Cerence Inc. · Q2 2022 earnings

Briefing

Cerence's financial performance declined due to headwinds facing the global automotive industry, despite solid financial results fueled by deepened relationships with long-term customers.

Cerence Inc. reported a GAAP revenue of $86.3 million for the second quarter of fiscal year 2022, a decrease compared to $98.7 million in the same period last year. The company experienced a GAAP net loss of $0.5 million, contrasting with a net income of $11.2 million in the prior year. Despite these challenges, Cerence highlighted deepened relationships with long-term customers and expansion in newer areas like heavy trucking and two-wheelers.

• First half bookings totaled $448 million, up 53% compared to 1HFY21
• Bookings include a significant business increase with a North American OEM
• Several Chinese EV makers adopt Cerence technology for global expansion
• Maintain full fiscal year 2022 guidance

Headline financials

Revenue & EPS history

For the fiscal quarter ending June 30, 2022, revenue is expected to be in the range of $90 million to $94 million. Adjusted EBITDA is expected to be in the range of approximately $26 million to $30 million. The full-year fiscal 2022 guidance provided by Cerence on February 7, 2022, remains unchanged.