Peraso Announces First Quarter 2024 Results
Peraso (NASDAQ: PRSO) announced its first-quarter 2024 financial results, showing a total revenue of $2.8 million, a 54% sequential increase. GAAP gross margin improved to 46.4%, and non-GAAP gross margin rose to 66.4%. The company reported a GAAP net loss of $2.0 million, a significant improvement from the previous quarter's $8.9 million loss. Operating expenses on a non-GAAP basis were $3.5 million, down from $4.0 million in the prior quarter. Peraso's memory product backlog stands at $12.6 million, with $2.9 million in EOL purchase orders. The company forecasts second-quarter revenue between $3.7 million and $4.0 million.
- Total revenue increased 54% sequentially to $2.8 million.
- GAAP gross margin improved to 46.4%, up from negative 147.3% in the prior quarter.
- Non-GAAP gross margin rose to 66.4%, compared with negative 116.6% in the previous quarter.
- GAAP net loss significantly reduced to $2.0 million from $8.9 million in the prior quarter.
- Non-GAAP net loss reduced to $1.6 million from $6.1 million in the prior quarter.
- Operating expenses on a non-GAAP basis decreased to $3.5 million from $4.0 million in the previous quarter.
- Memory product backlog valued at $12.6 million, ensuring future revenue.
- Revenue forecast for Q2 2024 is between $3.7 million and $4.0 million.
- Year-over-year total revenue decreased from $5.0 million in Q1 2023 to $2.8 million in Q1 2024.
- GAAP net loss of $2.0 million, although reduced, still reflects financial instability.
- Product revenue decreased from $4.9 million in Q1 2023 to $2.7 million in Q1 2024.
- Adjusted EBITDA remains negative at $1.4 million, indicating operational inefficiencies.
Insights
Peraso Inc.'s Q1 2024 financial report shows a 54% sequential increase in total revenue, climbing from
The reduction in GAAP net loss to
For investors, these results indicate robust financial performance and strategic efficiency improvements. However, it's important to stay mindful of the fact that the overall revenue is still down compared to the same quarter last year.
Peraso’s focus on mmWave technology, particularly for 60 GHz unlicensed and 5G licensed networks, is a key driver of their revenue growth. mmWave technology offers high-speed data transfer capabilities important for advanced communication networks. The ramp-up of new mmWave customers and increased product shipments are strong indicators of market demand for these advanced solutions.
The strategic adoption of Peraso's mmWave chipset by Panasonic in a new 60GHz WLAN solution underscores the technological edge and market relevance of Peraso's products. Additionally, proof-of-concepts for dense urban environments and high-speed train communications signify diverse application potentials and geographic market expansion.
For investors, this technological adoption and customer engagement highlight Peraso's potential for sustained growth in the high-demand wireless communication market.
The memory product backlog of
It's also worth noting the company’s projections for Q2 2024 with expected total net revenue between
Investors should find reassurance in these forward-looking statements and backlog figures, which provide a clear roadmap for anticipated revenue and operational sustainability.
Total Revenue Increased
GAAP Gross Margin Expanded to
SAN JOSE, CA / ACCESSWIRE / May 13, 2024 / Peraso Inc. (NASDAQ:PRSO) ("Peraso" or the "Company"), a global leader in mmWave technology for 60 GHz unlicensed and 5G licensed networks, today announced financial results for the first quarter ended March 31, 2024.
Management Commentary
"First quarter revenue increased sequentially and was above the midpoint of guidance, driven by increased product shipments," stated Ron Glibbery, CEO of Peraso. "Gross margin expanded sequentially and year-over-year, while our previously implemented cost reductions contributed to lower operating expenses for the quarter. Taken together, we had a solid start to the year with significant improvement in our bottom-line results.
"We were pleased by the initial ramp of new mmWave customers and the resulting sequential increase in mmWave product revenue during the first quarter. Additionally, engagement activity with new and prospective customers has remained strong, as we continue to grow the opportunity pipeline for our mmWave products across diverse fixed wireless access applications. As evidence of our progress toward broadening Peraso's customer base and market applications, we recently shipped mmWave solutions to enable trials of a 60 GHz radio for high-speed, train-to-station communications for a Chinese rail system and delivered multiple proof-of-concepts of our DUNE platform to WISPs for dense urban environment applications in Africa. More recently, we were pleased to announce that Panasonic has adopted our mmWave chipset in a newly introduced 60GHz WLAN solution.
"As of the end of the first quarter, our memory product backlog was
First Quarter 2024 Financial Results
Total net revenue for the first quarter of 2024 was
GAAP gross margin for the first quarter of 2024 was
Total operating expenses on a GAAP basis for the first quarter of 2024 were
GAAP net loss for the first quarter of 2024 was
Adjusted EBITDA for the first quarter of 2024 was negative
A reconciliation of GAAP to non-GAAP results and GAAP net loss to Adjusted EBITDA is provided in the financial statement tables following the text of this press release.
Business Outlook
The Company expects total net revenue for the second quarter of 2024 to be in the range of
Earnings Conference Call and Webcast Information
Ron Glibbery, CEO, and Jim Sullivan, CFO, will host a conference call and webcast with slides today, May 13, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
Date: Monday, May 13, 2024
Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)
Conference Call Number: 1-877-545-0523
International Call Number: +1-973-528-0016
Passcode: 786396
Webcast and Slides: Click Here
For those unable to listen to the live Web broadcast, it will be archived on the Company's website, and can be accessed by visiting the Company's investor page at https://investors.perasoinc.com/events-presentations . A replay of the conference call will also be available through May 20, 2024, and can be accessed by calling 1-877-481-4010, and using passcode 50502. International callers should dial 1-919-882-2331 and enter the same passcode at the prompt. Any supporting materials referenced during the live broadcast will be made available in the Investor Relations section of the Company's website following the conclusion of the conference call.
Use of Non-GAAP Financial Measures
To supplement Peraso's consolidated financial statements presented in accordance with GAAP, Peraso uses non-GAAP financial measures that exclude from the statement of operations the effects of stock-based compensation, amortization of reported intangible assets, and the change in fair value of warrant liabilities. Peraso's management believes that the presentation of these non-GAAP financial measures is useful to investors and other interested persons because they are one of the primary indicators that Peraso's management uses for planning and forecasting future performance. The press release also makes reference to and reconciles GAAP net income (loss) and adjusted EBITDA, which the Company defines as GAAP net income (loss) before interest expense, income tax provision, and depreciation and amortization, as well as stock-based compensation, amortization of reported intangible assets, and the change in fair value of warrant liabilities. Management believes that the presentation of non-GAAP financial measures that exclude these items is useful to investors because management does not consider these charges part of the day-to-day business or reflective of the core operational activities of the Company that are within the control of management or that would be used to evaluate management's operating performance.
Investors are encouraged to review the reconciliations of these non-GAAP financial measures to the comparable GAAP results, which are provided in tables below the Condensed Consolidated Statements of Operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. For additional information regarding these non-GAAP financial measures, and management's explanation of why it considers such measures to be useful, refer to the Current Report on Form 8-K dated May 13, 2024, that the Company filed with the Securities and Exchange Commission.
Forward-Looking Statements
This press release may contain forward-looking statements about the Company, including, without limitation, the Company's expectations regarding growth prospects for the Company's products and the Company's 2024 revenue and gross margin trends. Forward-looking statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Actual results and trends may differ materially from historical results or those projected in any such forward-looking statements depending on a variety of factors. These factors include, but are not limited, to the following:
- our ability to continue as a going concern;
- our ability to raise additional capital to fund our operations;
- annual expense savings expected from the Company's cost reduction initiatives;
- the timing of customer orders and product shipments;
- risks related to the COVID-19 pandemic that may have an adverse impact on the Company's business and financial results and result in component shortages and increased lead times that may negatively impact the Company's ability to ship its products;
- inflationary risks;
- customer concentrations and length of billing and collection cycles, which may be impacted in the event of a global recession or economic downturn;
- lengthy sales cycle;
- ability to enhance our existing proprietary technologies and develop new technologies;
- achieving additional design wins for our products through the acceptance and adoption of our technology by potential customers and their suppliers;
- difficulties and delays in the production, testing and marketing of our products;
- reliance on our manufacturing partners to assist successfully with the fabrication of our and production of our products;
- impacts of the end-of-life of our memory products;
- availability of quantities of our products supplied by our manufacturing partners at a competitive cost;
- level of intellectual property protection provided by our patents, the expenses and other consequences of litigation, including intellectual property infringement litigation, to which we may be or may become a party from time to time;
- vigor and growth of markets served by our customers and our operations; and
- other risks identified in the Company's public filings it makes with the Securities and Exchange Commission.
Peraso does not intend to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.
About Peraso Inc.
Peraso Inc. (NASDAQ: PRSO) is a pioneer in high-performance 60 GHz unlicensed and 5G mmWave wireless technology, offering chipsets, antenna modules, software and IP. Peraso supports a variety of applications, including fixed wireless access, immersive video and factory automation. In addition, Peraso's solutions for data and telecom networks focus on Accelerating Data Intelligence and Multi-Access Edge Computing, providing end-to-end solutions from the edge to the centralized core and into the cloud. For additional information, please visit www.perasoinc.com.
Company Contact:
Jim Sullivan, CFO
Peraso Inc.
P: 408-418-7500
E: jsullivan@perasoinc.com
Investor Relations Contacts:
Shelton Group
Brett L. Perry | Leanne K. Sievers
P: 214-272-0070| 949-224-3874
E: sheltonir@sheltongroup.com
PERASO INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts; unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
Net Revenue | ||||||||
Product | $ | 2,676 | $ | 4,888 | ||||
Royalty and other | 140 | 145 | ||||||
Total net revenue | 2,816 | 5,033 | ||||||
Cost of Net Revenue | 1,510 | 3,106 | ||||||
Gross Profit | 1,306 | 1,927 | ||||||
Operating Expenses | ||||||||
Research and development | 2,835 | 3,887 | ||||||
Selling, general and administrative | 2,102 | 2,242 | ||||||
Gain on license and asset sale | - | (406 | ) | |||||
Total operating expenses | 4,937 | 5,723 | ||||||
Loss from operations | (3,631 | ) | (3,796 | ) | ||||
Change in fair value of warrant liabilities | 1,591 | 658 | ||||||
Other income (expense), net | 9 | (10 | ) | |||||
Net loss | $ | (2,031 | ) | $ | (3,148 | ) | ||
Net loss per share | ||||||||
Basic and diluted | $ | (1.07 | ) | $ | (5.54 | ) | ||
Shares used in computing net loss per share | ||||||||
Basic and diluted | 1,907 | 568 | ||||||
PERASO INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
| March 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,435 | $ | 1,583 | ||||
Accounts receivable, net | 1,482 | 731 | ||||||
Inventories | 2,756 | 2,606 | ||||||
Prepaid expenses and other | 785 | 620 | ||||||
Total current assets | 7,458 | 5,540 | ||||||
Property and equipment, net | 981 | 1,156 | ||||||
Intangible assets, net | 2,464 | 3,280 | ||||||
Right-of-use lease assets | 524 | 615 | ||||||
Other | 121 | 123 | ||||||
Total assets | $ | 11,548 | $ | 10,714 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,221 | $ | 2,448 | ||||
Deferred revenue | 1,110 | 1,105 | ||||||
Short-term lease liabilities | 328 | 370 | ||||||
Accrued expenses and other | 748 | 611 | ||||||
Total current liabilities | 4,407 | 4,534 | ||||||
Lease liabilities | 277 | 349 | ||||||
Warrant liabilities | 158 | 1,748 | ||||||
Total liabilities | 4,842 | 6,631 | ||||||
Stockholders' equity | 6,706 | 4,083 | ||||||
Total liabilities and stockholders' equity | $ | 11,548 | $ | 10,714 | ||||
PERASO INC.
Reconciliation of GAAP to Non-GAAP Net Loss and Net Loss Per Share
(In thousands, except per share amounts; unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
GAAP net loss | $ | (2,031 | ) | $ | (3,148 | ) | ||
Stock-based compensation expense | ||||||||
- Research and development | 705 | 765 | ||||||
- Selling, general and administrative | 517 | 542 | ||||||
Total stock-based compensation expense | 1,222 | 1,307 | ||||||
Amortization of intangibles (1) | ||||||||
- Cost of net revenue | 563 | 358 | ||||||
- Selling, general and administrative | 252 | 160 | ||||||
Total amortization of intangible assets | 815 | 518 | ||||||
Change in fair value of warrant liabilities | (1,591 | ) | (658 | ) | ||||
Non-GAAP net loss | $ | (1,585 | ) | $ | (1,981 | ) | ||
GAAP net loss per share | $ | (1.07 | ) | $ | (5.54 | ) | ||
Reconciling items | ||||||||
- Stock-based compensation expense | 0.64 | 2.30 | ||||||
- Amortization of intangible assets (1) | 0.43 | 0.91 | ||||||
- Change in fair value of warrant liabilities | (0.83 | ) | (1.16 | ) | ||||
Non-GAAP net loss per share | $ | (0.83 | ) | $ | (3.49 | ) | ||
Shares used in computing non-GAAP net loss per share | ||||||||
Basic and diluted | 1,907 | 568 | ||||||
(1) Non-cash charges for amortization of intangibles arising from aquired assets. These charges are included in cost of net revenue and selling, general and administrative expenses.
PERASO INC.
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
(In thousands, except percentages; unaudited)
| Three Months Ended | ||||||||
| March 31, 2024 | ||||||||
GAAP gross profit | $ | 1,306 | 46.4 | % | ||||
Reconciling items: | ||||||||
- Amortization of intangibles | 563 | 20.0 | % | |||||
Non-GAAP gross profit | $ | 1,869 | 66.4 | % | ||||
| Three Months Ended | ||||||||
| March 31, 2023 | ||||||||
GAAP gross profit | $ | 1,927 | 38.3 | % | ||||
Reconciling items: | ||||||||
- Amortization of intangibles | 358 | 7.1 | % | |||||
Non-GAAP gross profit | $ | 2,285 | 45.4 | % | ||||
PERASO INC.
Reconciliation of GAAP and Non-GAAP Financial Information
(In thousands; unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
Reconciliation of GAAP net loss and adjusted EBITDA | ||||||||
GAAP net loss | $ | (2,031 | ) | $ | (3,148 | ) | ||
Stock-based compensation expense | ||||||||
- Research and development | 705 | 765 | ||||||
- Selling, general and administrative | 517 | 542 | ||||||
Stock-based compensation expense | 1,222 | 1,307 | ||||||
Amortization of intangibles (1) | 815 | 518 | ||||||
Change in fair value of warrant liabilities | (1,591 | ) | (658 | ) | ||||
Non-GAAP net loss | (1,585 | ) | (1,981 | ) | ||||
EBITDA adjustments: | ||||||||
- Depreciation and amortization | 177 | 176 | ||||||
- Interest expense | 4 | 6 | ||||||
Adjusted EBITDA | $ | (1,404 | ) | $ | (1,799 | ) | ||
(1) Non-cash charges for amortization of intangibles arising from aquired assets. These charges are included in cost of net revenue and selling, general and administrative expenses.
SOURCE: Peraso, Inc.
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FAQ
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