Cerence Exceeds Analyst Expectations, Ups Next Revenue Prediction
- Cerence’s $96.8 million in revenue beat analyst estimates of $96 million.
- Revenue rose 29% for the quarter from last year.
- Cerence offered guidance for the next quarter of 2021, projecting $97 million to $101 million in revenue or $36 million to $39 million with adjusted EBITDA.
Cerence (CRNC), the automotive voice technology developer, announced Q3 FY2021 and financial results that beat analyst projections yet again. The company reported $96.8 million in revenue, beating the $96 million predicted by analysts. The company’s revenue rose 29% from the same quarter last year. Cerence marked several notable partnerships and new projects over the last quarter. The company made a deal with SiriusXM to build a voice assistant, adding conversational AI to the Harman Ignite Store, offering European drivers the ability to pay for gas by voice, and developing smart glasses for motorcyclists. The company also hit a new record of auto start of production of more than 60 devices from more than 15 car companies.
“According to IHS Markit, calendar Q2 is expected to be the quarter with the most disruption due to the semiconductor shortage yet we delivered 29% revenue growth over the prior year period. This growth is testament to our breadth of customers, products and services. With a record of more than 60 SOPs in the quarter from more than 15 different auto makers, and the bookings momentum for our new products and connected services, we expect to continue to grow faster than the auto SAAR (seasonally adjusted annual rate),” Cerence CEO Sanjay Dhawan said. “Enhancing our future growth opportunities are the strategic collaborations we announced in the quarter with Sirius XM, Visteon and Harman. In the case of Visteon, the collaboration extends into the two-wheeler market, a new adjacent market in which we are making steady progress.”