Loading...
01/11 11:26
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents mixed signals. While there is growth in revenue and subscribers, the gross margin decline and cautious B2B outlook are concerns. The Q&A reveals uncertainties in B2B spending and competitive landscape. Despite optimistic guidance, the financial health shows slight declines in net income and cash flow. The lack of clear guidance on acquisition impact further tempers sentiment. Overall, the positive elements are balanced by uncertainties, suggesting a neutral stock price reaction.
Total Revenue Q4 2024 $15.9 million, up 12.4% from $14.1 million in Q4 2023, driven by growth in AI/AR cloud solutions and mobile app subscriptions.
Total Revenue Full Year 2024 $60.2 million, up 12.5% from $53.5 million in 2023, attributed to continuous growth in AI and AR cloud solutions and mobile app subscription business.
AI/AR Cloud Solutions Revenue Q4 2024 $15.1 million, up 25.4% from $12 million in Q4 2023, representing 95% of total revenue, due to expansion in mobile beauty app subscriptions and online skin diagnosis solutions.
Licensing Revenue Q4 2024 $0.5 million, down 72.2% from $1.8 million in Q4 2023, as licensing revenue is being phased out in favor of recurring subscription revenue.
Gross Profit Q4 2024 $11.8 million, up 2.5% from $11.5 million in Q4 2023, with a gross margin of 74.1%, down from 81.3% due to increased payment processing fees.
Gross Profit Full Year 2024 $46.9 million, up from $43.1 million in 2023, with a gross margin of 78%, down from 80.6% due to increased third-party payment processing fees.
Total Operating Expense Q4 2024 $12.2 million, down 3.6% from $12.7 million in Q4 2023, primarily due to lower R&D and G&A expenses.
Total Operating Expense Full Year 2024 $50.1 million, up 2.7% from $48.8 million in 2023, mainly due to increased sales and marketing expenses.
Net Income Q4 2024 $1.1 million, down from $1.4 million in Q4 2023, with a net margin of 8.3% for the full year 2024.
Net Income Full Year 2024 $5 million, down from $5.4 million in 2023, supported by revenue growth and effective cost control.
Adjusted Net Income Q4 2024 $2.3 million, up 8.2% from $2.1 million in Q4 2023, reflecting strong operational performance.
Adjusted Net Income Full Year 2024 $8.3 million, up 18.6% from $7 million in 2023, with an adjusted net margin of 13.8%.
Operating Cash Flow Q4 2024 $3.3 million, up from $3.1 million in Q4 2023, indicating continued ability to generate cash flow.
Operating Cash Flow Full Year 2024 $13 million, down from $13.6 million in 2023, demonstrating ongoing cash generation to support business operations.
Cash and Cash Equivalents as of Dec 31, 2024 $165.9 million, up from $163.2 million as of Dec 31, 2023.
Active Paying Subscribers End of 2024 Over 1 million, up 14.3% from 879,000 at the end of 2023, indicating strong demand for mobile app subscriptions.
Brand Clients End of 2024 732 brand clients, with a net increase of 24 since the last quarter, indicating growth in enterprise customer base.
New Product Innovations: The U.K. mobile app suite has evolved with updates powered by generative AI, including popular features like GenAI Hair experiences, AI face swap, and AI photo enhancement.
Web-Based Solutions: Expansion of web-based generative AI solution with YouCam Online Editor, allowing users to access AI innovations via web browsers.
Market Expansion: Acquisition of Wanna from Farfetch to access new markets and customers within luxury brands, enhancing digital shopping experiences.
B2B Market Penetration: Increased focus on skincare and makeup segments, reaching over 732 brand clients and expanding into aesthetic clinics and dermatology centers.
Operational Efficiency: Operating cash flow generated a net inflow of $13 million, with a strong balance sheet of over $165.9 million in cash and cash equivalents.
Cost Control: Operating expenses decreased by 3.6% in Q4 2024, primarily due to lower R&D and G&A expenses.
Strategic Shift: Focus on deepening presence in beauty and fashion segments, exploring cross-sell opportunities, and maximizing long-term shareholder value.
Competitive Pressures: The company faces challenges in maintaining its competitive position in the beauty and fashion tech space, particularly as it expands into new markets and integrates the acquisition of Wanna from Farfetch.
Regulatory Issues: There are potential regulatory challenges associated with the integration of new technologies and services, especially in the context of AI and data privacy.
Supply Chain Challenges: The company may encounter supply chain issues as it scales its operations and expands its product offerings, particularly in the B2B segment.
Economic Factors: Economic fluctuations could impact consumer spending on beauty and fashion products, affecting the company's revenue growth projections.
Licensing Revenue Decline: A significant decrease in licensing revenue by 72.2% indicates a risk in transitioning from a licensing model to a subscription-based model, which may affect short-term financial performance.
Gross Margin Pressure: The increase in third-party payment processing fees has led to a decrease in gross margin, which poses a risk to profitability.
B2B Sales Cycle Challenges: The B2B sales cycle presents challenges that could delay revenue recognition and impact overall business growth.
Acquisition of Wanna: Completed acquisition of Wanna from Farfetch to enhance market reach and access to luxury brands, expanding total addressable market.
B2C Mobile App Growth: Achieved over 1 million active paying subscribers, a 14.3% increase year-over-year, driven by strong demand for AI-powered features.
Expansion of AI Solutions: Continued development of web-based generative AI solutions, enhancing user engagement and broadening service offerings.
Focus on R&D: Ongoing investment in R&D to refine generative AI content models and enhance user experience.
Market Penetration: Deepening market penetration in skincare and makeup segments, reaching over 732 brand clients.
2025 Revenue Growth Projection: Projected total revenue growth for 2025 to range from 13% to 14.5% compared to 2024.
Financial Performance: Full year 2024 revenue grew by 12.5% to $60.2 million, with adjusted net income increasing by 18.6% to $8.3 million.
Operating Cash Flow: Generated operating cash flow of $13 million for full year 2024, indicating strong financial health.
Net Income Margin: Achieved a net income margin of 8.3% for full year 2024.
Shareholder Return Plan: None
Share Buyback Program: None
Dividend Program: None
The earnings call reveals strong financial performance with a 12.5% revenue growth and a healthy net income margin. The acquisition of WANNA has enhanced market reach, and the launch of a new AI chat app indicates innovation. However, the Q&A highlighted some customer churn and vague acquisition plans. Despite these concerns, the overall sentiment is positive due to strategic growth initiatives, a new premium subscription model, and strong cash reserves, suggesting a likely stock price increase in the short term.
The earnings call summary and Q&A indicate mixed signals. Financial performance shows growth, but the loss of beauty clients and increased expenses raise concerns. The new AI chat app launch is positive, but management's vague responses about future acquisitions and macroeconomic impacts suggest uncertainty. The acquisition of Wanna and the strong cash position are positives, but the lack of clear guidance tempers enthusiasm. Overall, the sentiment is neutral, suggesting minimal stock price movement in the short term.
The earnings call presents mixed signals. While there is growth in revenue and subscribers, the gross margin decline and cautious B2B outlook are concerns. The Q&A reveals uncertainties in B2B spending and competitive landscape. Despite optimistic guidance, the financial health shows slight declines in net income and cash flow. The lack of clear guidance on acquisition impact further tempers sentiment. Overall, the positive elements are balanced by uncertainties, suggesting a neutral stock price reaction.
The earnings call highlighted strong financial performance with revenue and adjusted net income growth, and a positive cash flow. Despite competitive pressures and a lack of a share buyback program, the company shows promising growth in AI solutions and a new B2C revenue stream. The Q&A section revealed confidence in market opportunities, although management was vague about future growth rates. Overall, the positive financial metrics and strategic focus on AI and B2C expansion suggest a likely stock price increase of 2% to 8%.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
