NASDAQ$CRNC

Cerence Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Delivered solid performance in core automotive business, achieved record professional services revenue and secured key wins and nominations.

Cerence Inc. reported its third quarter fiscal year 2022 results. The company delivered strong performance in its core automotive business and achieved record professional services revenue. Cerence secured key wins and nominations, including a win back from Big Tech. The company is maintaining a strong focus on productivity, performance-based operations, and cost structures.

  • Delivered strong performance in core automotive business
  • Achieved record professional services revenue, a key indicator of license and connected services growth
  • Secured key wins and nominations including a win back from Big Tech
  • Maintained strong focus on productivity, performance-based operations and cost structures

Headline financials

Total Revenue

$89M

Previous: $96.8M-8.0%
EPS (adj)

$0.43

Previous: $0.62-30.6%
Capital Expenditures

-$14.4M

Previous: -$8.06M-79.0%
Free Cash Flow

-$114M

Previous: -$2.26M-4937.0%
Net Income

-$99.3M

Previous: $5.8M-1812.1%
Operating Income

$15.8M

Previous: $14.9M+5.5%
Gross Profit

$64.8M

Previous: $73M-11.2%
Cash & Equivalents

$108M

Previous: $121M-10.2%
Total Assets

$1.58B

Previous: $1.71B-7.7%
Stock-Based Comp

$6.25M

Previous: $14.7M-57.5%

Revenue & EPS history

Cerence · Revenue · Quarterly

$89M

Q3 2022-8%vs Q3 2021
Beat estimate in 13 of 15 quarters(87%)
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

For the fiscal quarter ending September 30, 2022, revenue is expected to be in the range of $52 million to $58 million. Adjusted EBITDA is expected to be in the range of approximately ($11) million to ($5) million. For the full fiscal year ending September 30, 2022, revenue is now expected to be in the range of $322 million to $328 million. Adjusted EBITDA is expected to be in the range of approximately $79 million to $85 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 Q3 2022

Historical avgQ3 2022

+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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