 151。

Those are mainly from the B2B side.

這些主要來自B2B方面。

So basically, as the market bound is taking a little bit more time, the I mean the growth are coming from the B2C sector and in this past quarter.

所以基本上，由於市場約束需要更多的時間，我的意思是成長來自 B2C 領域以及上個季度。

The guidance for next year, we are working on that so, we are still working through, you know, client pipelines and, and with all different global sales team.

我們正在製定明年的指導方針，因此，我們仍在與客戶管道以及所有不同的全球銷售團隊合作。

So, we don't have yet a number to share with you at the current moment, but we're working on that, and we expect you to share that toward the end of the year for more visibility.

因此，我們目前還沒有可以與您分享的數字，但我們正在努力解決這個問題，我們希望您在年底前分享這個數字，以獲得更多的關注。

Great.

偉大的。

Thank you, Louis.

謝謝你，路易斯。

Lisa Thompson, Zacks small cap research.

麗莎·湯普森（Lisa Thompson），Zacks 小型股研究。

Hi, everyone.

大家好。

Thanks so much for getting on here and telling us about your new product.

非常感謝您來到這裡並向我們介紹您的新產品。

Could you talk a little bit more about the desktop version you have of the mobile app?

您能多談談您擁有的行動應用程式的桌面版本嗎？

I'd be interested to see how people are using that differently from the mobile.

我很想知道人們如何使用與行動裝置不同的方式。

And also is that included when you buy a mobile app, you also get the desktop version.

當您購買行動應用程式時，您還可以獲得桌面版本。

And I would think that that product would put you against different competitors.

我認為該產品會讓你對抗不同的競爭對手。

Could you talk about that also?

您也能談談嗎？

Hi Lisa, this is Alice.

嗨麗莎，這是愛麗絲。

Yes, this is a web based, it's a new emerging solution in the market.

是的，這是一個基於網路的解決方案，是市場上新興的解決方案。

And also we are starting to release it early this year.

我們也將於今年年初開始發布它。

So, we also see user not only using apps right now but also using web browser.

因此，我們也看到用戶現在不僅使用應用程序，還使用網頁瀏覽器。

So not only on the mobile screen, but also you can use the PC browser to do the same thing.

所以不僅在行動螢幕上，你也可以使用PC瀏覽器做同樣的事情。

So that is also the reason we jump on it early this year and trying to developing and also adding more features just like our app into the web.

因此，這也是我們今年年初開始嘗試開發並添加更多功能的原因，就像我們的應用程式到網路中一樣。

This is just like what I said, it's a very new using, new using model from app to web.

這就像我說的，從app到web，這是一個非常新的使用、新的使用模式。

And we see this will be a very good growing from the market and of course, the competitors are different.

我們看到這將是一個非常好的市場成長，當然，競爭對手是不同的。

But I would think for the mobile users to have the option to use both mobile and web, that will be good solution for the future.

但我認為，對於行動用戶來說，可以選擇同時使用行動裝置和網絡，這將是未來的良好解決方案。

You don't need to only on the app, but also when you access the browser, you can use the same features at the same time, any place anywhere.

您不僅需要在應用程式上，而且當您存取瀏覽器時，您可以隨時隨地使用相同的功能。

So, this is a new usage model for the end user consumer.

因此，這是最終用戶消費者的新的使用模式。

And we're still focusing on photo and video creating editing, enhancing and the beautification at the same time just to open up a new option for user, not only on app but also on the web.

我們仍然專注於照片和影片的創建編輯、增強和美化，只是為了為用戶開闢一個新的選擇，不僅在應用程式上，而且在網路上。

Hi Lisa and to echo a bit on that, what the data we observe interesting is that the user base of the mobile app doesn't overlap too much to the web-based solution.

你好，麗莎，對此進行回應，我們觀察到的有趣的數據是，行動應用程式的用戶群與基於網路的解決方案沒有太多重疊。

So, it seems that we are addressing a different type of [T A] in here.

所以，我們似乎在這裡討論的是一種不同類型的[T A]。

So, your question whether this is a bundle at the current moment, it is not.

所以，你的問題目前是否是一個捆綁包，它不是。

So, the consumer who subscribed the app and really looking for something that is mobile, that's very easy to use on a smaller screen while a user who maybe you want to spend more time, a little bit more professional or more, amateur professional.

因此，訂閱該應用程式並真正尋找行動產品的消費者，在較小的螢幕上非常容易使用，而用戶可能想花更多時間，更專業一點或更專業一點，業餘專業。

They are using larger screen on, on their desktop and they are opting in, into these as all these computing are now moving more into the cloud with the AI and generative AI, it really doesn't matter if you're running on mobile or just casual use case, or you want to spend really more time touching your photo and video on a larger screen.

他們在桌面上使用更大的螢幕，並且他們選擇加入這些，因為所有這些計算現在都透過人工智慧和生成式人工智慧更多地轉移到雲端中，無論你是在行動裝置上運行還是在行動裝置上運行，這並不重要。

We want to address both markets.

我們希望同時滿足這兩個市場的需求。

Great and so are they priced the same?

太棒了，那麼它們的價格一樣嗎？

No, they are not.

不，他們不是。

On the, on the web page, we view that it's going to be more what we said the credit based.

在網頁上，我們認為這將更多地基於我們所說的信用。

So, it is a monthly subscription that you have various option how much credit they want to consume per month.

因此，這是按月訂閱，您可以選擇他們每月想要消耗多少信用額度。

So, they can subscribe.

因此，他們可以訂閱。

And so, their accounts get deposited a certain fixed number of credits and depending on the complexity of the editing feature or creation feature, they want to use that with the data credit.

因此，他們的帳戶會存入一定數量的積分，並且根據編輯功能或創建功能的複雜性，他們希望將其與資料積分一起使用。

They can always top up their account anytime if they want to use more.

如果他們想使用更多，可以隨時為帳戶充值。

So, the current two model are, are slightly different.

所以，目前的兩個模型是略有不同的。

Okay.

好的。

I imagine the objective is to get a much higher gross margin.

我想目標是獲得更高的毛利率。

Right.

正確的。

Yes, absolutely.

是的，絕對是。

So, I, I think this is as the cost for running generated AI is certainly something to keep monitoring, right.

所以，我，我認為這是因為運行生成的人工智慧的成本肯定是需要持續監控的，對吧。

So, in order to provide a sustainable server infrastructure and offer that, that's why we are moving to a credit base.

因此，為了提供可持續的伺服器基礎設施並提供該基礎設施，這就是我們轉向信用基礎的原因。

But I think most importantly, it's really a great a larger group of audience.

但我認為最重要的是，這確實是一個更大的觀眾群。

Just not to share with you.

只是不與你分享而已。

For example, we noticed that on the on the desktop basis, we have a slightly higher percentage of male user compared to the mobile you use case in in the demographic.

例如，我們注意到，在人口統計中，與您使用的行動裝置相比，在桌面裝置上，男性使用者的比例略高。

So, I think this is really making our total addressable market slightly bigger.

所以，我認為這確實使我們的總目標市場稍微擴大了一些。

Too.

也。

Great.

偉大的。

Thank you.

謝謝。

Sounds good.

聽起來不錯。

Thank you so much.

太感謝了。

(Operator Instructions)

（操作員說明）

Pat McCann, Noble Capital Markets.

帕特·麥肯，高貴資本市場。

Hey, thanks for taking my questions and congrats on the solid quarter.

嘿，感謝您回答我的問題，並祝賀本季表現穩定。

My question had to do with Perfect GPT I was wondering because you mentioned that you think that in the future there's going to be a wide adoption of a beauty and AI beauty assistant on, on brand websites and that sort of thing.

我的問題與 Perfect GPT 有關，我想知道，因為您提到您認為未來將在品牌網站等上廣泛採用美容和人工智慧美容助理。

And I was just wondering on how you're getting there, you know, for example, like I'm thinking about how on so many websites these days, you might have a, you might run across a, a chat bot, an AI chat bot.

我只是想知道你是如何到達那裡的，你知道，例如，就像我在想這些天在這麼多網站上，你可能會遇到一個聊天機器人，一個人工智慧聊天機器人。

I'm wondering is, is that, is, you know, data related to the usage of, of assistance like that?

我想知道的是，你知道，是與此類援助的使用相關的數據嗎？

Is that how you're, you're coming up with your, your perception of that, that it's moving in that direction for a beauty AI assistant.

你就是這樣嗎，你正在想出你的看法，它正在朝著美容人工智慧助理的方向發展。

I was just wondering if you could talk a little bit more about what's your confidence in the market opportunity there.

我只是想知道您是否可以多談談您對那裡的市場機會的信心。

And then I was just wondering on how the Perfect GPT offering would sort of fit with your current B2B offering.

然後我只是想知道 Perfect GPT 產品將如何適應您目前的 B2B 產品。

Thanks.

謝謝。

Hi Pat, I think that what we've seen in the in the beauty sector, right?

嗨，帕特，我認為我們在美容領域所看到的，對吧？

So, because the beauty is very personalized, so most of the time consumer has really a lot of questions and doubt about what product fits me better.

所以，因為美容是非常個人化的，所以大多時候消費者對於什麼產品比較適合自己有很多疑問和疑問。

So, it's not just a generic product, it's really up to your skin type, up to your beauty style.

因此，它不僅僅是一個通用產品，它實際上取決於您的皮膚類型，取決於您的美容風格。

So typically, the brand, they have to train and hire a large team of beauty advisor whether online or offline today, mostly offline in the shop to, to give user a consultation, right?

所以通常情況下，品牌他們必須培訓和聘請一個龐大的美容顧問團隊，無論是線上還是線下，大部分是線下的商店，給用戶提供諮詢，對吧？

And that is really one of the pain points of the brands.

這確實是品牌的痛點之一。

Also, I know a gating item for them to grow bigger, to address a larger audience because they just can't hire so many people to do this type of training and one on one consultation.

另外，我知道他們要發展壯大、面向更多受眾的一個門控項目，因為他們無法僱用這麼多人來進行此類培訓和一對一諮詢。

So, they are really eager to offer something smarter than traditional chat box.

因此，他們非常渴望提供比傳統聊天框更聰明的東西。

So, it's not just designed to like track my order.

所以，它不僅僅是為了追蹤我的訂單而設計的。

You know, I'm asking when I'll get the order, how can I get refund this type of customer services?

你知道，我問我什麼時候能收到訂單，我怎麼才能獲得此類客戶服務的退款？

But it's much more about knowing my product, right?

但更重要的是了解我的產品，對吧？

And we use AI to analyze your skin type, analyze your beauty style, your facial, you know, you know, ratio and so forth.

我們使用人工智慧來分析你的皮膚類型，分析你的美容風格，你的臉部，你知道，你知道，比例等等。

So, I think this is where the demand and the potential come that each brand, they see that the consumer who comes to the website shop for product, the conversion rate isn't very high because of those doubt, right?

所以，我認為這就是每個品牌的需求和潛力所在，他們看到來到網站購買產品的消費者，由於這些疑問，轉換率不是很高，對吧？

And you can have many Q&A and any material, but it's just harder and for consumer to really spend so much time to dig into it to read about it and, and then walk away with, with the basket, right?

你可以有很多問答和任何材料，但這更難，對於消費者來說，要花這麼多時間深入研究它，然後帶著籃子走開，對嗎？

With the product.

隨著產品。

So, I think the AI the Perfect GPT really come to solve that problem for them to increase the user engagement.

因此，我認為 AI Perfect GPT 確實可以為他們解決這個問題，從而提高用戶參與度。

They expected to see if they spend a lot more time in that engagement with the brand or with the AI assistant and therefore you have the confidence to take the product home and try it on them.

他們希望看看自己是否花更多的時間與品牌或人工智慧助理互動，因此你有信心將產品帶回家並在他們身上試用。

So, this is kind of the new playground.

所以，這是一個新的遊樂場。

I don't think it is the same as the traditional chatbot which is mainly used more for customer services in a traditional way.

我認為它和傳統的聊天機器人不一樣，傳統的聊天機器人主要更多地用於以傳統方式提供客戶服務。

And let me comment on a little bit more besides what said Perfect GPT my view for the brand to be their AI online AI beauty assistant because not only the chatting, we integrate brands of their own, know how their own, know how for beauty into the AI training database for chatting.

除了Perfect GPT所說的之外，讓我再評論一下我對這個品牌的看法，成為他們的AI在線AI美容助手，因為不僅僅是聊天，我們整合了自己的品牌，知道如何自己，知道如何將美麗融入其中。

But we also integrate our AI solution Perfect AI solution for virtual try on for skin analysis, for facial attributes analysis.

但我們也整合了我們的人工智慧解決方案 完美的人工智慧解決方案，用於虛擬試穿、皮膚分析、臉部屬性分析。

So accordingly, while you are chatting, asking questions to that beauty assistant, we are also using our AI analysis to tell the user what's the best for them instead of just sending all the messages to them.

因此，當您聊天、向美容助理提問時，我們也會使用人工智慧分析來告訴用戶什麼對他們來說是最好的，而不是只是向他們發送所有訊息。

And the brain already have a make a try on or skin analysis on their brain side.

並且大腦已經在其大腦一側進行了嘗試或皮膚分析。

They can directly integrate the Perfect GPT together with our virtual try on and AI analysis-based analysis, skin analysis, all the tools together to provide you a real personalized recommendation just like a effort from beauty industry.

他們可以直接將Perfect GPT與我們的虛擬試穿和基於AI分析的分析、皮膚分析等所有工具結合在一起，為您提供真正的個人化推薦，就像美容行業的努力一樣。

Great.

偉大的。

And if I could ask one follow up question to that, it would be I guess you know, like you mentioned Louis the pain point of, of, of having the brands, having people to, to help make these recommendations.

如果我可以問一個後續問題，我想你知道，就像你提到路易斯的痛點一樣，擁有品牌、擁有人來幫助提出這些建議。

It seems like if this could offer a significant cost savings to brands.

看起來這是否可以為品牌節省大量成本。

I'm wondering what would the implications be for what you can charge on these contracts by, by being able to save the brands, you know, how significant could this be for your price point?

我想知道透過能夠拯救品牌，這對你在這些合約上收取的費用會有什麼影響，你知道，這對你的價格點有多大影響？

When you're negotiating these contracts with B2B clients?

當您與 B2B 客戶談判這些合約？

Yeah, I think we're still in the early days to understand the real full impact of these AI services, right?

是的，我認為我們還處於了解這些人工智慧服務的真正全面影響的早期階段，對吧？

Not only in beauty but across all industries.

不僅在美容領域，而且在所有行業。

And I think data is going to show us how really is helping the brand on the cost saving perspective or improving the sales process or customer satisfaction.

我認為數據將向我們展示如何在節省成本或改善銷售流程或客戶滿意度方面真正幫助品牌。

So, our approach is currently we're working very closely with key brands to train and because they want to make sure that they are really giving the user the experience that the luxury and the prestige brands that they're all designed for.

因此，我們目前的方法是與主要品牌密切合作進行培訓，因為他們希望確保真正為用戶提供奢侈品牌和知名品牌所設計的體驗。

So, I think this we see, as I say on the proof of concept, right?

所以，我認為我們看到了這一點，正如我在概念驗證中所說的那樣，對吧？

So, we do that at different scale and different market to test the results.

因此，我們在不同規模和不同市場上進行測試以測試結果。

And I think based on that result, we have more confident about how we can commercially benefit from these type of services.

我認為基於這一結果，我們對如何從此類服務中獲得商業利益更有信心。

So, I think the first is to create quality of service to have you know, make sure that things work properly and then really garner the data to make those business decisions on next.

因此，我認為首先是創建服務質量，讓您了解，確保一切正常運行，然後真正收集數據以做出下一步的業務決策。

Certainly, I, I think this is something that the brand would like to invest because it's harder and harder again to retain people and then to train them in the long term and having something that work [24/7] the time from the website or from the mobile app.

當然，我，我認為這是該品牌想要投資的東西，因為留住人才，然後對他們進行長期培訓，並在網站或網站上提供[24/7]有效的東西，變得越來越難。

I think it is a very compelling offer.

我認為這是一個非常有吸引力的報價。

Great.

偉大的。

I appreciate it very much.

我非常感激。

(Operator Instructions)

（操作員說明）

I'd like to hand the conference back over to the management for closing remarks.

我想將會議交還給管理階層進行閉幕致詞。

Thank you once again for joining the call today.

再次感謝您今天加入電話會議。

If you have any further questions, please feel free to contact us directly or through our IR website, we look forward to speaking with everyone in the next call.

如果您有任何其他問題，請隨時直接或透過我們的 IR 網站聯繫我們，我們期待在下次通話中與大家交談。

Goodbye.

再見。

Ladies and gentlemen, that includes today's call.

女士們先生們，這包括今天的電話。

Thank you all for joining.

感謝大家的加入。

You may now disconnect.

您現在可以斷開連線。