Analysts on Wall Street project that Cerence (CRNC) will announce quarterly earnings of $0.90 per share in its forthcoming report, representing an increase of 150% year over year. Revenues are projected to reach $130.89 million, increasing 56.5% from the same quarter last year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Prior to a ...

X X | --- | --- | --- | --- | --- | |-------|-------|-------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | Q4 FY23 – Business Highlights | | | | | | | | | | | | • Consistent execution leads to the fifth consecutive quarter of strong performance on revenue and profitability | | | | | | • Maintained leadership position within Auto Core at 54% | | | | | | penetration • T ...

Cerence Inc. (NASDAQ:CRNC) Q4 2023 Earnings Conference Call November 27, 2023 8:30 AM ET Company Participants Rich Yerganian - SVP, |IR Stefan Ortmanns - Director & CEO Nils Schanz - Chief Product Officer Tom Beaudoin - CFO Conference Call Participants Luke Junk - Baird Colin Langan - Wells Fargo Quinn Bolton - Needham Mark Delaney - Goldman Sachs Jeff Van Rhee - Craig-Hallum Capital Group Chris McNally - Evercore ISI Jeffrey Osborne - TD Cowen Operator Good day, and welcome to the Cerence’s Q4 2023 Earning ...

Financial Data and Key Metrics Changes - Q3 revenue was approximately $61.6 million, at the high end of guidance, driven by strength in the core business [12][32] - Non-GAAP gross margin was 66.5%, and adjusted EBITDA was $2.8 million, or 4.5% margin [12][40] - Professional services revenue decreased by 24% year-over-year and 8% quarter-over-quarter, not projected as a growth driver [14] Business Line Data and Key Metrics Changes - Core auto business penetration rose to 54%, the highest in nearly two years, indicating strong market position [7][42] - Variable license revenue dropped 16% year-over-year due to higher fixed contract consumption [41] - New connected services revenue increased by 3% year-over-year, but decreased by 3% quarter-over-quarter [41] Market Data and Key Metrics Changes - Cars produced using connected services increased by 50% year-over-year, reflecting a growing trend in connected vehicles [16] - Monthly active users rose by 29% year-over-year, indicating increased consumer adoption of technology [16] - Pro forma royalties were up 7% year-over-year and 6% quarter-over-quarter due to increased auto production [42] Company Strategy and Development Direction - The company is focused on innovation in AI for transportation, operational excellence, and securing strategic accounts for long-term growth [33][35] - The introduction of generative AI and large language models is central to enhancing product offerings and user experiences [9][38] - The company aims for double-digit revenue growth with strong EBITDA margins, emphasizing the importance of winning new business [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in visibility and ability to deliver strong Q4 results despite macroeconomic uncertainties [7][35] - The semiconductor shortage is becoming less of an issue, but rising interest rates and a slowing global economy remain concerns [7] - The company expects revenue guidance for Q4 to be between $72 million and $76 million, raising the full-year guidance midpoint to $288 million [45] Other Important Information - The company successfully restructured its debt, resulting in annual cash interest savings of approximately $8 million [34] - The balance sheet remains strong with total cash and marketable securities of approximately $116 million [13] Q&A Session Summary Question: Follow-up on billings and sales targets for FY24 - Management indicated that billings per car metrics are affected by production delays and emerging market opportunities, with guidance for FY24 to be provided in November [47] Question: Average contract duration changes - The average contract duration is influenced by deal mix and OEM production schedules, still reflecting long-term commitments [48] Question: Revenue models for large language models in cars - Management discussed potential revenue models, including licensing and subscription models, as they explore new applications and partnerships [51] Question: Performance of connected units and buyer behavior - The increase in connected units is seen as indicative of a larger trend, supported by design wins and improved service quality [57] Question: Two-wheeler contributions and design wins - The two-wheeler market is expected to grow, with several design wins contributing to future revenue [63][64] Question: IoT use cases and technology development - The company is exploring non-transportation opportunities and has developed technologies exempt from current field of use restrictions [69][70]

7 8 Business Use of Estimates Financial instruments that potentially subject us to significant concentrations of credit risk primarily consist of trade accounts receivable. We perform ongoing credit evaluations of our customers' financial condition and limit the amount of credit extended when deemed appropriate. Two customers accounted for 12.2% and 11.5%, respectively, of our Accounts receivable, net balance at June 30, 2023. One customer accounted for 17.4% of our Accounts receivable, net balance at Septe ...

Cerence Inc. (NASDAQ:CRNC) Q2 2023 Earnings Conference Call May 9, 2023 8:30 AM ET Company Participants Rich Yerganian - SVP-IR Stefan Ortmanns - CEO Tom Beaudoin - CFO Conference Call Participants Jeff Van Rhee - Craig-Hallum Capital Group Colin Langan - Wells Fargo Mark Delaney - Goldman Sachs Operator Good morning, and thank you for standing by. Welcome to the Cerence Second Quarter 2023 Earnings Call. At this time all participants are in a listen-only mode. After the speakers' presentation, there will b ...

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-39030 CERENCE INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of i ...

Financial Data and Key Metrics Changes - Q1 revenue reached $83.7 million, exceeding the high end of guidance due to strong performance in core business and connected services [97] - Variable license revenue increased by 22% year-over-year and 38% quarter-over-quarter, attributed to reduced consumption of fixed licenses and improving auto production [98] - Non-GAAP gross margin was 70.4%, non-GAAP operating margin was 20.5%, and adjusted EBITDA was $19.7 million, all metrics above guidance [120] Business Line Data and Key Metrics Changes - Professional services revenue was up 3% year-over-year but down 5% quarter-over-quarter, serving as an enabler for future license and connected services revenue [9] - Connected services revenue decreased by 12% year-over-year but increased by 3% quarter-over-quarter, impacted by lower production of connected vehicles [51] - The penetration of global auto production for the trailing 12 months increased to 52% from 51%, indicating strong adoption of Cerence's technology [10] Market Data and Key Metrics Changes - The company secured significant design wins in both Europe and China, indicating strong demand in these markets [4][94] - The two-wheeler market is highlighted as a growth area, with the number of two-wheeler customers increasing to seven [95] - The latest forecast from IHS predicts a 2.5% growth year-over-year in auto production, aligning with the company's fiscal year [50] Company Strategy and Development Direction - The "Destination Next" strategy aims for long-term sustainable growth, focusing on delivering immersive experiences in vehicles and expanding the addressable market [3][6] - The company is committed to innovation and has established a strong competitive position in the automotive industry, particularly as it transitions to electric vehicles [74] - The strategy includes leveraging scalable AI technology across adjacent markets, enhancing the product portfolio and customer experiences [90] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges from semiconductor shortages but remains optimistic about improving supply and demand dynamics [50] - The company is confident in achieving its fiscal year goals and has slightly raised the lower end of its full-year guidance from $270 million to $275 million [50][100] - Management emphasizes a focus on execution and innovation to drive long-term growth and profitability [81] Other Important Information - The balance sheet remains strong with total cash and marketable securities of approximately $120 million [8] - Cash flow from operations was approximately negative $2.1 million for the quarter, but positive cash flow is expected for the full fiscal year [78] Q&A Session Summary Question: What is keeping growth back in the new connected segment? - Management noted that several connected components will go live over the next 12 to 18 months, with an uptick in active subscribers expected [17] Question: Can you provide updates on bookings and consumption? - Bookings will be updated in Q2, with good wins in Q1, but consumption is expected to be lower due to a specific prepaid deal taking longer than anticipated [22] Question: How does the company view competition from generative AI technologies? - Management sees generative AI as a complementary technology rather than direct competition, leveraging their automotive expertise to enhance offerings [113] Question: What is the visibility into fiscal year 2024 growth? - Management indicated improved visibility into fiscal year 2024 due to recent design wins and stabilization in fixed contracts [108] Question: Can you elaborate on cost management strategies? - The company is implementing cost initiatives to drive efficiency while continuing to invest in R&D and technology to support innovation [116]

X X | --- | --- | --- | --- | |------------------|-------------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | Rich Yerganian, SVP of Investor Relations | | | | | Cerence Q1FY23 February 8, 2023 | | | | | Earnings Presentation | | | | | Stefan Ortmanns, CEO | | | | | | | | | | Tom Beaudoin, CFO | | | | | | | | | | | | | | | | | | | Destination Next | | | | X X Forward-Looking Statements Statements in this presentation regarding: Cerence's future performance, resul ...

FORM 10-Q CERENCE INC. (Exact name of registrant as specified in its charter) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically eve ...