Cerence(US:CRNC)2024-08-08 11:10Financial Performance - Q3 FY2024 revenue was $70.5 million, up 14.2% from $61.7 million in Q3 FY2023, with a year-to-date revenue of $276.7 million compared to $213.7 million in the previous year[1]. - GAAP net loss for Q3 FY2024 was $(313.5) million, significantly higher than $(16.5) million in Q3 FY2023, with a year-to-date net loss of $(567.7) million compared to $(44.7) million last year[1]. - Non-GAAP net income for Q3 FY2024 was $8.4 million, a recovery from a loss of $(1.7) million in Q3 FY2023, with year-to-date non-GAAP net income at $59.1 million compared to $10.8 million[1]. - For Q4 FY2024, revenue is projected to be between $44 million and $50 million, with a GAAP net loss expected in the range of $(32) million to $(28) million[4]. - Full fiscal year 2024 revenue is expected to be between $321 million and $327 million, including an estimated $30 million from fixed contracts, with a GAAP net loss projected at $(600) million to $(596) million[4]. - Adjusted EBITDA for Q4 FY2024 is expected to be between $(19) million and $(13) million, with full-year adjusted EBITDA projected at $64 million to $70 million[4]. - GAAP revenue for the three months ended June 2024 was $70,539,000, an increase of 14.4% compared to $61,660,000 for the same period in 2023[25]. - GAAP gross profit for the nine months ended June 2024 was $209,377,000, representing a 47.8% increase from $141,576,000 in the prior year[25]. - GAAP net loss for the nine months ended June 2024 was $567,662,000, compared to a net loss of $44,702,000 for the same period in 2023[26]. - Non-GAAP operating income for the nine months ended June 2024 was $76,254,000, significantly higher than $17,388,000 in the previous year[25]. - Adjusted EBITDA for the nine months ended June 2024 was $82,550,000, up from $24,932,000 in the same period of 2023[25]. - Free cash flow for the latest quarter was $12,078, a significant increase from $(9,717) in the previous quarter[28]. Customer and Market Developments - Five generative AI customer programs have been released to production, with eight generative AI wins year-to-date and four additional launches expected by year-end[2]. - Cerence's technology is present in 53% of worldwide auto production, with a 19% increase in the number of connected cars shipped year-over-year[3]. - The company shipped over 500 million cars with Cerence technology, showcasing its extensive market penetration and experience in the automotive sector[21]. - Future outlook includes a focus on expanding connected mobility solutions and enhancing AI-powered interactions between consumers and vehicles[21]. Cost Management and Savings - The company anticipates net annualized cost savings of approximately $35 to $40 million from transformation plans, expected to benefit the business model starting in FY2025[2]. Asset and Liability Changes - The total assets decreased to $673,981,000 as of June 30, 2024, from $1,297,590,000 as of September 30, 2023, indicating a significant reduction in asset base[23]. - Current liabilities increased to $183,242,000 as of June 30, 2024, compared to $148,093,000 as of September 30, 2023, reflecting a rise in short-term obligations[23]. Research and Development - Research and development expenses for the quarter were $31,184,000, slightly up from $30,202,000 in Q2 2023, highlighting continued investment in innovation[22]. Stock-Based Compensation - Stock-based compensation for the nine months ended June 2024 totaled $19,291,000, down from $31,801,000 in the previous year[25]. - Stock-based compensation for FY2024 is expected to be around $23,300[30].