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Dive Brief:
Subscription revenue for Perfect Corp.’s AI and augmented reality tech grew 15.6% in Q2 to $14.9 million, according to an earnings report released Tuesday.
The company attributes the increase to consistent revenue growth from its YouCam mobile app, web service subscriptions and the growing popularity of generative AI and editing tech for photos and videos. The company also noted a stable demand in its online virtual product try-on simulations for brand customers.
Perfect Corp.’s clients are approaching AI with caution “amid broader macroeconomic uncertainty,” Alice Chang, Perfect Corp.’s founder, chairwoman and CEO, said in a statement. The company maintains a “prudent near-term outlook” for its business-to-business operations.
Dive Insight:
Perfect Corp., which provides virtual try-on tech across skin care, makeup, clothing and more, has more than 800 fashion and beauty brands using its digital experiences.
From its mobile apps to its tech deployment, Perfect Corp. has introduced itself across various virtual try-on use cases. The company furthered its presence in the virtual try-on space with its acquisition of Wannaby from Farfetch and the expansion of its med spa partners.
“Our mobile app and web subscription business continues to demonstrate strong momentum, now growing significantly faster than our enterprise segment,” Chang said. “B2C subscriptions have become the primary driver of our overall revenue growth, fueled by sustained demand for our photo- and video-based generative AI features.”
AI hesitancy is a hurdle to the tech’s takeover in the modern-day shopping journey. Over 2 in 5 Americans say they have no trust in AI shopping agents, according to a YouGov survey. However, a recent Perfect Corp. survey found that virtual try-on helps produce a 2.5 times increase in sales conversion when implemented.