Peraso, Inc. ((PRSO)) has held its Q1 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Peraso, Inc. recently held its earnings call, revealing a mixed sentiment among investors and analysts. The company showcased significant achievements in mmWave revenue growth, improved gross margins, and new defense sector contracts, indicating strong momentum and product innovation. However, these positive developments were counterbalanced by a cautious revenue outlook for the upcoming quarter and concerns over reduced cash reserves.
mmWave Revenue Growth
Peraso, Inc. reported a remarkable increase in mmWave revenue, with first-quarter figures surpassing the total mmWave revenue for the entire year of 2024. This indicates a robust momentum in this segment, reflecting the company’s strategic focus and successful execution in expanding its market presence.
Significant GAAP Gross Margin Improvement
The company achieved a notable improvement in its GAAP gross margin, which rose to 69.3% in Q1 2025 from 56.3% in the previous quarter and 46.4% in the same quarter last year. This improvement underscores Peraso’s operational efficiency and cost management strategies.
Defense Sector Contract
Peraso secured a new strategic contract to deliver mission-critical wireless applications to global military and defense forces. This contract signifies a new revenue opportunity for the company, potentially opening doors to further expansion in the defense sector.
New Product Innovations
The company introduced significant upgrades to its PERSPECTUS product family and launched a new module, PRM2141X-D. These innovations are expected to enhance Peraso’s capabilities and extend its market reach, reinforcing its competitive position.
Reduced Net Loss
Peraso reported a GAAP net loss of $0.5 million for Q1 2025, a significant improvement from the $2 million loss in Q1 2024. This reduction in net loss highlights the company’s progress in achieving financial stability and improving its bottom line.
Decreased Revenue Outlook
Despite the positive developments, Peraso provided a cautious revenue outlook for Q2 2025, expecting total net revenue to range between $1.8 million and $2 million. This reflects the anticipated decline due to the roll-off of end-of-life memory IC shipments.
Limited Cash Reserves
The company’s cash and equivalents decreased to $2.8 million as of March 31, 2025, down from $3.3 million at the end of 2024. This reduction indicates a cash burn that may raise concerns about liquidity in the near term.
Forward-Looking Guidance
Peraso’s forward-looking guidance for the second quarter anticipates net revenue between $1.8 million and $2 million, with expected double-digit sequential growth in mmWave revenue. This guidance reflects the company’s confidence in its mmWave product line, despite the overall cautious revenue outlook.
In summary, Peraso, Inc.’s earnings call presented a mixed bag of achievements and challenges. While the company demonstrated strong growth in mmWave revenue and improved gross margins, concerns over future revenue and cash reserves tempered the overall sentiment. Investors will be keenly watching how Peraso navigates these challenges in the coming quarters.