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Dec 31, 2021
Cerence Q1 2022 Earnings Report
Announced first quarter fiscal year 2022 results, exceeding most profitability metrics and securing initial revenue from fitness products.
Key Takeaways
Cerence reported a strong start to fiscal year 2022 with the second largest bookings quarter in the company's history. The company exceeded most profitability metrics for the quarter and secured initial revenue contribution from fitness products, a new mobility market. However, the company lowered FY2022 guidance due to evolving conditions within the automotive industry and a slower than expected conversion from bookings to revenue for new products.
Delivered second largest bookings quarter in the Company’s history
Exceeded most profitability metrics for the quarter
Secured initial revenue contribution from fitness products, a new mobility market
Won another China-based two-wheeler customer
Revenue by Segment
Forward Guidance
For the fiscal quarter ending March 31, 2022, revenue is expected to be in the range of $82 million to $86 million. Adjusted EBITDA is expected to be in the range of approximately $22 million to $26 million. The full-year guidance is for revenue to be in the range of $365 million to $385 million. Adjusted EBITDA for the full year is expected to be in the range of approximately $119 million to $139 million.
Challenges Ahead
- The rapidly evolving conditions within the automotive industry affecting vehicle production and delivery, including but not limited to ongoing supply chain challenges driven by the semiconductor shortage, and the still unknown and ongoing impact of Covid-19 variants such as Omicron affecting the delivery of new vehicles, factory shutdowns and labor shortages.
- Analysis of each business unit’s plans, forecasts and assumptions that suggest the conversion from bookings to revenue will take longer than expected for new products.
- Prior guidance assumed a number of one-time technology license opportunities in fiscal 2022. Although attractive opportunities remain, these may not all be realized during our fiscal year as previously expected.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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