Slide 1: Q2FY21 Earnings Conference Call
Q2FY21 Earnings Conference Call Sanjay Dhawan, CEO Mark Gallenberger, CFO Rich Yerganian, VP of IR May 10, 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 Q2FY21
Cerence Delivers Strong Q2FY21 Exceeded company quarterly guidance on all financial metrics 3 NOTE: Refer to the Appendix for more information on GAAP to non-GAAP reconciliations $0.28 GAAP EPS -diluted $0.69 Non-GAAP EPS -diluted 73.4% GAAP Gross Margin 77.0% Non-GAAP Gross Margin $11.2M GAAP Net I
Slide 4: Recent Notable Events
Recent Notable Events Dynamic AI Electric Vehicles – Hyundai IONIQ 5 and Daimler EQS AI Leadership Recognized by Project Voice Voice/AI Company of the Year Voice Developer of the Year (co-winner) Voice/AI Executive of the Year (Sanjay Dhawan) Outstanding Achievement Award (Cerence spinoff) Best Use
Slide 5: KPIs Indicate Sustainable Growth Potential
KPIs Indicate Sustainable Growth Potential 79% Repeatable software revenue contribution (TTM) (10%) 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 (7%) 10% Growth in billings per car (TTM over
Slide 6: 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. 6
Slide 7: Cerence Long Term Strategic Direction
Road AI Cabin AI Driver AI Safety Convenience Security Cerence Long Term Strategic Direction 7
Slide 8: Financial Summary
Financial Summary 8
Slide 9: Q2 Exceeded Street Guidance on All Key Financial Metrics
9 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 Q2 Exceeded Street Guidance on All Key Financial Metrics
Slide 10: Strong License and New Connected Revenue Drive Growth
Strong License and New Connected Revenue Drive Growth 10
Slide 11: Q3 Guidance Shows Strong Rebound from Last Year Trough
Q3 Guidance Shows Strong Rebound from Last Year Trough 11 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 12: Positive Update to FY21 Guidance
Positive Update to FY21 Guidance Second upward revision this year for revenue and profitability 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 GAA
Slide 13: Thank You!
Thank You! 13
Slide 14: Appendix
Appendix 14
Slide 15: Non-GAAP Financial Measures – Definitions
15 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 16: Non-GAAP Financial Measures – Definitions
16 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 17: 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 18: 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 19: Q2FY21 Reconciliations of GAAP to non-GAAP Results
Q2FY21 Reconciliations of GAAP to non-GAAP Results 19 (unaudited - in thousands, except per share data) (unaudited - in thousands, except per share data) Three Months Ended Six Months Ended March 31, March 31, 2021 2020 2021 2020 GAAP net income $11,163 $12,812 $32,104 $1,529 Stock-based compensatio
Slide 20: Calculation of Repeatable Revenue Software Contribution
Calculation of Repeatable Revenue Software Contribution 20 (unaudited - in thousands) Q2FY21 Q1FY21 Q4FY20 Q3FY20 GAAP revenues $98,662 $93,643 $91,242 $75,197 Less: Professional services revenue 16,555 21,299 19,457 17,360 Non-GAAP Repeatable revenues $82,107 $72,344 $71,785 $57,837 GAAP revenues T
Slide 21: Q3FY21 and FY21 Reconciliations of GAAP to non-GAAP Guidance
Q3FY21 and FY21 Reconciliations of GAAP to non-GAAP Guidance 21 (unaudited - in thousands) (unaudited - in thousands, except per share data) Q3 2021 FY2021 Low High Low High GAAP revenue $94,000 $97,000 $380,000 $390,000 GAAP gross profit $68,200 $71,200 $276,200 $286,200 Stock-based compensation 1,