Slide 1: Cerence Q1FY22 Earnings Call Presentation
Exhibit 99.2 Cerence Q1FY22 Earnings Call Presentation • Stefan Ortmanns, CEO • Mark Gallenberger, CFO • Rich Yerganian, SVP of IR February 7, 2022
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: Executive Summary
Executive Summary
Slide 4: Automotive Industry at a Tipping Point
Automotive Industry at a Tipping Point More cars powered by electricity will accelerate the transition to a fully digital cockpit and cabin, transforming the driver and passenger experience 4 © 2022 Cerence Inc.
Slide 5: Positioned to Lead the Dynamic Field of Conversational AI
Positioned to Lead the Dynamic Field of Conversational AI Critical part of Work with Industry-leading Global delivery World-class the connected incumbent car technology team helping employees car ecosystem makers and new customers electric vehicle create unique makers experiences 5 © 2022 Cerence In
Slide 6: Cerence Delivers Strong Q1FY22
74.3% $19.0M $0.47 $5.1M $94.4M 1 Revenue GAAP Gross GAAP GAAP CFFO (1) CFFO equals GAAP Margin Net Income EPS -diluted net cash provided by operating activities Cerence Delivers Strong Q1FY22 Exceeded quarterly guidance on most profitability metrics despite industry headwinds 77.5% $36.9M $0.59 1%
Slide 7: Building a Strong Foundation for Growth
Largest contract in company history Building a Second highest bookings quarter in company history Strong Foundation Initial contribution from fitness, a new mobility market for Growth Won a new China-based two-wheeler customer 7 © 2022 Cerence Inc.
Slide 8: Financial Summary
Financial Summary
Slide 9: Q1 Exceeded Guidance on Most Profitability Metrics
Q1 Exceeded Guidance on Most Profitability Metrics Q1FY22 Q1FY22 Q1FY21 In millions, except per share amounts Actual Results Guidance Actual Results Revenue $91 - $96 $94.4 $93.6 GAAP Gross Margin 74.3% 73% - 74% 71.3% (a) Non-GAAP Gross Margin 77.5% 76% - 77% 75.0% GAAP Operating Margin 13% - 16% 2
Slide 10: Detailed Revenue Breakdown
Detailed Revenue Breakdown Q1FY22 Q4FY21 Q1FY21 QoQ YoY▪ YoY variable license decline was caused by In millions 1 increase in consumption of Fixed licenses. License: $46.9 $51.4 $46.4 (9%) +1% ▪ Other Markets revenue in Q1 is a 1-time Variable $21.6 $20.8 $36.3 +4% (40%) volume commit of $5.2M with
Slide 11: Cerence Guidance Considerations
Cerence Guidance Considerations 2 1 3 Bookings to Macro Conditions License Deals Revenue Analysis of each BU suggests Rapidly evolving conditions in Prior guidance assumed a bookings to revenue conversion automotive, including supply number of one-time technology for new products will take longer ch
Slide 12: FY22 Full Year Guidance Update
FY22 Full Year Guidance Update FY22E FY21 In millions except per share amounts Low High Actual Revenue $365 $385 $387.2 GAAP Gross Margin 73% 75% 73.9% (a) Non-GAAP Gross Margin 76% 77% 77.3% GAAP Operating Margin 16% 21% 15.7% (a) Non-GAAP Operating Margin 30% 33% 37.8% GAAP Net Income $34 $49 $45.
Slide 13: Q2FY22 Guidance
Q2FY22 Guidance Q2FY22E Q2FY21 In millions except per share amounts Low High Actual Revenue $82 $86 $98.7 GAAP Gross Margin 71% 73% 73.4% (a) Non-GAAP Gross Margin 74% 75% 77.5% GAAP Operating Margin 7% 11% 17.6% (a) Non-GAAP Operating Margin 23% 27% 37.6% GAAP Net Income $1 $4 $11.2 (a) Adjusted EB
Slide 14: Long-Term Goal: Key Provider of AI for Mobility
Long-Term Goal | Key Provider of AI for Mobility Road AI Driver Cabin 14 © 2022 Cerence Inc.
Slide 15: Thank you.
Thank you. 15 © 2022 Cerence Inc.
Slide 16: Appendix
Appendix
Slide 17: Adoption KPIs on a Strong Positive Trend
Adoption KPIs on a Strong Positive Trend 180,000,000 14,000,000 Initial Covid-19 160,000,000 Impact 12,000,000 140,000,000 10,000,000 120,000,000 8,000,000 100,000,000 80,000,000 6,000,000 60,000,000 4,000,000 40,000,000 2,000,000 20,000,000 0 0 Transactions Monthly Active Users Transactions are def
Slide 18: 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 19: 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 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: Q1FY22 Reconciliations of GAAP to non-GAAP Results
Q1FY22 Reconciliations of GAAP to non-GAAP Results Three Months Ended Three Months Ended December 31, December 31, (unaudited - in thousands, except per share data) (unaudited - in thousands, except per share data) 2021 2020 2021 2020 GAAP net income $ 19,044 $ 20,941 GAAP revenue $ 94,426 $ 93,643
Slide 23: Q2FY22 and FY22 Reconciliations of GAAP to non-GAAP Guidance
Q2FY22 and FY22 Reconciliations of GAAP to non-GAAP Guidance (unaudited - in thousands, except per share data) Q2 2022 FY2022 Low High Low High GAAP revenue $ 82,000 $ 86,000 $ 365,000 $ 385,000 GAAP gross profit $ 58,400 $ 62,400 $ 267,900 $ 287,900 Stock-based compensation 1,200 1,200 4,700 4,700
Slide 24: Q2FY22 and FY22 Reconciliations of GAAP to non-GAAP Guidance
Q2FY22 and FY22 Reconciliations of GAAP to non-GAAP Guidance (unaudited - in thousands) Q2 2022 FY2022 Low High Low High GAAP net income $ 1,300 $ 3,700 $ 34,400 $ 49,200 Stock-based compensation 9,000 9,000 28,400 28,400 Amortization of intangibles 4,100 4,100 14,700 14,700 Restructuring and other