Peraso Announces Third Quarter 2024 Results
Rhea-AI Summary
Peraso Inc. (NASDAQ:PRSO) reported Q3 2024 financial results with total net revenue of $3.8 million, down from $4.2 million in Q2 and $4.5 million year-over-year. The company achieved a GAAP gross margin of 47.0% and reduced operating expenses by nearly 20% year-over-year. GAAP net loss was $2.7 million ($0.98 per share). The company secured a $1.4 million follow-on order from a South African WISP and new orders for military applications. Through warrant exercises, Peraso raised approximately $2.9 million in gross proceeds. Q4 2024 revenue guidance is set at $3.6-4.0 million.
Positive
- Operating expenses decreased by 20% year-over-year
- Secured $1.4 million follow-on order from South African WISP
- Raised $2.9 million through warrant exercises
- Gross margin improved to 47.0% from 45.4% year-over-year
- $5.7 million remaining order backlog for memory IC products
Negative
- Revenue declined to $3.8 million from $4.5 million year-over-year
- Net loss increased to $2.7 million from $0.6 million year-over-year
- $0.3 million write-down of mmWave inventory
- Q4 guidance suggests continued revenue decline
News Market Reaction – PRSO
On the day this news was published, PRSO declined 19.62%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
SAN JOSE, CA / ACCESSWIRE / November 12, 2024 / Peraso Inc. (NASDAQ:PRSO) ("Peraso" or the "Company"), a pioneer in mmWave wireless technology solutions, today announced financial results for the third quarter ended September 30, 2024.
Management Commentary
"Third quarter revenue was within our range of expectations, with overall results being highlighted by meaningful improvement in our operating performance," commented Ron Glibbery, CEO of Peraso. "Underpinning this improvement was the benefit of our previous and ongoing actions to reduce costs and increase efficiencies, resulting in operating expenses decreasing almost
"During the quarter, we continued to advance diverse customer engagements toward new design wins for our mmWave solutions in targeted markets, including fixed wireless access (FWA), tactical military communication and transportation applications. We are seeing growing momentum for Peraso's DUNE platform solution for dense urban environments, as highlighted by the recently received
"With a robust and growing pipeline of opportunities for our mmWave solutions, we remain focused on converting engagements into incremental design wins and production orders. Based on our current expectations for the fourth quarter, we continue to anticipate total revenue for the second half of 2024 to increase over the first half of the year, as well as represent double-digit growth over the comparable prior year period."
Third Quarter 2024 Financial Results
Total net revenue for the third quarter of 2024 was
GAAP gross margin for the third quarter of 2024 was
Total operating expenses on a GAAP basis for the third quarter of 2024 were
GAAP net loss for the third quarter of 2024 was
Adjusted EBITDA for the third 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.
Recent Financing Activity
On November 5, 2024, the Company entered into inducement offer letter agreements with certain holders of Series B warrants of the Company to purchase 2,246,030 shares of the Company's common stock. The holders exercised their Series B warrants for cash at a reduced exercise price of
Following the closing of this offering, the Company had 3,517,144 shares of common stock and exchangeable shares outstanding, which excludes an additional 1,759,790 shares of common stock that were not issued at the closing of the offering as a result of the holders' beneficial ownership limitations; such shares will be issued to the warrant holders upon their notice to the Company that their issuance would comply with such limitations. For additional information regarding the offering, refer to the Current Report on Form 8-K dated November 5, 2024, that the Company filed with the Securities and Exchange Commission.
Business Outlook
The Company expects total net revenue for the fourth 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, November 12, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
Date: Tuesday, November 12, 2024
Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)
Conference Call Number: 1-877-545-0320
International Call Number: +1-973-528-0002
Passcode: 629165
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 November 26, 2024, and can be accessed by calling 1-877-481-4010, and using passcode 51490. 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, severance costs, 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, severance costs, 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 November 12, 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:
the Company's ability to continue as a going concern;
the Company's ability to raise additional capital to fund its operations;
annual expense savings expected from the Company's cost reduction initiatives;
the timing of customer orders and product shipments;
risks related to pandemics, wars and terrorist activities 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 the Company's existing proprietary technologies and develop new technologies;
achieving additional design wins for the Company's products through the acceptance and adoption of its technology by potential customers and their suppliers;
difficulties and delays in the production, testing and marketing of the Company's products;
reliance on manufacturing partners to assist successfully with the fabrication of and production of the Company's products;
impacts of the end-of-life of the Company's memory products;
availability of quantities of the Company's products supplied by its manufacturing partners at a competitive cost;
level of intellectual property protection provided by the Company's 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 the Company's customers and its 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 |
|
| Nine Months Ended |
| ||||||||||
|
| September 30, |
|
| September 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Product |
| $ | 3,811 |
|
| $ | 4,262 |
|
| $ | 10,596 |
|
| $ | 11,385 |
|
Royalty and other |
|
| 30 |
|
|
| 219 |
|
|
| 299 |
|
|
| 532 |
|
Total net revenue |
|
| 3,841 |
|
|
| 4,481 |
|
|
| 10,895 |
|
|
| 11,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Cost of Net Revenue |
|
| 2,034 |
|
|
| 2,445 |
|
|
| 5,431 |
|
|
| 7,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Gross Profit |
|
| 1,807 |
|
|
| 2,036 |
|
|
| 5,464 |
|
|
| 4,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
| 2,158 |
|
|
| 3,484 |
|
|
| 7,615 |
|
|
| 11,039 |
|
Selling, general and administrative |
|
| 2,349 |
|
|
| 2,112 |
|
|
| 6,592 |
|
|
| 6,331 |
|
Severance and software license obligations |
|
| - |
|
|
| - |
|
|
| 2,063 |
|
|
| - |
|
Gain on license and asset sale |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (406 | ) |
Total operating expenses |
|
| 4,507 |
|
|
| 5,596 |
|
|
| 16,270 |
|
|
| 16,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Loss from operations |
|
| (2,700 | ) |
|
| (3,560 | ) |
|
| (10,806 | ) |
|
| (12,393 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Change in fair value of warrant liabilities |
|
| 4 |
|
|
| 2,615 |
|
|
| 1,649 |
|
|
| 4,239 |
|
Other income (expense), net |
|
| (16 | ) |
|
| 322 |
|
|
| (11 | ) |
|
| 297 |
|
Net loss |
| $ | (2,712 | ) |
| $ | (623 | ) |
| $ | (9,168 | ) |
| $ | (7,857 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
| $ | (0.98 | ) |
| $ | (0.87 | ) |
| $ | (3.62 | ) |
| $ | (12.43 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shares used in computing net loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
| 2,780 |
|
|
| 715 |
|
|
| 2,530 |
|
|
| 632 |
|
PERASO INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
|
| September 30, |
|
| December 31, |
| ||
|
| 2024 |
|
| 2023 |
| ||
|
|
|
|
|
|
| ||
Assets |
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 1,317 |
|
| $ | 1,583 |
|
Accounts receivable, net |
|
| 791 |
|
|
| 731 |
|
Inventories |
|
| 2,503 |
|
|
| 2,606 |
|
Prepaid expenses and other |
|
| 635 |
|
|
| 620 |
|
Total current assets |
|
| 5,246 |
|
|
| 5,540 |
|
|
|
|
|
|
|
|
| |
Property and equipment, net |
|
| 643 |
|
|
| 1,156 |
|
Intangible assets, net |
|
| 830 |
|
|
| 3,280 |
|
Right-of-use lease assets |
|
| 355 |
|
|
| 615 |
|
Other |
|
| 121 |
|
|
| 123 |
|
Total assets |
| $ | 7,195 |
|
| $ | 10,714 |
|
|
|
|
|
|
|
|
| |
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 1,705 |
|
| $ | 2,448 |
|
Deferred revenue |
|
| 555 |
|
|
| 1,105 |
|
Short-term lease liabilities |
|
| 214 |
|
|
| 370 |
|
Accrued expenses and other |
|
| 2,399 |
|
|
| 611 |
|
Total current liabilities |
|
| 4,873 |
|
|
| 4,534 |
|
|
|
|
|
|
|
|
| |
Long-term lease liabilities |
|
| 197 |
|
|
| 349 |
|
Warrant liabilities |
|
| 99 |
|
|
| 1,748 |
|
Total liabilities |
|
| 5,169 |
|
|
| 6,631 |
|
|
|
|
|
|
|
|
| |
Stockholders' equity |
|
| 2,026 |
|
|
| 4,083 |
|
|
|
|
|
|
|
|
| |
Total liabilities and stockholders' equity |
| $ | 7,195 |
|
| $ | 10,714 |
|
SOURCE: Peraso Inc.
View the original press release on accesswire.com
FAQ
What was Peraso's (PRSO) revenue in Q3 2024?
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