CyberLink’s chairman and CEO, Jau Huang, stated during the company’s online earnings call on July 26 that the FaceMe facial recognition engine is anticipated to start contributing to revenues in 2023 as a result of being used by Toyota for factory inspector identification as well as CyberLink’s collaboration with Avigilon and MediaTek.
CyberLink’s Q2 2022 results indicated an operating profit of NT$63 million, a 5.4 percent yearly decline, and annual sales growth of 4.9 percent, reaching US$14.7 million. The company’s compensation adjustment and higher marketing expenses are mostly to blame for the fall. However, CyberLink’s gross profit has increased to NT$380 million, a 9% yearly increase, while its net income has increased to NT$101 million, a 70.9 percent annual gain, and its EPS has reached NT$1.28.
The four primary product lines offered by CyberLink at the moment are desktop editing software, mobile editing apps, new business (mostly facial recognition), and multimedia software. As of Q2 2022, the company’s desktop software contributed 47.6% of revenue, its mobile app made up 16.3%, and new business made up 4.3 percent. In line with CyberLink’s transformation strategy, their combined share of total revenue increased from 34.9 percent in Q2 2019 to 68.2 percent in Q2 2022. In contrast, the company’s multimedia software revenue share is declining. It represents 31.8 percent of CyberLink’s overall income as of Q2 2022.
Despite its subdued growth at the moment, the FaceMe engine will be the company’s rising star in the future, claims Huang. Important clients like Toyota also illustrate CyberLink’s approach for securing collaborations with significant industry companies for its facial recognition engine.
Huang emphasized, however, that FaceMe is intended for a broader range of application scenarios, such as smart manufacturing, smart retail, security, and fintech, in addition to the auto sector. For electronic Know Your Customer (eKYC) purposes, a Good Finance app developed in June already used CyberLink’s facial recognition technology. However, FaceMe is still mostly in the proof of concept (POC) stage right now.
Huang refrained from making any predictions about the performance of CyberLink’s facial recognition product line, focusing instead on the need for more strategic alliances and emphasizing the importance of concentrating on the Taiwan, US, Japan, and South Korean markets, where privacy concerns are the most pressing. In contrast, China and Southeast Asia, where privacy is less of an issue, tend to advance facial recognition technology more quickly. Huang understood the market’s enormous potential once the pertinent laws are made clear and the company’s goods move past the POC stage.
Huang mentioned that due to its greater gross profits, CyberLink is typically one of the last companies to be affected by economic downturns, which is relevant given the recent interest rate increases and rising inflation.