NASDAQ$CRNC

Cerence Inc. · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Cerence's Q4 results exceeded guidance, with positive cash flow and progress in generative AI solutions.

Cerence reported Q4 revenue exceeding the high end of guidance and positive cash flow from operations. The company's transformation plan is on track, and it saw a record number of platform launches, including generative AI solutions.

  • Q4 Revenue exceeded high end of guidance; positive cash flow from operations of $6.1 million
  • Transformation plan on track to deliver net annualized cost savings of $35-$40 million
  • Initial FY25 revenue guidance of $236 to $247 million
  • Record high of 22 platform launches in FY24, including 6 for generative AI solutions and 4 in Q4

Headline financials

Total Revenue

$54.8M

Previous: $80.8M-32.1%
EPS (adj)

-$0.07

Previous: $0.09-177.8%
GAAP Gross Margin

63.7%

No prior period
Adjusted EBITDA

-$1.94M

No prior period
Capital Expenditures

$1.45M

Previous: -$1.53M+194.7%
Net Income

-$20.4M

Previous: -$11.6M-76.7%
Operating Income

-$19.2M

Previous: $3.9M-593.5%
Gross Profit

$34.9M

Previous: $57.7M-39.6%
R&D Expense

$25.2M

Previous: $35.1M-28.2%
Stock-Based Comp

$4.38M

Previous: $8.97M-51.1%

Revenue & EPS history

Cerence · Revenue · Quarterly

$54.8M

Q4 2024-32.1%vs Q4 2023
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 December 31, 2024, revenue is expected to be in the range of $47 million to $50 million. GAAP net loss is expected to be in the range of ($26) million to ($23) million. Adjusted EBITDA is expected to be in the range of ($9) million to ($6) million. For the full fiscal year ending September 30, 2025, the company expects revenue to be in the range of $236 million to $247 million which includes an estimated $20 million of fixed contracts at the mid-point of guidance. GAAP net loss is expected to be in the range of ($40) million to ($29) million. Adjusted EBITDA is expected to be in the range of $15 million to $26 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 Q4 2024

Historical avgQ4 2024

+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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