Good day, and welcome to the Q1 Virtual Investor Summit. We appreciate your participation in today's virtual event. Up next, we are pleased to introduce Perfect Corp. If you'd like to ask a question during the webcast, you can submit them at any time by clicking on the ask question button on the left side of your screen. Please type your question into the box and hit the send button to submit. At this time, it is my pleasure to hand the session over to Louis Chen, Executive Vice President and Chief Strategy Officer at Perfect Corp, who will lead the presentation. Sir, the floor is yours.
Thank you. Good morning, everybody. I'm Louis Chen, the Chief Strategy Officer at Perfect Corp. Our company is listed on NYSE under the symbol PERF. Today, I'm very glad to share with you a little bit about our company, our business, and end with our related financials. Perfect Corp is a software company focused on the beauty and the fashion tech verticals. We have two businesses between the B2B and the B2C business, and I would like to present to you each independently today. Our company was founded in 2015, so this year is our 10th-year anniversary. We went listed in late 2022, a little bit over two years ago. The company now employs over 350 employees, and nearly half of them have been developers in AI and AR solutions.
We are considered the number one beauty and fashion tech company that makes the brands and the consumer world more beautiful through our technologies. The company is located—the development center is located in Taiwan, in Taipei. We have global offices around the world in about 12 cities in 10 countries, especially in the U.S., which is a little bit over half of our revenue. Last year, we did a little bit over $60 million in revenue, and more than half of those came from America. Another 25-27% came from Europe, where traditionally are very strong in the beauty and fashion sectors, where also a big part of our customer base are from. Also in Asia, another 20% of our business mostly coming from Japan, where there is a lot of very well-famous beauty groups like Shiseido, KOSÉ, KOSÉ , has been our long-time customers as well.
What's the value proposition and the problem we try to help consumers and brands in this world? Beauty is a very personal category. A lot of women, especially at a young age, encounter difficulties in understanding what's the best style for them, whether it's matching that with their skin tones, with their hairstyles, with their take of beauty. This has been a pain point for consumers who want to shop for beauty online. Basically, they have no idea which product to buy or even what's the technique to apply. They need tutorials, they need coaching, and we try to use technology to help them find the right product for their right styles. Based on that demand, we created a series of solutions that range from B2B, but also for B2C business.
This is something very unique for the company that we are able to monetize the same technology, the same core technologies into two different platforms. The B2B is more of a traditional SaaS model where we provide different modules at a subscription, a recurring revenue-based subscription to customers through the license. It varies from makeup, which you'll try on, that consumer can try different colors of lipstick, brushes, eyeshadows, eyeliners, you name it, virtually using the AR on the smartphone cameras. I will show you some examples in a later slide. Also we have the B2C business, which is now slightly more than half of our business coming from premium models, mobile apps that consumers can download for free from the app store. They can unlock all the premium features for seven days.
After the end of the trial period, they can choose to opt in to subscribe for a premium version of that. Typically, we charge around $39 per year per app or around $5 per month. About 90% of our consumers who end up converting into a paying active subscriber choose the annual plan versus the monthly plan. We believe that is because the use case here is of high frequency. If consumers are using these for selfie taking or for generating AI content creation, they may end up using quite many times per day. Therefore, any subscription benefits them the most. First, let me dive into the B2B business. One thing that we have accomplished in the last 10 years is our dominant position in the B2B market for beauty and fashion.
As of our last reported quarter in the last year, we are now hosting over 732 brands on our platforms and accumulated together more than 822,000 makeup product SKUs that are ready to be virtually tried using our technologies. The many logos that you see here on the slide are just part of our customer base out of those 700. They range from Estée Lauder, Dior, MAC, Shiseido, and more and more. It continues to grow ever since. Here in my next slide, you see a bit of historical trends about how the business, the platform has been growing quarter after quarter after quarter. On the left-hand side, you see a number of brands that are already on our platform, as I mentioned, over 732. On the right-hand side, the accumulated number of SKUs, that's more than 800,000 now.
The way that we monetize these services to the brands is they subscribe different modules. Depending on the number of countries, the period of the subscription, and the number of SKUs that they upload into the servers, we charge them a monthly fee or an annual fee. Most of the customers, majority, a vast majority of them are on annual contracts. Some more strategic accounts are on two years or three years pace. It has been growing very steadily. It shows the robustness of this business. It's been very sticky. Once the brands have started using this technology in their e-commerce, in their shopping cart, it's very hard for them to go back because this is a technology that helps them resolve the issue of physical sampling. They don't need to send any sample to consumers anymore. People can try 30 shades in 30 seconds. It becomes very easy to reduce the friction of online sales, increasing basket size and conversions.
The good news I want to share with you is not only that we are dominant in the beauty space. Earlier this quarter, we announced our strategic acquisition of WANNA from FARFETCH. The deal was closed on January 7th this year. The strategic acquisition of WANNA , WANNA is a pioneer in virtual trial for fashion, especially for shoes, bags, scarves, and clothing. By merging together with WANNA , by acquiring WANNA , now Perfect Corp as a group, we are the only AR, AI, VTO solution provider with complete solutions for beauty and fashion, anything from makeup to watches, jewelry, shoes, bags, scarves, and more. Very exciting, our opportunity to grow our portfolio, but also most importantly, to grow our customer base and our team.
WANNA comes with very, very excellent records of providing the services for more than two dozen of the top fashion customers. You see here on the screen some of the big logos that are using WANNA solutions on their website for shoes or bag virtual try-on. They founded in 2018, and now it's part of Perfect Corp. Together with this strategic merger, we are not only servicing our current pool of clients, but we are now also extending that to go beyond the beauty space. It's now about the shoes or the clothing for the team. There will be just more cross-sales opportunities around the horizon and other synergetic value that the integration among the team is happening right now. We expect that this result will start to show in our performance moving on.
Again, there are three major synergies through this acquisition: product synergies to expand further Perfect Corp product diversity into shoes, bags, and clothing. There is a lot of business synergy in terms of more different clients that we can go after for creating a larger deal, cross-sales and up-sale deals, and also to acquire more talents. WANNA is a team of around 30 professionals based in Europe. That also complements our research capability not only here in Asia, but also extending that into Europe. Jumping the gear into the B2C business. As I mentioned before, we operate a family of mobile apps for our direct-to-consumer business under the YouCam franchise. The few products here are YouCam Makeup, YouCam Perfect, and there are other smaller sisters, YouCam Video, YouCam Enhance, YouCam AI Pro, and other services. There are quite a lot of features in each of these individual apps.
Just to name a few here on the screen that you can see what YouCam Makeup mainly for are your personal AI makeup artist and also your selfie editor. 80-90% of the audience for this app are female, young females who are trying to create a better selfie. They try to learn the new, most trendy makeup to wear that on the photo to share socially. They even can use generative AI to generate different hairstyles, for example. They are super high quality. Or they can just try different hair coloring or just maybe do a retouch of their face or their body. These are very common use cases that young girls would like to use for their mobile phones. Another hero product is the YouCam Perfect. YouCam Perfect is more gender neutral, about half are male and half are female use cases.
This is really the all-in-one photo editing app powered by AI. It helps you create better selfie, helps you create better removing photobombs , create better selfies, filters, and avatar using AI and more and more. One interesting trend to share with you is our capability to monetize those apps into turning them into active paying subscribers. You see here the quarterly trends for the last few years. We just surpassed a record high, one million active subscribers who are, as I mentioned, paying around $39 a year to unlock all these premium features for the app. Next, I want to talk a little bit, share with you a little bit more on the technology side and also on the real success cases.
Here on the screen, you see examples of how one of our major partners—hold on, let me see if that screen is coming up—is Walmart. Oh, yeah. Walmart, we launched with Walmart a little while ago. The experience is very simple. You turn on the Walmart app. If you go to the beauty category and you are considering to buy a lipstick product, you often will see now this button, say, virtual try-on or try-on. As you were navigating through that, sorry, I cannot play video on this screen here, but basically turn on the camera and you are not only looking at the photo or the review of the product, but you are now turning on the selfie camera, looking at yourself, and then you can virtually try the product on your face. Yeah, again, this will be much fun to watch in video.
Encourage you to go to our website at www.perfectcorp.com, where there's a lot more video and there's a live demo content that you can play directly from your smartphone. Another example here is our partnership with Amazon. This one, again, is a video, so I can't show you here, but it is the virtual manicure. The solution not only works for faces, it also works for tracking your fingers, the nails, and then dynamically on the go in real time, it renders different nail art and clips, and people can actually try to see which one fits better at their styles. Another typical example is how the makeup companies are using this solution on their website. This is from Estée Lauder. There's a QR code on the screen. If you want to try it out yourself, feel free to scan that.
Basically, you can see this lady here on the screen. She's actually wearing virtual makeup. She's not actually putting the lipstick or the eyeliner, the shadow, the brushes. She's just using her phone and swiping left and right to be able to see the different results on her face instantaneously. If she likes about the product, she can virtually tap one button and then add to cart the whole basket. That kind of improves the entire shopping experience online. Much more efficient than going to the store, picking up the product, and trying to wear that in the real world. There are some hygienic concerns or just the lack of sample of the right colors that you want on the counter that's limiting the sales in the traditional channel. Here are other examples of how we partner with Cartier, with Gucci.
Again, it's the same experience. You can virtually try on different watches, different nail colors, or different makeup products. With the shop button directly built into the module, it takes you directly into the shopping cart. These are a few examples of how brands out of those 700-plus brands that are using this solution are leveraging on this technology to help improve their online sales. Another thing worth mentioning here is our partnership with those strategic worldwide giants. All the logos that you see in here, whether it's Google, Snap, Alibaba, WeChat, they are also our partners and utilizing our makeup virtual trial solutions into their platform. Google licensed our technology into the Google search.
When consumers go to the search and you are looking for a particular makeup product, they do not only return to you where to buy or review or image of the product. Now you have the option, again, to turn on the selfie camera and virtually try it on with your own face. The same experience across WeChat or across Alibaba. Also worth mentioning, Alibaba was our lead investor in the early days when we were private. They are still on our cap table. Snap is also a lead investor that came in in the Series C, and they did a follow-on on the IPO. They also remained to be one of our strategic shareholders in our cap table. Great partner of us. They are all utilizing our solution to really envision this omnichannel support for our clients.
When the beauty companies, they are selling makeup products, they are not only doing that exclusively offline or online. The consumer may look at online, they may look in social media, they may look in the search engine, and they may lean into the e-commerce website to try it on and to buy. One important factor that the brands always wanted to deliver is no matter where the consumers are in different touch points, the experience, the rendering effect, the colors, the textures, all should come exactly the same. We are the only ones who can accomplish that because it comes from the same development engine, so we can control that rendering effect. Not to mention the cost. Once the SKU, the makeup product, is digitized using our solution, it can be either reused in many of these other channels without duplicate efforts or duplicate costs.
That's another key competitive advantage that we have against other competitors. Next, I want to talk a little bit about our financials. Again, you can refer to our filing for the full-year financials that was just released a couple of weeks ago. Last year, we grew 12.5% in top line, achieving over $50 million in revenue. The last quarter was about the same rate of growth, 12.4%, and about $15 million in the quarter. Our margin for the year was about 78% of gross margins. Here, the total gross profit is $47 million on the screen. From the bottom-line perspective, the company has been profitable for a few years. Last year, our adjusted net income was closed at $8.3 million, and our net income was a little bit over $5 million.
I think that is around $0.05 earnings per share as a result of last year. Another thing worth mentioning is our stable cash flow. We have been bringing operating cash flow year after year. Last year, we had a net inflow of $13 million compared to around the same $13.6 million the previous year. This represents a very solid capability to generate sufficient cash flow to support the business operations. Not only on the cash flow, we also have a very strong balance sheet. I did not put it on the screen, but as our last report quarter, we are sitting on $155 million in cash and cash equivalents that we used up for growth, whether it is acquisition or growth organically. The part of the procedure was raised from IPO time, but as the business is profitable and generating cash, it keeps accumulating more cash.
I think that that is a strong financial result as well. A bit of outlook for 2025. For this year, we expect it to grow another 13-14.5%, so a few points higher than last year. Again, this is our current view. We may review that or adjust that depending on the progress and depending on the strategic moves that we may do along the year. Lastly, here are the few avenues for us to grow. Continue our deeper penetration into beauty groups. I think there's still many, many hundreds of beauty brands that are not utilizing any digital technology yet or not VTO technology. I think expanding to skincare is a big theme for us. Going to med spa, aesthetic clinics, people are spending more money into skincare. This is an important area of growth.
Deep enough penetration in fashion and jewelry, AI with watches and jewelry, and also pursue for some synergetic M&A selectively. These are also important avenues for us to consider if the market is really open there. Of course, the B2C market, we generate the AI to innovate more premium features around the YouCam app. It is also another strong forte for us. Okay. With that, I conclude my prepared presentation. If there are any questions that I can help answer, please type in your question on the screen, and I will try to answer for you. Thank you. Here, for the first question I get here, the question is, "Considering the current macroeconomic environment with many beauty and fashion brands seeing headwinds to their growth, what impact would it have on your business in 2025?" That is a great question.
There is certainly a lot of questions in the current macroeconomic environment, particularly challenging with the tariff discussion and really hard to know what is going to be ultimately the impact. Certainly, our brand customers on the enterprise side have been very cautious, trying to understand the impact to their margin if eventually there will be different taxes and tariffs arise from different areas of the world. Now, from the business resilient perspective, it's good that we have about 50% of our business in the B2C, which is mobile app business, which in our view should not be affected by the tariffs directly. That part, I think, is probably more robust and sound to these changes. However, the enterprise business will certainly remain challenging in this year.
We started to hear brand customers showing concerns that if these things get escalated, potentially it will limit their spending power and investment in IT, in newer services. I think what we have seen and heard is they are continuous to use and renew the current services as this is becoming more of a table stake. However, any new innovation projects or new type of budgets to create around new services, new pilot programs may be more limited under the current circumstances. The company, again, will remain cautiously vigilant around this development in all these different areas of the world, and we will update our community as we get more visibility. Again, if there are any questions, feel free to post your question. Here will be a second question.
Looking beyond the near term, how does management view the growth of the beauty and fashion technology space, and what role might AI play for Perfect Corp? This is an excellent question. AI, AI, AI. This is the area that we have been devoting most, if not all, of our resources last year in developing because this is the area where a lot of new innovation is showing and is able to convert into revenue already from consumers. We have seen that every time we launch a new Generative AI function in our app, the conversion rate goes up. Consumers really are willing to pay to experiment all these latest techs, whether it's creating a better avatar of yourself, a better selfie, a better professional photo. For example, I don't use real photos in my LinkedIn anymore.
They are generated by AI, so I don't need to spend time to go to a photo studio to take my PR shoot, for example. These are many of these aspects that we think that not only the beauty and fashion space, but the overall online space, digital lifestyle space will benefit from the role of AI. Particularly on the beauty and fashion, I think the AI agent, the personal beauty AI agent is going to be our big bet. It's something we started to develop a couple of years now. We started to see that rolling out into different geographies, markets to consumers, where now you can really have your personal AI agent that you ask any question about its style, what's trending, what you should wear. It's not just answering based on LLM technology. This is different.
This is something that you ask the permission to turn on the camera. You analyze your face, your facial attributes, the aspect ratio between your different facial features, look into your style. Based on the large know-how of beauty that we have built up along the years, able to recommend you the best makeup looks approach, for example. Similarly for your skincare, your skin concerns. Skin is, again, another highly personal category. Everyone has a different skin type. Like mine is more oily. Somebody might be more hybrid skin or more dry skin. We need different products. Sometimes it is very hard for consumers to know which one works for the best.
Using AI technology, AI agent technology, we're able to take a picture of your face, scan that using our AI model, and identify up to 15 different skin concerns, anything from textures, spots, wrinkles, feet techniques, and more. Based on those analyses, give you the different priorities and different skin treatment regime. That, I think, is going to unlock new shopping opportunities, just to name a few. Okay. I think these are the questions that we have for today. Thank you again for your time to join my presentation. If any information that you'd like to know, please visit our website at ir.perfectcorp.com. Thank you.
Thank you. That concludes Perfect Corp's presentation. You may now disconnect. For details on upcoming presentations, please refer to the conference agenda. Thank you for your participation, and we look forward to welcoming you to the next session.