Peraso预计2025年第一季度mmWave收入增长将超过2024年全年

Earnings Call Insights: Peraso Inc. (PRSO) Q4 2024

Management View

• CEO Ron Glibbery highlighted a 100% year-over-year revenue growth for Q4, driven by the execution of end-of-life memory IC product shipments. He emphasized the company’s focus on expanding its customer base for mmWave solutions, which are now utilized in 60 commercial products across 11 customers.

• CEO Glibbery announced a $3.6 million purchase order from a strategic customer in the fixed wireless access (FWA) market, reflecting growing momentum in the mmWave segment. He also pointed out the traction of the DUNE platform in dense urban environments and its increasing adoption in diverse geographies.

• CFO James Sullivan reported Q4 total net revenue of $3.7 million, with a GAAP gross margin of 56.3% and a non-GAAP gross margin of 71.6%. He noted an improvement in operating expenses and cash position, with a sequential cash increase to $3.3 million.

Outlook

• Management anticipates Q1 2025 total net revenue between $3.6 million and $4 million. CEO Glibbery expects mmWave revenue in Q1 2025 to surpass total mmWave revenue for the entirety of 2024, driven by increasing production orders.

• CEO Glibbery expressed optimism regarding the ongoing adoption of mmWave solutions in both the FWA and tactical military markets. He also highlighted potential contributions from the U.S. BEAD program, which could accelerate adoption of mmWave technology.

Financial Results

• Q4 total net revenue was $3.7 million, slightly below the prior quarter’s $3.8 million, but up from $1.8 million in Q4 2023. Full year 2024 revenue reached $14.6 million compared to $13.7 million in 2023.

• GAAP net loss for Q4 2024 was $1.6 million, with a non-GAAP net loss of $0.5 million. Adjusted EBITDA improved to negative $0.4 million.

• The company’s non-GAAP gross margin for Q4 2024 significantly improved to 71.6%, driven by favorable product mix and reduced inventory write-downs.

Q&A

• David Williams, Benchmark: Asked about the timeline for fulfilling the $3.6 million order and future customer demand trends. CEO Glibbery noted a linear fulfillment through 2025 and highlighted a more diversified customer base as a strength.

• Kevin Liu, K. Liu & Company: Inquired about mmWave revenue scaling in 2025 and military market opportunities. CFO Sullivan projected a sequential revenue increase, while CEO Glibbery indicated that new military engagements might convert to production by 2026.

• Analysts raised questions about the BEAD program's impact. CEO Glibbery expressed optimism for potential contributions starting in 2025, citing the shift towards a technology-neutral approach.

Sentiment Analysis

• Analysts showed a positive tone regarding the company’s progress in diversifying its customer base and the traction in mmWave technology.

• Management’s sentiment was confident, particularly in addressing the growth potential of mmWave solutions and the positive shift in the FWA market dynamics.

• Compared to the previous quarter, there was a noticeable increase in management’s confidence, supported by new purchase orders and improved financial performance.

Quarter-over-Quarter Comparison

• The Q4 2024 gross margin improved significantly compared to Q3 2024, attributed to a favorable product mix and reduced inventory write-downs.

• Management shifted focus towards scaling mmWave production, signaling a transition from reliance on memory IC revenues.

• Analyst discussions in the current quarter were more focused on mmWave growth and military applications, compared to the prior quarter’s emphasis on overcoming inventory challenges.

• Sentiment around the BEAD program evolved positively, with management highlighting its potential to drive mmWave adoption.

Risks and Concerns

• Management identified the potential challenges in scaling production for large mmWave orders and maintaining profitability amidst ongoing market shifts.

• Analysts raised concerns about the timing and material impact of military engagements, as well as the pace of adoption for mmWave solutions in the FWA market.

Final Takeaway

Peraso Inc.’s strategic shift towards mmWave technology is gaining momentum, supported by strong purchase orders and a diversified customer base. With expectations for Q1 2025 mmWave revenues to exceed the full year 2024, the company is positioned for significant growth. While challenges remain in scaling production and navigating new market dynamics, management’s optimism and improving financial metrics reflect a positive outlook for the year ahead.

Read the full Earnings Call Transcript