Business
Cerence Announces Third Quarter Fiscal Year 2024 Results
Headlines Q3 revenue in-line with guidance; positive cash flow from operations of $12.9 millionFive generative AI customer programs released to
About this update from Cerence Inc.
[{"type":"text","content":"Headlines Q3 revenue in-line with guidance; positive cash flow from operations of $12.9 millionFive generative AI customer programs released to productionTransformation plans estimated to deliver net annualized cost savings of $35-40 million, predominantly realized in FY25 BURLINGTON, Mass., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, today reported its third quarter fiscal year 2024 results for the quarter ended June 30, 2024. Results Summary (1,2) (in millions, except per share data) Three Months Ended Nine Months Ended June 30, June 30, 2024 2023 2024 2023 GAAP revenue $70.5 $61.7 $276.7 $213.7 GAAP gross margin 71.5% 66.0% 75.7% 66.2%Non-GAAP gross margin 72.4% 66.5% 76.4% 67.7%GAAP operating margin(3) (503.1%) (13.8%) (202.6%) (14.6%)Non-GAAP operating margin 14.7% 0.5% 27.6% 8.1%GAAP net loss(3) ($313.5) ($16.5) ($567.7) ($44.7)GAAP net loss margin(3) (444.5%) (26.7%) (205.2%) (20.9%)Non-GAAP net income (loss) $8.4 ($1.7) $59.1 $10.8 Adjusted EBITDA $12.5 $2.8 $82.6 $24.9 Adjusted EBITDA margin 17.7% 4.5% 29.8% 11.7%GAAP net loss per share - diluted(3) ($7.50) ($0.41) ($13.66) ($1.11)Non-GAAP net income (loss) per share - diluted $0.19 ($0.04) $1.27 $0.27 (1) As previously disclosed, Q1FY24 revenue includes the non-cash revenue associated with the Toyota “Legacy” contract and related impacts totaling $86.6M. (2) 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. (3) Includes a Goodwill impairment charge of $252M in Q2FY24 and $357M in Q3FY24. Stefan Ortmanns, Chief Executive Officer of Cerence, commented: “Our Q3 results came in as expected, including strong cash flow from operations. We continue to make steady progress with our new generative AI products, as five customer projects with four global automakers are now in production. We have eight generative AI wins year-to-date and four additional customer launches expected by the end of the calendar year. As we discussed last quarter, we are undertaking a significant transformation to bring our operating costs in line with our revenue run-rate profile, with the objective of generating consistent, positive adjusted EBITDA and cash flo...