Peraso(US:PRSO)2025-03-20 00:45Financial Data and Key Metrics Changes - Fourth quarter revenue was $3.7 million, representing a 100% year-over-year growth compared to $1.8 million in Q4 2023 [10][36] - Full year 2024 total net revenue was $14.6 million, up from $13.7 million in 2023 [36] - GAAP gross margin increased to 56.3% in Q4 2024 from 47% in the prior quarter and negative 147.3% in the year-ago quarter [38] - GAAP net loss for Q4 2024 was $1.6 million, a significant improvement from a net loss of $8.9 million in Q4 2023 [40] Business Line Data and Key Metrics Changes - Product revenue from memory integrated circuits and millimeter wave products in Q4 was $3.7 million, compared to $1.5 million in Q4 2023 [36] - Full year product revenue was $14.2 million, up from $12.9 million in the prior year [37] - Operating expenses decreased by 20% year-over-year in Q4 2024, despite revenue doubling [11] Market Data and Key Metrics Changes - The demand for fixed wireless access (FWA) is projected to grow significantly, with global FWA connections expected to reach 280 million by 2028 [17][19] - North American FWA has become the majority of all broadband net additions, with major carriers adding approximately 10.4 million FWA connections since 2021 [18] Company Strategy and Development Direction - The company is focusing on diversifying its customer base for mmWave solutions, having increased its customer count significantly over the past two years [53] - The DUNE mmWave platform is gaining traction in dense urban environments, addressing the challenges of high-speed connectivity [22] - The company is optimistic about the potential of the BEAD program to enhance funding for fixed wireless access technologies [25][27] Management's Comments on Operating Environment and Future Outlook - Management noted a positive shift in customer demand and purchase orders, indicating the end of the inventory correction impacting fixed wireless access customers [20] - The company expects mmWave revenue for Q1 2025 to exceed the total revenue for the full year 2024, driven by increasing order backlog [35] Other Important Information - The company had $3.3 million in cash and cash equivalents as of December 31, 2024, up from $1.3 million at the end of Q3 2024 [42] - Adjusted EBITDA for Q4 2024 was negative $0.4 million, an improvement from negative $5.9 million in Q4 2023 [41] Q&A Session Summary Question: Can you provide details on the $3.6 million order and its fulfillment timeline? - Management indicated that the order fulfillment will be reasonably linear, with a slight weighting towards the second half of the year [50] Question: How are other customers trending regarding inventory? - Management expressed optimism about a more diverse customer base and indicated that the inventory crisis is over [53] Question: Are there developments in military applications? - Management confirmed ongoing engagements in military applications, with some expected to convert to production by 2026 [80] Question: What is the expected contribution from the BEAD program? - Management is hopeful that the BEAD program will start to show effects this year, with a focus on technology-neutral funding [84]