Peraso Announces Fourth Quarter and Full Year 2022 Results
Peraso Inc. (NASDAQ:PRSO) reported strong financial results for Q4 and full year 2022. Q4 total revenue reached $3.9 million, a 25% increase sequentially and over 100% year-over-year. Full year revenue grew 160% to $14.9 million, driven by increased shipments of mmWave and memory IC products. Gross margin improved to 44.2% for Q4, up from 39.3% the previous quarter. However, the company faced a net loss of $14.6 million in Q4 due to a goodwill impairment charge. Looking forward, Peraso anticipates Q1 2023 revenue between $4.7 million and $5.0 million, while implementing cost-saving measures to enhance operating results.
- Q4 2022 total revenue increased 25% sequentially and over 100% year-over-year.
- Full year revenue for 2022 rose 160% to $14.9 million.
- Gross margin improved to 44.2% in Q4 2022 from 39.3% in the previous quarter.
- Increased shipments of mmWave and memory IC products contributed to growth.
- GAAP net loss of $14.6 million in Q4 2022, compared to a net loss of $4.0 million in the prior quarter.
- Goodwill impairment charge of $9.9 million significantly impacted operating expenses.
Fourth Quarter Product Revenue Increased
Total Revenue for the Full Year Increased
SAN JOSE, CA / ACCESSWIRE / March 22, 2023 / Peraso Inc. (NASDAQ:PRSO) ("Peraso" or the "Company"), a leader in mmWave technology, today announced financial results for the fourth quarter and full year ended December 31, 2022.
Management Commentary
"We delivered another consecutive quarter of strong year-over-year growth to complete our first full year of combined operations," stated Ron Glibbery, CEO of Peraso. "Throughout the year, we continued to build upon Peraso's leadership position in the mmWave fixed wireless access (FWA) market. Also contributing to our robust growth during 2022 was sustained demand and increased shipments of our memory IC products. The year was further highlighted by the introduction of our PERSPECTUS family of integrated 60GHz solutions that provide unique point-to-multipoint capability, as well as multi-gigabit connectivity. Customer adoption and orders for our mmWave solutions have continued to expand with the momentum of FWA, which according to industry reports now accounts for a majority of the net broadband subscription additions in the U.S. We have also received very positive feedback and cultivated new prospective customer engagements for our dual-band 5G mmWave beamformer solution, which we introduced to the market mid-year.
"Looking ahead, we remain encouraged by the expanding growth opportunities in the FWA market, both domestically and abroad, while also acknowledging the broader macroeconomic conditions. In order to prudently manage expenses and preserve cash during this uncertain environment, we recently implemented cost reduction initiatives to optimize our allocation of resources and prioritize near-term opportunities with the highest potential ROI. We anticipate these actions to streamline our organization, reduce operating expenses by approximately
Fourth Quarter 2022 Financial Results
Total net revenue for the fourth quarter of 2022 was
GAAP gross margin for the fourth quarter of 2022 was
Total operating expenses on a GAAP basis for the fourth quarter of 2022 were
GAAP net loss for the fourth quarter of 2022 was
Non-GAAP net loss for the fourth quarter of 2022 was
A reconciliation of GAAP to non-GAAP results and GAAP net income (loss) to Adjusted EBITDA is provided in the financial statement tables following the text of this press release.
Full Year 2022 Financial Results
Total net revenue for 2022 was
GAAP gross margin for 2022 was
Total operating expenses on a GAAP basis for 2022 were
GAAP net loss for 2022 was
Non-GAAP net loss for 2022 was
Business Outlook
The Company expects total net revenue for the first quarter of 2023 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, March 22, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
Date: Wednesday, March 22, 2023
Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)
Conference Call Number: 1-888-506-0062
International Call Number: +1-973-528-0011
Passcode: 780298
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 www.perasoinc.com. A replay of the conference call will also be available through March 29, 2023, and can be accessed by calling 1-877-481-4010, and using passcode 47853. 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, business combination transaction costs, and the change in fair value of warrant liability. 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) attributable to common stockholders 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, business combination transaction costs and the change in fair value of warrant liability. 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 Form 8-K dated March 22 , 2023, 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 2023 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 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;
- 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 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 | Twelve Months Ended | |||||||||||||
| December 31, | December 31, | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||
Net Revenue | ||||||||||||||
Product | $ | 3,815 | $ | 1,890 | $ | 14,199 | $ | 4,906 | ||||||
Royalty and other | 72 | (27) | 669 | 773 | ||||||||||
Total net revenue | 3,887 | 1,863 | 14,868 | 5,679 | ||||||||||
Cost of Net Revenue | 2,168 | 1,297 | 8,915 | 3,270 | ||||||||||
Gross Profit | 1,719 | 566 | 5,953 | 2,409 | ||||||||||
Operating Expenses | ||||||||||||||
Research and development | 4,130 | 3,096 | 19,768 | 11,471 | ||||||||||
Selling, general and administrative | 2,172 | 2,164 | 11,108 | 7,016 | ||||||||||
Gain on license and asset sale | - | - | (2,557) | - | ||||||||||
Impairment of goodwill | 9,946 | - | 9,946 | - | ||||||||||
Total operating expenses | 16,248 | 5,260 | 38,265 | 18,487 | ||||||||||
Loss from operations | (14,529) | (4,694) | (32,312) | (16,078) | ||||||||||
Other income (expense), net | (64) | 7,190 | (86) | 5,167 | ||||||||||
Net income (loss) | $ | (14,593) | $ | 2,496 | $ | (32,398) | $ | (10,911) | ||||||
Net income (loss) per share | ||||||||||||||
Basic | $ | (0.71) | $ | 0.32 | $ | (1.61) | $ | (1.86) | ||||||
Diluted | $ | (0.71) | $ | 0.28 | $ | (1.61) | $ | (1.86) | ||||||
Shares used in computing net income (loss) per share | ||||||||||||||
Basic | 20,534 | 7,735 | 20,100 | 5,869 | ||||||||||
Diluted | 20,534 | 9,035 | 20,100 | 5,869 | ||||||||||
PERASO INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
| December 31, | ||||||
| 2022 | 2021 | |||||
Assets | ||||||
Current assets: | ||||||
Cash, cash equivalents and investments | $ | 2,906 | $ | 15,160 | ||
Accounts receivable, net | 3,244 | 2,436 | ||||
Inventories | 5,348 | 3,824 | ||||
Tax credits and receivables | 41 | 1,099 | ||||
Deferred cost of net revenue | 600 | - | ||||
Prepaid expenses and other | 574 | 1,159 | ||||
Total current assets | 12,713 | 23,678 | ||||
Long-term investments | - | 2,928 | ||||
Property and equipment, net | 2,225 | 2,349 | ||||
Intangible assets, net | 6,278 | 8,355 | ||||
Goodwill | - | 9,946 | ||||
Right-of-use lease assets | 1,147 | 617 | ||||
Other | 123 | 78 | ||||
Total assets | $ | 22,486 | $ | 47,951 | ||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 1,844 | $ | 1,937 | ||
Deferred revenue | 332 | 375 | ||||
Short-term lease liabilities | 687 | 379 | ||||
Accrued expenses and other | 1,817 | 2,903 | ||||
Total current liabilities | 4,680 | 5,594 | ||||
Lease liabilities | 470 | 288 | ||||
Warrant liability | 2,079 | - | ||||
Total liabilities | 7,229 | 5,882 | ||||
Stockholders' equity | 15,257 | 42,069 | ||||
Total liabilities and stockholders' equity | $ | 22,486 | $ | 47,951 | ||
PERASO INC.
Reconciliation of GAAP to Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share
(In thousands, except per share amounts; unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||
| December 31, | December 31, | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||
GAAP net income (loss) | $ | (14,593) | $ | 2,496 | $ | (32,398) | $ | (10,911) | ||||||
Stock-based compensation expense | ||||||||||||||
Research and development | 767 | 630 | 3,342 | 2,782 | ||||||||||
Selling, general and administrative | 606 | 382 | 2,388 | 1,691 | ||||||||||
Total stock-based compensation expense | 1,373 | 1,012 | 5,730 | 4,473 | ||||||||||
Amortization of intangibles (1) | ||||||||||||||
Cost of net revenue | 358 | - | 1,432 | - | ||||||||||
Research and development | - | 86 | - | 86 | ||||||||||
Selling, general and administrative | 160 | - | 639 | - | ||||||||||
Total amortization of intangible assets | 518 | 86 | 2,071 | 86 | ||||||||||
Impairment of goodwill | 9,946 | - | 9,946 | - | ||||||||||
Business combination transaction costs (2) | - | 491 | - | 1,628 | ||||||||||
Change in fair value of warrant liability | (19) | (7,989) | (19) | (8,102) | ||||||||||
Non-GAAP net loss | $ | (2,775) | $ | (3,904) | $ | (14,670) | $ | (12,826) | ||||||
| GAAP net income (loss) per share | $ | (0.71) | $ | 0.32 | $ | (1.61) | $ | (1.86) | ||||||
Reconciling items | ||||||||||||||
Stock-based compensation expense | 0.07 | 0.13 | 0.29 | 0.76 | ||||||||||
Amortization of intangible assets (1) | 0.03 | 0.01 | 0.10 | 0.01 | ||||||||||
Impairment of goodwill | 0.48 | - | 0.49 | - | ||||||||||
Business combination transaction costs (2) | - | 0.06 | - | 0.28 | ||||||||||
Change in fair value of warrant liability | - | (1.03) | - | (1.38) | ||||||||||
Non-GAAP net loss per share | $ | (0.13) | $ | (0.51) | $ | (0.73) | $ | (2.19) | ||||||
Shares used in computing non-GAAP net loss per share | ||||||||||||||
Basic | 20,534 | 7,735 | 20,100 | 5,869 | ||||||||||
Diluted | 20,534 | 7,735 | 20,100 | 5,869 | ||||||||||
(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.
(2) Business combination transaction costs are included in 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 | Twelve Months Ended | |||||||||||
| December 31, 2022 | December 31, 2022 | |||||||||||
GAAP gross profit | $ | 1,719 | 44.2 | % | $ | 5,953 | ||||||
Reconciling items: | ||||||||||||
Amortization of intangibles | 358 | 9.2 | % | 1,432 | ||||||||
Non-GAAP gross profit | $ | 2,077 | 53.4 | % | $ | 7,385 | ||||||
PERASO INC.
Reconciliation of GAAP and Non-GAAP Financial Information
(In thousands; unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||
| December 31, | December 31, | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||
Reconciliation of GAAP income (loss) and adjusted EBITDA | ||||||||||||||
GAAP net income (loss) | $ | (14,593) | $ | 2,496 | $ | (32,398) | $ | (10,911) | ||||||
Stock-based compensation expense | ||||||||||||||
Research and development | 767 | 630 | 3,342 | 2,782 | ||||||||||
Selling, general and administrative | 606 | 382 | 2,388 | 1,691 | ||||||||||
Stock-based compensation expense | 1,373 | 1,012 | 5,730 | 4,473 | ||||||||||
Amortization of intangibles (1) | 518 | 86 | 2,071 | 86 | ||||||||||
Impairment of goodwill | 9,946 | - | 9,946 | - | ||||||||||
Business combination transaction costs (2) | - | 491 | - | 1,628 | ||||||||||
Change in fair value of warrant liability | (19) | (7,989) | (19) | (8,102) | ||||||||||
Non-GAAP net loss | (2,775) | (3,904) | (14,670) | (12,826) | ||||||||||
EBITDA adjustments: | ||||||||||||||
Depreciation and amortization | 250 | 246 | 986 | 1,029 | ||||||||||
Interest expense (3) | 5 | 809 | 16 | 2,979 | ||||||||||
Adjusted EBITDA | $ | (2,520) | $ | (2,849) | $ | (13,668) | $ | (8,818) | ||||||
(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.
(2) Business combination transaction costs are included in selling, general and administrative expenses.
(3) Includes amortization of debt discount.
SOURCE: Peraso, Inc.
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