Cerence (NASDAQ: CRNC) reported Q2 EPS of $0.69, $0.17 better than the analyst estimate of $0.52. Revenue for the quarter came in at $98.66 million versus the consensus estimate of $93.44 million.

Cerence Second Quarter Highlights

• Set new quarterly record of $98.7M in revenue, up 14% compared to the same quarter last fiscal year
• Exceeded company quarterly guidance on all GAAP and non-GAAP financial metrics
• Continued to deliver strong GAAP Net Income of $11.2M, and Adjusted EBITDA of $39.3M
• Raised full year revenue and profitability guidance
• Strong bookings for new Applications products
• Completed strategic wins in the two-wheeler market

Sanjay Dhawan, Chief Executive Officer of Cerence, stated, “Once again our results were ahead of expectations as we delivered the highest revenue for any quarter in the company’s history. Our core license business, in particular, performed better than expected as the global auto recovery takes shape and as our conversational AI and connected services expand into more car makes and models. We are proud to deliver both revenue growth and strong profitability.”

Dhawan concluded, “Our first half bookings included more than $30M for our new Applications. We won every competitive decision in the quarter including key strategic wins in the two-wheeler market with one of the most prestigious and fastest growing two-wheeler companies in China, and a well-known domestic motorcycle brand. Our competitive position remains strong as our relentless pursuit of innovation is recognized by our customers.”

GUIDANCE:

Cerence sees Q3 2021 EPS of $0.52-$0.57, versus the consensus of $0.49. Cerence sees Q3 2021 revenue of $94-97 million, versus the consensus of $94.89 million.

Cerence sees FY2021 EPS of $2.22-$2.37, versus the consensus of $2.07.

For the fiscal quarter ending June 30, 2021, Revenue is expected to be in the range of $94M to $97M representing a 25% to 29% increase compared to the same period in the prior year. GAAP Net Income is expected to be in the range of $4M to $5M, and Adjusted EBITDA is expected to be in the range of $34M to $37M. The Adjusted EBITDA guidance excludes acquisition-related costs, amortization of acquired intangible assets, stock-based compensation, and restructuring and other costs.

For the fiscal year ending September 30, 2021, we are updating our guidance to reflect our stronger than expected first half revenue and margin performance, and also in consideration of the risks and uncertainties surrounding the semiconductor device shortages. Therefore, the Revenue range was increased and is now expected to be in the range of $380M to $390M, representing a 15% to 18% increase compared to the prior year. GAAP Net Income for the fiscal year is expected to be in the range of $35 to $42M. Adjusted EBITDA for the full year is expected to be in the range of $143M to $152M. The Adjusted EBITDA guidance excludes acquisition-related costs, amortization of acquired intangible assets, stock-based compensation, and restructuring and other costs. Additional details regarding guidance are included in the tables in this press release.

For earnings history and earnings-related data on Cerence (CRNC) click here.