Cerence Beats Analyst Revenue Expectations, Misses Earnings By $0.01
- Cerence’s $86.28 million in revenue very slightly beat analyst estimates of $87.97 million.
- Earnings of $0.33 were very slightly under the $0.34 estimates.
- Annual revenue projections from February of $365 to $385 million remain the same.
- Cerence stocks rallied from a drop earlier this week after the report.
- Cerence offered guidance for the next quarter of 2022, projecting $90 million to $94 million in revenue or $26 million to $30 million with adjusted EBITDA.
Cerence Switch-Up
Automotive voice technology developer, Cerence (CRNC), announced Q2 FY2022 and financial results that barely beat and fell behind analysts’ expectations of revenue and earnings, respectively. The company reported $86.28 million in revenue, beating the $87.97 million predicted by analysts by less than $2 million even as its $0.33 earnings were under by a penny of expectations. The company’s bookings for the last half-year are up compared to 2021, however. That includes North America OEMs as well as multiple Chinese electric vehicle makers pushing for the global market.
“We had a strong start to the fiscal year. Our results underscore the strength of our business and reinforces Cerence as the global leader in unique, moving experiences for the mobility world,” Cerence CEO Stefan Ortmanns said. “We’ve delivered important innovations and leading AI mobility solutions to customers in key markets, and our employees have demonstrated great commitment to supporting our customers and each other We remain focused on the markets, customers and products that will deliver long-term sustainable growth and that everything we do reinforces our vision of leadership in AI for mobility. We are intensely focused on bold innovation and executing at speed for our customers.”
CFO Shuffle
The earnings report came just a day after Cerence announced that Tom Beaudoin would be the new CFO, barely two months after the company hired former Endurance International Marc Montagner for the role. Montagner resigned from Cerence for unknown reasons, though Cerence made a point of saying it was unrelated to anything going on at the company. Beaudoin is a familiar face at Cerence after almost three years on the board. He was also CFO and Chief Transformation Officer at Nuance for seven years, guiding Cerence’s spin-off from its parent company, which is now a Microsoft subsidiary.
“I am excited to take on this opportunity,” Beaudoin said. “I know Cerence, the team and the market extremely well and have strong conviction in the many opportunities that lie ahead for the business. I look forward to broadening my work with leadership and the board as we focus on our goal of realizing the full potential for Cerence.”
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