Attending. Up next, we have Perfect Corp, trading under NYSE, the symbol P-E-R-F. On behalf of the company, we have Jimmy Xia, Investor Relations Director. Jimmy.
Good afternoon, everyone. I will go through the presentation quickly and allow probably 10 minutes of Q&A. So Perfect Corp, we're a software company under the beauty and fashion space. Now, we are a very unique company as in we not only have a B2B software for beauty and fashion brands, we also have B2C apps available on iOS and Android Play that are B2C Play. We were founded in 2015, and right now it's a decade now, with over 380 employees, and the majority of which are based out of our headquarters in Taiwan. We are a 20F filer, NYSE listed, and outside of Taiwan and headquarters, we have a few large offices which are comprised of U.S., EU, and APEC. The reason why we have these offices around the world is that they pertain to our revenue distribution.
For example, North America, with a focus in Europe, makes up just over 50% of revenue. EU, with a focus in Paris, makes up about 25%-30% of revenue, while the rest of the world, with a focus in Japan, makes up about 20% of revenue. What exactly do we do? Right, we have four pillars. One is AI skin, one is beauty, one is fashion, and Gen AI. This is very unique in the sense that, again, as I mentioned, we have a B2B and B2C business. From a historical point of view, when we started the company, we were an app business, an app company with zero monetization, because in the early days of the app business, you're either not paying for an app or $0.99 cents per app. As a result, we were not monetizing.
It wasn't until later on that Estée Lauder came to us and said, "I like what you have, the functionality of your app. What can you do for us?" That's how we started our B2B business. Today, when we do R&D out of our headquarters, it's actually providing software and service to both B2B and B2C. Of course, the different UI/UX will vary based on each of our B2C apps as well as our B2B clients. Now, the business model on the B2B typically, again, is software-focused, annual contract. It's based on three main factors. Number one is the modules. I will show you some of the virtual try-on type products later on. Each product that you use, you'll have to pay. Geography. If you are a U.S. Play versus Eastern and Western Europe, even APEC, the cost will be different versus only one sole geography.
The third is SKUs, the number of SKUs available on our software that runs in terms of virtual try-on. You'll pay more, obviously, as the number increases. On a B2C side, it's actually very straightforward, a freemium app model. What that means is that you can find our YouCam, Y-O-U-C-A-M, YouCam branded apps. There's about 6 right now at iOS or Android Play, and these apps are downloadable for free. You have a 7-day free trial with full function. At the end of the 7 days, you lose the premium functionality. In turn, if you want to turn it back on, either you pay anywhere from $5-$7 per month per app or about $39 per app per year. Now, at the end of the first quarter of this year, we actually increased the premium cost to about $79 per year.
With our higher frequency users, the higher pricing point makes sense for them. For the extreme users, beyond that point, because we have Gen AI technology that pings our servers, if it is beyond a certain limit, they will have to buy credits, or anyone can buy credits at any time to utilize these more powerful apps and functionalities. Jumping back to the B2B. Now, B2B business has grown tremendously since we started the company. Right now, we service over 800 brand clients. If you look at the screen, there are quite a few that most people will recognize. You have Burberry, Shiseido, , Estée Lauder of the world. We also provide services to e-commerce platforms like Walmart, Amazon, Sephora, Ulta, and so on and so forth. Most of these large brands in the beauty and fashion space, we are servicing in one form or another.
At the same time, we have over 891,000 SKUs that run on our software. Over the past few years, the very left side of the chart starts in 2019, when we started with 193 brand clients. Now we have 801. By the way, as of the most recent quarter, we had over 145 key customers within our brand clients. Key customers are ones that we provide service, and they pay over $50,000 a year. In terms of SKUs for the CAGR as well, it has moved from 132,000 to 891,000 over the past few years. In the first quarter of this year, in January, we actually closed on a small acquisition. This acquisition is called Wanna. Wanna used to be part of FARFETCH. It is a software play just like us. They provide software service, virtual try-on for beauty and fashion brands, but mainly in the luxury space.
Now, what they do that we don't, if you look at this, the left and the right. On the left side, Perfect Corp, traditionally, we provide virtual try-on for makeup, for jewelry, skin analysis, eyewear, watches, rings, bracelets, necklace, and so on and so forth. Versus on the Wanna side, provide virtual try-on for shoes, for clothing, for scarves, and handbags, which are an exact complement, a tuck-in acquisition that makes sense for both parties. This is slated to continue to generate positive revenue for us as we continue to integrate beyond the personnel now to integrate the software. Jumping back to B2C real quick. As I mentioned before, we have under the YouCam brand of apps, all these are available right now on iOS or on Android Play.
The first two, the YouCam Makeup and Perfect, are the bigger of apps in terms of the number of subscribers and the number of users. As of now, we have just passed the, at the end of last year, we passed 1 million users, paying subscribers out of probably 12 to 13 million monthly active users. Here's a quick example of how an individual will, whichever social media to share with your friends and family. Versus YouCam Perfect, you edit a photo. If you're at Times Square, if you want to edit people out of the background, I know there's a lot of competitors. Even the iOS native photo app can do this. This is something that we've developed for many, many years now. You can change the shape of your body, create an AI avatar, and so on and so forth. Again, this is for fun entertainment.
This is not a platform where people use to basically direct themselves to an e-commerce site to purchase beauty or fashion products. In terms of the growth from 2020, with the beginning of the chart to the end, we gained roughly 750,000 paying subscribers. You see that slight drop-off in the first quarter of this year after we initiated the $80 to $79 payment, the higher level of premium subscribers. There was a slight tick-off. From an average sales price point of view, we saw a slight increase. Again, as I mentioned, AI, AR technology. I'm going to show you an example of how clients, B2B clients, utilize us. Similar to B2C, the technology is the same, as I mentioned.
On a B2B side, in this example, when a user goes to Walmart's app, they can find the product, allow front-facing camera access to them, and put it on their face. If you look at the screen, one can choose a color in one click. You can choose 40 colors in 40 clicks. This is real-to-life. It is exactly how it shows up when it comes through the mail. Another example is Sephora. This is on their North America website where an individual can, within three seconds, have an analysis of the skin to give you a diagnosis or recommendation of products and services within the Sephora native app. Another example is Amazon with nails. This time, you allow back-facing camera access. You point it at your finger or your hands. Of course, one click, one go for the different styles.
There's another example with CHANEL, with bracelets. Here's the rings. I just want to quickly show you the last example with Mac through the Estée Lauder company. You can follow the steps, each step of the way. It will tutor you on how to and what to apply. If you look on the bottom of the right, it says eyeshadow for $23, and then there's a brush associated for $30, I think, or $40. Each step of the way, I'll show you the product and a tool to help you get to the final look that you're looking for through a tutorial. We also work with some of the global tech giants, such as Google, YouTube, Snap, and in China, the Alibaba and Tencent technologies of the world.
Some of the key highlights that today, I think we're trading about $1.90-ish per share, so roughly because we have 101 million shares outstanding, so about $190 million market cap. We also have $164 and change million in cash, so roughly $165 million in cash. We believe we're relatively undervalued to a certain extent. Over the past few years, we've been growing at 12%, 12%, and 13%. In this year, we estimate to grow anywhere from 13.5%-14.5%. We are cash flow positive, and our margins have stabilized. By the way, just a little more in detail. Because our software margin, gross margin, is roughly 90-plus %, it is obviously very positive. Unfortunately, because our B2C, we have to pay 30% for Apple and 15% for Google. Our blended gross margin in the first quarter was 78%.
This is a slight decrease versus 80% prior. Now, as our B2C business continues to expand, it might put maybe a few percentage points on the gross margin side even more should that increase. Historically, in 2022, we had roughly 75% of revenue coming from B2B. In 2023, it was half and half. At the end of 2024, it was 40% B2B and 60% B2C, which is why if you look at the margins, you see a slight downturn. Again, right now, we ended last year at 12.5% and estimated to be 13-14.5% for this year. What are we going to do with the cash? Historically, we have actually used the cash for tender offer and buyback.
In 2023, when we had just over $200 million, the company spent over $1 million and change on open market buyback because, unfortunately, we had a limited float, a limited trading volume, which resulted in a slower buying-back rate. Instead, the board decided to do a tender offer at $50 million for roughly priced at $3.10. We bought back just $16 million and change in 2023. We ended 2023 just over $150 million. Right now, at the beginning of 2025, we have $165 million if you round up. The board and management will continue to try to grow the business organically and inorganically through potential M&A or, and of course, at the same time, open to opportunities such as buyback or even dividends. Of course, but that's on the board level. On top of which, we'll continue to expand into skincare, AI.
You saw the example with Sephora before. That is actually our fastest-growing business within the B2B space. Even though it's, in terms of %, relatively smaller compared to the rest of our B2B, but that % has grown tremendously. We'll continue to push into the fashion and jewelry space. When we talk about Gen AI technology, this is the same technology that goes both inside our B2B software and B2C apps. Now, of course, as we move forward, the future will probably be led by AI, no matter what industry you're in. Virtual try-on and AI agents to help you search and purchase products and services are the future, even though right now we've seen a slowdown in the B2B business versus prior, historically. Questions? The question is, our stock, when we listed in the Halloween of 2022, it was $10 a share and $1 billion market cap.
Now, today, it's about $180 and $180 million. Here are some of the main factors that result in that. Number 1, we were a D-SPAC. So we came back the SPAC route. Number 2, we were growing about 30% top line those years. And because of COVID, obviously, there's lockdowns, and beauty and fashion brands, in order to push their product, had to really push new technologies and virtual try-on, which you saw some of the examples, were the products. To give you an example, my wife was buying lipsticks at home during the pandemic. My first question is, how do you buy lipsticks without trying it on? She's like, "Oh, yeah, virtual try-on." That was my first introduction in 2021 and 2022. That really helped jump-start our top-line growth of B2B growth.
Unfortunately, because of everything that's happened since, let's say, 2022, there's slowing consumer sentiment, inflation, now tariffs, as well as slowdown of China business for many beauty brands. As you know, like Estée Lauder, a significant portion of growth stemmed from China, as well as some other brands too. Because most are public companies themselves, they saw a squeeze on their top line, squeeze on their margins and bottom line, they decided to control costs. As a result, it actually really hindered our up-and-cross-out opportunities. The ones that we partner with, they've maintained their level of services, no problem, because it's proven to work. Unfortunately, like the former CEO of Estée Lauder said in one of the presentations I listened in on, just they wanted to really just cut costs where able, which negatively impacted our B2B growth.
As a result, we were going from, let's say, 30+%, now, again, 13-14.5% top line this year. Luckily, our B2C business had picked up where our B2B left off, which is why we're still growing at teens. Unfortunately, it would be better if we're growing at a much higher rate. From the B2B and the industry cyclical point of view, that has been a major roadblock to us, as well as many players in that beauty and fashion space. I hope that answered your question. Right. Here is the thing. Because we have a lot of cash on hand, it allows us to be more flexible, even though with a higher gross margin.
The management and the board believe that we should continue to invest in the R&D and, of course, sales and marketing for the next few quarters or the next few years of growth. Now, we can easily cut off, have better operating lines, and have an increased net income. It will not help us grow for the longer term, mainly because if you look at recently, all these AI companies are providing updates every few months. It used to be Moore's Law every 18 months, roughly. Now, it is no longer capable. You are unable to compete unless you invest more and more into your technology. For example, our latest B2C app, the YouCam AI Chat, it has OpenAI and DeepSeek technology on its foundation to help users experience AI, somewhat similar to ChatGPT.
I think the focus for the company will always be in the beauty and fashion space. Does that answer your question? Correct. Correct. To create new AI agents to, well, hopefully, sell to B2B clients and B2C subs. Our core company is actually on the B2B side. Now, it's just a byproduct that historically, we started as a B2C company. Over the last decade, we've actually partnered with, again, 800-plus brand clients. We know what they need. We know how they think. We have the product and service offerings to really help them. On a B2B competition point of view, there are no large players available. For example, the acquisition from January is Wanna is a few million dollars for the acquisition.
The other competitors we have, maybe out of the EU, are maybe a team of a dozen people, a few clients, maybe even break even at best. There are no large players for us to look into in terms of B2B direct competitor in terms of acquisition, for example. On the B2C side, we are not a major player at this point still. Even combined, we have a million subscribers. If you look at some of the information out there, that is very, very small compared to some of the other apps out there. We believe even organically, there's room for growth for us on that B2C side. Definitely, when the cycle returns for investment in the B2B, we believe that will obviously help us grow on the top line and bottom line. Yes, sir. The question is about cash dividends.
Historically, we've utilized our cash for buyback and M&A, even though small M&A. I know that the dividend conversation has been brought up by management. I don't know to what extent the board. I do understand that. For example, when I speak with investors, there's always feedback, just like yours right now, on dividends. I do provide that to senior management, and they've brought it up to board level. Of course, the final decision is up to the board if or when dividend or buyback, I think, is on the table. The timing is an issue. If we were to provide a news for dividend, you'll buy immediately, I'm guessing. Right. Right. It does. I think I agree. Again, that conversation I know has been brought up.
To how serious the conversation has been, I do not have an answer right now. Yes, sir. Yes, it is based out of Taiwan. Only NYSE traded. Right. Right. As I mentioned earlier, right now, in terms of geographic distribution and revenue, about 50+% U.S. or North America, about 20-30% EU, France mainly, and rest of the world with a focus in Japan, especially Southeast Asia. It is rest of the world about 20-ish %. In case you are wondering, China makes up like 2 or 3% of revenue only. The question is if B2C players are able to come into the B business, right? Or any new player. Okay. It is a double-edged sword. If you ever watched the movie Devil Wears Prada, I am not saying it is a direct correlation to the beauty and fashion space.
If you notice that they're very traditional in terms of if you're in the beauty and fashion space, as in it was very, very hard to get them to accept virtual try-on. They're very much traditional, as in you come to the store or kiosk, we'll try it on, and we'll wipe it, and we'll do it again. It wasn't until COVID that really forced many players to be like, "Hey, look, I need to do this new software, new technology to help us grow, if anything, to help us survive times of need." Now, since we've passed that, it comes to a time where, okay, we need to do much, much more. I don't know what. Everyone is talking about AI, but I don't know how to utilize it. That's where we come in because we have been an AI, AR player for the last decade.
We do have the relationships. The double-edged sword is that they move very, very slow. As a result, if you want to get in on a relationship, for example, Amazon, very simple is that Amazon will not work with startups most of the time because they have to be a provider that probably would not go out of business anytime soon. There are a lot of beauty brands that will not go work with startups either because you have to be proven technology, not just because you came up with proof of concept that is beautiful. What about the service in other players? It is not as easy. That is why we believe we have a core competence on the B2B side because we are in with these 800 brand clients. We continue to expand and eat other smaller players' lunch and try to expand organically.
It allows us with new technology to try to up and cross out as when they are ready. Strategic holders make up probably 60% of the company. This is a company by the name of CyberLink, where Perfect Corp spun out of. CyberLink right now, about 40%. Goldman Sachs, Alibaba, Snap, Snapchat, Snap owns about combined maybe 15%. Our CEO, probably around 20-ish. Out of 101 million, maybe 30% float. I need to look into the details, but it's in our annual. Right. By the way, our current CEO, Alice, she was the CEO of CyberLink because we incubated in CyberLink for a year before the company spun out. That's why CyberLink, it was 49%. Over 3 rounds, they were round A, round B, and round C, there was a slight dilution. Now there's about 40%, roughly. Close to 20%.
I don't know the exact. I'll have to look it up. We have about 30-40 people in the US. Taiwan probably has 300-plus, 180-ish developers, 300-plus overall because we have a large sales and marketing team. Obviously, we have a developer team. We have our back office, accounting, and all that. We use PwC. We use Sullivan & Cromwell. Legitimate players. Yes, yes, yes. AI, AR technology, as well as AI agents, yes, with a focus on beauty and fashion. Because today, if you go on any of these AI apps, there's very little information besides what they search from online articles and such if you're asked about beauty or fashion tips or they'll give you to a generic e-commerce platform. There's no resolution to what you might need directly. You have to still dig more into it yourself.
The company was founded in 2015, a decade ago. We listed the Halloween of 2022. I mean, quite a few quarters now since listing. I think that is the golden question, right? If you have that, you can probably make a lot of money in the market. In any sense, based on the most recent quarters, what we see is that it's been harder to up and cross-sell, mainly because our B2B clients are really watching their wallets very carefully because they have a top line or margin squeeze themselves. On a B2C side, we're still relatively small and new, relatively speaking, mainly because, again, we only have 1 million subscribers. There's plenty of other apps that have much, much more. We're not even pricing it that high compared to in terms of the service versus what's available with the rest of the market.
I think the B2C side, organically, we should still see the market expand, even if there's a slight downturn. Now, if there's a huge recession, it's hard to say. On the B2B side, again, we have seen since 2022 already a slowdown on the B2B side. When we listed, we were growing at 30+% top line. And this year, we're guiding 13%-14.5%. That automatically, you can tell from that, the B2B, unfortunately, has not really grown at a pace that we would like it to. At a certain point, there is a great high probability that you'll see an economic rebound once you pass the dark times. Consumers will continue to spend. The economy will be booming. Unemployment will be much better. I don't know if it's 4.5%, really. There are possibilities of a better tomorrow.
As a result, the consumption and, of course, the growth for these B2B brand customers should be much better in terms of investment into software, which obviously directly impacts us. Top 5 B2B clients make up about 15% of total revenue. Years ago, about three years ago, it was about 22-23%, maybe. This is before B2C really started to take off. I mean, I guess that's a good thing because we're not as dependent on a few number of, Shiseido and Coty are some of our top clients. Of course, you can just name anyone besides L'Oréal are our clients, mainly because L'Oréal, did I mention this? In 2018, they bought out our largest peer. And they have now, well, since 2018, our internal software provider for them only.
In 2018, over a period of a few years, it was about 30% of revenue dwindled down to zero. We gained the rest of the market because that software provider only provided to L'Oréal instead. Last question. Yes. Actually, because of the acquisition with Wanna, where there are software or AI for virtual try-on for clothing and shoes. Imagine Adidas or Nike or whichever big brand out there, as well as clothing. You can do that. We have actually tested the clothing technology. AI is smart enough to recognize your face. If you give a height and a weight, to 90% accuracy on the type, if it is small, medium, or large for, let's say, a T-shirt, it is fairly accurate.
Now, it's still in earlier stages, mainly because if you remember some of the video I showed with virtual try-on for lipstick, that is a very mature technology that is proven. Now, clothing is still unproven. It's still in, I would call, beta testing. It'll still be a little bit of time. Once it's ready, I think it's probably a great way to take off in terms of top line. Yes, it could be men's or women's, especially apparel and clothing and shoes. For example, like hair dye? Yeah. It has to be a reasonable market. We've done personal care. For example, you can dye your hair. You can dye your mustache. We have that right now with Procter & Gamble and their sub-brands. Right. Thank you, gentlemen.