Business
Cerence Announces Fourth Quarter and Fiscal Year 2023 Results
Headlines Revenue and profitability exceed the high end of the initially guided range for the full fiscal yearFive consecutive quarters of strong
About this update from Cerence Inc.
[{"type":"text","content":"Headlines Revenue and profitability exceed the high end of the initially guided range for the full fiscal yearFive consecutive quarters of strong executionFourteen strategic design wins in the fiscal year including five competitive winbacksMaintain a leadership position with Cerence penetration staying strong at 54% of global auto productionFine-tuned LLM with Cerence vertical automotive dataset delivered to customers, advancing Destination Next software platform BURLINGTON, Mass., Nov. 27, 2023 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, today reported its fourth quarter and fiscal year 2023 results for the year ended September 30, 2023. Results Summary (1) (in millions, except per share data) Three Months Ended Twelve Months Ended September 30, September 30, 2023 2022 2023 2022GAAP revenue $80.8 $58.1 $294.5 $327.9GAAP gross margin 71.5% 58.1% 67.7% 70.4%Non-GAAP gross margin 72.9% 58.9% 69.1% 72.4%GAAP operating margin 4.8% -394.4% -9.2% -56.2%Non-GAAP operating margin 17.8% -9.8% 10.8% 23.5%GAAP net loss (2) (3) $(11.6) $(230.1) $(56.3) $(310.8) GAAP net loss margin -14.3% -395.8% -19.1% -94.8%Non-GAAP net income (loss) $3.8 $(5.5) $14.6 $50.4Adjusted EBITDA $16.6 $(3.1) $41.5 $86.4Adjusted EBITDA margin 20.5% -5.3% 14.1% 26.3%GAAP net (loss) income per share - diluted $(0.29) $(5.84) $(1.40) $(7.93)Non-GAAP net income (loss) per share - diluted $0.09 $(0.14) $0.36 $1.24 (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.(2)During the third quarter of fiscal 2022, the company established a valuation allowance of $107.6 million against our deferred tax assets in a foreign jurisdiction, which consist of tax amortizable intellectual property and net operating loss carryforwards. This provision is a non-cash event.(3)During the fourth quarter of fiscal 2022, the company reported a goodwill impairment of $213.7 million. This provision is a non-cash event. Stefan Ortmanns, Chief Executive Officer at Cerence, commented, “We finished the fiscal year strong with revenue for the quarter and fiscal year above the high end of the guidance range. Accordingly, we delivered better than expected full fiscal year ...