Thanks to strong performances from its automotive and enterprise divisions, Nuance Communications has produced stronger than anticipated results for Q1 of its 2018 fiscal year. The company’s revenues for the quarter came in at $501.6 million, up 2.9 percent year-over-year, while its net income reached $53.2 million, compared to a net loss of $23.9 million in Q1 of the 2017 fiscal year. (All figures are on a GAAP basis.)
Commenting on the performance in a statement, Nuance CFO Dan Tempesta said it’s the result of a three-year transformation effort for the company, asserting, “with our first quarter results, we reached a milestone of returning to organic growth.”
In addition to strong growth in the automotive and enterprise sectors over the quarter, Nuance says it also made “significant progress” in adoption of its Dragon Medical transcription platform, its security offerings in financial services (where its voice authentication technology has proven popular), and a partnership with NVIDIA.
Looking ahead, Nuance says that the “[c]urrent momentum in the business and strong market demand” have prompted it to bump up its guidance for 2018, raising its organic revenue growth prediction from between two and four percent, to between three and five percent. Annual net new bookings are expected to go up somewhere between five and seven percent.