Overview

* Cerence ( CRNC ) Q3 fiscal revenue of $62.2 mln beats analyst expectations

* Co achieves fifth consecutive quarter of positive free cash flow

Outlook

* Cerence ( CRNC ) expects Q4 revenue between $53 mln and $58 mln

* Company projects Q4 gross margins of 68% to 69%

* Cerence ( CRNC ) sees FY2025 revenue at $244 mln to $249 mln

* Company anticipates FY2025 free cash flow of $38 mln to $42 mln

Result Drivers

* CERENCE ( CRNC ) xUI - Advancement of hybrid LLM-based platform driving customer momentum

* AUTOMOTIVE PARTNERSHIPS - Automakers increasingly partnering with Cerence ( CRNC ) for in-car experience innovation

* CASH FLOW - Fifth consecutive quarter of positive free cash flow reported

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $62.20 $54.80

Revenue mln mln (6

Analysts

)

Q3 EPS -$0.06

Q3 Net -$2.70

Income mln

Q3 Gross 73.7%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy."

* Wall Street's median 12-month price target for Cerence Inc ( CRNC ) is $10.00, about 14.5% above its August 5 closing price of $8.55

* The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)