Peraso(PRSO) - 2025 Q1 - Quarterly Results

Management Commentary Management highlighted strong Q1 2025 mmWave revenue growth, offsetting memory IC EOL, and anticipates continued mmWave solution growth - First quarter mmWave revenue alone exceeded the total mmWave revenue for the entire full year of 2024[2] - The company completed the final end-of-life (EOL) shipments for its memory IC products during the quarter[2] - Achieved a major upgrade to PERSPECTUS modules for fixed wireless access (FWA), increasing supported users per access point by 50%[3] - Secured a strategic contract with a leading specialized defense contractor, with initial production shipments expected in Q2[3] First Quarter 2025 Financial Highlights Peraso reported $3.9 million total net revenue in Q1 2025, a 37% increase, with improved gross margin and reduced net loss Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total Net Revenue | $3.9 million | $2.8 million | +37% | | GAAP Gross Margin | 69.3% | 46.4% | +22.9 p.p. | | GAAP Operating Expenses | $3.2 million | $4.9 million | -34.5% | | GAAP Net Loss | ($0.5 million) | ($2.0 million) | +75% Improvement | | GAAP Net Loss Per Share | ($0.10) | ($1.07) | +90.7% Improvement | | Adjusted EBITDA | ($0.3 million) | ($1.4 million) | +78.6% Improvement | Business Outlook The company projects Q2 2025 total net revenue between $1.8 million and $2.0 million, reflecting memory IC discontinuation - Expects total net revenue for Q2 2025 to be in the range of $1.8 million to $2.0 million[9] - The anticipated sequential decline in total revenue for Q2 is due to the planned roll-off of EOL shipments for memory IC products[4][9] - Despite the Q2 total revenue outlook, the company anticipates solid sequential revenue growth for its core mmWave solutions throughout 2025[4] Financial Statements This section presents the unaudited condensed consolidated financial statements for Q1 2025, including operations and balance sheets Condensed Consolidated Statements of Operations Q1 2025 total net revenue increased to $3.87 million, with gross profit doubling and operating loss significantly narrowing Statement of Operations (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total net revenue | $3,869 | $2,816 | | Gross Profit | $2,680 | $1,306 | | Total operating expenses | $3,194 | $4,937 | | Loss from operations | ($514) | ($3,631) | | Net loss | ($471) | ($2,031) | | Net loss per share | ($0.10) | ($1.07) | Condensed Consolidated Balance Sheets As of March 31, 2025, total assets were $6.73 million, liabilities decreased, and stockholders' equity increased Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,775 | $3,344 | | Total current assets | $5,959 | $6,293 | | Total assets | $6,729 | $7,206 | | Total current liabilities | $2,962 | $3,503 | | Total liabilities | $3,136 | $3,740 | | Stockholders' equity | $3,593 | $3,466 | Reconciliation of GAAP to Non-GAAP Measures This section reconciles GAAP to non-GAAP financial measures, adjusting for non-cash items to show core performance Reconciliation of GAAP to Non-GAAP Net Loss and Net Loss Per Share Q1 2025 non-GAAP net loss improved to $0.38 million (or $0.08 per share) from $1.59 million in Q1 2024 GAAP to Non-GAAP Net Loss Reconciliation (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | GAAP net loss | ($471) | ($2,031) | | Stock-based compensation | $125 | $1,222 | | Amortization of intangibles | $0 | $815 | | Change in fair value of warrant liabilities | ($35) | ($1,591) | | Non-GAAP net loss | ($381) | ($1,585) | Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit Q1 2025 GAAP and non-GAAP gross profit were identical at $2.68 million (69.3% margin) due to no amortization GAAP to Non-GAAP Gross Profit Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP gross profit | $2,680 (69.3%) | $1,306 (46.4%) | | Amortization of intangibles | $0 (0.0%) | $563 (20.0%) | | Non-GAAP gross profit | $2,680 (69.3%) | $1,869 (66.4%) | Reconciliation of GAAP Net Loss and Adjusted EBITDA Adjusted EBITDA for Q1 2025 improved to negative $0.31 million from negative $1.40 million in Q1 2024 Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | GAAP net loss | ($471) | ($2,031) | | Non-GAAP net loss | ($381) | ($1,585) | | EBITDA adjustments | $68 | $181 | | Adjusted EBITDA | ($313) | ($1,404) |