Cerence has officially revealed the results of its first fiscal quarter as an independent company, after the automotive AI specialist split off from Nuance Communications last October.
In a report comparing the first quarter of Cerence’s 2020 fiscal year to its performance from the same period a year ago – when it was still the automotive-focused division of AI specialist Nuance – Cerence reports that its GAAP revenues came in at $77.5 million, compared to $72.5 million a year ago. Adjusted EBITDA was $21.8 million in the latest quarter, compared to an adjusted EBITDA of $20.1 million a year ago.
While Cerence is reporting a net loss (GAAP) of $11.8 million for the latest quarter – compared to a net income of $2.3 million in Q1 of 2019 – it did note in a statement that it had completed a number of acquisitions in recent years that added operating expenses, which were discounted in the company’s non-GAAP measurements.
“Our first quarter as an independent company delivered excellent financial results,” asserted Cerence CEO Sanjay Dhawan. “Our year over year revenue growth reflects solid expansion of our variable edge license sales and acceleration of our connected services business as the adoption of this technology expands into more and more cars.”
Looking ahead to the second quarter of Cerence’s fiscal 2020, the company anticipates GAAP revenues in the range of $80 million to $82 million, and adjusted EBITDA in the range of $22 million to $24 million. (Adjusted EBITDA excludes acquisition-related costs, stock-based compensation, and some other costs.) Cerence’s full-year guidance for GAAP revenue remains in the range of $321 million to $336 million.
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