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Sep 30, 2021
Cerence Q4 2021 Earnings Report
Cerence reported strong Q4 and fiscal year 2021 results, with revenue growth and strategic wins.
Key Takeaways
Cerence Inc. reported its fourth quarter and fiscal year 2021 results, showing a 7.5% year-over-year quarterly revenue growth. The company secured strong bookings of $590 million for the full year, increasing the backlog to approximately $2 billion. Cerence also won its first major customer in the building mobility market for the connected elevator of the future.
Strong bookings of $590M in FY21 increases backlog to approximately $2 billion
Momentum for new products leads to orders representing nearly 20% of total bookings
Won first major customer in the building mobility market for the connected elevator of the future
VinFast selected Cerence to power conversational AI across its lineup of smart EVs
Cerence
Cerence
Cerence Revenue by Segment
Revenue by Segment
License Revenue
CapyFin.com Forward Guidance
For the fiscal quarter ending December 31, 2021, revenue is expected to be in the range of $91M to $96M which is flat year-over-year at the midpoint. Adjusted EBITDA is expected to be in the range of approximately $31M to $35M. The full-year guidance is for revenue to be in the range of $400M to $425M representing a 7% increase at the midpoint compared to the prior year.
Positive Outlook
- Revenue expected to be in the range of $91M to $96M for the fiscal quarter ending December 31, 2021.
- Adjusted EBITDA is expected to be in the range of approximately $31M to $35M for the next quarter.
- Full-year revenue guidance is in the range of $400M to $425M.
- Revenue is expected to increase 12% year-over-year at the midpoint, adjusting for the legacy decline.
- Adjusted EBITDA for the full year is expected to be in the range of approximately $144M to $163M.
Challenges Ahead
- Revenue is expected to be flat year-over-year at the midpoint for the next quarter.
- IHS auto production forecast is expected to be down 21% for the same period.
- Guidance reflects an expected reduction of $23M in revenue related to our “legacy” contract.
- Industry headwinds due to semiconductor shortages.
- Acquisition-related costs, amortization of acquired intangible assets, stock-based compensation, and restructuring and other costs are excluded from the adjusted EBITDA guidance.