On October 10, 2023, Presto Automation Inc (PRST, Financial), a provider of enterprise-grade AI and automation solutions to some of the nation's largest restaurant brands, released its FY2023 financial results. The company also announced an increased ownership commitment from a major existing shareholder, the appointment of a new interim CFO, and its inclusion in the broad-market Russell 3000 Index and small-cap Russell 2000 Index for 2023.
Company Performance and Challenges
CEO Xavier Casanova expressed delight at the significant market traction gained by Presto Voiceâ„¢, the company's AI solution, in its first full fiscal year as a public company. He noted that while the company is still in the early stages of capitalizing on the significant market opportunity ahead, it is implementing a focused plan for success in the growing and dynamic market.
Financial Achievements
Presto announced that as of September 30, 2023, the locations of customers with which it has master service or pilot agreements and in which Presto Voice has not been installed represent an estimated annual revenue opportunity of approximately $17 million. Furthermore, the total locations of restaurant groups with whom they have master service or pilot agreements and in which Presto Voice has not been installed represent an estimated annual revenue opportunity of over $100 million.
Key Details from Financial Statements
The company's cash and cash equivalents were $3.3 million as of September 30, 2023. Presto also announced that one of its existing major shareholders, Cleveland Avenue, has agreed to increase its ownership in the company with a $3 million investment in Presto’s Common Stock at a price of $2.00 per share. The financing for its increased ownership is expected to close on or around October 16, 2023, subject to customary closing conditions.
Analysis on the Company's Performance
Despite the challenges faced in its first full fiscal year as a public company, Presto has shown resilience and adaptability. The significant traction gained by Presto Voiceâ„¢ in the market and the estimated annual revenue opportunity it represents are promising signs for the company's future growth. The increased ownership commitment from a major existing shareholder and the appointment of a new interim CFO further strengthen the company's position.
Other Pertinent Details
Presto has joined the broad-market Russell 3000® Index and the small-cap Russell 2000® at the conclusion of the 2023 Russell Indexes annual reconstitution. Membership in the US all-cap Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000Ò Index or small-cap Russell 2000Ò Index as well as the appropriate growth and value style indexes.
