- Nuance turned in a better-than-expected Q4'20 financial performance, beating on both revenue and non-GAAP earnings. Despite the beat, revenue was down 9% YoY primarily due to the pandemic.
- Healthcare cloud-based ARR was up 29% for the full year. The Dragon Medical Cloud grew 38%.
- Divestiture of HIM Transcription and EHR allows the company to focus on cloud transition and sustainable recurring revenue.
- The stock is overvalued according to my relative valuation assessment and headwinds are expected for the coming quarter.
- I am neutral on this stock at present.
For further details see:
Nuance: Look Beyond The Numbers