Q4 2024 Cerence Inc Earnings Call Transcript
Key Points
- Cerence Inc (CRNC) exceeded its Q4 revenue guidance with $54.8 million, surpassing the high end of the expected range.
- The company achieved a strong momentum in generative AI solutions with 10 customer wins and 6 program launches in fiscal year 2024.
- Cerence Inc (CRNC) signed its first customer deal for the first generation of its new AI platform, indicating progress in product development.
- The company anticipates a return to profitability in fiscal year 2025, with revenue guidance of $236 million to $247 million.
- Cerence Inc (CRNC) has a strong market position with partnerships with leading automakers like Volkswagen, Renault, and BMW.
- Cerence Inc (CRNC) reported an adjusted EBITDA loss of $41.9 million for Q4, highlighting ongoing financial challenges.
- The company's Q4 revenue declined by 32% year-over-year, indicating potential volatility in its financial performance.
- Cerence Inc (CRNC) faces revenue headwinds from restructuring actions, particularly in its professional services business.
- The company has $87.5 million of convertible notes due in June 2025, creating potential financial pressure.
- Cerence Inc (CRNC) experienced a decline in its penetration of global auto production, dropping to 52% due to weaker production volumes among top customers.
Good day and welcome to Cerence's fourth-quarter 2024 earnings call at this time. (Operator instructions) As a reminder, this call may be recorded.
I would like to turn the call over to Jason Gold, Investor Relations at Cerence. Please go ahead.
Welcome to Cerence's fourth-quarter of fiscal year 2024 conference call. Before we begin, I would like to remind you that this call may involve certain forward-looking statements. Any statements that are not statements of historical fact, including statements related to our expectations, estimates, assumptions, beliefs, outlook, strategy, goals, objectives, targets and plans should be considered to be forward-looking statements.
Cerence makes no representations to update those statements after today. These statements are subject to risks and uncertainties which may cause actual results to differ materially from such statements as described in our SEC filings including the form 8-K with the press release preceding today's call, our form 10-K filed on
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