Cerence Beats Analyst Expectations, Breaks Second-Quarter Revenue Record
- Cerence’s $98.7 million in revenue beat analyst estimates of $93.4 million.
- Cerence said the 14% rise in revenue for the quarter from last year set a new quarterly record.
- Cerence offered guidance for the second quarter of 2021, projecting $94 million to $97 million in revenue or $34 million to $37 million with adjusted EBITDA.
Breaking Records Again
Cerence (CRNC), the automotive voice technology developer, announced Q2 FY2021 and financial results that beat analyst projections and broke records for revenue again. The company reported $98.7 million in revenue, easily beating the $93.4 million predicted by analysts. The company broke its quarterly record, a record it breaks nearly every quarter now, with 60.37% higher revenue from the year before. Cerence pointed to the ongoing recovery in automotive production as well as new and expanded features drawing new users. Over the last quarter, Cerence added Android Automotive compatibility, improved the search engine capabilities of the voice assistant, and created an AI-powered tour guide feature, among other upgrades.
“Once again our results were ahead of expectations as we delivered the highest revenue for any quarter in the company’s history,” Cerence CEO Sanjay Shawan said in a statement. “Our core license business, in particular, performed better than expected as the global auto recovery takes shape and as our conversational AI and connected services expand into more car makes and models. We are proud to deliver both revenue growth and strong profitability. “Our first half bookings included more than $30 million for our new Applications. We won every competitive decision in the quarter including key strategic wins in the two-wheeler market with one of the most prestigious and fastest-growing two-wheeler companies in China, and a well-known domestic motorcycle brand. Our competitive position remains strong as our relentless pursuit of innovation is recognized by our customers.”
According to Cerence, 52% of automobiles are produced with Cerence technology worldwide, a 10% rise in cars shipped with Cerence from the year before. The company also pointed to several major wins in the markets it started to expand into this year, including scoring major contracts with two-wheel devices in the U.S. and in China. For the next quarter, Cerence projected $94 million to $97 million in revenue, with analysts pegging expectations at $94.89 million. The company raised its prediction for annual revenue by $10 million to between $380 million and $390 for the fiscal year, with analysts slightly raising their own expectations to $380.1 millio.