Peraso(US:PRSO)2025-03-19 22:02Financial 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 [7][25] - Full year 2024 total net revenue was $14.6 million, up from $13.7 million in 2023 [25] - 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 [26] - Non-GAAP gross margin for Q4 2024 was 71.6%, compared to 61.7% in the prior quarter and negative 116.6% in Q4 2023 [27] - GAAP net loss for Q4 2024 was $1.6 million, or a loss of $0.37 per share, compared to a net loss of $8.9 million, or $12.48 per share, in the same quarter a year ago [29] 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 [25] - Full year product revenue was $14.2 million, up from $12.9 million in the prior year [26] - Operating expenses decreased by 20% year-over-year in Q4 2024, despite revenue doubling [8] Market Data and Key Metrics Changes - The demand for fixed wireless access (FWA) is projected to increase significantly, with global connections expected to reach 280 million by 2028 [11][12] - North American FWA has become the majority of all broadband net additions since 2021, with major carriers adding approximately 10.4 million FWA connections [12] Company Strategy and Development Direction - The company is focusing on diversifying its customer base and expanding its market reach across new geographies and applications [9][10] - The introduction of the Dune MMA platform for dense urban applications is gaining traction, addressing the challenges of delivering reliable connectivity in populated areas [15] - The company is optimistic about the potential of its Wave technology in tactical defense and military applications, with initial production orders expected to commence in mid-2025 [20][22] 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 [13][39] - The company anticipates significant growth in MMwave revenue throughout 2025, driven by increasing order backlog and ramping customer production [24] - Management expressed optimism regarding the BEAD program, which aims to improve access to high-speed Internet and could benefit the company's solutions [19][63] Other Important Information - The company had $3.3 million in cash and cash equivalents as of December 31, 2024, compared to $1.3 million at the end of Q3 2024 [31] - Adjusted EBITDA for Q4 2024 was negative $400,000, an improvement from negative $5.9 million in Q4 2023 [30] Q&A Session Summary Question: Inquiry about the $3.6 million order and its fulfillment timeline - Management indicated that the order fulfillment will be reasonably linear throughout the year, with some weight towards the second half [36][37] Question: Trends in customer inventory and potential new orders - Management confirmed a more diversified customer base and expressed optimism about new orders coming in 2025 [38][39] Question: Engagement in military applications - Management stated that they are currently focused on a third of the potential military applications and have ongoing engagements for tactical communication [40][41] Question: Impact of AI trends on connectivity needs - Management noted that there is a growing demand for high-speed data transfer in enterprise environments, which aligns with the company's capabilities [45][46] Question: Expectations for millimeter wave sales ramp-up - Management expects a good increase in millimeter wave sales year-over-year, with some lumpiness in revenue from quarter to quarter [52][54] Question: Timeline for military applications to convert to production - Management indicated that most military opportunities are expected to convert to production in 2026, with the first application moving quickly [59][60] Question: Anticipated contributions from the BEAD program - Management expressed hope that the BEAD program will start to show effects this year, aligning with the administration's push for high-speed Internet access [62][63]