Nuance Communications (NUAN) Tops Q3 EPS by 6c

Nuance Communications (NASDAQ: NUAN) reported Q3 EPS of $0.18, $0.06 better than the analyst estimate of $0.12. Revenue for the quarter came in at $338.4 million versus the consensus estimate of $317.37 million.

"We are very pleased with our performance this quarter, as we delivered revenue and EPS above the high end of our guidance range," said Mark Benjamin, Chief Executive Officer at Nuance. "Despite COVID-19 related headwinds, we continued to advance our strategic initiatives and execute on our financial and operational targets. Our ongoing shift to the cloud was bolstered by strong performance in Dragon Medical Cloud, which grew 34% year-over-year, as well as solid demand for our newer cloud-based healthcare offerings, such as PowerScribe One and CDE One. Overall, Healthcare organic revenue declined 13% year-over-year, as the COVID-19 related impact on our non-strategic HIM transcription and EHR implementation services businesses more than offset strength in Dragon Medical Cloud. Within our Enterprise segment, revenues declined 5% year-over-year due to timing of licensing and professional service projects, as well as an impact from COVID-19. Together, our strong performance from our strategic business lines and softer than anticipated COVID impacts during the quarter enable us to raise our FY 2020 guidance for revenue and Healthcare ARR."

Mr. Benjamin concluded, \We continue to focus on prudent capital allocation, fully repaying our $230 million of revolver borrowings during the quarter. We remain confident in our overall liquidity position and strength of our balance sheet."

For earnings history and earnings-related data on Nuance Communications (NUAN) click here.

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