Christopher Riccio's questions to Perfect Corp (PERF) leadership • Q2 2024
Question
Christopher Riccio questioned the methodology for converting brand clients into key customers, the typical profile of these key customers, and the stability and potential operating leverage of R&D expenses.
Answer
EVP & CSO Pin-Jen Chen described key customers as typically multinational brand groups operating in multiple countries. He explained the conversion strategy involves starting clients with smaller pilot projects and then upselling them to more services, geographies, or sister brands based on demonstrated ROI. Regarding R&D, Mr. Chen stated the company is pleased with its cost structure at around 21% of revenue, enabled by its efficient Taiwan-based team, and expects this ratio to remain relatively stable as revenue growth is matched by continued investment in GenAI talent.