The chart below shows how PERF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PERF sees a +5.87% change in stock price 10 days leading up to the earnings, and a -4.96% change 10 days following the report. On the earnings day itself, the stock moves by -1.97%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Revenue Growth of 12.5%: Total revenue grew by 12.5% year-over-year to $60.2 million for full year 2024.
Net Income Increase: Net income for full year 2024 was $5 million, with adjusted net income increasing 18.6% to $8.3 million compared to 2023.
Strong Cash Generation: Operating cash flow generated a net inflow of $13 million for full year 2024, indicating strong cash generation capabilities.
Subscriber Growth Surge: The number of active paying subscribers for the mobile app reached over 1 million, a 14.3% increase from 2023, showcasing strong demand for AI-powered solutions.
Market Expansion Strategy: The acquisition of Wanna from Farfetch is expected to enhance market reach and expand the total addressable market in luxury brands.
B2B Client and SKU Growth: The B2B business saw significant growth with over 732 brand clients and 822,000 SKUs onboarded, indicating strong market penetration.
AI in Beauty and Fashion: AI-powered skin diagnostics and virtual try-on solutions are driving demand and engagement in the beauty and fashion sectors.
Strong Cash Position: The company maintained a strong balance sheet with over $165.9 million in cash and cash equivalents, supporting future growth initiatives.
2025 Revenue Growth Projection: The guidance for 2025 projects total revenue growth of 13% to 14.5%, reflecting confidence in continued market expansion.
Negative
Licensing Revenue Decline: Licensing revenue decreased by 72.2% in Q4 2024 to $0.5 million compared to $1.8 million in Q4 2023, indicating a significant decline in this revenue stream.
Gross Margin Decline: Gross margin decreased from 81.3% in Q4 2023 to 74.1% in Q4 2024, primarily due to increased third-party payment processing fees associated with mobile app subscriptions.
Net Income Decline: Net income for Q4 2024 was $1.1 million, down from $1.4 million in Q4 2023, reflecting a decline in profitability despite revenue growth.
Net Income Decline: Full year net income decreased to $5 million in 2024 from $5.4 million in 2023, indicating a downward trend in overall profitability year-over-year.
Operating Expenses Increase: Operating expenses for the full year increased by 2.7% to $50.1 million in 2024, driven by higher sales and marketing expenses, which could impact future profitability.
Decrease in Administrative Expenses: The company reported a decrease in general and administrative expenses by 41% in Q4 2024, but this may not be sustainable in the long term as operational efficiencies stabilize.
Cash Flow Decline: Despite a positive cash flow of $13 million for the full year, it was a slight decrease from $13.6 million in 2023, suggesting potential cash flow challenges ahead.
Perfect Corp. (PERF) Q4 2024 Earnings Call Transcript
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