The earnings call showed strong performance in AI initiatives and exceeded revenue and EBITDA expectations for Q4. However, there are significant challenges including year-over-year revenue decline, convertible note concerns, and declines in professional services and shipments. The sentiment for the call is cautiously optimistic with a focus on restructuring and future growth.

Company Guidance

During the Cerence Q4 2024 earnings call, the company reported impressive results, exceeding the high end of its guidance with a revenue of $54.8 million and an adjusted EBITDA of negative $1.9 million. For fiscal year 2025, Cerence provided initial guidance, projecting revenue between $236 million and $247 million, an adjusted EBITDA of $15 million to $26 million, and free cash flow in the range of $20 million to $30 million. The company highlighted its significant achievements in the AI space, noting 10 customer wins and 6 program launches for generative AI solutions with notable partners such as Volkswagen, Renault, and Audi. These AI initiatives are expected to provide a meaningful uplift in unit economics. Cerence's CEO, Brian Krzanich, emphasized the company's commitment to returning to profitability through streamlined operations and enhanced AI product offerings.

Revenue and EBITDA Exceed Expectations

Q4 revenue of $54.8 million and adjusted EBITDA of negative $1.9 million both exceeded the high end of guidance.

Strong Performance in AI and Automotive Partnerships

10 customer wins and 6 program launches for generative AI solutions in fiscal year '24, including partnerships with Volkswagen, Renault, Audi, and more.

Upcoming Product Launches and Microsoft Collaboration

First customer deal for the new AI platform and collaboration with Microsoft on Calm Edge, the first LLM running in automotive on the edge.

Positive Financial Guidance for 2025

Initial fiscal year '25 revenue guidance of $236 million to $247 million with adjusted EBITDA in the range of $15 million to $26 million and free cash flow of $20 million to $30 million.

Cost Restructuring and Increased Efficiency

Expected savings of $35 million to $40 million from cost restructuring efforts, focusing on streamlining operations post-2019 spin from Nuance.

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Cerence (CRNC) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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CRNC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 10, 2025	2025 (Q1)	-0.26 / -	1.12	―	―	―
Nov 21, 2024	2024 (Q4)	-0.36 / -0.07	0.09	-177.78% (-0.16)
Aug 08, 2024	2024 (Q3)	0.03 / 0.19	-0.04	575.00% (+0.23)
May 09, 2024	2024 (Q2)	-0.22 / -0.09	-0.04	-125.00% (-0.05)
Feb 06, 2024	2024 (Q1)	0.92 / 1.12	0.36	211.11% (+0.76)
Nov 27, 2023	2023 (Q4)	0.15 / 0.09	-0.14	164.29% (+0.23)
Aug 08, 2023	2023 (Q3)	-0.15 / -0.04	0.43	-109.30% (-0.47)
May 09, 2023	2023 (Q2)	-0.13 / -0.04	0.33	-112.12% (-0.37)
Feb 08, 2023	2023 (Q1)	0.09 / 0.36	0.59	-38.98% (-0.23)
Nov 29, 2022	2022 (Q4)	-0.22 / -0.14	0.66	-121.21% (-0.80)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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CRNC Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 21, 2024	$2.82	$5.83	+106.74%
Aug 08, 2024	$2.37	$2.77	+16.88%
May 09, 2024	$9.56	$6.28	-34.31%
Feb 06, 2024	$20.00	$18.58	-7.10%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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