Cerence Inc. · Q2 2023 earnings

Briefing

Reported second quarter fiscal year 2023 results, with revenue and key profitability metrics exceeding the high end of the range and bookings for the first half of the fiscal year up 11% over the second half of fiscal 2022.

Cerence Inc. reported strong Q2 results driven by its core automotive business, with revenue and key profitability metrics above the high end of the range. Bookings for the first half of the fiscal year were $263 million, up 11% over the second half of fiscal 2022. The company is raising the low end of its full fiscal year revenue guidance by $5 million to $280 million.

• Strong Core Business drives revenue and profitability
• Bookings for the first six months of $263M with visibility into an expected strong second half of the fiscal year
• Cerence recorded another win-back for providing connected services in North America for a global luxury OEM
• Generative AI drives enhanced version of Car Knowledge

Headline financials

Revenue & EPS history

For the fiscal quarter ending June 30, 2023, revenue is expected to be in the range of $58 million to $62 million. Adjusted EBITDA is expected to be in the range of approximately ($5) million to ($1) 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 $280 million to $290 million. Adjusted EBITDA is expected to be in the range of approximately $27 million to $34 million.