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Peraso, Inc. (PRSO)
NASDAQ:PRSO
Top Page
Peraso
(NASDAQ:PRSO)
51Neutral
Positive Factors
Demand and Adoption
There is strengthening demand for evaluation kits, which is a leading indicator of future design win opportunities and were a record 28 during the quarter.
New Design Wins
PRSO looks to be turning the corner on its mmWave business with multiple new design wins awarded and substantial momentum building for FWA and secure communications applications.
Purchase Orders
The developing momentum in PRSO’s DUNE platform has received multiple new purchase orders.
Negative Factors
Financial Liquidity
The current cash position is sufficient to support operations through 2Q25, when revenue visibility is expected to be much better, providing additional liquidity options.
Geographical Expansion Challenges
The company noted eight customers were in the qualification phase in Africa, suggesting additional wins are on the horizon.
Peraso (PRSO) vs. S&P 500 (SPY)
Market Cap
$4.26M
Dividend YieldN/A
Average Volume (3M)150.35K
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth5.99%
EPS Growth83.47%
CountryUS
Employees42
SectorTechnology
Sector Strength68
IndustrySemiconductors
Share Statistics
EPS (TTM)-4.28
Shares Outstanding4,843,041
10 Day Avg. Volume302,393
30 Day Avg. Volume150,351
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.45
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.03
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.00Price Target Upside240.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Peraso Business Overview & Revenue Model
Company DescriptionPeraso, Inc. (PRSO) is a technology company that specializes in the development and commercialization of semiconductor solutions, primarily focusing on the millimeter-wave (mmWave) spectrum. The company provides cutting-edge products and services for various high-speed wireless communication applications, such as 5G networks, fixed wireless access, and wireless backhaul. Peraso's core offerings include integrated circuits (ICs) and modules that enable seamless, high-capacity data transmission, catering to both consumer and enterprise markets.
How the Company Makes MoneyPeraso, Inc. generates revenue primarily through the sale of its semiconductor products, including mmWave ICs and modules. These products are sold to original equipment manufacturers (OEMs) and system integrators who incorporate them into their wireless communication systems. The company may also engage in licensing agreements, allowing other firms to utilize its proprietary technology for a fee. In addition, Peraso might receive revenue from research and development services provided to strategic partners and customers. Significant partnerships with industry leaders and participation in joint ventures can further bolster its earnings by expanding its market reach and integration in emerging technologies like 5G.
Peraso Financial Statement Overview
Summary
Peraso, Inc. is facing considerable financial difficulties with persistent losses and negative cash flows across the board. While there are signs of improved cost management, overall profitability and cash flow generation remain concerning. The company's balance sheet is moderately leveraged but shows a declining asset base, contributing to a challenging financial outlook.Income Statement
Peraso, Inc. shows significant challenges in profitability with consistent negative net income over the years. The gross profit margin improved significantly in TTM to 51.7% from 13.6% in 2023, indicating better cost management. However, the net profit margin remains negative at -73.6% due to high operating expenses. Revenue growth is minimal at 6.0% in TTM, which signals slow growth in sales.35
Negative
Balance Sheet
The company has a reasonable debt-to-equity ratio of 0.09, reflecting manageable leverage. However, the equity ratio of 48.1% in TTM indicates moderate financial stability. ROE remains negative due to persistent net losses, which is a concern. The balance sheet shows a declining asset base, reducing from 2023 to TTM, affecting overall stability.40
Negative
Cash Flow
Operating cash flow remains negative, suggesting continued cash burn. The free cash flow to net income ratio indicates significant cash outflow compared to income. However, financing activities have provided cash inflows, slightly easing liquidity constraints. Overall, cash flow performance is weak, reflecting ongoing operational challenges.30
Negative
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.75M | 14.87M | 5.68M | 9.09M | 506.00K | Gross Profit |
| 1.87M | 5.95M | 2.41M | 7.34M | 28.57K | EBIT |
| -20.63M | -24.92M | -16.08M | -8.15M | -17.70M | EBITDA |
| -12.96M | -28.75M | -6.56M | -6.46M | -16.05M | Net Income Common Stockholders |
| -16.80M | -32.48M | -9.54M | -12.33M | -17.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.58M | 2.91M | 15.16M | 1.71M | 1.90M | Total Assets |
| 10.71M | 22.49M | 47.95M | 9.99M | 10.18M | Total Debt |
| 719.00K | 1.16M | 667.00K | 5.66M | 2.63M | Net Debt |
| -864.00K | -1.75M | -14.49M | 3.95M | 727.26K | Total Liabilities |
| 6.63M | 7.23M | 5.88M | 13.91M | 5.59M | Stockholders Equity |
| 4.08M | 15.26M | 42.07M | -3.92M | 4.59M |
| Cash Flow | Free Cash Flow | |||
| -4.78M | -17.03M | -12.25M | -10.28M | -15.16M | Operating Cash Flow |
| -4.69M | -16.02M | -12.02M | -10.24M | -14.07M | Investing Cash Flow |
| 1.01M | 10.04M | 6.63M | -38.13K | -1.09M | Financing Cash Flow |
| 3.44M | 1.92M | 9.57M | 10.08M | 7.88M |
Peraso Technical Analysis
Neutral
0.88
Price Trends
0.77
Positive
0.88
Positive
1.13
Negative
Market Momentum
0.05
Negative
58.86
Neutral
57.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRSO, the sentiment is Neutral. The current price of 0.88 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.77, and below the 200-day MA of 1.13, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 57.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRSO.
Peraso Risk Analysis
Peraso disclosed 47 risk factors in its most recent earnings report. Peraso reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Peraso Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $10.94B | 10.58 | -7.08% | 2.98% | 7.52% | -12.04% | |
52 Neutral | $85.77M | ― | -33.15% | ― | -10.03% | 36.54% | |
51 Neutral | $4.26M | ― | -284.22% | ― | 5.99% | 83.47% | |
45 Neutral | $18.21M | ― | -31.27% | ― | 160.76% | 74.71% | |
44 Neutral | $33.66M | ― | -2911.20% | ― | -27.60% | -5.44% | |
42 Neutral | $8.20M | ― | -140.51% | ― | 203.70% | -71.81% | |
31 Underperform | $67.06M | ― | 17.45% | ― | ― | -58.40% |
* Technology Sector Average
Performance Comparison
PRSO
Peraso
0.88
-0.48
-35.29%
GSIT
GSI Technology
3.35
0.25
8.06%
PXLW
Pixelworks
0.53
-1.36
-71.96%
LEDS
SemiLEDs
2.22
0.74
50.00%
SMTK
SmartKem
2.26
-7.72
-77.35%
GCTS
GCT Semiconductor Holding
1.39
-5.20
-78.91%
Peraso Earnings Call Summary
Earnings Call Date:Mar 19, 2025
(Q4-2024)
| % Change Since: 6.02%|
Next Earnings Date:May 19, 2025
Earnings Call Sentiment Positive
Peraso Inc. reported robust revenue growth and significant improvements in gross margins, driven by strong demand for its mmWave technology and successful cost reduction efforts. Despite the positive momentum, challenges remain with the transition away from memory IC products and continued net losses, although these have been reduced from previous levels.Q4-2024 Updates
Positive Updates
Record Revenue Growth
Fourth quarter revenue increased by 100% year-over-year, and full year 2024 revenue was $14.6 million compared to $13.7 million in 2023.
Improved Gross Margins
GAAP gross margin increased to 56.3% in Q4 2024 from 47% in the prior quarter and negative 147.3% in Q4 2023. Non-GAAP gross margin was 71.6% compared to negative 116.6% in Q4 2023.
mmWave Technology Momentum
Renewed demand and increasing production orders for mmWave technology, including a $3.6 million purchase order from a strategic customer.
Military Application Growth
Upsized production order for military defense applications and additional engagements with prospective customers for tactical communication applications.
Cost Reductions and Efficiency Improvements
Operating expenses decreased by 20% year-over-year, and the company realized further benefits from previous cost reduction actions.
Negative Updates
Memory IC Product Transition
Completion of end-of-life shipments for memory IC products, with remaining backlog of $2.3 million to be fulfilled.
Decreased Royalty Revenue
Royalty and other revenue for 2024 was $0.3 million compared with $0.9 million in 2023, due to reduction in memory royalties and nonrecurring engineering services.
Net Loss Continued
GAAP net loss for Q4 2024 was $1.6 million, though improved from a loss of $8.9 million in Q4 2023.
Company Guidance
During Peraso Inc.'s Fourth Quarter 2024 Conference Call, the company provided guidance on several key financial metrics and business developments. Fourth quarter revenue grew 100% year-over-year, driven by end-of-life memory IC product shipments, totaling $3.4 million in Q4 and $12.9 million for the full year. The company also highlighted a 20% year-over-year reduction in operating expenses, contributing to improved operating performance. Peraso's mmWave technology gained momentum with a $3.6 million purchase order from a strategic customer, expected to be fulfilled throughout 2025. Additionally, the company anticipates first-quarter 2025 revenue to range between $3.6 million and $4 million, with mmWave revenue expected to surpass full-year 2024 levels. Non-GAAP gross margin for Q4 was 71.6%, and GAAP gross margin increased to 56.3%, reflecting favorable product mix and reduced inventory write-downs. The company also cited broader market dynamics, such as the U.S. government's BEAD program, as potential growth drivers for their mmWave solutions.Peraso Corporate Events
Executive/Board Changes
Peraso Inc. Grants Stock Options to Key Executives
Neutral
Feb 14, 2025
On February 11, 2025, Peraso Inc.’s board of directors’ compensation committee granted 100,000 stock options to key executives, including the CEO, CFO, and COO. These stock options are part of the company’s Amended and Restated 2019 Stock Incentive Plan, aimed at aligning executive interests with company performance, potentially impacting stakeholder confidence and executive retention.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.