Nuance Communications (NUAN) Tops Q4 EPS by 2c, Revenues Beat

Nuance Communications (NASDAQ: NUAN) reported Q4 EPS of $0.18, $0.02 better than the analyst estimate of $0.16. Revenue for the quarter came in at $352.9 million versus the consensus estimate of $345.72 million.

Q4 2020 Performance SummaryQ4 2020 results for continuing operations include:

• Revenue of $352.9 million, compared to $387.6 million in the same period last year.
• Non-GAAP revenue of $352.9 million, compared to $387.8 million in the same period last year.
• GAAP operating income of $12.9 million, compared to $30.8 million in the same period last year.
• Non-GAAP operating income of $76.3 million, compared to $94.1 million in the same period last year.
• GAAP operating margin of 3.7%, compared to 7.9% in the same period last year.
• Non-GAAP operating margin of 21.6%, compared to 24.3% in the same period last year.
• GAAP net loss of $22.8 million, compared to a net income of $3.0 million in the same period last year.
• Non-GAAP net income of $54.2 million, compared to $65.9 million in the same period last year.
• GAAP EPS of $(0.08), compared to $0.01 in the same period last year.
• Non-GAAP EPS of $0.18, compared to $0.23 in the same period last year.
• Operating cash flows from continuing operations was $80.9 million, compared to $79.3 million in the same period last year.

"We are very pleased with the strong end to our fiscal year, as we delivered revenue and EPS at the high end of our guidance range," said Mark Benjamin, Chief Executive Officer at Nuance. "We continued to execute on our strategic initiatives, accelerating our cloud transition in Healthcare and focusing on our AI-first approach in Enterprise. In Healthcare, we drove solid growth in our cloud offerings, ending the year at $386 million in cloud-based ARR, up 29% for the full year. In particular, we benefited from strong performance in Dragon Medical Cloud, which grew 38% compared to 2019, as well as growth in our PowerScribe One and CDE One offerings, as we continue to transition our customer base to the cloud. Enterprise revenue increased 4% compared to 2019, marking our fifth consecutive year of organic growth. This growth was driven by strength in our Intelligent Engagement offerings."

Mr. Benjamin concluded, "In a separate release today, as part of our ongoing effort to align our portfolio with key strategic growth areas, we announced the planned sale of our medical transcription and electronic health record (EHR) Go-Live services to Assured Healthcare Partners and Aeries Technology Group. With this sale, we will reach an important milestone in our journey towards a more focused strategy of advancing our Conversational AI, natural language understanding and ambient clinical intelligence solutions. This crucial step in our portfolio rationalization efforts places Nuance in a strong position to achieve levels of organic growth not seen in many years, and I look forward to continuing on this path in the quarters to come."

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

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