NASDAQ$CRNC

Cerence Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Cerence reported third quarter fiscal year 2023 results, with revenue and key profitability metrics at or above the high end of guidance.

Cerence's Q3 2023 results showed strength in the core automotive business with new OEM platform launches and emerging market growth, along with progress in the two-wheeler market, all while focusing on leveraging generative AI and large language models.

  • On track to achieve full fiscal year revenue guidance
  • Strategic wins for connected services for a major Japanese OEM and Emergency Vehicle Detection for a major Korean OEM's ADAS platform
  • Two-wheeler design win for major Japanese brand; four two-wheeler manufacturers start production (SOP)
  • Successful convertible note offering leading to approximately $8 million in annual interest expense savings

Headline financials

Total Revenue

$61.7M

Previous: $89M-30.8%
EPS (adj)

-$0.04

Previous: $0.43-109.3%
Capital Expenditures

-$3.6M

Previous: -$14.4M+75.1%
Free Cash Flow

-$20.1M

Previous: -$114M+82.4%
Net Income

-$16.5M

Previous: -$99.3M+83.4%
Operating Income

-$8.5M

Previous: $15.8M-153.9%
Gross Profit

$40.7M

Previous: $64.8M-37.1%
Cash & Equivalents

$86.1M

Previous: $108M-20.6%
Total Assets

$1.31B

Previous: $1.58B-16.8%
Stock-Based Comp

$6.97M

Previous: $6.25M+11.5%

Revenue & EPS history

Cerence · Revenue · Quarterly

$61.7M

Q3 2023-30.8%vs Q3 2022
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, 2023, revenue is expected to be in the range of $72 million to $76 million. GAAP Net Loss is expected to be in the range of ($13) million to ($9) million. Adjusted EBITDA is expected to be in the range of approximately $10 million to $14 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 2023

Historical avgQ3 2023

+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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