Nuance Communications (NASDAQ: NUAN) reported Q4 EPS of $0.38, $0.06 better than the analyst estimate of $0.32. Revenue for the quarter came in at $536.2 million versus the consensus estimate of $525 million.

On a non-GAAP basis:

• Revenue of $536.2 million as reported, up 13% compared to $474.7 million in the fourth quarter last year
• Organic revenue grew 12% in the quarter to $536.2 million, from $479.6 million in the prior year period
• Recurring revenue of 71% of­ total non-GAAP revenue, consistent with the year-ago period
• Net income of $112.5 million, or $0.38 per diluted share, compared to $60.2 million, or $0.20 per diluted share, in the fourth quarter of fiscal year 2017
• Operating margin of 30.5%, compared to 20.7% in the prior year period
• Cash flow from operations of $149.4 million, or 133% of non-GAAP net income
• Net new bookings growth of 10%, to $468.5 million, up from $424.4 million a year ago

“The success of our fourth quarter can be measured equally by our strong financial performance as well as the tremendous progress we’ve made toward simplifying our structure, rationalizing our portfolio, enhancing our governance, and improving our internal culture,” said Mark Benjamin, chief executive officer at Nuance. “We met or exceeded our Q4 expectations within each of our core metrics, and are pleased with what we accomplished over these last six months to enhance shareholder value. We made significant changes to our Board, bringing fresh perspectives, skills, and diversity of thought to the Company, and appointed an independent chairman to best represent shareholder interests. We also continued to pivot our capital allocation toward debt paydown and share buybacks to further enhance shareholder value. Perhaps most importantly, we conducted our strategic portfolio reviews and made definitive business decisions that will accelerate our future growth.”

Mr. Benjamin continued, “As we define this new era for Nuance, we are sharply focused on building a global, conversational AI business that is capable of sustainable, long-term revenue and earnings growth. We are transitioning to cloud-based, intelligence-driven solutions, and allocating resources to ensure maximum success in our high-growth core markets. Executing on these defined strategic priorities will enable Nuance to maintain its leadership as a truly intelligent engagement company, and we look forward to sharing our continued progress.”

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