Slide 1: Cerence Q4FY21 Earnings Call Presentation
Cerence Q4FY21 Earnings Call Presentation November 22, 2021 © 2021 Cerence Inc. Sanjay Dhawan, CEO Mark Gallenberger, CFO Rich Yerganian, VP of IR Exhibit 99.2
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: Cerence Delivers Strong Q4FY21
Cerence Delivers Strong Q4FY21….. Exceeded quarterly guidance on nearly all profitability metrics despite industry headwinds NOTE: Refer to the Appendix for more information on GAAP to non-GAAP reconciliations $0.20 GAAP EPS -diluted $0.66 Non-GAAP EPS -diluted 75.4% GAAP Gross Margin 78.1% Non-GAAP
Slide 4: … and Fiscal Year 2021
… and Fiscal Year 2021 Met or exceeded original guidance on all metrics despite semi-shortages NOTE: Refer to the Appendix for more information on GAAP to non-GAAP reconciliations $1.17 GAAP EPS -diluted $2.53 Non-GAAP EPS -diluted 73.9% GAAP Gross Margin 77.3% Non-GAAP Gross Margin $45.9M GAAP Net
Slide 5: Innovation is Key to Future Growth
Innovation is Key to Future Growth New Product Launches FY21 Karaoke Ride Just Talk Connect Browse Tour Guide EVD Swype Drive 2.0 Extend Building Mobility Look
Slide 6: Industry Recognition of Cerence Leadership
Industry Recognition of Cerence Leadership Baidu Maps Award Jin Yan (Golden Wild Goose) Awards Gaogong Auto Golden Globe Award Automotive News PACE Award 2021 Project Voice Awards Informa Tech Automotive Award Best Ecological Cooperation Developer of 2020 Leading Intelligent Voice Supplier Award -fi
Slide 7: Building a Strong Foundation for Growth
Key win in the two-wheeler market First win in the building mobility market Strong bookings for new products and services 14 new logo wins, including 5 competitive takeaways (3 in China) Record number of 174 SoPs (Start of Production) Building a Strong Foundation for Growth
Slide 8: KPIs Indicate Sustainable Growth Potential
KPIs Indicate Sustainable Growth Potential 81% Repeatable software revenue contribution (TTM) +20% Change in number of Cerence cloud-connected cars shipped (TTM over prior year TTM change in auto production for the same period according to IHS data is 9%) +8% Growth in billings per car (TTM over pri
Slide 9: Adoption KPIs on a Strong Positive Trend
Adoption KPIs on a Strong Positive Trend Covid-19 Impact Transactions are defined as the number of initiated user interactions with the Company's cloud computing platforms.
Slide 10: Long-Term Goal | Key Provider of AI for Mobility
Long-Term Goal | Key Provider of AI for Mobility Road Cabin Driver
Slide 11: Financial Summary
11 Financial Summary Financial Summary
Slide 12: Q4 Exceeded Guidance on Most Profitability Metrics
12 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 Q4 Exceeded Guidance on Most Profitability Metrics
Slide 13: Revenue Growth Powered by License and Pro Services
Revenue Growth Powered by License and Pro Services 1Fixed license revenue includes prepaid and minimum commitment deals. 2Excluding a one-time accounting adjustment of $1.7M to correct an amortization schedule, year-over-year growth would have been 18%
Slide 14: FY21 Exceeded Guidance on Nearly All Metrics
14 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 FY21 Exceeded Guidance on Nearly All Metrics
Slide 15: Revenue Growth Powered by License and Pro Services
Revenue Growth Powered by License and Pro Services 1Fixed license revenue includes prepaid and minimum commitment deals. 2Excluding a one-time accounting adjustment of $1.7M to correct an amortization schedule, year-over-year growth would have been 36%
Slide 16: Backlog Increased by $200M to a Record of Approximately $2 Billion
Backlog Increased by $200M to a Record of Approximately $2 Billion (1) These figures are estimates and based on existing customer contracts and management estimates about future vehicle shipments. The revenue that we actually recognize from our backlog is subject to several factors, including the nu
Slide 17: Legacy Contract Revenue Schedule
Legacy Contract Revenue Schedule Legacy (Toyota) contract dates back to 2013 One-off contract for providing connected services Customer transitioned to “New” connected services model $M
Slide 18: FY22 Full Year Guidance
FY22 Full Year 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 (b) Pro forma adjusted growth rate exclud
Slide 19: Q1FY22 Guidance
Q1FY22 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
Slide 20: Thank you.
Thank you. 20 © 2021 Cerence Inc.
Slide 21: Appendix
OQcerence Appendix
Slide 22: 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 23: 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 24: 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 25: 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 26: Q4FY21 Reconciliations of GAAP to non-GAAP Results
Q4FY21 Reconciliations of GAAP to non-GAAP Results (unaudited - in thousands, except per share data) (unaudited - in thousands, except per share data) Three Months Ended Twelve Months Ended September 30, September 30, 2021 2020 2021 2020 GAAP revenue $98,076 $91,242 $387,182 $330,967 GAAP gross prof
Slide 27: Calculation of Repeatable Revenue Software Contribution
Calculation of Repeatable Revenue Software Contribution (unaudited - in thousands) Q4FY21 Q3FY21 Q2FY21 Q1FY21 GAAP revenues $98,076 $96,801 $98,662 $93,643 Less: Professional services revenue 21,073 16,538 16,555 21,299 Non-GAAP Repeatable revenues $77,003 $80,263 $82,107 $72,344 GAAP revenues TTM
Slide 28: Q1FY22 and FY22 Reconciliations of GAAP to non-GAAP Guidance
Q1FY22 and FY22 Reconciliations of GAAP to non-GAAP Guidance (unaudited - in thousands) Q1 2022 FY2022 Low High Low High GAAP revenue $91,000 $96,000 $400,000 $425,000 GAAP gross profit $66,000 $71,000 $298,000 $321,000 Stock-based compensation 1,300 1,300 5,600 5,600 Amortization of intangible asse
Slide 29: Q1FY22 and FY22 Reconciliations of GAAP to non-GAAP Guidance
Q1FY22 and FY22 Reconciliations of GAAP to non-GAAP Guidance (unaudited - in thousands, except per share data)