Peraso (PRSO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $3.8 million, within expectations, with improved operating performance and nearly 20% lower operating expenses year-over-year.

• Net loss for Q3 2024 was $2.7 million, with an accumulated deficit of $175.6 million and ongoing liquidity concerns.

• Memory IC products, facing end-of-life due to TSMC discontinuation, comprised over 80% of nine-month revenue; backlog expected to be fulfilled by March 31, 2025.

• Advanced customer engagements led to new design wins and production orders in fixed wireless access, tactical military, and transportation markets, including orders from South African and Kenyan WISPs.

• Substantial doubt exists about the ability to continue as a going concern beyond Q2 2025 without additional capital.

Financial highlights

• Q3 2024 net revenue was $3.8 million, down from $4.2 million in the prior quarter and $4.5 million year-over-year; nine-month revenue was $10.9 million.

• GAAP gross margin was 47% (up from 45.4% a year ago), non-GAAP gross margin was 61.7%.

• GAAP net loss was $2.7 million ($0.98/share); non-GAAP net loss was $0.9 million ($0.34/share).

• Adjusted EBITDA was negative $0.8 million, improved from negative $1.9 million in the prior quarter.

• Cash and equivalents were $1.3 million as of September 30, 2024, with a $0.6 million cash burn from the prior quarter.

Outlook and guidance

• Q4 2024 net revenue is expected to be between $3.6 million and $4 million.

• Revenue for the second half of 2024 is anticipated to increase over the first half and show double-digit growth year-over-year.

• Inflection in revenue from new design wins is expected in Q1 2025 as backlog is worked through and new customers come online.

• Ongoing operating losses and cash burn expected; additional capital required to fund operations beyond Q2 2025.