Slide 1: Q1FY21 Earnings Conference Call
Q1FY21 Earnings Conference Call Sanjay Dhawan, CEO Mark Gallenberger, CFO February 8, 2021 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation regarding Cerence’s future performance, results and financial condition, expected growth, business and market trends, and innovation and our management’s future expectations, beliefs, goals, plans or prospects constitute forward-looking stat
Slide 3: Cerence Delivers Strong Q1FY21
(1) CFFO equals GAAP net cash provided by operating activities 3 (1) CFFO equals GAAP net cash provided by operating activities NOTE: Refer to the Appendix for more information on GAAP to non-GAAP reconciliations Exceeded company quarterly guidance on all financial metrics Cerence Delivers Strong Q1
Slide 4: Cerence Innovation Leads the Industry
4 Brand-aligned experience Continuous updates and enhancements Extend digital life to cars Solutions beyond voice Full sensor and data integration Single digital identity in and out of a vehicle Innovate with the cloud Enhance customer experience and bring more products to market faster Expand in mo
Slide 5: Expanding with Cerence Cloud
5 © 2021 Cerence Inc. | Ecosystem of Services and Domains Cerence Connect Cerence Tour Guide Cerence Browse Cerence Reader Cerence Extend Interactive Entertainment Cerence Car Life Cerence Pay One Click Payment Customer Engagement Revenue Sharing Monetized Services Dealer Assistant Vehicle Knowledge
Slide 6: Cerence 2-Wheeler AI Creates a Digital Helmet for Riders
Software Platform Voice AI Noise Cancelling Broad Languages Context Aware Sensor Fusion Digital Life Ecosystem Remote Control Fuel / EV Status Navigation Phone & Media Group Ride Smart Meter Digital Dashboard Hands-Free Use Optimized GUI Phone Connectivity Water & Shock Resistant Easy Onboarding Cer
Slide 7: Cerence Building Mobility AI for a World in Vertical Motion
7 © 2021 Cerence Inc. | Robust Software Cloud Services and Toolkits Cloud Speech Voice-Powered Directories Dynamic Content Analytics Diagnostic Channel Remote Provisions OTA Updates AI Software Defined Module Automotive Grade Touchless Control Multilingual Support Edge Technologies Language Updates
Slide 8: KPIs Indicate Sustainable Growth Potential
8 KPIs Indicate Sustainable Growth Potential 8 78% Repeatable software revenue contribution (TTM) -17% 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 -16%) 20% Growth in billings per car (TTM
Slide 9: Adoption KPIs on a Positive Trend
Adoption KPIs on a Positive Trend 9 Covid-19 Impact Transactions is defined as the number of initiated user interactions with the Company's cloud computing platforms.
Slide 10: Cerence Long Term Strategic Direction
Road AI Cabin AI Driver AI Safety Convenience Security Cerence Long Term Strategic Direction 10
Slide 11: Financial Summary
Financial Summary 11
Slide 12: Q1 Exceeded Street Guidance on All Key Financial Metrics
Q1 Exceeded Street Guidance on All Key Financial 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
Slide 13: Strong New Connected and Pro Services Drive Growth
Strong New Connected and Pro Services Drive Growth 13
Slide 14: Q2FY21 Guidance Shows Strong Year-Over-Year Growth
Q2FY21 Guidance Shows Strong Year-Over-Year Growth 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
Slide 15: Positive Update to FY21 Guidance
Positive Update to FY21 Guidance Narrowing range to upper half of original guidance and increasing profitability 15 Footnote: Non-GAAP excludes acquisition-related costs, amortization of acquired intangible assets, restructuring expense, and stock-based compensation. Refer to the Appendix for more i
Slide 16: Thank You!
Thank You! tora Word Motion
Slide 17: Appendix
Appendix tora Word Motion
Slide 18: Non-GAAP Financial Measures – Definitions
18 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 pr
Slide 19: Non-GAAP Financial Measures – Definitions
19 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
Slide 20: 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 21: 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 22: Q1FY21 Reconciliations of GAAP to non-GAAP Results
22 Q1FY21 Reconciliations of GAAP to non-GAAP Results (unaudited - in thousands, except per share data) (unaudited - in thousands, except per share data) Three Months Ended December 31, 2020 2019 GAAP revenue $94,964 $77,459 GAAP gross profit $68,083 $51,525 Stock-based compensation 1,585 1,223 Amor
Slide 23: Calculation of Repeatable Revenue Software Contribution
23 Calculation of Repeatable Revenue Software Contribution (unaudited - in thousands) Q1FY21 Q4FY20 Q3FY20 Q2FY20 GAAP revenues $94,964 $90,882 $74,810 $86,495 Less: Professional services revenue 21,299 19,457 17,360 18,742 Non-GAAP Repeatable revenues $73,665 $71,425 $57,450 $67,753 GAAP revenues T
Slide 24: Q2FY21 and FY21 Reconciliations of GAAP to non-GAAP Guidance
24 Q2FY21 and FY21 Reconciliations of GAAP to non-GAAP Guidance (unaudited - in thousands) (unaudited - in thousands, except per share data) Q2 2021 FY2021 Low High Low High GAAP revenue $92,000 $95,000 $370,000 $380,000 GAAP gross profit $64,900 $68,100 $259,200 $270,900 Stock-based compensation 1,