Peraso (PRSO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $4.2 million, up over 70% year-over-year and 50.5% sequentially, surpassing guidance due to strong end-of-life memory IC shipments and new millimeter wave antenna module orders.

• Gross margin improved to 55.5% GAAP and 68.8% non-GAAP, reflecting a favorable product mix and higher-margin memory IC sales.

• Net loss for Q2 2024 was $4.4 million ($1.88/share) GAAP and $2.1 million ($0.88/share) non-GAAP, with reduced cash burn and improved operating results year-over-year.

• The company is executing a strategy to diversify its millimeter wave customer base, with 95 active pipeline engagements, up 25% year-over-year.

• Substantial doubt exists about the ability to continue as a going concern beyond Q4 2024 without additional capital.

Financial highlights

• Q2 2024 net revenue was $4.2 million, up from $2.8 million in Q1 and $2.4 million in Q2 2023; product revenue was $4.1 million.

• Memory ICs contributed $3.4 million in Q2 2024, with a $9.1 million backlog expected to be fulfilled by March 2025.

• GAAP gross margin was 55.5% (Q2 2024), non-GAAP gross margin was 68.8%.

• GAAP operating expenses were $6.8 million, including $0.4 million severance and $1.6 million software license charges; non-GAAP operating expenses were $4.9 million.

• Cash and equivalents at June 30, 2024, were $1.9 million; adjusted EBITDA was negative $1.9 million.

Outlook and guidance

• Q3 2024 revenue expected between $3.8–$4.2 million.

• Second half 2024 revenue anticipated to exceed first half and show year-over-year growth, driven by memory IC backlog and mmWave demand.

• Remaining $9.1 million memory IC backlog to be fulfilled by end of Q1 2025.

• Additional capital required to fund operations beyond Q4 2024.