Executive Summary
Perfect Moment reported a Q4 2024 revenue increase of 20.66% year-over-year to $4.841 million, but the quarter remained deeply unprofitable as the company absorbed elevated operating expenses. Gross profit was $1.595 million with a gross margin of 32.95%, while operating expenses totaled $10.232 million, generating an EBITDA of negative $5.482 million and a net loss of $5.742 million (EPS -$0.54). The disparity between top-line growth and profitability underscores a transition phase as the brand scales, with heavy investments in SG&A and brand-building that have not yet translated into sustained operating leverage.
Liquidity remained solvent through a financing cushion, as net cash provided by financing activities was $5.933 million driven by common stock issuance of $6.009 million, yielding a year-end cash balance of $7.91 million. Operating cash flow was negative at $1.375 million, and free cash flow was negative at $1.392 million, indicating near-term cash burn absent material improvements in cash generation. The balance sheet shows modest leverage with total debt of $145k and cash and equivalents of $7.91 million, but the company carries a substantial accumulated deficit (-$48.977 million) which compresses reported equity. While liquidity supports short-term obligations, profitability and sustainable free cash flow remain pivotal over the coming quarters.
From a strategic perspective, PMNT’s near-term trajectory hinges on revving direct-to-consumer revenue, optimizing product mix to lift gross margins, and controlling SG&A intensity. Absent meaningful improvements in top-line growth and operating efficiency, the company faces continued reliance on equity financing to fund losses. Investors should monitor revenue trajectory by channel (DTC vs. wholesale), gross margin progression, working capital trends (inventory levels and receivables), and any additional capital-raising events that could dilute existing holders.
Key Performance Indicators
QoQ: -61.96% | YoY:20.66%
QoQ: -67.22% | YoY:64.77%
QoQ: -840.52% | YoY:-103.05%
QoQ: -576.91% | YoY:-132.75%
QoQ: -798.58% | YoY:-3.85%
Key Insights
Revenue: $4.841 million in Q4 2024, YoY +20.66%, QoQ -61.96%; Gross Profit: $1.595 million, YoY +64.77%, QoQ -67.22%; Operating Income: -$5.391 million, YoY -103.05%, QoQ -840.52%; Net Income: -$5.742 million, YoY -132.75%, QoQ -576.91%; EPS: -$0.54, YoY -3.85%, QoQ -798.58%; EBITDA: -$5.482 million with EBITDA margin of approximately -113%; Gross Margin: ~32.95%, Operating Margin: ~-111.36%, Net Margin: ~-118.61%.
Liquidity and cash flow: Net cash provided by operating activities -$1.375 mill...
Financial Highlights
Revenue: $4.841 million in Q4 2024, YoY +20.66%, QoQ -61.96%; Gross Profit: $1.595 million, YoY +64.77%, QoQ -67.22%; Operating Income: -$5.391 million, YoY -103.05%, QoQ -840.52%; Net Income: -$5.742 million, YoY -132.75%, QoQ -576.91%; EPS: -$0.54, YoY -3.85%, QoQ -798.58%; EBITDA: -$5.482 million with EBITDA margin of approximately -113%; Gross Margin: ~32.95%, Operating Margin: ~-111.36%, Net Margin: ~-118.61%.
Liquidity and cash flow: Net cash provided by operating activities -$1.375 million; Free cash flow -$1.392 million. Financing activities provided $5.933 million (common stock issued $6.009 million); Cash at end of period $7.91 million.
Balance sheet and leverage: Total assets $12.609 million; Total liabilities $4.846 million; Total stockholders’ equity $7.763 million; Cash and equivalents $7.91 million; Total debt $0.145 million; Debt ratio 0.0115; Interest coverage negative in this period due to losses; Retained earnings negative for the period (-$48.977 million). Working capital remains positive (current ratio 2.48; quick ratio 2.02).
Valuation context: Price-to-book 4.81x; Price-to-sales 7.72x; Negative earnings suppress traditional profitability multiples; Enterprise value multiple negative, reflecting cash burn and lack of positive EBITDA at this stage.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.84M |
20.66% |
-61.96% |
| Gross Profit |
1.60M |
64.77% |
-67.22% |
| Operating Income |
-5.39M |
-103.05% |
-840.52% |
| Net Income |
-5.74M |
-132.75% |
-576.91% |
| EPS |
-0.54 |
-3.85% |
-798.58% |
Key Financial Ratios
operatingProfitMargin
-111.4%
operatingCashFlowPerShare
$-0.13
freeCashFlowPerShare
$-0.13
Management Commentary
Transcript data not provided in the dataset. No earnings call quotes or management commentary are available to extract from the QQ4 2024 results. If a transcript becomes available, we will extract and summarize key themes by strategy, operations, and market conditions with direct quotes and context.
Forward Guidance
No explicit forward guidance was included in the provided data. Given the current quarterly dynamics, the company faces a path to profitability that hinges on (1) revenue acceleration, particularly through direct-to-consumer channels, (2) consolidation of operating costs and SG&A, and (3) inventory and working capital optimization to improve cash conversion. Industry volatility in discretionary apparel and seasonality add risk to near-term targets. Investors should monitor: (a) quarterly revenue growth rate and channel mix (DTC vs. wholesale), (b) gross margin progression tied to product mix and sourcing costs, (c) SG&A containment and variable cost leverage, (d) cash burn trajectory and any new financing requirements, and (e) any strategic initiatives such as licensing, partnerships, or international expansion that could scale the brand without a commensurate rise in fixed costs.