CRNC Earnings Prediction
The chart below shows how CRNC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CRNC sees a +2.00% change in stock price 10 days leading up to the earnings, and a +0.10% change 10 days following the report. On the earnings day itself, the stock moves by +8.66%. This data can give you a slight idea of what to expect for the next quarter's release.
CRNC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
50.90M
-63.21%
-7.13%
Gross Margin
63.89%
-20.70%
1.96%
Operating Margin
-11.54%
-126.92%
-28.90%
Net Margin
-47.72%
-376.64%
28.11%
EPS
-0.57
-218.75%
16.33%
No Data Available
CRNC Earnings Analysis
Cerence Inc Corporation (CRNC.O) Earnings Conference Call
Positive
Revenue Exceeds Guidance: Top line revenue of $50.9 million exceeded the high end of guidance of $47 million to $50 million.
Improved Profitability Indicator: Adjusted EBITDA of $1.4 million surpassed guidance of a loss between $6.6 million to $9 million, indicating improved profitability.
Strong Free Cash Flow: Free cash flow for the quarter was strong at $7.9 million, reflecting effective cash management and operational efficiency.
License Revenue Growth: License revenue increased by $1.9 million or 9.1% year-over-year, demonstrating growth in core business segments.
Connected Services Revenue Growth: Connected services revenue rose by 34% year-over-year to $13.7 million, indicating a positive trend in demand for connected vehicle solutions.
Negative
Revenue Decline Analysis: Q1 revenue declined to $50.9 million, down from $87.4 million in the same quarter last year, primarily due to the decommissioning of a legacy connected services contract.
Net Loss Analysis: Net loss for Q1 was $22.4 million, a significant drop from net income of $23.9 million in Q1 of fiscal 2024, driven by the loss of revenue from the legacy contract.
Cash Decrease Analysis: Cash and marketable securities decreased by $19.9 million to $110.5 million, impacted by the repurchase of $27.4 million in convertible notes and restructuring costs of $8.9 million.
Decline in Contract Consumption: Consumption of previously fixed contracts totaled $14 million, down 10% year-over-year, indicating a decline in demand for past license contracts.
Auto Production Decline: Global auto production penetration declined by 2% to 51%, with a year-over-year decrease of 10.5% in the number of cars produced using Cerence's technology.
CRNC FAQs
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CRNC Earning Call Sentiment
Cerence Inc. (NASDAQ:CRNC) Q1 2025 Earnings Call Transcript
CRNC.O
-4.65%Positive
The earnings report reveals a significant revenue decline, with a 41.8% drop year-over-year, and a net loss of $22.4 million. Despite some positive aspects like improved gross margins and positive free cash flow, the financial performance is overshadowed by uncertainties in market penetration and potential financial risks from convertible debt. The Q&A section indicates management's evasiveness on key metrics and guidance, further contributing to negative sentiment. The lack of clear guidance and competitive challenges suggest a negative stock price movement.
