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Dec 31, 2020
Cerence Q1 2021 Earnings Report
Cerence reported record first quarter 2021 results, exceeding company quarterly guidance on all GAAP and non-GAAP financial metrics and continuing to deliver strong GAAP Net Income and Adjusted EBITDA performance.
Key Takeaways
Cerence Inc. reported a strong start to fiscal year 2021 with revenue growth of 23% compared to the same quarter last year. The company exceeded its quarterly guidance on all GAAP and non-GAAP financial metrics. They also secured multiple contract awards for new applications, including winning back a major European OEM.
Won back a major European OEM’s next generation infotainment design for cars starting production in 2023
First major bookings for new applications including Cerence Pay
Revenue grew by 23% compared to the same period last fiscal year, setting a new quarterly record
Continued to deliver strong GAAP Net Income and Adjusted EBITDA performance
Cerence
Cerence
Cerence Revenue by Segment
Revenue by Segment
License Revenue
CapyFin.com Forward Guidance
For the fiscal quarter ending March 31, 2021, revenue is expected to be in the range of $92M to $95M representing a 6% to 10% increase compared to the same period in the prior year. GAAP Net Income is expected to be in the range of $5M to $6M, and Adjusted EBITDA is expected to be in the range of $34M to $37M. For the fiscal year ending September 30, 2021, revenue is now expected to be in the range of $370M to $380M, representing a 12% to 15% increase compared to the prior year. GAAP Net Income for the fiscal year is expected to be in the range of $33 to $39M. Adjusted EBITDA for the full year is expected to be in the range of $131M to $140M.
Positive Outlook
- Revenue for Q2 2021 is expected to increase by 6% to 10% compared to the same period in the prior year.
- GAAP Net Income for Q2 2021 is expected to be in the range of $5M to $6M.
- Adjusted EBITDA for Q2 2021 is expected to be in the range of $34M to $37M.
- Revenue for fiscal year 2021 is expected to increase by 12% to 15% compared to the prior year.
- GAAP Net Income for fiscal year 2021 is expected to be in the range of $33 to $39M.
Challenges Ahead
- Second quarter guidance accounts for the expected impact of semiconductor shortages on auto production in the first half of the calendar year.
- Semiconductor shortages should be resolved by mid-year resulting in auto production growth of 13.7% for the 2021 calendar year.
- The guidance is in consideration of the risks and uncertainties surrounding the semiconductor device shortages.
- Acquisition-related costs are excluded from the Adjusted EBITDA guidance.
- Amortization of acquired intangible assets is excluded from the Adjusted EBITDA guidance.