Business
Cerence Announces First Quarter Fiscal Year 2023 Results
Headlines Strong Core Business drives revenue and profitabilityCerence Co-Pilot wins four more customers, including two win-backs Cerence Ride wins three more
About this update from Cerence Inc.
[{"type":"text","content":"Headlines Strong Core Business drives revenue and profitabilityCerence Co-Pilot wins four more customers, including two win-backs Cerence Ride wins three more design awards for two-wheelersInvestor Day sets “Destination Next” long-term growth strategy BURLINGTON, Mass., Feb. 08, 2023 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, today reported its first quarter fiscal year 2023 results for the quarter ended December 31, 2022. Results Summary (1) (in millions, except per share data) Three Months Ended December 31, 2022 2021 GAAP Revenue $83.7 $94.4 GAAP Gross Margin 68.7% 74.3% Non-GAAP Gross Margin 70.4% 77.5% GAAP Operating Margin -2.4% 24.3% Non-GAAP Operating Margin 20.5% 36.8% GAAP Net (Loss) Income $(2.2) $19.0 Non-GAAP Net Income $14.2 $25.3 Adjusted EBITDA $19.7 $36.9 Adjusted EBITDA Margin 23.5% 39.1% GAAP Net (Loss) Income per Share - diluted $(0.05) $0.47 Non-GAAP Net Income per Share - diluted $0.36 $0.59 (1) Please refer to the “Discussion of Non-GAAP Financial Measures” and “Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures” included elsewhere in this release for more information regarding our use of non-GAAP financial measures. Stefan Ortmanns, Chief Executive Officer at Cerence, commented, “We had a strong start to the fiscal year with revenue higher than projected in the core business due to stronger than expected contributions from connected services, professional services, and fixed contracts. The amount of fixed contracts are within the framework of the $40M targeted for the full fiscal year. Consumption of fixed contracts were lower than expected as well. The higher revenue for the quarter resulted in better-than-expected financial results.” “We had a number of key design wins in the quarter in both the automotive and two-wheeler markets, including two win-backs from competitors,” continued Ortmanns. “These wins for Cerence Co-Pilot and Cerence Ride are important indicators of our future growth and our ability to meet the multi-year targets we set forth at our investor day event.” “While our customers are still navigating a cloudy macro environment due to issues such as semiconductor shortages, we remain confident in our full-year guidance. We remain focused on innovation, execution and delivery as we march toward Destination Next for Cerence,” Ortmanns con...