NASDAQ$CRNC

Cerence Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Cerence reported first quarter fiscal year 2023 results, with revenue higher than projected in the core business due to stronger than expected contributions from connected services, professional services, and fixed contracts.

Cerence had a strong start to the fiscal year with revenue higher than projected in the core business. Cerence Co-Pilot wins four more customers, including two win-backs. Cerence Ride wins three more design awards for two-wheelers.

  • Strong Core Business drives revenue and profitability
  • Cerence Co-Pilot wins four more customers, including two win-backs
  • Cerence Ride wins three more design awards for two-wheelers
  • Investor Day sets “Destination Next” long-term growth strategy

Headline financials

Total Revenue

$83.7M

Previous: $94.4M-11.4%
EPS (adj)

$0.36

Previous: $0.59-39.0%
Capital Expenditures

-$683K

Previous: -$4.41M+84.5%
Free Cash Flow

-$2.84M

Previous: $14.6M-119.4%
Net Income

-$2.16M

Previous: $19M-111.3%
Operating Income

-$1.98M

Previous: $22.9M-108.6%
Gross Profit

$57.5M

Previous: $70.2M-18.1%
Cash & Equivalents

$90.7M

Previous: $117M-22.7%
Total Assets

$1.35B

Previous: $1.69B-20.3%
Stock-Based Comp

$12.5M

Previous: $5.84M+113.5%

Revenue & EPS history

Cerence · Revenue · Quarterly

$83.7M

Q1 2023-11.4%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Cerence · $80.8M total across 3 segments · Q4 2023

  • License
    $43.1M+126.9%
  • Connected Services
    $19.2M+5.9%
  • Professional Services
    $18.5M-12.1%

Forward guidance

For the fiscal quarter ending March 31, 2023, revenue is expected to be in the range of $64 million to $68 million. Adjusted EBITDA is expected to be in the range of approximately $1 million to $4 million. For the full fiscal year ending September 30, 2023, the company has raised the low end of the initial guidance with revenue now expected to be in the range of $275 million to $290 million. Adjusted EBITDA is expected to be in the range of approximately $27 million to $34 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+6.5%

Avg return

Earnings day

+6.5%

Avg return

5 days after

+8.5%

Avg return

30 days after

67%

20 / 30 earnings

Positive

+155.3%

Q4 2024

Best reaction

-44.0%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+3.8%+1.3%+0.5%
Q1 2026+4.1%-18.6%-29.2%
Q4 2025+26.8%+29.5%+41.7%
Q2 2025-12.1%+1.7%+1.8%
Q1 2025+13.7%+12.1%-19.1%
Q4 2024+155.3%+129.4%+172.0%
Q3 2024+6.3%+6.1%+23.2%
Q2 2024-44.0%-47.8%-68.2%
Q1 2024-20.2%-16.6%-29.5%
Q4 2023+2.2%+1.7%+15.4%
Q3 2023+2.1%+1.4%-7.0%
Q2 2023-13.6%-10.7%+14.5%
Q1 2023+3.7%+1.9%-9.5%
Q4 2022+33.5%+25.0%+22.1%
Q3 2022-20.4%-20.7%-37.3%
Q2 2022-1.6%+10.2%+11.3%
Q1 2022-28.0%-31.8%-48.5%
Q4 2021-24.8%-25.9%-30.6%
Q3 2021+12.9%+10.0%-1.4%
Q2 2021-4.3%-5.3%+29.0%
Q1 2021-3.8%+6.2%-19.1%
Q4 2018+19.0%+22.7%+43.0%
Q4 2020+6.0%+27.4%+42.4%
Q3 2019+4.3%-1.3%-1.4%
Q3 2020+31.2%+21.3%+24.4%
Q2 2019+9.3%+8.0%+63.5%
Q2 2020+13.8%+27.1%+83.3%
Q1 2019+3.3%+2.5%-25.7%
Q1 2020+2.5%+5.9%-28.6%
Q4 2019+15.5%+21.1%+21.0%
Q3 2018
Q2 2018
Q1 2018

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