Business
Cerence Announces Third Quarter Fiscal Year 2023 Results
Headlines On track to achieve full fiscal year revenue guidanceStrategic wins for connected services for a major Japanese OEM and Emergency Vehicle Detection
About this update from Cerence Inc.
[{"type":"text","content":"Headlines On track to achieve full fiscal year revenue guidanceStrategic wins for connected services for a major Japanese OEM and Emergency Vehicle Detection for a major Korean OEM’s ADAS platform Two-wheeler design win for major Japanese brand; four two-wheeler manufacturers start production (SOP)Successful convertible note offering leading to approximately $8 million in annual interest expense savings BURLINGTON, Mass., Aug. 08, 2023 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, today reported its third quarter fiscal year 2023 results for the quarter ended June 30, 2023. Results Summary (1) (in millions, except per share data) Three Months Ended Nine Months Ended June 30, June 30, 2023 2022 2023 2022GAAP Revenue$61.7 $89.0 $213.7 $269.7GAAP Gross Margin66.0% 72.8% 66.2% 73.0%Non-GAAP Gross Margin66.5% 73.7% 67.7% 75.3%GAAP Operating Margin-13.8% 17.7% -14.6% 16.7%Non-GAAP Operating Margin0.5% 29.4% 8.1% 30.6%GAAP Net Loss($16.5) ($99.3) ($44.7) ($80.7)GAAP Net Loss Margin-26.7% -111.5% -20.9% -29.9%Non-GAAP Net (Loss) Income($1.7) $17.0 $10.8 $55.9Adjusted EBITDA$2.8 $28.5 $24.9 $89.4Adjusted EBITDA Margin4.5% 32.0% 11.7% 33.2%GAAP Net Loss per Share - diluted($0.41) ($2.53) ($1.11) ($2.06)Non-GAAP Net (Loss) Income per Share - diluted($0.04) $0.43 $0.27 $1.34 (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, “Our focus on operational excellence and delivering on our commitments continued to drive strong results in Q3, with revenue for the quarter, as well as most of the key profitability metrics, at or above the high end of our guidance range.” “The core automotive business remained strong with the launch of three new global OEM platforms in the quarter and continued growth in emerging markets. And, we continue to make steady progress in the two-wheeler market, with four starts-of-production in the quarter and a key strategic win with a major Japanese brand.” “As we look to the future of the in-car experience, we are deeply focused on leveraging generative AI and large language models at meaningful points in the Cerence product archit...