Business
Cerence Announces Third Quarter 2020 Results
Third Quarter Highlights Bookings momentum continued with the second highest total in the company’s history, supported by strategic wins in all major
About this update from Cerence Inc.
[{"type":"text","content":"Third Quarter Highlights\n Bookings momentum continued with the second highest total in the company’s history, supported by strategic wins in all major geographic marketsSecular technology trends continue driving fiscal YTD revenue of $238.8M, up 8% year-over-year despite major impact of COVID-19 on global auto productionStrong financial performance generated $19.3M from cash flow from operations during the quarterGenerated adjusted EBITDA of $23.8M and adjusted EBITDA margin of 31.8%Successfully refinanced total debt resulting in more than $10M annual cash interest expense savings BURLINGTON, Mass., Aug. 04, 2020 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, today reported its third fiscal quarter 2020 results for the quarter ended June 30, 2020. Results Summary (1)(in millions, except per share data) Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 GAAP Revenue $74.8 $77.6 $238.8 $220.4 GAAP Gross Margin% 63.1% 69.5% 65.5% 67.2%Non-GAAP Gross Margin% 68.7% 72.5% 69.9% 70.6%GAAP Operating Margin% -6.3% 4.2% 2.2% 2.8%Non-GAAP Operating Margin% 28.4% 33.9% 28.3% 27.7%Adjusted EBITDA $23.8 $28.1 $74.6 $66.9 Adjusted EBITDA margin 31.8% 36.2% 31.2% 30.4%GAAP net (loss) income $(28.2) $1.8 $(27.4) $4.5 Non-GAAP net income $12.1 $18.9 $38.6 $43.7 GAAP net (loss) income per share - diluted $(0.77) $0.05 $(0.76) $0.12 Non-GAAP net income per share - diluted $0.31 $0.52 $1.03 $1.20 (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, “While the impact of COVID-19 has weighed on the global economy, our fiscal year to-date revenues are up 8% compared to the same period in the prior year. During a period of a dramatic drop-off in auto production our revenue declined less than 4% in the quarter versus a year ago. This was primarily due to the SaaS revenue contribution of our connected services and continued strength in our professional services business.” Dhawan added, “We recorded the second highest bookings quarter in the company’s history supported by several strategic wins ...