Business
Cerence Announces Strong Third Quarter 2021 Results
Cerence Third Quarter Highlights Revenue grew 29% year-over-yearExceeded company quarterly guidance on key GAAP and non-GAAP profitability metrics Increased
About this update from Cerence Inc.
[{"type":"text","content":"Cerence Third Quarter Highlights Revenue grew 29% year-over-yearExceeded company quarterly guidance on key GAAP and non-GAAP profitability metrics Increased FY24 revenue Target from $600M to $700M, and improved key profitability metrics Record number of auto SOPs (Start Of Production) from over 15 auto OEMsStrategic collaborations announced in the quarter with Sirius XM, Visteon and Harman BURLINGTON, Mass., Aug. 09, 2021 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, today reported its third fiscal quarter 2021 results for the quarter ended June 30, 2021. Results Summary (1)(in millions, except per share data) Three Months Ended Nine Months Ended June 30, June 30, 2021 2020 2021 2020 GAAP Revenue $96.8 $75.2 $289.1 $239.7 GAAP Gross Margin 75.4% 63.3% 73.4% 65.7% Non-GAAP Gross Margin 79.1% 68.9% 77.0% 70.0% GAAP Operating Margin 15.4% -5.7% 17.2% 2.6% Non-GAAP Operating Margin 37.7% 28.7% 38.0% 28.6% GAAP Net Income (Loss) $5.8 $(28.1) $37.9 $(26.5) Non-GAAP Net Income $26.1 $12.4 $78.8 $39.3 Adjusted EBITDA $38.7 $24.2 $117.1 $75.6 Adjusted EBITDA Margin 40.0% 32.1% 40.5% 31.5% GAAP Net Income (Loss) per Share - diluted $0.15 $(0.77) $0.97 $(0.73) Non-GAAP Net Income per Share - diluted $0.62 $0.32 $1.87 $1.05 (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. Sanjay Dhawan, Chief Executive Officer of Cerence, stated, “According to IHS Markit, calendar Q2 is expected to be the quarter with the most disruption due to the semiconductor shortage yet we delivered 29% revenue growth over the prior year period. This growth is testament to our breadth of customers, products and services. With a record of more than 60 SOPs in the quarter from more than 15 different auto makers, and the bookings momentum for our new products and connected services, we expect to continue to grow faster than the auto SAAR (seasonally adjusted annual rate).” Dhawan concluded, “Enhancing our future growth opportunities are the strategic collaborations we announced in the quarter with Sirius XM, Visteon and Harman. In the case of Visteon, the collaboration extends into the two-wheeler market, a new adjacent market in which we are...