Business
Cerence Announces Second Quarter Fiscal Year 2023 Results
Headlines Strong Core Business drives revenue and profitabilityBookings for the first six months of $263M with visibility into an expected strong second half
About this update from Cerence Inc.
[{"type":"text","content":"Headlines Strong Core Business drives revenue and profitabilityBookings for the first six months of $263M with visibility into an expected strong second half of the fiscal yearCerence records another win-back for providing connected services in North America for a global luxury OEMGenerative AI drives enhanced version of Car Knowledge BURLINGTON, Mass., May 09, 2023 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, today reported its second quarter fiscal year 2023 results for the quarter ended March 31, 2023. Results Summary (1) (in millions, except per share data) Three Months Ended Six Months Ended March 31, March 31, 2023 2022 2023 2022 GAAP Revenue $68.4 $86.3 $152.1 $180.7 GAAP Gross Margin 63.4% 71.8% 66.3% 73.1%Non-GAAP Gross Margin 65.3% 74.7% 68.1% 76.2%GAAP Operating Margin -30.1% 7.3% -14.9% 16.2%Non-GAAP Operating Margin -0.1% 25.2% 11.2% 31.2%GAAP Net (Loss) Income $(26.1) $(0.5) $(28.2) $18.6 GAAP Net (Loss) Income Margin -38.1% -0.6% -18.6% 10.3%Non-GAAP Net (Loss) Income $(1.7) $13.6 $12.5 $39.0 Adjusted EBITDA $2.5 $24.0 $22.2 $60.9 Adjusted EBITDA Margin 3.6% 27.9% 14.6% 33.7%GAAP Net (Loss) Income per Share - diluted $(0.65) $(0.01) $(0.70) $0.47 Non-GAAP Net (Loss) Income per Share - diluted$(0.04) $0.33 $0.31 $0.93 (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 continue to deliver on our commitments, with our Q2 results showing another strong quarter based on the performance of our core automotive business. We remain focused on innovation, customer delivery, and operational excellence, and based on our strong results for the first half of the fiscal year we are raising the low end of our full fiscal year guidance by $5 million to $280 million.” “Revenue for the quarter, as well as most of the key profitability metrics, were above the high end of the range. Bookings for the first half of the fiscal year were $263M, up 11% over the second half of fiscal 2022. We had strong bookings in the first half, with seven strategic wins, including three competitive win-backs. In Q2, we had a win-back for connected services in...