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Dec 31, 2023
Cerence Q1 2024 Earnings Report
Cerence's Q1 2024 performance exceeded guidance with strong execution, strategic AI partnerships, and key business wins.
Key Takeaways
Cerence's Q1 2024 results exceeded the high end of guidance, driven by advancements in AI technology and strategic partnerships with NVIDIA and Microsoft. The company secured key business wins, including a win-back for a large Japanese OEM and a major win in AIoT. Revenue was significantly impacted by the acceleration of non-cash revenue from the Toyota "Legacy" contract.
Revenue and profitability exceeded the high end of guidance, marking six quarters of strong execution.
AI partnerships with NVIDIA and Microsoft were announced to enhance generative AI capabilities.
Cerence maintained a leadership position with 54% penetration of global auto production.
New business included a win-back for a large Japanese OEM, a program extension for a major North America OEM, and a major win in AIoT for a wearable product.
Cerence
Cerence
Cerence Revenue by Segment
Revenue by Segment
License Revenue
CapyFin.comConnected services Revenue
CapyFin.comProfessional services Revenue
CapyFin.com Forward Guidance
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income