Cerence Inc. · Q3 2021 earnings

Briefing

Cerence reported strong third quarter 2021 results, exceeding company quarterly guidance on key GAAP and non-GAAP profitability metrics.

Cerence's third quarter 2021 results showed a 29% year-over-year revenue growth and exceeded company quarterly guidance on key GAAP and non-GAAP profitability metrics. The company also increased FY24 revenue target from $600M to $700M, and improved key profitability metrics. Record number of auto SOPs (Start Of Production) from over 15 auto OEMs was achieved and strategic collaborations were announced in the quarter with Sirius XM, Visteon and Harman.

• Revenue grew 29% year-over-year
• Exceeded company quarterly guidance on key GAAP and non-GAAP profitability metrics
• Increased FY24 revenue Target from $600M to $700M, and improved key profitability metrics
• Record number of auto SOPs (Start Of Production) from over 15 auto OEMs

Headline financials

Revenue & EPS history

For the fiscal quarter ending September 30, 2021, Revenue is expected to be in the range of $97M to $101M representing a 6% to 11% increase compared to the same period in the prior year. GAAP Net Income is expected to be in the range of $3M to $7M, and Adjusted EBITDA is expected to be in the range of $36M to $39M. The Adjusted EBITDA guidance excludes acquisition-related costs, amortization of acquired intangible assets, stock-based compensation, and restructuring and other costs.