Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, today
reported its first quarter fiscal year 2024 results for the quarter
ended December 31, 2023.
Results Summary
(1,2)
(in millions, except per share data)
|
|
Three Months Ended |
|
|
December 31, |
|
|
2023 |
|
2022 |
GAAP revenue |
|
$138.3 |
|
$83.7 |
GAAP gross margin |
|
81.0% |
|
68.7% |
Non-GAAP gross margin |
|
81.5% |
|
70.4% |
GAAP operating margin |
|
42.3% |
|
-2.4% |
Non-GAAP operating margin |
|
49.4% |
|
20.5% |
GAAP net income (loss) |
|
$23.9 |
|
$(2.2) |
GAAP net income (loss)
margin |
|
17.2% |
|
-2.6% |
Non-GAAP net income |
|
$54.3 |
|
$14.2 |
Adjusted EBITDA |
|
$70.4 |
|
$19.7 |
Adjusted EBITDA margin |
|
50.9% |
|
23.5% |
GAAP net (loss) income per share
-diluted |
|
$0.53 |
|
($0.05) |
Non-GAAP net income per share -
diluted |
|
$1.12 |
|
$0.36 |
(1) |
As
previously disclosed, Q1FY24 revenue includes the acceleration of
the non-cash revenue associated with the Toyota “Legacy” contract
and related impacts totaling $77.7M. |
(2) |
Please refer to the “Discussion
of Non-GAAP Financial Measures” and “Reconciliations of GAAP
Financial Measures to Non-GAAP Financial Measures” included
elsewhere in this release for more information regarding our use of
non-GAAP financial measures. |
|
|
Stefan Ortmanns, Chief Executive Officer at Cerence, commented,
“Our Q1 included a number of advancements in our pursuit of
creating an immersive in-cabin experience for the automobile
industry powered by the latest advancements in generative AI and
large language models. We secured two significant technology
partnerships in support of this goal – NVIDIA and Microsoft – both
expected to further our efforts to not only enhance our current
products with generative AI, but also build and deploy an
industry-leading, automotive-grade large language model as the
foundation of our next-generation platform. We were proud to show
the advances we are making with our products at CES in early
January, including a live demo of Cerence Chat Pro integrated with
Volkswagen’s IDA in-car assistant.”
Ortmanns concluded, "We are excited by the future direction and
capabilities of our AI technology, and, simultaneously, we remain
keenly focused on operational excellence. While we had several
one-time adjustments in the quarter, the largest being the
previously disclosed acceleration of revenue associated with our
‘Legacy’ Toyota contract, considering these factors, we still
delivered a solid quarter. We also had several strategic wins in
the quarter, including a win-back for a Japanese OEM, the extension
of a program with a major North American OEM due to delays with
their new supplier, additional Chinese OEMs as they expand
overseas, and our largest piece of business to date for our
non-transportation (AIoT) business.”
Cerence Key Performance Indicators
To help investors gain further insight into the Cerence business
and its performance, management provides a set of key performance
indicators that includes:
Key Performance
Indicator1 |
Q1FY24 |
|
|
Percent of worldwide auto production with Cerence Technology
(TTM) |
54 |
% |
Repeatable software
contribution (TTM)2: |
68 |
% |
Change in number of Cerence
connected cars shipped3 (TTM over prior year TTM) |
36 |
% |
Change in Adjusted Total
Billings (TTM over prior year TTM)4 |
4 |
% |
(1) |
Please refer to the “Key Performance Indicators” included elsewhere
in this release for more information regarding the definitions and
our use of key performance indicators. |
(2) |
Repeatable software contribution
excludes Toyota Legacy revenue and revenue from another customer in
support of the legacy contract. |
(3) |
Based on IHS Markit data, global
auto production increased 9% over the same time period ended on
December 31, 2023. |
(4) |
Change in Adjusted Total Billings
YoY (TTM): The year over year change in total billings adjusted to
exclude Professional Services, Connected Professional Services,
prepay and prepay assumptions. |
|
|
Second Quarter and Full Year
Fiscal 2024 Outlook
For the fiscal quarter ending March 31, 2024, revenue is
expected to be in the range of $60 million to $64 million. GAAP Net
Loss is expected to be in the range of ($14) million to ($10)
million. Adjusted EBITDA is expected to be in the range of
approximately ($8) million to ($4) million.
For the full fiscal year ending September 30, 2024, the company
continues to expect revenue to be in the range of $355 million to
$375 million which includes an estimated $20 million of fixed
contracts. GAAP Net Income is expected to be in the range of $11
million to $26 million. Adjusted EBITDA is expected to be in the
range of approximately $94 million to $109 million.
The adjusted EBITDA guidance excludes acquisition-related costs,
amortization of acquired intangible assets, stock-based
compensation, restructuring and other costs.
Additional details regarding guidance will be provided during
the earnings call.
Cerence Conference Call Webcast
The company will host a live conference call and webcast with
slides to discuss the results today at 8:30 a.m. Eastern Time/5:30
a.m. Pacific Time. Interested investors and analysts are invited to
dial into the conference call by registering here.
Webcast access will also be available on the Investor
Information section of the company’s website at
https://www.cerence.com/investors/events-and-resources.
A replay of the webcast can be accessed by visiting the
company’s website 90 minutes following the conference call at
https://www.cerence.com/investors/events-and-resources.
Forward Looking Statements
Statements in this press release regarding: Cerence’s future
performance, results and financial condition; expected growth and
profitability; strategy; opportunities; business, industry and
market trends; strategy regarding fixed contracts and its impact on
financial results; revenue visibility; revenue timing and mix;
demand for Cerence products; innovation and new product offerings,
including AI technology; expected benefits of technology
partnerships; cost efficiency initiatives; and management’s future
expectations, estimates, assumptions, beliefs, goals, plans or
prospects constitute forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Any
statements that are not statements of historical fact (including
statements containing the words “believes,” “plans,” “anticipates,”
“projects,” “forecasts,” “expects,” “intends,” “continues,” “will,”
“may,” or “estimates” or similar expressions) should also be
considered to be forward-looking statements. Although we believe
forward-looking statements are based upon reasonable assumptions,
such statements involve known and unknown risk, uncertainties and
other factors, which may cause actual results or performance of the
company to be materially different from any future results or
performance expressed or implied by such forward-looking statements
including but not limited to: the highly competitive and rapidly
changing market in which we operate; adverse conditions in the
automotive industry, the related supply chain and semiconductor
shortage, or the global economy more generally; the impacts of the
COVID-19 pandemic on our and our customers’ businesses; the impact
of the war in Ukraine, conflict between Israel and Hamas and
attacks on commercial ships in the Red Sea by the Houthi groups on
our and our customers’ businesses; our ability to control and
successfully manage our expenses and cash position; escalating
pricing pressures from our customers; the impact on our business of
the transition to a lower level of fixed contracts, including the
failure to achieve such a transition; our failure to win, renew or
implement service contracts; the cancellation or postponement of
existing contracts; the loss of business from any of our largest
customers; effects of customer defaults; our inability to
successfully introduce new products, applications and services; our
strategies to increase cloud offerings and deploy generative AI and
large language models (LLMs), the inability to recruit and retain
qualified personnel; disruptions arising from transitions in
management personnel; cybersecurity and data privacy incidents;
fluctuating currency rates and interest rates; inflation; and the
other factors discussed in our most recent Annual Report on Form
10-K and other filings with the Securities and Exchange Commission.
We disclaim any obligation to update any forward-looking statements
as a result of developments occurring after the date of this
document.
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 providing this information allows investors to
not only better understand our financial performance, but more
importantly, to evaluate the efficacy of the methodology and
information used by management to evaluate and measure such
performance. The non-GAAP information should not be considered
superior to, or a substitute for, financial statements prepared in
accordance with GAAP.
We utilize a number of different financial measures, both GAAP
and non-GAAP, in analyzing and assessing the overall performance of
the business, for making operating decisions and for forecasting
and planning for future periods. While our management uses these
non-GAAP financial measures as a tool to enhance their
understanding of certain aspects of our financial performance, our
management does not consider these measures to be a substitute for,
or superior to, the information provided by GAAP financial
statements.
Consistent with this approach, we believe that disclosing
non-GAAP financial measures to the readers of our financial
statements provides such readers with useful supplemental data
that, while not a substitute for GAAP financial statements, allows
for greater transparency in the review of our financial and
operational performance. In assessing the overall health of the
business during the three months ended December 31, 2023 and 2022,
our management has either included or excluded the following items
in general categories, each of which is described below.
Adjusted EBITDA
Adjusted EBITDA is defined as net income attributable to Cerence
Inc. before net income (loss) attributable to income tax (benefit)
expense, other income (expense) items, net, depreciation and
amortization expense, and excluding acquisition-related costs,
amortization of acquired intangible assets, stock-based
compensation, and restructuring and other costs, net or impairment
charges related to fixed and intangible assets and gains or losses
on the sale of long-lived assets, if any. From time to time we may
exclude from Adjusted EBITDA the impact of events, gains, losses or
other charges (such as significant legal settlements) that affect
the period-to-period comparability of our operating performance.
Other income (expense) items, net include interest expense,
interest income, and other income (expense), net (as stated in our
Condensed Consolidated Statement of Operations). Our management and
Board of Directors use this financial measure to evaluate our
operating performance. It is also a significant performance measure
in our annual incentive compensation programs.
Restructuring and other costs, net.
Restructuring and other costs, 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 employee severance costs, costs for
consolidating duplicate facilities, third-party fees relating to
the modification of our convertible debt, and the release of a
pre-acquisition contingency.
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 acquisitions. Providing a supplemental
measure which excludes these charges allows management and
investors to evaluate results “as-if” the acquired intangible
assets had been developed internally rather than acquired and,
therefore, provides a supplemental measure of performance in which
our acquired intellectual property is treated in a comparable
manner to our internally developed intellectual property. Although
we exclude amortization of acquired intangible assets from our
non-GAAP expenses, we believe that it is important for investors to
understand that such intangible assets contribute to revenue
generation. Amortization of intangible assets that relate to past
acquisitions will recur in future periods until such intangible
assets have been fully amortized. Future acquisitions may result in
the amortization of additional intangible assets.
Non-cash expenses.
We provide non-GAAP information relative to the following
non-cash expenses: (i) stock-based compensation; and (ii) non-cash
interest. These items are further discussed as follows:
(i) |
Stock-based compensation. Because of varying valuation
methodologies, subjective assumptions and the variety of award
types, we exclude stock-based compensation from our operating
results. We evaluate performance both with and without these
measures because compensation expense related to stock-based
compensation is typically non-cash and awards granted are
influenced by the Company’s stock price and other factors such as
volatility that are beyond our control. The expense related to
stock-based awards is generally not controllable in the short-term
and can vary significantly based on the timing, size and nature of
awards granted. As such, we do not include such charges in
operating plans. Stock-based compensation will continue in future
periods. |
(ii) |
Non-cash interest. We exclude
non-cash interest because we believe that excluding this expense
provides management, as well as other users of the financial
statements, with a valuable perspective on the cash-based
performance and health of the business, including the current
near-term projected liquidity. Non-cash interest expense will
continue in future periods. |
|
|
Other expenses.
We exclude certain other expenses that result from unplanned
events outside the ordinary course of continuing operations, in
order to measure operating performance and current and future
liquidity both with and without these expenses. By providing this
information, we believe management and the users of the financial
statements are better able to understand the financial results of
what we consider to be our organic, continuing operations. Included
in these expenses are items such as other charges (credits), net,
losses from extinguishment of debt, and changes in indemnification
assets corresponding with the release of pre-spin liabilities for
uncertain tax positions.
Adjustments to income tax provision.
Adjustments to our GAAP income tax provision to arrive at
non-GAAP net income is determined based on our non-GAAP pre-tax
income. Additionally, as our non-GAAP profitability is higher based
on the non-GAAP adjustments, we adjust the GAAP tax provision to
remove valuation allowances and related effects based on the higher
level of reported non-GAAP profitability. We also exclude from our
non-GAAP tax provision certain discrete tax items as they
occur.
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 information used by
management to evaluate and measure such performance. KPIs should
not be considered superior to, or a substitute for, operating
results prepared in accordance with GAAP. In assessing the
performance of the business during the three months ended December
31, 2023, our management has reviewed the following KPIs, each of
which is described below:
- Percent of worldwide auto production
with Cerence Technology: The number of Cerence enabled cars shipped
as compared to IHS Markit car production data.
- Repeatable software contribution:
The percentage of repeatable revenues as compared to total GAAP
revenue in the quarter on a TTM basis. Repeatable revenues are
defined as the sum of License and Connected Services revenues.
Repeatable software contribution excludes Toyota Legacy revenue and
revenue from another customer in support of the legacy
contract.
- Change in number of Cerence
connected cars shipped: The year-over-year change in the number of
cars shipped with Cerence connected solutions. Amounts calculated
on a TTM basis.
- Change in Adjusted total billings
YoY (TTM): The year over year change in total billings adjusted to
exclude Professional Services, prepay billings and prepay
consumption.
____________
See the tables at the end of this press release for non-GAAP
reconciliations to the most directly comparable GAAP measures.
To learn more about Cerence, visit www.cerence.com, and follow
the company on LinkedIn and Twitter.
About Cerence Inc.Cerence (NASDAQ: CRNC) is the
global industry leader in creating unique, moving experiences for
the mobility world. As an innovation partner to the world’s leading
automakers and mobility OEMs, it is helping advance the future of
connected mobility through intuitive, AI-powered interaction
between humans and their vehicles, connecting consumers’ digital
lives to their daily journeys no matter where they are. Cerence’s
track record is built on more than 20 years of knowledge and 475
million cars shipped with Cerence technology. Whether it’s
connected cars, autonomous driving, e-vehicles, or two-wheelers,
Cerence is mapping the road ahead. For more information, visit
www.cerence.com.
Contact Information
Rich YerganianSenior Vice President of Investor RelationsCerence
Inc.Tel: 617-987-4799Email: richard.yerganian@cerence.com
CERENCE INC.Condensed Consolidated
Statements of Operations(in thousands, except per share
data)
|
|
Three Months Ended |
|
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Revenues: |
|
|
|
|
|
|
License |
|
$ |
20,823 |
|
|
$ |
45,417 |
|
Connected services |
|
|
96,820 |
|
|
|
18,394 |
|
Professional services |
|
|
20,692 |
|
|
|
19,847 |
|
Total revenues |
|
|
138,335 |
|
|
|
83,658 |
|
Cost of revenues: |
|
|
|
|
|
|
License |
|
|
1,604 |
|
|
|
1,614 |
|
Connected services |
|
|
7,303 |
|
|
|
6,542 |
|
Professional services |
|
|
17,325 |
|
|
|
17,924 |
|
Amortization of intangible assets |
|
|
103 |
|
|
|
103 |
|
Total cost of revenues |
|
|
26,335 |
|
|
|
26,183 |
|
Gross profit |
|
|
112,000 |
|
|
|
57,475 |
|
Operating expenses: |
|
|
|
|
|
|
Research and development |
|
|
33,306 |
|
|
|
29,494 |
|
Sales and marketing |
|
|
6,071 |
|
|
|
9,162 |
|
General and administrative |
|
|
12,793 |
|
|
|
14,257 |
|
Amortization of intangible assets |
|
|
545 |
|
|
|
2,350 |
|
Restructuring and other costs, net |
|
|
705 |
|
|
|
4,189 |
|
Total operating expenses |
|
|
53,420 |
|
|
|
59,452 |
|
Income (loss) from operations |
|
|
58,580 |
|
|
|
(1,977 |
) |
Interest income |
|
|
1,432 |
|
|
|
870 |
|
Interest expense |
|
|
(3,236 |
) |
|
|
(3,514 |
) |
Other income, net |
|
|
1,422 |
|
|
|
3,713 |
|
Income (loss) before income taxes |
|
|
58,198 |
|
|
|
(908 |
) |
Provision for income taxes |
|
|
34,341 |
|
|
|
1,250 |
|
Net
income (loss) |
|
$ |
23,857 |
|
|
$ |
(2,158 |
) |
Net
income (loss) per share: |
|
|
|
|
|
|
Basic |
|
$ |
0.58 |
|
|
$ |
(0.05 |
) |
Diluted |
|
$ |
0.53 |
|
|
$ |
(0.05 |
) |
Weighted-average common share outstanding: |
|
|
|
|
|
|
Basic |
|
|
41,186 |
|
|
|
39,962 |
|
Diluted |
|
|
49,255 |
|
|
|
39,962 |
|
|
|
|
|
|
|
|
|
|
CERENCE INC.Condensed Consolidated
Balance Sheets(in thousands, except per share amounts)
|
|
December 31, |
|
|
September 30, |
|
|
|
2023 |
|
|
2023 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
98,736 |
|
|
|
101,154 |
|
Marketable securities |
|
|
9,784 |
|
|
|
9,211 |
|
Accounts receivable, net of allowances of $4,050 and $4,044 |
|
|
58,693 |
|
|
|
61,270 |
|
Deferred costs |
|
|
5,568 |
|
|
|
6,935 |
|
Prepaid expenses and other current assets |
|
|
55,580 |
|
|
|
47,157 |
|
Total current assets |
|
|
228,361 |
|
|
|
225,727 |
|
Long-term marketable securities |
|
|
7,755 |
|
|
|
10,607 |
|
Property and equipment, net |
|
|
32,625 |
|
|
|
34,013 |
|
Deferred costs |
|
|
19,849 |
|
|
|
20,299 |
|
Operating lease right of use assets |
|
|
12,347 |
|
|
|
11,961 |
|
Goodwill |
|
|
906,396 |
|
|
|
900,342 |
|
Intangible assets, net |
|
|
3,374 |
|
|
|
3,875 |
|
Deferred tax assets |
|
|
16,607 |
|
|
|
46,601 |
|
Other assets |
|
|
37,594 |
|
|
|
44,165 |
|
Total assets |
|
$ |
1,264,908 |
|
|
$ |
1,297,590 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
19,179 |
|
|
$ |
16,873 |
|
Deferred revenue |
|
|
43,392 |
|
|
|
77,068 |
|
Short-term operating lease liabilities |
|
|
5,676 |
|
|
|
5,434 |
|
Accrued expenses and other current liabilities |
|
|
51,732 |
|
|
|
48,718 |
|
Total current liabilities |
|
|
119,979 |
|
|
|
148,093 |
|
Long-term debt |
|
|
277,419 |
|
|
|
275,951 |
|
Deferred revenue, net of current portion |
|
|
100,913 |
|
|
|
145,531 |
|
Long-term operating lease liabilities |
|
|
8,066 |
|
|
|
7,947 |
|
Other liabilities |
|
|
27,398 |
|
|
|
25,193 |
|
Total liabilities |
|
|
533,775 |
|
|
|
602,715 |
|
Stockholders' Equity: |
|
|
|
|
|
|
Common stock, $0.01 par value, 560,000 shares authorized; 41,237
and 40,423 shares issued and outstanding, respectively |
|
|
412 |
|
|
|
404 |
|
Accumulated other comprehensive loss |
|
|
(23,496 |
) |
|
|
(27,966 |
) |
Additional paid-in capital |
|
|
1,064,022 |
|
|
|
1,056,099 |
|
Accumulated deficit |
|
|
(309,805 |
) |
|
|
(333,662 |
) |
Total stockholders' equity |
|
|
731,133 |
|
|
|
694,875 |
|
Total liabilities and stockholders' equity |
|
$ |
1,264,908 |
|
|
$ |
1,297,590 |
|
|
|
|
|
|
|
|
|
|
CERENCE INC.Condensed Consolidated
Statements of Cash Flows(in thousands)
|
|
Three Months Ended |
|
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
Net income (loss) |
|
$ |
23,857 |
|
|
$ |
(2,158 |
) |
Adjustments to reconcile net income (loss) to net cash used in
operations: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,686 |
|
|
|
5,008 |
|
Stock-based compensation |
|
|
8,380 |
|
|
|
12,472 |
|
Non-cash interest expense |
|
|
1,468 |
|
|
|
444 |
|
Deferred tax provision (benefit) |
|
|
30,298 |
|
|
|
(164 |
) |
Unrealized foreign currency transaction gains |
|
|
(2,012 |
) |
|
|
(6,084 |
) |
Other |
|
|
382 |
|
|
|
104 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
4,933 |
|
|
|
(16,651 |
) |
Prepaid expenses and other assets |
|
|
1,170 |
|
|
|
3,261 |
|
Deferred costs |
|
|
2,589 |
|
|
|
1,586 |
|
Accounts payable |
|
|
2,382 |
|
|
|
7,820 |
|
Accrued expenses and other liabilities |
|
|
3,712 |
|
|
|
(255 |
) |
Deferred revenue |
|
|
(82,660 |
) |
|
|
(7,501 |
) |
Net
cash used in operating activities |
|
|
(2,815 |
) |
|
|
(2,118 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
Capital expenditures |
|
|
(931 |
) |
|
|
(683 |
) |
Purchases of marketable securities |
|
|
- |
|
|
|
(7,081 |
) |
Sale and maturities of marketable securities |
|
|
2,442 |
|
|
|
9,500 |
|
Other investing activities |
|
|
(322 |
) |
|
|
(219 |
) |
Net
cash provided by investing activities |
|
|
1,189 |
|
|
|
1,517 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
Payments for long-term debt issuance costs |
|
|
- |
|
|
|
(403 |
) |
Principal payments of long-term debt |
|
|
- |
|
|
|
(1,563 |
) |
Common stock repurchases for tax withholdings for net settlement of
equity awards |
|
|
(6,209 |
) |
|
|
(2,643 |
) |
Principal payment of lease liabilities arising from a finance
lease |
|
|
(122 |
) |
|
|
(165 |
) |
Proceeds from the issuance of common stock |
|
|
6,201 |
|
|
|
1,723 |
|
Net
cash used in financing activities |
|
|
(130 |
) |
|
|
(3,051 |
) |
Effects of exchange rate changes on cash and cash equivalents |
|
|
(662 |
) |
|
|
(538 |
) |
Net
change in cash and cash equivalents |
|
|
(2,418 |
) |
|
|
(4,190 |
) |
Cash and cash equivalents at beginning of period |
|
|
101,154 |
|
|
|
94,847 |
|
Cash and cash equivalents at end of period |
|
$ |
98,736 |
|
|
$ |
90,657 |
|
|
|
|
|
|
|
|
|
|
CERENCE INC.Reconciliations of GAAP
Financial Measures to Non-GAAP Financial
Measures(unaudited - in thousands)
|
|
Three Months Ended |
|
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
GAAP revenue |
|
$ |
138,335 |
|
|
$ |
83,658 |
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ |
112,000 |
|
|
$ |
57,475 |
|
Stock-based compensation |
|
|
641 |
|
|
|
1,349 |
|
Amortization of intangible assets |
|
|
103 |
|
|
|
103 |
|
Non-GAAP gross profit |
|
$ |
112,744 |
|
|
$ |
58,927 |
|
GAAP gross margin |
|
|
81.0 |
% |
|
|
68.7 |
% |
Non-GAAP gross margin |
|
|
81.5 |
% |
|
|
70.4 |
% |
|
|
|
|
|
|
|
GAAP operating income (loss) |
|
$ |
58,580 |
|
|
$ |
(1,977 |
) |
Stock-based compensation |
|
|
8,380 |
|
|
|
12,472 |
|
Amortization of intangible assets |
|
|
648 |
|
|
|
2,453 |
|
Restructuring and other costs, net |
|
|
705 |
|
|
|
4,189 |
|
Non-GAAP operating income |
|
$ |
68,313 |
|
|
$ |
17,137 |
|
GAAP operating margin |
|
|
42.3 |
% |
|
|
-2.4 |
% |
Non-GAAP operating margin |
|
|
49.4 |
% |
|
|
20.5 |
% |
|
|
|
|
|
|
|
GAAP net income (loss) |
|
$ |
23,857 |
|
|
$ |
(2,158 |
) |
Stock-based compensation |
|
|
8,380 |
|
|
|
12,472 |
|
Amortization of intangible assets |
|
|
648 |
|
|
|
2,453 |
|
Restructuring and other costs, net |
|
|
705 |
|
|
|
4,189 |
|
Depreciation |
|
|
2,038 |
|
|
|
2,555 |
|
Total other (expense) income, net |
|
|
(382 |
) |
|
|
1,069 |
|
Provision for income taxes |
|
|
34,341 |
|
|
|
1,250 |
|
Adjusted EBITDA |
|
$ |
70,351 |
|
|
$ |
19,692 |
|
GAAP net income (loss) margin |
|
|
17.2 |
% |
|
|
-2.6 |
% |
Adjusted EBITDA margin |
|
|
50.9 |
% |
|
|
23.5 |
% |
|
|
CERENCE INC.Reconciliations of GAAP
Financial Measures to Non-GAAP Financial Measures
(cont.)(unaudited - in thousands, except per share
data)
|
|
Three Months Ended |
|
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
GAAP net income (loss) |
|
$ |
23,857 |
|
|
$ |
(2,158 |
) |
Stock-based compensation |
|
|
8,380 |
|
|
|
12,472 |
|
Amortization of intangible assets |
|
|
648 |
|
|
|
2,453 |
|
Restructuring and other costs, net |
|
|
705 |
|
|
|
4,189 |
|
Non-cash interest expense |
|
|
1,468 |
|
|
|
444 |
|
Other |
|
|
(27 |
) |
|
|
- |
|
Adjustments to income tax expense |
|
|
19,259 |
|
|
|
(3,184 |
) |
Non-GAAP net income |
|
$ |
54,290 |
|
|
$ |
14,216 |
|
|
|
|
|
|
|
|
Adjusted EPS: |
|
|
|
|
|
|
GAAP Numerator: |
|
|
|
|
|
|
Net income (loss) attributed to common shareholders - basic |
|
$ |
23,857 |
|
|
$ |
(2,158 |
) |
Interest on the Notes, net of tax |
|
|
2,250 |
|
|
|
- |
|
Net income (loss) attributed to common shareholders - diluted |
|
$ |
26,107 |
|
|
$ |
(2,158 |
) |
|
|
|
|
|
|
|
Non-GAAP Numerator: |
|
|
|
|
|
|
Net income attributed to common shareholders - basic |
|
$ |
54,290 |
|
|
$ |
14,216 |
|
Interest on the Notes, net of tax |
|
|
1,120 |
|
|
|
- |
|
Net income attributed to common shareholders - diluted |
|
$ |
55,410 |
|
|
$ |
14,216 |
|
|
|
|
|
|
|
|
GAAP Denominator: |
|
|
|
|
|
|
Weighted-average common shares outstanding - basic |
|
|
41,186 |
|
|
|
39,962 |
|
Adjustment for diluted shares |
|
|
8,069 |
|
|
|
- |
|
Weighted-average common shares outstanding - diluted |
|
|
49,255 |
|
|
|
39,962 |
|
|
|
|
|
|
|
|
Non-GAAP Denominator: |
|
|
|
|
|
|
Weighted-average common shares outstanding- basic |
|
|
41,186 |
|
|
|
39,962 |
|
Adjustment for diluted shares |
|
|
8,069 |
|
|
|
- |
|
Weighted-average common shares outstanding - diluted |
|
|
49,255 |
|
|
|
39,962 |
|
|
|
|
|
|
|
|
GAAP net income (loss) per share - diluted |
|
$ |
0.53 |
|
|
$ |
(0.05 |
) |
Non-GAAP net income per share - diluted |
|
$ |
1.12 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
GAAP net cash used in operating activities |
|
$ |
(2,815 |
) |
|
$ |
(2,118 |
) |
Capital expenditures |
|
|
(931 |
) |
|
|
(683 |
) |
Free Cash Flow |
|
$ |
(3,746 |
) |
|
$ |
(2,801 |
) |
|
|
CERENCE INC.Reconciliations of GAAP
Financial Measures to Non-GAAP Financial Measures
(cont.)(unaudited - in thousands)
|
|
Q1FY24 |
|
|
Q4FY23 |
|
Q3FY23 |
|
Q2FY23 |
|
GAAP revenues |
|
$ |
138,335 |
|
|
$ |
80,764 |
|
$ |
61,660 |
|
$ |
68,393 |
|
Less: Professional services revenue |
|
|
20,692 |
|
|
|
18,491 |
|
|
17,240 |
|
|
18,667 |
|
Less: Legacy* related revenue |
|
|
86,613 |
|
|
|
8,853 |
|
|
8,867 |
|
|
8,885 |
|
Non-GAAP Repeatable revenues |
|
$ |
31,030 |
|
|
$ |
53,420 |
|
$ |
35,553 |
|
$ |
40,841 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP revenues TTM |
|
$ |
349,152 |
|
|
|
|
|
|
|
|
Less: Legacy related revenue TTM |
|
|
113,218 |
|
|
|
|
|
|
|
|
GAAP revenues TTM, excluding Legacy related revenue
TTM |
|
|
235,934 |
|
|
|
|
|
|
|
|
Less: Professional services revenue TTM |
|
|
75,090 |
|
|
|
|
|
|
|
|
Less: Legacy related revenue TTM |
|
|
113,218 |
|
|
|
|
|
|
|
|
Non-GAAP Repeatable revenues TTM |
|
$ |
160,844 |
|
|
|
|
|
|
|
|
Repeatable software contribution |
|
|
68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Legacy related revenue is revenue from the Legacy contract and
revenue from another customer in support of the Legacy
contract.
CERENCE INC.Reconciliations of GAAP
Financial Measures to Non-GAAP Financial Measures
(cont.)(unaudited - in thousands)
|
|
Q2 2024 |
|
|
FY2024 |
|
|
|
Low |
|
|
High |
|
|
Low |
|
|
High |
|
GAAP revenue |
|
$ |
60,000 |
|
|
$ |
64,000 |
|
|
$ |
355,000 |
|
|
$ |
375,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ |
36,200 |
|
|
$ |
40,200 |
|
|
$ |
265,200 |
|
|
$ |
285,200 |
|
Stock-based compensation |
|
|
700 |
|
|
|
700 |
|
|
|
2,800 |
|
|
|
2,800 |
|
Amortization of intangible assets |
|
|
- |
|
|
|
- |
|
|
|
100 |
|
|
|
100 |
|
Non-GAAP gross profit |
|
$ |
36,900 |
|
|
$ |
40,900 |
|
|
$ |
268,100 |
|
|
$ |
288,100 |
|
GAAP gross margin |
|
|
60 |
% |
|
|
63 |
% |
|
|
75 |
% |
|
|
76 |
% |
Non-GAAP gross margin |
|
|
62 |
% |
|
|
64 |
% |
|
|
76 |
% |
|
|
77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating (loss) income |
|
$ |
(25,600 |
) |
|
$ |
(21,600 |
) |
|
$ |
40,800 |
|
|
$ |
55,900 |
|
Stock-based compensation |
|
|
9,400 |
|
|
|
9,400 |
|
|
|
36,200 |
|
|
|
36,200 |
|
Amortization of intangible assets |
|
|
600 |
|
|
|
600 |
|
|
|
2,300 |
|
|
|
2,300 |
|
Restructuring and other costs, net |
|
|
5,400 |
|
|
|
5,400 |
|
|
|
7,600 |
|
|
|
7,600 |
|
Non-GAAP operating (loss) income |
|
$ |
(10,200 |
) |
|
$ |
(6,200 |
) |
|
$ |
86,900 |
|
|
$ |
102,000 |
|
GAAP operating margin |
|
|
-43 |
% |
|
|
-34 |
% |
|
|
11 |
% |
|
|
15 |
% |
Non-GAAP operating margin |
|
|
-17 |
% |
|
|
-10 |
% |
|
|
24 |
% |
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss) income |
|
$ |
(13,900 |
) |
|
$ |
(9,900 |
) |
|
$ |
11,400 |
|
|
$ |
26,400 |
|
Stock-based compensation |
|
|
9,400 |
|
|
|
9,400 |
|
|
|
36,200 |
|
|
|
36,200 |
|
Amortization of intangible assets |
|
|
600 |
|
|
|
600 |
|
|
|
2,300 |
|
|
|
2,300 |
|
Restructuring and other costs, net |
|
|
5,400 |
|
|
|
5,400 |
|
|
|
7,600 |
|
|
|
7,600 |
|
Depreciation |
|
|
2,000 |
|
|
|
2,000 |
|
|
|
7,500 |
|
|
|
7,500 |
|
Total other expense, net |
|
|
(9,400 |
) |
|
|
(9,400 |
) |
|
|
(13,400 |
) |
|
|
(13,400 |
) |
(Benefit from) provision for income taxes |
|
|
(21,100 |
) |
|
|
(21,100 |
) |
|
|
16,000 |
|
|
|
16,000 |
|
Adjusted EBITDA |
|
$ |
(8,200 |
) |
|
$ |
(4,200 |
) |
|
$ |
94,400 |
|
|
$ |
109,400 |
|
GAAP net (loss) income margin |
|
|
-23 |
% |
|
|
-15 |
% |
|
|
3 |
% |
|
|
7 |
% |
Adjusted EBITDA margin |
|
|
-14 |
% |
|
|
-7 |
% |
|
|
27 |
% |
|
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CERENCE INC.Reconciliations of GAAP
Financial Measures to Non-GAAP Financial Measures
(cont.)(unaudited - in thousands)
|
|
Q2 2024 |
|
|
FY2024 |
|
|
|
Low |
|
|
High |
|
|
Low |
|
|
High |
|
GAAP net (loss) income |
|
$ |
(13,900 |
) |
|
$ |
(9,900 |
) |
|
$ |
11,400 |
|
|
$ |
26,400 |
|
Stock-based compensation |
|
|
9,400 |
|
|
|
9,400 |
|
|
|
36,200 |
|
|
|
36,200 |
|
Amortization of intangibles |
|
|
600 |
|
|
|
600 |
|
|
|
2,300 |
|
|
|
2,300 |
|
Restructuring and other costs, net |
|
|
5,400 |
|
|
|
5,400 |
|
|
|
7,600 |
|
|
|
7,600 |
|
Non-cash interest expense |
|
|
1,500 |
|
|
|
1,500 |
|
|
|
6,000 |
|
|
|
6,000 |
|
Indemnification asset release |
|
|
7,700 |
|
|
|
7,700 |
|
|
|
7,700 |
|
|
|
7,700 |
|
Other |
|
|
- |
|
|
|
- |
|
|
|
(100 |
) |
|
|
(100 |
) |
Adjustments to income tax expense |
|
|
(22,500 |
) |
|
|
(22,500 |
) |
|
|
(10,300 |
) |
|
|
(10,300 |
) |
Non-GAAP net (loss) income |
|
$ |
(11,800 |
) |
|
$ |
(7,800 |
) |
|
$ |
60,800 |
|
|
$ |
75,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributed to common shareholders - basic and
diluted |
|
$ |
(13,900 |
) |
|
$ |
(9,900 |
) |
|
$ |
11,400 |
|
|
$ |
26,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributed to common shareholders - basic |
|
$ |
(11,800 |
) |
|
$ |
(7,800 |
) |
|
$ |
60,800 |
|
|
$ |
75,800 |
|
Interest on the Notes, net of tax |
|
|
- |
|
|
|
- |
|
|
|
4,500 |
|
|
|
4,500 |
|
Net (loss) income attributed to common shareholders - diluted |
|
$ |
(11,800 |
) |
|
$ |
(7,800 |
) |
|
$ |
65,300 |
|
|
$ |
80,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic |
|
|
41,700 |
|
|
|
41,700 |
|
|
|
41,600 |
|
|
|
41,600 |
|
Adjustment for diluted shares |
|
|
- |
|
|
|
- |
|
|
|
400 |
|
|
|
400 |
|
Weighted-average common shares outstanding - diluted |
|
|
41,700 |
|
|
|
41,700 |
|
|
|
42,000 |
|
|
|
42,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding- basic |
|
|
41,700 |
|
|
|
41,700 |
|
|
|
41,600 |
|
|
|
41,600 |
|
Adjustment for diluted shares |
|
|
- |
|
|
|
- |
|
|
|
7,900 |
|
|
|
7,900 |
|
Weighted-average common shares outstanding - diluted |
|
|
41,700 |
|
|
|
41,700 |
|
|
|
49,500 |
|
|
|
49,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss) income per share - diluted |
|
$ |
(0.33 |
) |
|
$ |
(0.24 |
) |
|
$ |
0.27 |
|
|
$ |
0.63 |
|
Non-GAAP net (loss) income per share -
diluted |
|
$ |
(0.28 |
) |
|
$ |
(0.19 |
) |
|
$ |
1.32 |
|
|
$ |
1.62 |
|
Cerence (NASDAQ:CRNC)
過去 株価チャート
から 4 2024 まで 5 2024
Cerence (NASDAQ:CRNC)
過去 株価チャート
から 5 2023 まで 5 2024