Slide 1: Q1FY20 Financial Results Conference Call
Q1FY20 Financial Results Conference Call Sanjay Dhawan, CEO Mark Gallenberger, CFO February 11, 2020 Exhibit 99.2
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: Cerence is Off to a Fast Start
Cerence is Off to a Fast Start Separation from Nuance effectively transacted First quarter as stand-alone public company delivered strong financial results Met or exceeded all key financial goals for the quarter Focus shifts to profitably growing the business
Slide 4: Q1FY20 Builds on FY19 Momentum
Q1FY20 Builds on FY19 Momentum Design wins across 5 geographic regions Signed one of the largest contracts in the history of the business Competitive position remains strong New product introductions leading up to a successful CES2020 Car models achieve start of production 30 Design Win Success Rate
Slide 5: Innovation Leads to New Revenue Opportunities
Innovation Leads to New Revenue Opportunities Cerence ARK My Car, My Voice Car Life EVD (Emergency Vehicle Detection)
Slide 6: Financial Summary
Financial Summary
Slide 7: 7% YoY Revenue Growth in Q1FY20
7% YoY Revenue Growth in Q1FY20 ($ in millions) YoY +7%
Slide 8: Q1 Results Met or Exceeded Guidance
Q1 Results Met or Exceeded Guidance Footnote: Non-GAAP excludes acquisition-related costs, amortization of acquired intangible assets, restructuring expense, and stock-based compensation. Q1FY20 $ in millions except per share data Guidance Actual GAAP Revenue $77M - $79M $77.5M Non-GAAP GM %(a) 70%
Slide 9: Strong Growth Above the Auto Industry
Strong Growth Above the Auto Industry SaaR $ in millions Q1FY19 (ASC 606) Q1FY20 (ASC 606) YoY License: $44.0M $40.8M -7% Variable $31.7M $33.7M +6% Prepay $12.3M $7.1M -42% Connected Services: $17.3M $23.0M +33% Legacy $14.4M $15.7M +9% New $2.9M $7.3M +148% Professional Services $11.2M $13.7M +22%
Slide 10: FY20: Raise Profitability and Reaffirm Revenue Guidance
FY20: Raise Profitability and Reaffirm Revenue Guidance Footnote: Non-GAAP excludes acquisition-related costs, amortization of acquired intangible assets, restructuring expense, and stock-based compensation. December Guidance Updated Guidance $ in millions except per share data Low High Low High GAA
Slide 11: Q2 FY20 Guidance
Q2 FY20 Guidance Footnote: Non-GAAP excludes acquisition-related costs, amortization of acquired intangible assets, restructuring expense, and stock-based compensation. Q2 FY20 $ in millions except per share data Low High GAAP Revenue $80M $82M Non-GAAP GM %(a) 71% 72% Non-GAAP Operating Margin%(a)
Slide 12: CefENnCce”
CefENnCce”
Slide 13: Appendix
Appendix Loe c4erence @
Slide 14: Non-GAAP Financial Measures – Definitions
Non-GAAP Financial Measures – Definitions Non-GAAP revenue We consider the use of non-GAAP revenue helpful in understanding the performance of our business, as it excludes the purchase accounting impact on acquired deferred revenue and other acquisition-related adjustments to revenue. We provide sup
Slide 15: Q1'20 GAAP Results Reconciliation
Q1’20 GAAP Results Reconciliation (unaudited - in thousands, except per share data) (unaudited - in thousands, except per share data) Three Months Ended ($ in thousands except per share data) December 31, 2019 2018 GAAP revenue $77,459 $72,484 GAAP gross profit $51,525 $48,277 Stock-based compensati
Slide 16: FY20 GAAP Guidance Reconciliation
FY20 GAAP Guidance Reconciliation ($ in thousands except per share data) Q2 2020 FY2020 Low High Low High GAAP revenue $80,000 $82,000 $321,000 $336,000 GAAP gross profit $53,600 $55,600 $212,400 $226,260 Stock-based compensation 1,000 1,000 4,000 4,000 Amortization of intangible assets 2,200 2,200