Mike Kupinski's questions to Perfect Corp (PERF) leadership • Q2 2024
Question
Mike Kupinski asked about the impact of cost efficiency initiatives, whether new vertical expansions would primarily affect B2B or B2C, the outlook for sustainable margins given the business mix, and the current M&A environment.
Answer
EVP & CSO Pin-Jen Chen explained that efficiency is gained by upselling new verticals to existing clients, reducing customer acquisition costs. He detailed the margin profiles (B2B >90%, B2C ~70-85%) and expects the overall gross margin to remain near current levels. CEO Alice Chang clarified that new verticals are a B2B play, with technology leveraged in the B2C app. Regarding M&A, Mr. Chen confirmed it is part of their strategy and they are actively evaluating opportunities in a more reasonably valued market, though nothing is ready to be announced.