Peraton Revenue on Track for $8B Despite Shaky Start to 2024

Peraton Appears on Course to Surpass $8B in Annual Revenue in 2024

As a private company, Peraton does not report backlog, bookings, book-to-bill ratio or other financial metrics. While Peraton may have started 2024 off on the wrong foot by losing a $1 billion contract to Deloitte to provide human resources IT support to the Defense Manpower Data Center, Peraton is still poised to surpass $8.0 billion in annual revenue.

 

During 2Q23 Peraton revealed it was submitting around 1,200 bids per year worth $40 billion. The company also disclosed that its trailing 12-month (TTM) book-to-bill ratio was around 2.0, higher than many other vendors and up from 1.95 in July 2022. During 4Q23, Peraton made some notable announcements, including unseating Jacobs Technology on a $2.8 billion contract to support United States Special Operations Command (USSOCOM) and revealing its Space & Intelligence sector secured over $1.2 billion in classified awards during 2023.

 

TBR estimates that Peraton’s full-year revenue grew in a low-to-mid-single-digit range to between $7.7 billion and $7.8 billion in 2023 as the company navigated supply chain headwinds and likely dealt with lingering integration-related issues. Approximately 45% of sales are expected to have come from the Department of Defense (DOD) and intelligence community (IC). TBR anticipates that Peraton will continue to more efficiently convert its backlog (last reported at $24.4 billion in the middle of 2022) into revenue while the company also keeps capitalizing on federal budget priorities favoring civilian, defense and healthcare agencies.

 

A government shutdown in 4Q24 could still disrupt Peraton’s expansion, but TBR believes Peraton will still reach between $8.0 billion and $8.1 billion in annual revenue during 2024, representing growth of between 2.6% to 5.2% over 2023.

Peraton IPO Expected in 2025 as the Company Continues to Optimize Operations and Reinforce Its Position as a Cloud Services Broker

The Company Is Ensuring Operations Are Running Smoothly Before Launching an IPO or Acquiring Another Key Player

While Veritas Capital has not announced that it will take Peraton public, private equity firms have historically cashed out their investments as a matter of course. The companies’ leadership teams are ensuring that Peraton is well positioned to keep capitalizing on its pipeline of opportunities in the national security, federal civilian and health spaces. They want to avoid any additional high-profile losses, such as the recent $1 billion IT Global Enterprise Management Services (GEMS) task order, as they assess Peraton’s market position.

 

Once the leadership teams are confident that Peraton can reliably meet revenue estimates, Veritas will exit the picture. TBR still anticipates that Peraton will issue an IPO in early to mid-2025, barring any further M&A activity to rapidly expand Peraton’s capabilities with emerging technologies.
 

TBR Senior Analyst John Caucis and TBR Analyst James Wichert review key trends and happenings from 2024 as well as provide their outlook for the sector in 2024 — Click the image below to watch the full video now

 

Peraton Aims to Leverage Growing Federal Demand for Cloud Services While Ramping Up Investments in 5G and Other Emerging Tech

Now that Peraton is no longer focused on integrating its assets, the company has shifted its resources. For example, Peraton deepened its relationships with SoftIron and UiPath during 2023. Peraton is utilizing SoftIron’s Hypercloud technology and the AI-powered UiPath Business Automation Platform as government agencies look to establish their own secure and customizable cloud platforms.

 

With agencies adopting an “as a Service” model, Peraton is better positioning itself as a cloud services broker to win deals like the Cloud Hosting Solutions III contract. Peraton is strengthening its relationships with Amazon Web Services and other key partners as it helps clients achieve their desired environments.

 

Additionally, Peraton will accelerate efforts to harness 5G as well as other emerging technologies to narrow the gap between it and other Tier 1 vendors like General Dynamics Technologies.