Peraso (PRSO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $4.2 million, up 50.5% sequentially and over 70% year-over-year, 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.

• Operating expenses rose slightly due to severance and software license charges, but expense management and reduced cash burn remain a focus.

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

• Company faces substantial doubt about its ability to continue as a going concern beyond Q4 2024 without additional capital.

Financial highlights

• Q2 2024 net revenue: $4.2 million (vs. $2.8M prior quarter, $2.4M Q2 2023); product revenue: $4.1 million.

• GAAP gross margin: 55.5% (vs. 46.4% prior quarter, 25.3% Q2 2023); non-GAAP gross margin: 68.8%.

• GAAP net loss: $4.4 million ($1.88/share); non-GAAP net loss: $2.1 million ($0.88/share).

• Adjusted EBITDA: negative $1.9 million (vs. negative $1.4M prior quarter, negative $2.8M prior year).

• Cash and equivalents at quarter end: $1.9 million; working capital: $1.1 million.

Outlook and guidance

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

• Second half 2024 revenue anticipated to increase over first half and year-over-year.

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

• Additional capital required to fund operations beyond Q4 2024; seeking new financing.

• Ongoing growth expected from millimeter wave customer ramp and new production orders.