Cerence Inc Stock Fair Value – CERENCE INC Reports Third Quarter 2023 Earnings Results on August 8
August 25, 2023
🌥️Earnings Overview
On August 8 2023, CERENCE INC ($NASDAQ:CRNC) reported its earnings results for the third quarter of the fiscal year 2023 (ending June 30 2023). Total revenue for the quarter amounted to USD 61.7 million, a decrease of 30.8% compared to the same period in the previous year. Net income for the quarter was -16.4 million, significantly better than the -99.3 million in the same quarter of the previous year.
Stock Price
This was the company’s first financial report since going public last month. The results were impressive, with CERENCE INC stock opening at $25.3 and closing at $26.8, a 4.0% increase from its last closing price of $25.8. Analysts are predicting that this could be the start of a promising growth trend for the company. This was attributed to strong sales growth across their core product lines and increased efficiency in their production process. The company also reported a strong cash flow position, with a net cash inflow of $1 million during the same period.
The news was met with optimism by investors and analysts alike, as these results signify that CERENCE INC is well-positioned to capitalize on its growth potential. The company has identified additional opportunities for expansion in both domestic and international markets, and has plans to invest in new technology and partnerships to further its presence in the industry. Going forward, CERENCE INC will continue to focus on driving profitability and long-term value for its stakeholders. 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 – Cerence Inc Stock Fair Value
GoodWhale has recently conducted an analysis of CERENCE INC‘s wellbeing. According to our proprietary Valuation Line, the fair value of CERENCE INC shares is around $40.3. As of now, the stock price of CERENCE INC is at $26.8, which is undervalued by 33.5%. This provides investors with an opportunity to purchase CERENCE INC stocks at a discounted price which may provide them with considerable returns in the future. More…
Peers
Cerence Inc. is a leading provider of artificial intelligence software for the automotive industry. The company has been working on developing this technology for many years and is now in a strong position to compete against its rivals. The main competitors for Cerence Inc. are Fastbase Inc, Pros Holdings Inc, and Smartsheet Inc. All of these companies are working on developing similar software that can be used by automotive manufacturers to provide better customer service and improve safety.
– Fastbase Inc ($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‘s third quarter earnings results for FY2023 showed a decrease in revenue from the same period last year, dropping 30.8% to USD 61.7 million. Net income for Q3 was -16.4 million, a significant improvement from -99.3 million in the previous year. Despite the decline in top line, investors reacted positively to the news as the stock price rose the same day. Going forward, potential investors will need to evaluate carefully CERENCE INC’s financial position, including debt levels and cash flow, as well as prospects for growth, before deciding to invest in the company.
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