Slide 1: Cerence Q2 FY22 Earnings
May 10, 2022 Cerence Q2 FY22 Earnings Stefan Ortmanns, CEO Tom Beaudoin, EVP, CFO Rich Yerganian, SVP of IR Exhibit 99.2 @2022 Cerence Inc.
Slide 2: Forward-Looking Statements
Forward-Looking Statements This material and any oral statements made in connection with this material include "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Statements made which provide the Company’s or management’s intentions
Slide 3: Delivers on Q2 2022 Expectations
Delivers on Q2 2022 Expectations Solid performance in key financial and KPI metrics for the business Excellent first half bookings underscore robust demand Strong pipeline with several competitive take-away opportunities Managing macro headwinds to deliver on customer and product deliveries Remain o
Slide 4: Strong H1 FY22 Bookings of $448M
Strong H1 FY22 Bookings of $448M 4 53% growth over the same period last year Four new 2-wheeler accounts, bringing total to six @2022 Cerence Inc. 4
Slide 5: The Journey Ahead
The Journey Ahead Focus resources on customer and key product programs Accelerate design win and bookings momentum in all markets Prioritize innovation and investments within areas of highest returns Advance strategic roadmap to deliver long-term sustainable growth 5 @2022 Cerence Inc. 5
Slide 6: Financial Summary
Financial Summary @2022 Cerence Inc.
Slide 7: Q2 FY22 Results
Footnote: Non-GAAP excludes acquisition-related costs, amortization of acquired intangible assets, restructuring expense, and stock-based compensation. Refer to the Appendix for more information on GAAP to non-GAAP reconciliations Based on CRNC shares outstanding of 39,189,355 CFFO equals GAAP net c
Slide 8: Detailed GAAP Revenue Breakdown
Detailed GAAP Revenue Breakdown 1 Based on volume shipments of licenses 2 Fixed license revenue includes prepaid and minimum commitment deals 3 Non-automotive revenue Total revenue declined YoY and QoQ due mostly to: Decline in Legacy contract (new run rate for next 11 quarters) Macro environment De
Slide 9: Q3 FY22 Guidance
Q3 FY22 Guidance Footnote: Non-GAAP excludes acquisition-related costs, amortization of acquired intangible assets, restructuring expense, and stock-based compensation. Refer to the Appendix for more information on GAAP to non-GAAP reconciliations Q3 FY21 Q3 FY22 Guidance In millions except per shar
Slide 10: Full Year FY22 Guidance
Full Year FY22 Guidance Footnote: (a) Non-GAAP excludes acquisition-related costs, amortization of acquired intangible assets, restructuring expense, and stock-based compensation. Refer to the Appendix for more information on GAAP to non-GAAP reconciliations FY22 Guidance In millions except per shar
Slide 11: Thank you.
Thank you. Cerence @2022 Cerence Inc.
Slide 12: Appendix
Appendix Cerence @2022 Cerence Inc.
Slide 13: License Business Revenue Recognition
License Business Revenue Recognition The fixed contracts only apply to the license business. If a car is also using our connected services, it will follow the normal billing and revenue recognition process regardless of whether a variable or fixed license was applied. The fixed contracts typically p
Slide 14: Connected and Professional Services Revenue Recognition
Connected and Professional Services Revenue Recognition Approximately 30% of new connected revenue is usage based and is primarily with one customer. Usage can be defined by number of active users or number of monthly transactions Customer Hosted is a software license that allows the customer to tak
Slide 15: KPI Measures – Definitions
KPI Measures – Definitions Key performance indicators We believe that providing key performance indicators (“KPIs”), allows investors to gain insight into the way management views the performance of the business. We further believe that providing KPIs allows investors to better understand informatio
Slide 16: 52% of Worldwide Production Ships with Cerence Technology
52% of Worldwide Production Ships with Cerence Technology 10.3 million units (including 1.8 million connected) 34% YoY Increase in Monthly Active Users 7.6 years Average Contract Duration (TTM) 10% Growth in Billings per Car (TTM YoY) * Supply chain impact from further COVID lockdowns in Greater Chi
Slide 17: Non-GAAP Financial Measures – Definitions
Non-GAAP Financial Measures – Definitions Discussion of Non-GAAP Financial Measures We believe that providing the non-GAAP information in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that provi
Slide 18: Non-GAAP Financial Measures – Definitions
Non-GAAP Financial Measures – Definitions Restructuring and other costs, net. Restructuring and other charges, net include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside the ordinary course of our business such as emp
Slide 19: Non-GAAP Financial Measures – Definitions
Non-GAAP Financial Measures – Definitions Amortization of acquired intangible assets. We exclude the amortization of acquired intangible assets from non-GAAP expense and income measures. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of a
Slide 20: Q2 FY22 Reconciliations of GAAP to Non-GAAP Results
Q2 FY22 Reconciliations of GAAP to Non-GAAP Results (unaudited - in thousands, except per share data) (unaudited - in thousands, except per share data) Free cash flow is net cash provided by operating activities determined in accordance with GAAP less capital expenditures. Free cash flow is not a me
Slide 21: Q3 FY22 and Full Year FY22 Reconciliations of GAAP to non-GAAP Guidance
Q3 FY22 and Full Year FY22 Reconciliations of GAAP to non-GAAP Guidance (unaudited - in thousands) Q3 2022 FY2022 Low High Low High GAAP revenue $90,000 $94,000 $365,000 $385,000 GAAP gross profit $66,300 $70,300 $267,900 $287,900 Stock-based compensation 1,400 1,400 4,700 4,700 Amortization of inta
Slide 22: Q3 FY22 and FY22 Reconciliations of GAAP to Non-GAAP Guidance
Q3 FY22 and FY22 Reconciliations of GAAP to Non-GAAP Guidance (unaudited - in thousands) Q3 2022 FY2022 Low High Low High GAAP net income $6,200 $8,800 $34,400 $49,200 Stock-based compensation 7,100 7,100 28,400 28,400 Amortization of intangibles 3,000 3,000 14,700 14,700 Restructuring and other cos