Exhibit 99.1

 

 

 

 

Press Release

November 16, 2020

 

 

Cerence Announces Record Fourth Quarter and Fiscal Year 2020 Results

Fourth Quarter and Fiscal Year Highlights

 

Record bookings in FY20 drives backlog to more than $1.8 billion

 

Q4 revenue increased 21% from last quarter and up 10% from the prior year, setting new quarterly and full year records

 

Strong financial performance generated $26M of GAAP net cash provided by operating activities (CFFO) during the quarter and $45M of CFFO for the year

 

Generated adjusted EBITDA of $40.3M and adjusted EBITDA margin of 44.4% in the quarter

 

Financial metrics for the fiscal year met or exceeded pre-Covid-19 full year guidance

BURLINGTON, Mass., November 16, 2020Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, today reported its fourth quarter and fiscal year 2020 results for the year ended September 30, 2020.

 

Results Summary (1)

(in millions, except per share data)

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

GAAP Revenue

 

$

90.9

 

 

$

83.0

 

 

$

329.6

 

 

$

303.3

 

GAAP Gross Margin

 

 

71.8

%

 

 

67.4

%

 

 

67.3

%

 

 

67.2

%

Non-GAAP Gross Margin

 

 

75.7

%

 

 

70.8

%

 

 

71.5

%

 

 

70.7

%

GAAP Operating Margin

 

 

15.5

%

 

 

5.6

%

 

 

5.9

%

 

 

3.6

%

Non-GAAP Operating Margin

 

 

41.9

%

 

 

31.3

%

 

 

32.1

%

 

 

28.7

%

GAAP net income (loss)

 

$

6.8

 

 

$

95.8

 

 

$

(20.6

)

 

$

100.3

 

Non-GAAP net income

 

$

25.7

 

 

$

19.1

 

 

$

64.3

 

 

$

62.7

 

GAAP net income (loss) per share - diluted

 

$

0.17

 

 

$

2.63

 

 

$

(0.57

)

 

$

2.76

 

Non-GAAP net income per share - diluted

 

$

0.61

 

 

$

0.52

 

 

$

1.68

 

 

$

1.72

 

Adjusted EBITDA

 

$

40.3

 

 

$

27.8

 

 

$

114.9

 

 

$

94.7

 

Adjusted EBITDA margin

 

 

44.4

%

 

 

33.6

%

 

 

34.9

%

 

 

31.2

%

 

(1)

Please refer to the “Discussion of Non-GAAP Financial Measures” and “Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures” included elsewhere in this release for more information regarding our use of non-GAAP financial measures.

Sanjay Dhawan, Chief Executive Officer of Cerence, stated, “Our Q4 financial performance exceeded our expectations for every metric and delivered record revenue, record gross margin and record EBITDA. Cerence’s first year as a stand-alone business established the company as a major player in conversational AI for the car. We had to separate the business from Nuance and deal with the economic impact of Covid-19, but we did so while at the same time continuing a relentless introduction of new products and upgraded technologies. We’re more agile and more aggressive in our approach to innovation and more dedicated to the success of our customers than ever. I’m especially proud of the recognition that the Cerence team has received from our customers regarding our support in helping them achieve their start of production dates without delay.”

Dhawan continued, “Further demonstrating the depth of our customer relationships, we recently signed a renewal agreement for our SaaS-based connected services with a major global automaker, marking the

 

 

Cerence. All rights reserved

 


The following information was filed by Cerence Inc. (CRNC) on Monday, November 16, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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