Slide 1: Q4 and Fiscal 2019 Investor Call
Q4 and Fiscal 2019 Investor Call December 17, 2019
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures Statements in this presentation regarding Cerence’s future performance and our management’s future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation
Slide 3: Strong Fiscal Year Performance
Strong Fiscal Year Performance Year Over Year Revenue Growth ~ 10% Design Win Success Rate ~ 90% Yearly Increase in the Number of Connected Services Users ~ 200%
Slide 4: Financial Summary
Financial Summary
Slide 5: Record Revenue for Q4 and FY19
Record Revenue for Q4 and FY19 ~10% YoY growth in both Q4’19 and full year FY2019 GAAP ($ in millions) Non-GAAP YoY +10% YoY +9% YoY +9% YoY +9% YoY +10% YoY +11% YoY +9% YoY +10%
Slide 6: FY19 Actual Results Exceeded the High End of Guidance
FY19 Actual Results Exceeded the High End of Guidance Footnote: Non-GAAP guidance included $4-5m / year of non-GAAP revenues related to acquisitions. Actual non-GAAP revenue was $4.8m. Non-GAAP excludes acquisition-related costs, amortization of acquired intangible assets, restructuring expense, and
Slide 7: GAAP Revenue Results Deliver Strong Growth
GAAP Revenue Results Deliver Strong Growth FY18 (ASC 605) FY19 (ASC 606) YoY FY19 (ASC 605) YoY License: $171M $172M +1% $172M +1% Variable $117M $129M +10% $129M +10% Prepay $54M $43M -20% $43M -20% Connected Services: $60M $79M +32% $80M +33% Legacy $48M $58M +21% $58M +21% New $12M $21M +75% $22M
Slide 8: ~$1.36 Billion Backlog Creates High Revenue Visibility
~$1.36 Billion Backlog Creates High Revenue Visibility ($ in millions) Backlog as of September 30, 2019 (approximately $1.36 billion+) 1 Expect 50% to convert to revenue over the next three years (1) These figures are estimates and based on existing customer contracts and management estimates about
Slide 9: Updated FY20 Guidance Reflects GAAP Revenue
Updated FY20 Guidance Reflects GAAP Revenue Footnote: Non-GAAP excludes acquisition-related costs, amortization of acquired intangible assets, restructuring expense, and stock-based compensation. Original Guidance Updated Guidance $ in millions Low High Low High GAAP Revenue $321M $336M $321M $336M
Slide 10: Q1 FY20 Guidance Indicates Strong Year Over Year Growth
Q1 FY20 Guidance Indicates Strong Year Over Year Growth Footnote: Non-GAAP excludes acquisition-related costs, amortization of acquired intangible assets, restructuring expense, and stock-based compensation. Q1 FY20 $ in millions Low High GAAP Revenue $77M $79M Non-GAAP GM %(a) 70% 71% Non-GAAP Oper
Slide 11: FY20 Cash Forecast: Positive Free Cash Flow
FY20 Cash Forecast: Positive Free Cash Flow $ in millions Low High Cash from Nuance to prefund stand-up expenses $25M $25M Operating Cash $85M $85M 10/01/19 Opening Cash & Marketable Securities $110M $110M Plus: FY20 CFFO $42M $50M Less: Capital expenditures ($15M) ($15M) FY20 Free Cash Flow (FCF) b
Slide 12: CefENnCce”
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Slide 13: Appendix
Appendix See c4erence @
Slide 14: Non-GAAP Financial Measures – Definitions
Non-GAAP Financial Measures – Definitions Non-GAAP revenue We consider the use of non-GAAP revenue helpful in understanding the performance of our business, as it excludes the purchase accounting impact on acquired deferred revenue and other acquisition-related adjustments to revenue. We provide sup
Slide 15: FY19 GAAP Results Reconciliation
FY19 GAAP Results Reconciliation
Slide 16: FY20 GAAP Guidance Reconciliation
FY20 GAAP Guidance Reconciliation
Slide 17: CefENnCce”
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