NASDAQ$CRNC

Cerence Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Cerence reported record quarterly GAAP revenue and strong financial performance.

Cerence Inc. reported its second fiscal quarter 2020 results with record quarterly GAAP revenue at $86.5M, an increase of approximately 23% year over year. The company also reported GAAP EPS of $0.33 and non-GAAP EPS of $0.43.

  • First-half of fiscal year bookings reach a record of $533M exceeding FY2019 full year bookings
  • Record quarterly GAAP revenue at $86.5M increased approximately 23% year over year
  • Strong financial performance with GAAP EPS of $0.33 and non-GAAP EPS of $0.43
  • Adjusted EBITDA of $29.0M increased 55%, and adjusted EBITDA margin of 33.6% increased 26% compared to Q2FY19

Headline financials

Total Revenue

$86.5M

Previous: $70.3M+23.0%
EPS (adj)

$0.43

Previous: $0.01+4200.0%
Adjusted EBITDA

$29M

Previous: $18.7M+55.1%
Capital Expenditures

-$10.1M

Previous: $1.97M-613.9%
Free Cash Flow

$2.35M

Previous: $23.6M-90.0%
Net Income

$12.5M

Previous: $454K+2652.2%
Operating Income

$12M

Previous: $168K+7046.4%
Gross Profit

$57.8M

Previous: $45.9M+26.0%
Cash & Equivalents

$95.6M

No prior period
Total Assets

$1.65B

No prior period
Stock-Based Comp

$6.56M

Previous: $6.79M-3.4%

Revenue & EPS history

Cerence · Revenue · Quarterly

$86.5M

Q2 2020+23%vs Q2 2019
Beat estimate in 7 of 9 quarters(78%)
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

Due to the global economic impact of COVID-19, the company is unable to provide guidance for its fiscal Q3 and is withdrawing its previous guidance for the fiscal year.

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 Q2 2020

Historical avgQ2 2020

+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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