- Cerence Inc CRNC reported a second-quarter FY22 revenue decline of 12.5% year-on-year to $86.3 million, above the consensus of $84.6 million. Non-GAAP EPS of $0.33 missed the consensus of $0.34.
- Segments: Revenue from License fell 14.8% Y/Y to $46.3 million, Connected services decreased 30.3% Y/Y to $19.3 million, and Professional services rose 24.7% Y/Y to $20.6 million.
- Margins: The non-GAAP gross margin contracted 230 bps to 74.7%.
- The non-GAAP operating margin contracted 1,240 bps to 25.2%, and the adjusted EBITDA margin contracted 1,200 bps to 27.9%.
- Cerence generated $1.6 million in operating cash flow and held $141.6 million in cash and equivalents.
- CEO Stefan Ortmanns commented, "We generated solid financial results fueled by deepened relationships with long-term customers, new wins with innovative EV makers, and expansion in newer areas like heavy trucking and two-wheelers. Despite the headwinds facing the global automotive industry, we continue to deliver on expectations as the world's leading automakers turn to Cerence as their innovation partner."
- Outlook: Cerence sees Q3 revenue of $90 million - $94 million, versus the consensus of $91.6 million. Non-GAAP EPS of $0.40 - $0.47 against the consensus of $0.48.
- Cerence reiterated the FY22 revenue outlook of $365 million - $385 million versus the consensus of $368.7 million. Non-GAAP EPS of $1.80 - $2.16 against the consensus of $1.92.
- Price Action: CRNC shares traded higher by 2.23% at $27.06 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
