Peraso (PRSO) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue doubled year-over-year to $3.7M, driven by end-of-life Memory IC shipments and expanding mmWave business.

• Operating expenses decreased 20% year-over-year in Q4, reflecting cost reduction actions and improved efficiencies.

• Gross margin expanded significantly, with Q4 GAAP at 56.3% and non-GAAP at 71.6%.

• Net loss narrowed to $1.6M GAAP and $0.5M non-GAAP in Q4, with improved adjusted EBITDA.

• Renewed momentum in mmWave technology, with increasing production orders and a more diversified customer base, including a $3.6M order for 2025.

Financial highlights

• Q4 2024 net revenue: $3.7M (vs. $1.8M Q4 2023); full-year 2024 net revenue: $14.6M (vs. $13.7M 2023).

• Q4 GAAP gross margin: 56.3% (vs. -147.3% Q4 2023); full-year GAAP gross margin: 51.7% (vs. 13.6% 2023).

• Q4 non-GAAP gross margin: 71.6% (vs. -116.6% Q4 2023); full-year non-GAAP gross margin: 67.2% (vs. 28% 2023).

• Q4 GAAP net loss: $1.6M ($0.37/share); full-year GAAP net loss: $10.7M ($3.57/share).

• Q4 adjusted EBITDA: -$0.4M (vs. -$5.9M Q4 2023); full-year adjusted EBITDA: -$4.5M (vs. -$11.2M 2023).

Outlook and guidance

• Q1 2025 revenue expected between $3.6M and $4M, exceeding full-year 2024 mmWave revenue.

• mmWave revenue anticipated to grow significantly in 2025, driven by backlog and ramping production.

• Gross margin for mmWave expected to normalize in the 40% range initially, with a long-term target of 50%.

• Growing order backlog and customer production ramp expected to drive 2025 growth.