- Cerence ( CRNC ) -14% after reporting mixed FQ3 results , whereby EPS of $0.43 beats by 1 cent and revenue of $89.04M misses consensus by $2.7M.
- The company has decided to sign no fixed contracts in Q4 and plans to have the annual contribution of fixed contracts within the historical range of ~$40M per year. The near-term impact will impact the financial performance but it will help in the long-term growth along with improved margins.
- Key Metrics: Percent of worldwide auto production with Cerence Technology (TTM): 51%.
- Average contract duration - years (TTM): 7.7
- Repeatable software contribution (TTM): 77%
- Change in number of connected cars shipped (TTM over prior year TTM): (19%)
- Growth in billings per car (TTM over prior year TTM) (excludes Legacy contract): 10%
- Revenue breakdown: License revenue $46.45M, down 7% Y/Y.
- Connected Services: $19.99M, down 33% Y/Y
- Professional Services $22.6M, up 36% Y/Y, a record quarter.
- For Q3, revenue is expected to be in the range of $52 million to $58 million vs. consensus of $98.46M.
- Adjusted EBITDA is expected to be in the range of approximately -$11M to -$5M.
- For FY22, the company lowered guidance to $322M-$328M from prior guidance of $365M-$385M vs. consensus of $370.89M.
- Adjusted EBITDA is expected to be in the range of approximately $79 million to $85 million.
- Press Release , Transcript
For further details see:
Cerence slides 14% After slashing FY22 revenue guidance