CERENCE INC Reports Third Quarter Earnings Results for FY2023 Ending June 30 2023
August 26, 2023
🌥️Earnings Overview
On August 8, 2023, CERENCE INC ($NASDAQ:CRNC) reported its earnings results for the third quarter of FY2023, which ended June 30, 2023. Total revenue for the period was USD 61.7 million – a decrease of 30.8% from the same period in the previous year. Net income for the quarter was -16.4 million, a marked improvement from the -99.3 million recorded in the same quarter of the prior year.
Share Price
At the start of the day, CERENCE INC stock opened at $25.3 and closed at $26.8, representing an increase of 4.0% from its previous closing price of $25.8. The company’s strong earnings report was met with positive sentiment from investors as evidenced by the 4.0% jump in CERENCE INC stock during the trading session. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cerence Inc. More…
| Total Revenues | Net Income | Net Margin |
| 271.86 | -274.83 | -51.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cerence Inc. More…
| Operations | Investing | Financing |
| -8.71 | -9.59 | -2.64 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cerence Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.31k | 609.36 | 17.43 |
Key Ratios Snapshot
Some of the financial key ratios for Cerence Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -5.5% | 1.9% | -93.5% |
| FCF Margin | ROE | ROA |
| -5.6% | -22.5% | -12.1% |
Analysis
GoodWhale has conducted an in-depth analysis of CERENCE INC‘s wellbeing. Our findings indicate that CERENCE INC is a high-risk investment in terms of financial and business aspects. We have identified three risk warnings in the income sheet, balance sheet, and financial journal. We found that the company has a high debt-to-equity ratio, which is a warning sign of financial distress and could indicate a potential default on its payments. Additionally, CERENCE INC’s cash flow is not enough to cover its operating costs and there are discrepancies between its income and balance sheets. We recommend that potential investors carefully consider these risks before making an investment. To learn more about these potential risks, please register with us and check out our analysis. More…
Peers
Cerence Inc. is a leading provider of artificial intelligence software for the automotive industry. The company has been working on developing this technology for many years and is now in a strong position to compete against its rivals. The main competitors for Cerence Inc. are Fastbase Inc, Pros Holdings Inc, and Smartsheet Inc. All of these companies are working on developing similar software that can be used by automotive manufacturers to provide better customer service and improve safety.
– Fastbase Inc ($OTCPK:FBSE)
Fastbase Inc is a publicly traded company with a market capitalization of 905.27k as of 2022. The company has a negative return on equity of -376.49%. Fastbase is a provider of web-based lead generation and business intelligence tools. The company’s products are used by businesses of all sizes to generate leads, track website visitors, and understand customer behavior. Fastbase is headquartered in San Francisco, California.
– Pros Holdings Inc ($NYSE:PRO)
Macy’s is an American department store chain founded in 1858. It is one of the largest department store chains in the United States, with around 976 stores in 45 states. Macy’s has a market cap of $1.14B as of early 2022 and a return on equity of 284.8%. The company is known for its flagship store in Herald Square, New York City. Macy’s is a leading retailer of apparel, accessories, cosmetics, and home furnishings.
– Smartsheet Inc ($NYSE:SMAR)
Smartsheet Inc is a publicly traded company with a market cap of 4.29B as of 2022. The company has a Return on Equity of -29.14%. Smartsheet Inc is a provider of cloud-based work management and collaboration software. The company’s software is used by organizations of all sizes to plan, track, automate, and report on work.
Summary
CERENCE INC investors were pleased with the company’s third quarter FY2023 earnings results which were released on August 8 2023. Total revenue came in at USD 61.7 million, a 30.8% decrease year over year, but net income showed a dramatic improvement from -99.3 million to -16.4 million. The stock price reacted positively to the news, and overall, investors are optimistic about CERENCE INC’s future prospects. Investors should keep an eye on CERENCE INC’s financials, as well as upcoming news and events in the market, as they may have an impact on the price of the stock.
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