Presto’s Voice AI Solution Projected to Capitalize on Strong Momentum as Company Releases 2024 Projected Annualized Run Rate

SAN CARLOS, Calif., Dec. 14, 2023 (GLOBE NEWSWIRE) -- Presto Automation Inc. (Nasdaq: PRST) one of the largest drive-thru automation technology providers in the hospitality industry, today provided additional information to investors about its projected financial results for calendar year 2024.

As a result of the strong momentum being experienced in its Voice AI solution, Presto is estimating its projected annualized run rate (PARR) to be $17.6M at the end of calendar year 2024, which is directly correlated to the store count projection the company has already released (1270 stores by the end of 2024). We define PARR as the annualized revenue of contracts for our Presto Voice AI solution that are projected to be in effect at the end of the relevant period.

“These projections should convey the market-leading momentum we are seeing in our Presto Voice business as our store count continues to go up and we convert more of our signed and immediate revenue opportunity into live revenue. We expect to be a business of real scale over the course of 2024 and we expect to remain the market leader,” said Krishna Gupta, Chairman of Presto.

As of the date hereof, PARR reflects 404 currently contracted locations with 866 additional projected contracted locations by the end of 2024. As a result, a significant portion of the PARR is based on our expectation that we will roll out additional locations. Our pricing assumes the continuation of our pricing arrangements with Checkers and pricing assumptions which reflect our experience with recent additions of new locations.

We believe that our PARR is a useful measure of our overall expected volume at a particular point in time and of changes in the volume of business over time because it allows investors to understand how we expect our business to scale and eliminates the time impact associated with the signing of new contracts during a quarterly or annual period.

Our Voice contracts are generally for 12-month terms. Our two most significant Voice contracts can be terminated upon 2 months’ notice or on a location-by-location basis, respectively, if minimum service levels are not maintained. All of our contracts have “evergreen” provisions that extend their term automatically unless the customer provides notification of non-renewal. Therefore, unless a notice of non-renewal has been received, our PARR calculation assumes that each contract in place currently will continue through the end of the relevant reporting period.