Why Is Software Company Cerence Stock Trading Higher Monday?

Zinger Key Points
  • Cerence reports 38.9% revenue increase to $80.8 million, exceeding forecasts
  • CEO Stefan Ortmanns leads expansion into two-wheeler AI tech, with positive revenue forecasts

Cerence Inc CRNC reported a fourth-quarter FY23 revenue growth of 38.9% year-on-year to $80.8 million, beating the consensus of $73.4 million

Adjusted gross margin expanded by 1,400 bps to 72.9%. Adjusted EPS of $0.09 missed the consensus of $0.15.

Adjusted operating margin was 17.8%, versus (9.8)% in the year-ago period. Adjusted EBITDA margin was 20.5%, versus (5.3)% a year ago.

The company exited the quarter with cash and equivalents worth $110.4 million.

CEO Stefan Ortmanns said, "During the year, we won more than a dozen strategic deals in our core auto business, including five winbacks. In addition, we made strong progress in transportation adjacencies like two-wheelers and trucks. We are becoming a primary supplier of conversational AI technology in the two-wheeler space, having won every two-wheeler deal we've pitched." 

Outlook: Cerence expects Q1 revenue of $128 million - $132 million (consensus $80.37 million). Cerence expects FY24 revenue of $355 million - $375 million versus the $354.68 million consensus.

Price Action: CRNC shares traded higher by 4.68% at $18.10 premarket on the last check Monday.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceSmall CapMarketsMoversTechBriefspremarket tradingwhy it's moving
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!