Cerence Inc

CRNC

Equity

ISIN US1567271093 / Valor 49718898

NASDAQ (2024-11-20)

USD 2.82-5.05%

Cerence Inc
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About company

Cerence Inc. is a company that specializes in creating advanced technology solutions for the automotive industry, focusing on enhancing the digital experience within vehicles. Under the leadership of Chief Product Officer Nils Schanz, Cerence has developed a strong portfolio in mobility products, including the digital cabin strategy, which encompasses a range of user interface and experience innovations such as the MBUX (Mercedes-Benz User Experience). This includes highly regarded systems like the MBUX Hyperscreen and the voice assistant "Hey Mercedes," indicating the company's expertise in integrating artificial intelligence and intuitive design into automotive products. With a global operational footprint, Cerence is committed to delivering these cutting-edge technologies to its customers, aiming to redefine the in-car experience. Chief Financial Officer Dan Tempesta, with his extensive background in finance and operations, including a significant tenure at Nuance Communications, plays a crucial role in steering the company towards sustainable growth and operational excellence. Cerence's focus on AI and digital interaction technologies positions it as a key player in the evolving automotive technology landscape, aiming to make vehicles more connected, intuitive, and responsive to user needs.

Summarized from source with an LLMView SourceSector: Technology

Revenue Performance

Cerence Inc. reported GAAP revenue of $70.5 million for the third quarter of fiscal year 2024, which ended on June 30, 2024. This represents an increase from the $61.7 million reported in the same quarter of the previous year. The company’s non-GAAP gross margin also improved to 72.4% from 66.5% year-over-year.

Net Income and Loss

For Q3 FY2024, Cerence Inc. reported a GAAP net loss of $313.5 million, significantly higher than the $16.5 million loss in Q3 FY2023. This substantial increase in net loss includes a goodwill impairment charge of $357 million. On a non-GAAP basis, the company achieved a net income of $8.4 million, compared to a loss of $1.7 million in the same period last year.

Operating Margins

Cerence Inc. reported a GAAP operating margin of -503.1% for Q3 FY2024, a significant decline from -13.8% in Q3 FY2023. However, the non-GAAP operating margin showed improvement, rising to 14.7% from 0.5% year-over-year. This indicates better operational efficiency on a non-GAAP basis.

Cash Flow and EBITDA

In Q3 FY2024, Cerence Inc. generated positive cash flow from operations amounting to $12.9 million. The company also reported an adjusted EBITDA of $12.5 million, up from $2.8 million in the same quarter of the previous year. The adjusted EBITDA margin improved to 17.7% from 4.5% year-over-year.

Future Outlook

For the fourth quarter of fiscal year 2024, Cerence Inc. expects revenue to be in the range of $44 million to $50 million. The company anticipates a GAAP net loss between $32 million and $28 million, and an adjusted EBITDA ranging from -$19 million to -$13 million. For the full fiscal year 2024, revenue is projected to be between $321 million and $327 million, with an adjusted EBITDA of $64 million to $70 million.

Summarized from source with an LLMView Source

Key figures

-84.5%1Y

-97.3%3Y

-81.0%5Y

Performance

90.0%1Y

74.6%3Y

75.7%5Y

Volatility