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Dec 31, 2024
Cerence Q1 2025 Earnings Report
Cerence reported its first quarter fiscal year 2025 results, with revenue and adjusted EBITDA beating the upper end of guidance, and strong free cash flow.
Key Takeaways
Cerence announced its first quarter fiscal year 2025 results, reporting revenue of $50.9 million and adjusted EBITDA of $1.4 million. The company exceeded its top-line revenue and adjusted EBITDA guidance, demonstrating solid momentum for 2025 with progress on generative AI roadmap and continued automaker customer wins.
Q1FY25 revenue was $50.9 million, beating the upper end of guidance.
Adjusted EBITDA for Q1FY25 was $1.4 million, also exceeding the upper end of guidance.
The company achieved strong free cash flow in Q1FY25.
Significant progress was made on the generative AI roadmap, including critical development milestones for its next-gen agentic, conversational AI platform.
Revenue by Segment
Forward Guidance
For the fiscal quarter ending March 31, 2025 (Q2 FY25), Cerence expects revenue to be between $74 million and $77 million, including $20 million from projected Fixed License revenue. Gross margins are projected to be between 74% and 76%, and net income between $1 million and $5 million. Adjusted EBITDA is expected to be in the range of $18 million to $22 million. Guidance for the full fiscal year ending September 30, 2025, remains unchanged.
Positive Outlook
- Expected revenue growth for Q2 FY25 compared to Q1 FY25.
- Projected positive net income for Q2 FY25.
- Anticipated positive Adjusted EBITDA for Q2 FY25.
- Full fiscal year 2025 guidance remains unchanged, indicating confidence in future performance.
- Projected Fixed License revenue of $20 million for Q2 FY25.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- The text does not contain any explicit negative outlooks or risks for the upcoming quarter or fiscal year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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