Cerence shares tumble with Q3 financials and guidance

Cerence

09/08/2022 14:38

** Shares in Cerence Inc  CRNC.O , a provider or artificial
intelligence for  automotive industry, down 21.55% after
reporting fiscal Q3 loss, revenue decline and forecast of sharp
revenue drop in current quarter
    ** CRNC reported GAAP loss per share of $2.53 vs profit of
$0.15/shr in year ago quarter while GAAP rev fell to $89 mln
from $96.8 mln year-ago.  urn:newsml:reuters.com:*:nGNX34YYsz
    ** CRNC forecast fiscal revenue in $52 million to $58
million range and adjusted loss before interest, tax,
depreciation and amortization of $11 million to $5 million
    ** In Q4 2021 CRNC had reported GAAP rev of $98.1 mln
    ** Forecast FY revenue in the range of $322 million to $328
million with adj. EBITDA in appx $79 million to $85 million
range with adjusted EBITDA guidance excluding
acquisition-related costs, amortization of acquired intangible
assets, stock-based compensation restructuring and other costs
    ** In Nov, CRNC had reported 2021 FY GAAP rev of $387.2 mln 
    ** Co says to enhance visibility into future rev, decided to
sign no fixed contracts in Q4, in the future to keep annual
contribution of fixed contracts in range of ~$40 million/year 
    ** Says aware of short-term impact of decision but in long
run decision will return co to predictable, long-term growth  
    ** CRNC shares last traded at $23.34 compared with median PT
of $40.50 according to Refinitiv which shows 12 analyst ratings;
6 'buy' and 6 'hold' 

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com;))