Cerence(US:CRNC)2024-02-06 14:06Financial Performance & Guidance - Q1 FY24 revenue was $138.3 million, which includes a $77.7 million acceleration of non-cash revenue associated with the Toyota "Legacy" contract[4] - The company expects Q2 FY24 revenue between $60 million and $64 million, and full year FY24 revenue between $355 million and $375 million[38] - Q1 FY24 GAAP gross margin was 81%, with a non-GAAP gross margin of 81.5%[4] - The guidance for full year non-GAAP EPS has increased due to favorable foreign exchange rates in Q1 FY24[38] Key Performance Indicators - 12.4 million units shipped with Cerence technology, up 7% year-over-year and up 6% quarter-over-quarter[37] - Global auto penetration remained at 54%[42, 71] - Monthly Active Users increased by 30% year-over-year[37] Strategic Initiatives & Priorities - The company is focused on leveraging the strong momentum of its AI roadmap, partnering with OEMs for quick deployment of cloud-based technologies, and achieving SOP for key products[46] - AI product strategy is based on data ownership, customizable and OEM-controlled solutions, ultra-fast inferencing, and cost optimization[42] - The company is building on strong receptivity from global OEMs to grow the pipeline for new products[46] Toyota "Legacy" Contract - Toyota decided to decommission the "Legacy" solution in Q1 FY24, resulting in the acceleration of $77.7 million of deferred revenue[4, 50] - The original amortization schedule for the contract projected through Q1FY26 at approximately $8.4 million per quarter[50]