Cerence Inc Reports Q3 Fiscal Year 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
Cerence Inc. Reports Q3 Fiscal Year 2024 Financial Results
BURLINGTON, Mass., Aug. 08, 2024 (GLOBE NEWSWIRE) – Cerence Inc. (NASDAQ:CRNC), a leader in AI for automotive and mobility connectivity, announced its financial results for the third quarter of fiscal year 2024, ending June 30, 2024.
Key Financial Metrics:
| Metric | Q3 FY2024 (Actual) | Q2 FY2024 (Actual) | YoY Change (%) | QoQ Change (%) | Wall Street Consensus (Q3 FY2024) |
|---|---|---|---|---|---|
| Total Revenue | $68.47M | $68.50M | -0.04% | -0.04% | $68.47M |
| Earnings Per Share | $0.05 | $0.08 | -37.5% | -37.5% | $0.05 |
Cerence reported revenue of $68.47 million in Q3 FY2024, almost level with the previous quarter and in line with Wall Street estimates. The earnings per share (EPS) stood at $0.05, also matching the consensus estimate but decreasing by 37.5% both year-over-year and quarter-over-quarter.
Revenue Performance by Segment:
| Segment | Q3 FY2024 Revenue (Actual) | Previous Guidance |
|---|---|---|
| Generative AI Programs | Not separately listed | N/A |
| Cash Flow from Operations | $12.9M | N/A |
The company continues to advance its generative AI products, with five customer projects in production. The strong cash flow from operations, amounting to $12.9 million, represents a positive operational outcome.
Comments from Company Officers:
Stefan Ortmanns, Chief Executive Officer of Cerence, remarked: - "Our Q3 results met expectations, highlighted by strong cash flow from operations." - "Progress with our new generative AI products is consistent, with five customer projects currently in production and four more anticipated by year-end." - "Our transformation plan aims to align operating costs with revenue, targeting net annualized cost savings of $35 to $40 million, primarily benefiting FY2025."
Forward Guidance:
Cerence anticipates Q4 FY2024 revenue between $44 million and $50 million. GAAP net loss is expected to range from ($32) million to ($28) million. The adjusted EBITDA is projected to be approximately ($19) million to ($13) million. For the full fiscal year ending September 30, 2024, the company forecasts revenue between $321 million and $327 million, incorporating approximately $30 million from fixed contracts. The GAAP net loss is expected between ($600) million and ($596) million, inclusive of a $357.1 million goodwill impairment charge for Q3 FY2024.
Stock Price Movement:
Following the earnings release, Cerence's stock price increased by 8.02%.
In summary, Cerence's financial results for Q3 FY2024 were in line with expectations, showcasing consistent progress in their generative AI ventures and positive cash flow from operations. The company remains focused on executing its transformation plan and achieving financial objectives for Q4 and FY2024.
