Nuance Communications (NUAN) Tops Q1 EPS by 4c

Nuance Communications (NASDAQ: NUAN) reported Q1 EPS of $0.27, $0.04 better than the analyst estimate of $0.23. Revenue for the quarter came in at $418.3 million versus the consensus estimate of $406.64 million.

Q1 2020 Performance Summary

Q1 2020 results for continuing operations include:

• Revenue of $418.2 million, compared to $419.7 million in the same period last year.
• Non-GAAP revenue of $418.3 million, compared to $420.0 million in the same period last year.
• Organic revenue growth of 1% compared to the same period last year.
• GAAP EPS of $0.19, compared to $0.05 in the same period last year.
• Non-GAAP EPS of $0.27, compared to $0.27 in the same period last year.
• GAAP net income of $54.9 million, compared to $13.9 million in the same period last year.
• Non-GAAP net income of $78.6 million, compared to $78.5 million in the same period last year.
• GAAP operating margin of 12.5%, compared to 11.1% in the same period last year.
• Non-GAAP operating margin of 26.5%, compared to 28.5% in the same period last year.
• Operating cash flows from continuing operations was $66.9 million, compared to $72.7 million in the same period last year.

“We are very pleased with this strong start to our fiscal year, as we exceeded both our revenue and EPS guidance and delivered margins in line with our expectations,” said Mark Benjamin, Chief Executive Officer at Nuance. “Our pivot to the cloud was bolstered by strong Dragon Medical cloud growth and notable demand from our new cloud solutions, including PowerScribe One and CDE One. We delivered record revenue in our Enterprise business and made important progress with international expansion, launching Dragon Medical cloud in three new countries. Our performance thus far this year enables us to re-affirm our full-year revenue and ARR outlook, while raising our EPS guidance.”

He added, “We continue to focus on prudent capital allocation, repurchasing 5.7 million shares of our common stock and paying down $300 million in high yield bonds in the first quarter. We also announced today the redemption of $47 million of high yield debt as a further step to strengthen our capital structure, while maintaining a strong cash balance.”

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

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