• Fourth Quarter Revenue: $3.7 million, compared to $1.8 million in Q4 2023.
• Full Year 2024 Revenue: $14.6 million, up from $13.7 million in 2023.
• Product Revenue for 2024: $14.2 million, compared to $12.9 million in 2023.
• GAAP Gross Margin Q4 2024: 56.3%, up from negative 147.3% in Q4 2023.
• Non-GAAP Gross Margin Q4 2024: 71.6%, compared to negative 116.6% in Q4 2023.
• GAAP Operating Expenses Q4 2024: $3.7 million, down from $5.5 million in Q4 2023.
• GAAP Net Loss Q4 2024: $1.6 million, or $0.37 per share, compared to $8.9 million, or $12.48 per share in Q4 2023.
• Non-GAAP Net Loss Q4 2024: $0.5 million, or $0.13 per share, compared to $6.1 million, or $8.52 per share in Q4 2023.
• Adjusted EBITDA Q4 2024: Negative $0.4 million, compared to negative $5.9 million in Q4 2023.
• Cash and Cash Equivalents: $3.3 million as of December 30, 2024.
• Operating Cash Burn Q4 2024: Approximately $0.8 million.
• Revenue Outlook Q1 2025: Expected to be in the range of $3.6 million to $4 million.

• Warning! GuruFocus has detected 3 Warning Signs with PRSO.

Release Date: March 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Peraso Inc (NASDAQ:PRSO) achieved 100% year-over-year revenue growth in the fourth quarter of 2024.
• The company successfully reduced operating expenses by 20% year-over-year, despite doubling its revenue.
• Peraso Inc (NASDAQ:PRSO) reported a significant improvement in gross margins, with non-GAAP gross margin reaching 71.6% in Q4 2024.
• The company has expanded its customer base for mmWave solutions, now supporting over 60 commercial products across 11 different customers.
• Peraso Inc (NASDAQ:PRSO) received a $3.6 million purchase order from a strategic customer, indicating strong demand for its mmWave technology.

Negative Points

• Peraso Inc (NASDAQ:PRSO) is facing a decline in royalty and other revenues, primarily due to a reduction in memory royalties.
• The company reported a GAAP net loss of $1.6 million for the fourth quarter of 2024.
• Peraso Inc (NASDAQ:PRSO) anticipates some lumpiness in revenue from quarter to quarter due to the transition from memory IC products to mmWave solutions.
• The gross margin for mmWave products is expected to be lower than the high margins achieved with memory products.
• The company is still navigating uncertainties related to the BEAD program and its potential impact on future revenues.

Q & A Highlights

Q: Can you provide details on the $3.6 million order received this quarter and its fulfillment timeline? A: Ron Glibbery, CEO: The order is expected to be fulfilled in a reasonably linear fashion throughout the year, with a slight weight towards the second half due to shipping capabilities. The timeline is more focused on July and August rather than later months.

Q: How are other customer orders and inventory issues progressing, and are there new orders expected this year? A: Ron Glibbery, CEO: The inventory crisis is over, and we have diversified our customer base significantly, reducing dependency on any single customer. We expect new orders, including military components, to contribute to growth in 2025.

Q: Are you seeing engagement in all the military applications listed, or are those just potential areas? A: Ron Glibbery, CEO: We are focused on about a third of the listed applications, with active customer engagements. Some applications, like tactical communication links and drone video transmission, are already in progress, while others remain confidential.

Q: How do you see AI trends impacting your business, particularly in smart cities and edge applications? A: Ron Glibbery, CEO: We see opportunities in enterprise environments where AI-enabled devices require high data rates. Our technology supports these needs by providing fast data transfer, which is crucial for AI applications.

Q: With the ramp-up in millimeter wave sales, how do you see this scaling in Q2 and beyond? A: James Sullivan, CFO: We expect significant year-over-year growth, with millimeter wave revenue in Q1 2025 exceeding the full year of 2024. The new large order will be fulfilled between Q2 and Q4, contributing to this growth.

Q: What are your expectations for gross margin once millimeter wave sales dominate? A: James Sullivan, CFO: We aim for a corporate target of 50% gross margin, though initially, we expect margins in the 40% range. The transition from memory to millimeter wave products will influence margins, with improvements anticipated in the second half of the year.

Q: Regarding military applications, do you expect new customer engagements to convert to production soon? A: Ron Glibbery, CEO: Most new military engagements are expected to convert to production by 2026, as military projects typically have longer timelines. However, our first engagement moved quickly due to its urgent application.

Q: How do you see the BEAD program impacting your business this year? A: Ron Glibbery, CEO: The BEAD program's shift towards a tech-neutral approach is promising. We hope to see its effects this year, as the administration is keen on accelerating high-speed internet deployment across the U.S.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.