NASDAQ$CRNC
Cerence Inc. · Q1 2024 earnings
Q1 2024 earnings · · Investor relations
Briefing
Cerence's Q1 2024 performance exceeded guidance with strong execution, strategic AI partnerships, and key business wins.
Cerence's Q1 2024 results exceeded the high end of guidance, driven by advancements in AI technology and strategic partnerships with NVIDIA and Microsoft. The company secured key business wins, including a win-back for a large Japanese OEM and a major win in AIoT. Revenue was significantly impacted by the acceleration of non-cash revenue from the Toyota "Legacy" contract.
- Revenue and profitability exceeded the high end of guidance, marking six quarters of strong execution.
- AI partnerships with NVIDIA and Microsoft were announced to enhance generative AI capabilities.
- Cerence maintained a leadership position with 54% penetration of global auto production.
- New business included a win-back for a large Japanese OEM, a program extension for a major North America OEM, and a major win in AIoT for a wearable product.
Headline financials
Revenue & EPS history
Cerence · Revenue · Quarterly
$138M
Revenue by segment
Cerence · $80.8M total across 3 segments · Q4 2023
- License$43.1M+126.9%53.4%
- Connected Services$19.2M+5.9%23.7%
- Professional Services$18.5M-12.1%22.9%
Forward guidance
For the fiscal quarter ending March 31, 2024, revenue is expected to be in the range of $60 million to $64 million. GAAP Net Loss is expected to be in the range of ($14) million to ($10) million. Adjusted EBITDA is expected to be in the range of approximately ($8) million to ($4) million. For the full fiscal year ending September 30, 2024, the company continues to expect revenue to be in the range of $355 million to $375 million which includes an estimated $20 million of fixed contracts. GAAP Net Income is expected to be in the range of $11 million to $26 million. Adjusted EBITDA is expected to be in the range of approximately $94 million to $109 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 2024
+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
| Quarter | Report date | Reaction (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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