Offices around the world, mostly sales offices, project managers, and marketing. We have around 30 professionals in New York and in the West Coast. The U.S. is our biggest market. About half of our revenue from 2023 contributed from the U.S. The second and the third contribution geography are France and Japan, each about 8%-9%. You won't be surprised to see these three cities because these are, I call it, the beauty capital of the world, where a majority of our businesses are coming because we supply SaaS services to beauty companies, which are mostly located in these three countries. To help you understand what we do, Perfect Corp. is a beauty for AI company. We use AI technology to help the beauty brands, the skincare clinics, the brands, or fashion brands through their consumer shopping journeys.
So we categorize our solution in four different pillars here. The Skin AI is everything around skin diagnosis. So it's basically using an iPhone or an iPad, you know, consumer at home while they are shopping for skincare products. And pretty much they have no idea about their skin concerns, what are their skin priorities. Instead of paying a visit to a dermatologist, the technology today is able to do a very quick scan of your face, take about three seconds, and identify about 14 different skin concerns, anything from dark circles, moisture, oiliness, wrinkles, spots. And based on this data, the brands are giving the consumer a personalized skin diagnosis and personalized skin recommendation. So they understand which product is suitable for their skin type. Let's say it's oily, it's hybrid, it's dry skin. The second pillar for Beauty AI is everything around color cosmetics.
So it's including virtual try-on, and I will show you some success stories and sample use cases, how this works in real world. And that also includes foundation finders, anything about hair coloring and hairstyles. And most recently, in the last two years, we expanded from beauty into fashion. So our solution now also covers virtual try-ons for jewelry and watches. And then lastly, for the last 12 months, the team has been super busy working on generative AI, as we also have our B2C business that is about content creation. So speaking of the business model, this is very unique at Perfect. We have a very unique business model. We are able to monetize our services, our technology in two different ways, B2B and B2C. Last year, we did about $54 million in top line. And it was 50% from B2B and another 50% from B2C.
So I think this is a great synergy because we don't operate this as two different P&Ls. It's actually one engineering team working on one core engine. Once the development is done, we'll be able to roll this out very quickly in the B2C space because we have about five mobile apps with the freemium model that we subscribe. The user pays a subscription to unlock those freemium features. While we do that in the B2C, we collect data and understand how consumers use and interact with these solutions. Then we mature, make the solution more mature. Down the road, then we're able to monetize that as a SaaS model for subscription with the global brands. So that's an omnichannel deployment, anything around makeup, skincare, and so forth. So both B2B and B2C are all recurring revenue bases. One targeting the enterprises, another toward the end users.
So today I want to start sharing with you about the B2B. To help you understand the available proposition, if we think about how women shop for beauty products today, they very heavily rely on physical trials. That's no surprise when you walk into a Sephora or a department store. The beauty advisor is often, you know, giving the consumer a free trial, a tester, because they know the more people try, the more they are going to buy. Now, there are obstacles preventing users to try products physically in the world, whether because the tester was not available, the color that you want to try is not there. Or most recently, of course, for sanitary concerns, people are not really, you know, trying to put that on their face.
Most of the time, like my wife, when she's shopping for lipstick products, she's, as the image is shown here, she's putting it on the palm of her hand and, you know, trying to understand how that color looks on my face. Let's not forget, you know, the skin color is very different from your lip color. It's really just a better experience if you are able to see that on your own face. What AI and AR technology, what we pioneer for virtual try-on, allows you to try all the SKUs very easily, right? 30 SKUs, 30 shades in 30 seconds. You can try before you buy, you can try unlimited SKUs. And it's very clean, very efficient, and it helps increase engagement and the sales.
So across all these nine years that we've been in this industry, we are the number one brand helping all these little big logos, and these are all cross-partners for many, many years that use our technology in their e-commerce. So whenever you go to esteelauder.com or Dior or Shiseido or these other brands, often you see this functionality built into the website. So as of our last reporting quarter, we're now covering over 666 brands globally. And together with this platform, it has accumulated and keeps increasing the number of SKUs because every quarter, every season, there's a new collection of lipstick and eye foundations. And now we have over 745,000 SKUs that people can virtually try online, generating over 10 billion trials per year.
Here just to show you a little bit of the journey, how we started in 2015, started to work with a few brands, but now really across the industry, almost all the brands are already using technology such as this to help their consumer trial experiences. This includes, you know, top luxury brands. You see many of the logos in here. I also put here a little bit of the historical growth trend to show you on our platform how many brands have been there. As I said, last reporting quarter, quarter one, 666. And it has been, you know, very quite steadily increasing that over the last many, many years. Every quarter, we, you know, let's say a net increase of about 20-30 new brands that come on board to this platform.
On the right-hand side, you also see the number of SKUs that this platform is hosting. That has to do with our pricing model. When the customer comes to us and subscribes to services, we charge them by the number of modules that they subscribe and they use, depending on how many countries, and as well as how many SKUs they have. For example, they can start with a small license of only 50 shades of lipstick. Then next quarter, next year, they can upgrade that to include, you know, the new line of foundations, new line of eyeliners, eyeshadows, concealers, and other products. So I think it's been quite good business in the beauty space. It's a very, very big market we are going after. After all this year, there's virtually no much competition left.
When we started, probably 5, 6 companies were doing about the same thing as we did, and we have won that market by far. So we offer now a complete line of beauty AI SaaS services, anything around makeup, hair coloring, hairstyle, nails. So we have technology to do that on your hand as well. So let me show you in video how that works. In the success story. So this is a partnership we launched recently with Walmart. So here you see in the video that consumers, when you go to the Walmart app, and you try to shop for a beauty product, you often will see this try it on option now in the product. And when you use a tap on that option, the camera on your phone, it turns on. And now your face, your selfie is there.
You see the lady, she's swiping left and right, and the color off that list that she's trying to consider to buy is already on her face. So this is a very much more engaging experience than just watching a video ads or a banner ads that has a celebrity on it. So it doesn't really look like you. This technology really helps you experience that with your own style, with your own look. With this partnership, for example, we're able to help Walmart at the launch to bring over 20 brands immediately because we already work with more than 600 brands and more than 700,000 products. So initially, Walmart selected 20 brands out of those 600 to make them available to consumers. And then as every quarter goes, we're increasing the number of new brands and new products to recover.
Another example to show you here is how Amazon utilizes our technology for hand for manicure. So if you go to Amazon, for example, you're shopping for a virtual manicure product, a nail polish, or others. We're able to use the same technology that now turns on the camera. And it's tracking your fingers, your nails in real time, and consumers are able to choose from the menu which style to wear. So that also improves the conversion rate and also lowers the return rates because consumers do understand it's better to expect what they are going to order. You know, here's another example of how we're doing that for beauty with Estée Lauder, one of our key partners. So here in the middle of the video, you see this is the full looks. This is a partnership with MAC, which is an artist brand.
There's a lot of looks that we create. So it's not for a single product. You can apply the whole looks with just one touch. And not only applying the looks virtually, you're able to create this interactive makeup tutorial for consumers. So, for example, this lady, once she's, you know, happy with the look and she tried to understand how do I apply this look, what technique, what kind of tools I can use. We're able to create this with AI, with step by step. So here, for example, you see step one, there's voice, you know, narration behind. So it's almost having a virtual beauty assistant, your personal beauty assistant at home with you. And you can experience that by scanning the QR code. There's always a new look every week or so, or something is trending, something that, you know, celebrities are wearing.
So consumers can try that. Of course, ultimately, you see here at the bottom of the screen, there's an add to bag option. So consumers can buy the whole set, although they can buy individual products. The other thing we pioneered is on jewelry and on watches. Also we did that for [F-type]. Right? So here, for example, you see simple implementation as you are, you know, consumers are browsing through different types of media. You can often see with the video ads, but now the video ads come with the option to virtually try on. So without leaving your experience within the browser, you turn on the camera. You see here the Gucci lady, right? So she's now trying different lipsticks. Or here in the middle, this is how we are helping Cartier to implement the watch virtual try-ons.
And the same thing here for nails. Right? So with Sally Hansen . So this type of experience, we have now launched with over 40 brands in North America. So, and if a consumer likes, again, it's one tap away and they can go and do shopping online. So on the B2B side, another important thing besides the beauty brands is our leadership position, and we are able to build this omnichannel solution with all of our key partners. So all the tech giants you see here from the west and from the east, they are utilizing our technology on Google Search, on YouTube, on Instagram, on Snap, on Alibaba, Taobao when it comes to makeup virtual try-ons. Because of our leadership position with the beauty brands, we all have all these SKUs been validated and officially approved by the brands.
So when we're able to populate these SKUs into these different premises in these different platforms, the consumer will still have the same experience. When you go and try the Estée Lauder lipstick, it all looks the same color, the same texture, no matter which platform you are, because underneath the hood, the engine all comes from Perfect Corp. Just for your information, Alibaba was one of our lead investors in our Series B. And so before the IPO, so they exclusively use our technology on Tmall. They are still on our cap table. And Snap also is one of our lead investors in the Series C and did a follow-on when we did the IPO. So Snap is also on our cap table. The other partners are very close partners on how we're helping Google or Tencent, WeChat, to offer this technology to the brands.
So why I'm mentioning that this is a very important strategic play for the brands when they're choosing the partners because of the perfect 360. Consumers today are not only shopping exclusively on one channel. They can be online or offline or Shoppertainment, YouTube or TikTok or so. When the consumer comes to this different channel and they are engaging with the same brands, they want to know that, you know, this technology works similarly and seamlessly across all these platforms. We offer that solution to the brand. We are the only one in the market really that can do that for the brands. Moving on to B2C, you know, the value proposition of B2C is to cater user needs across mobile beauty apps.
So where the consumer is taking very high-quality photos, videos, trying to perfect the beautiful selfies, trying to create a unique, expressive way using generative AI or just social media sharing. So we operate a family of apps under the YouCam franchise. So here you see one of some of our hero apps is YouCam Makeup, YouCam Perfect, and the rest of the family. We have around 16 million monthly active users across this app. And we monetize that through freemium models, right? So one of the growing engines in the company for the last few years has been the number of subscribers. Our last reporting quarter, we now have over 900,000 paying active subscribers. On average, they pay about $39 per year to unlock the freemium features in the app. And it has been growing really quite well.
You see here the latest figure worldwide, about 30% year-over-year growth. So we see continue this trend that more and more consumers in about a dozen countries, mostly are higher GDP, you know, higher middle-class countries that consumers are just very open to paying for a subscription nowadays to unlock beauty apps. So along this app, the app has many, many functionalities, and I'd like to share with you in my limited time here today about some of the new innovations we are writing on generative AI to keep this growth momentum going on. So the first thing is the AI Makeup Transfer. It has been one of the highest wanted features in our platform. When consumers see looks on Instagram or maybe on a magazine or somewhere that they feel, you know, it's trendy, you know, Met Gala just happened in New York a few days ago.
So, for example, the looks that a celebrity was wearing on the red carpet. And if the consumer tried to see and we're thinking, you know, is that suitable for me? You know, how should I look like wearing that look? Now, with the power of generative AI, we're able to analyze one image. So the reference image I put before here. So we just need one image of the target looks. And then we can take that using your smartphone and then that, you know, analyze the image and extract that look and transfer that onto your face. So you work for eyeshadow, you work for brushes and lip. And if the color is the texture. So this is all fully automated.
So instead of the traditional way where you have designers and take you a week of time to create that look in the AI filters, this can all be done with generative AI. So it's super impressive. And not only that. Once you have the looks transported or transferred onto your face, what is really interesting is help consumers identify which brand product they can buy to get to that looks. So because of our unique position of our database of these SKUs, we're able to analyze the looks and compare the texture and the colors and identify, you know, what we call the AI makeup detection in step two, identify the shade and the texture, and then map that to a SKU. So a particular brand, a particular SKU of lipstick, and then link that to e-commerce, for example, right?
So this is going to be a whole new way for consumers to shop experience to see, okay, I saw a great look on the magazine. I can try that myself. Here is another example of how we are able to do that. And we launched it with TRESemmé, one of the Unilever brands. To try on different hairstyles, right? So this is a big commitment when you want to try to get a haircut. So here you see, for example, you would just need one original image. The AI generative can create you in different styles. It's more than 20 different hairstyles, actually, right? So you see here in, you know, long wavy, you know, even here Afro or pixie and other looks. So it just looks very, very real, super fantastic. We can be able to do that with hair extension, right? So you see here sample images.
Our app takes one single original image and then creates a version of you with a longer hair. There are other use cases for hair as well. Now, other thing that's getting a lot of popularity and I personally use a lot is, you know, I don't really have much time to go to a professional studio anymore to take my, you know, you know, photo shoot if I need to use all my speech or need to use all my LinkedIn. Here with the generative AI, we call the AI headshot. You only need one image for the AI to analyze your facial features. And with the different prompts, with different presets, you can create yourself in different professional settings, right? So where you are wearing ties or with other ties, you can dictate what type of color with the suit, with the jacket that you're wearing.
You can just keep creating many, many of that. So that's one of the functions that consumers are willing to pay for premium subscriptions to unlock these functionalities. Even more, we created something a little bit more fancy, more high-end. It's called AI Studio. So in our app, if you are a premium user, we'll take, you know, a few images of you. This is my colleague. For example, he analyzed some of her, you know, regular photo selfie images. And on the right-hand side, you create amazing, astonishing, you know, studio professional quality photos. And for example, here you see like she's taking a photo with a wolf or a cheetah. You know, this would be very, very difficult, you know, to dare to do that in the real world. But with the power of generative AI, this comes really, really handy.
The quality of the image, right, it looks super natural. The lighting, the background, it just looks super fantastic to share like, you know, in social media. And there's a family of other, you know, AI features for editing. I'll show you some of them here. And lastly, just quickly on our financial highlights, if you're interested. And by the way, we just filed our 20-F for the full year. So, you know, if you're interested, you can go through their filings. As I said, we did $54 million last year. And last in quarter four, quarter one this year, we just announced we did $14 million in top line. So about 18% growth year-over-year. Gross profit margin was about 81% last year. And this last reporting quarter was about 78%. Majority of the costs are really just the Apple tax and the Google tax.
As part of this app are through subscription and consumers will pay that through Apple and Google. And they'll deduct, you know, their fee before passing to us. On the bottom line, last year, we did about $7 million in adjusted net income. And the margin was about 13%. Previously, it was about $5.4 million. And this last reporting quarter was $1.5 million in adjusted net income. About 10% in margin. One thing worth mentioning is our balance sheet is very strong. As of last reporting quarter, we hold about $154 million in cash and cash equivalent. So the cash flow has been really good. This last reporting quarter, we generated about $3.5 million in cash flow. In contrast, last year, the whole year, we generated about $13.5 million in operating cash flow. So it is, you know, good business, good business model.
You know, the proceeds that we raised through the IPO and the previous round wasn't really ever used yet. So it's something that will wait to be deployed. And this is my last slide. You know, still a lot of avenues to grow with expanding the vertical for beauty, going into skincare, penetrating fashion and jewelry, creating more functionality in generative AI. And pursuit of some opportunity for synergistic M&A is also on our radar. With the capital we have, we may accelerate this growth not only organically, but also through other strategic moves. So with that, thanks for your time for listening, and I think we have a few minutes for a Q&A.
Sure. So.
Thank you, Aashi. I don't think I can hear you.
Can you hear me now? Sorry. Is this any better?
I can.
Oh, okay, perfect. Thank you for the presentation, Louis. Before we move on, I would like to remind everybody, if you have any questions, please submit them at the Q&A function at the bottom of your screen, and I am happy to ask them on your behalf. Until then, we have a few questions, so I will start with them. Can you discuss your product moat and the competitive environment you are encountering right now?
So on the B2B side, it's quite different to the B2C. On the B2B side, after all this year of competition, there's not really much competitor left in this market because we are already very dominant in this space. And I think as part of competitive moat, I think there are a few key points, right? I think the relationship that we have built with all these big beauty enterprises is very, very important. It's very, very hard to develop. It took us many, many years to get in there. And I think this is a very, very valuable part that because we are already the current solution provider, we end up working with the brand very closely on the next generation beauty product that they are going to launch next year.
So we always have the advantage to know what a brand is going to innovate in terms of different makeup, different textures, different effects. And we work with our AR engine well, well, well ahead of the competition. So when the product finally launched in the market to the general public, our solutions are already there. So everybody's always playing catch-up. That's one part. A second part, I think, is technology, right?
We've been, you know, really, really good at AI and AI, and that's why all these beauty brands trust us, including, you know, big companies like Google, Meta, Instagram. They all at some point in the history tried to do that by themselves, and at some point they understand that they need to be focused. We need to be focused in the vertical of beauty to make it really good. And that's really what we have pioneered so. And therefore, I think we have really an advantage in terms of the quality of the rendering, the true-to-real effect to the real makeup products. On the consumer side, it's very different. Consumer is a very fast-growing part. There's a lot of similar apps in the market, probably more than 10 of them. You know, in the beginning, we were only doing B2B.
We started to monetize B2C in the last three years. So we are playing catch-up there. And because we started small, you know, we'll be able to grow really, really fast, you know, by taking just market share with better technology innovation from the other players.
Right, right. Thank you. Another question is, who owns the data from the consumer trials? Your enterprise clients only, or do you share?
Again, for the B2C product line, we own the data because it's our product, it's our community. So we own all of that, right? So we have tens of millions of users, and that is where, you know, it's our direct business. For the enterprise part, it's a SaaS software. So the data is hosted on our platform. We are the data processor, right? So data controller are the brands. So the brand owns that consumer data. But in order to utilize the platform, they license or they grant us access to that data to improve the product. So in a way, you can say that we can access the data, both the consumer and the brand. But on the brand side, the ownership belongs to the brand.
Great. Okay. Can you outline how you think about product pricing to your enterprise clients?
Yeah, so the pricing enterprise client, you know, there are some big and some small. So the pricing varies depending on how many modules they have. Today on our portfolio, we have more than 20 different sales modules, right? So some will subscribe one or two. Some bigger clients will subscribe seven or eight. So it's really based on the license that they have. And it depends on how many countries they want to use.
Some brands start geographically, maybe in one country or in one continent. Then over time, they will expand. Most of our longer-term partners, they are now utilizing these in 80 countries, right, with us, right? So they will end up with most of our contracts are annual-based with the enterprises where they get a global contract for all the countries at once. So they use the same implementation. So they don't need to recreate the SKUs. They don't need to worry about the effects are going to be looking different from one to another.
Got it. Okay. Thank you. What is the marketing strategy for the B2C business? Is there a customer acquisition cost, and how has that been trending?
Most of the B2C business, certainly we invest heavily on digital marketing. The majority of our traffic are coming organically, right, through search, mostly SEO. So when the consumer searches for beauty apps or for, you know, this type of app, they often will see us in there. Also because this app has been there quite a long time, so it's well ranked within the App Store ranking. So typically within the top 10 for many, many years already. So that's another way for people to discover us.
Of course, for some particular market or particular segment, we also spend on user acquisitions. But as you can see on our financials, we are very, very strong disciplined in our financials. So we are not a startup just raising the money and to go and burn it to grow the audience. We actually control our ad spending on user acquisition very, very tightly. So make sure that the LTV over CAC remain very positive. But majority are coming through digital marketing, as I said.
Got it. And I think we have a couple of minutes for the last one. How are you thinking about capital deployment from here?
Yeah, so I think it's, you know, certainly we are working on and paying close attention and looking for all types of opportunities that can help accelerate the growth of the company, right? So still, I think today, we still think there's a lot of room to grow, right? How can we get to say $100 million ARR, you know, as soon as we can, right? So that's kind of the next milestone that we want to go after. You know, we are investing heavily on R&D. So that capital goes certainly into talent development. Into continue to grow in different markets, different verticals. So expanding our sales team across the world.
But at the same time, I think we are also paying close attention with potential deals that can help accelerate or enlarge our team. Probably won't be in the beauty space because I don't think there's much else in the beauty space for other players to play. But if we go the horizon a little bit broader, you know, for female audiences, for other things, I think there's quite a lot of opportunity. And I think in this timing, it's good to be holding on cash. So, you know, we certainly try to use that wisely on good opportunity for the growth.
Perfect. Thank you so much, Louis. Thank you. It was a pleasure having you. And I think that's the end of our time, but we hope to see you soon. Thank you.
Thank you, Aashi. Thank you, everybody. Thank you.