Cerence Inc. · Q4 2023 earnings

Briefing

Cerence reported strong Q4 and fiscal year results, exceeding revenue and profitability guidance.

Cerence's Q4 2023 revenue was $80.8 million, exceeding the high end of the initial guidance range. The company also reported a GAAP net loss of $11.6 million, but a non-GAAP net income of $3.8 million. Cerence secured 14 strategic design wins in fiscal year 2023, including five competitive winbacks, and maintained a leadership position with Cerence technology in 54% of global auto production.

• Revenue and profitability exceeded the high end of the initially guided range for the full fiscal year.
• Cerence had five consecutive quarters of strong execution.
• Fourteen strategic design wins in the fiscal year including five competitive winbacks.
• Cerence maintained a leadership position with Cerence penetration staying strong at 54% of global auto production.

Headline financials

Revenue & EPS history

For the fiscal quarter ending December 31, 2023, revenue is expected to be in the range of $128 million to $132 million. GAAP Net Income is expected to be in the range of $19 million to $23 million. Adjusted EBITDA is expected to be in the range of approximately $58 million to $62 million. For the full fiscal year ending September 30, 2024, the company expects revenue to be in the range of $355 million to $375 million. GAAP Net Income is expected to be in the range of $20 million to $35 million. Adjusted EBITDA is expected to be in the range of approximately $94 million to $109 million.