Quick Summary:
Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures (cont.)(unaudited - in thousands, except per share data) Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 GAAP net loss $(277,976) $(26,089) $(254,119) $(28,247)Stock-based compensation 4,745 12,355 13,125 24,827 Amortization of intangible assets 555 2,498 1,203 4,951 Restructuring and other costs, net 4,551 5,714 5,256 9,903 Goodwill impairment 252,096 - 252,096 - Non-cash interest expense 1,471 466 2,939 910 Other (29) (819) (56) (819)Adjustments to income tax expense 11,004 4,148 30,282 963 Non-GAAP net (loss) income $(3,583) $(1,727) $50,726 $12,488 Adjusted EPS: GAAP Numerator: Net loss attributed to common shareholders - basic and diluted $(277,976) $(26,089) $(254,119) $(28,247) Non-GAAP Numerator: Net (loss) income attributed to common shareholders - basic $(3,583) $(1,727) $50,726 $12,488 Interest on the Notes, net of tax - - 2,228 - Net (loss) income attributed to common shareholders - diluted $(3,583) $(1,727) $52,954 $12,488 GAAP Denominator: Weighted-average common shares outstanding - basic and diluted 41,724 40,219 41,452 40,088 Non-GAAP Denominator: Weighted-average common shares outstanding- basic 41,724 40,219 41,452 40,088 Adjustment for diluted shares - - 7,891 - Weighted-average common shares outstanding - diluted 41,724 40,219 49,343 40,088 GAAP net loss per share - diluted $(6.66) $(0.65) $(6.13) $(0.70)Non-GAAP net (loss) income per share - diluted $(0.09) $(0.04) $1.07 $0.31 GAAP net cash provided by (used in) operating activities $1,044 $6,555 $(1,771) $4,437 Capital expenditures (1,845) (1,394) (2,776) (2,077)Free Cash Flow $(801) $5,161 $(4,547) $2,360 CERENCE INC.
Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures(unaudited - in thousands) Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 GAAP revenue $67,825 $68,393 $206,160 $152,051 GAAP gross profit $46,943 $43,379 $158,943 $100,854 Stock-based compensation 665 1,187 1,306 2,536 Amortization of intangible assets - 104 103 207 Non-GAAP gross profit $47,608 $44,670 $160,352 $103,597 GAAP gross margin 69.2% 63.4% 77.1% 66.3%Non-GAAP gross margin 70.2% 65.3% 77.8% 68.1% GAAP operating loss $(264,383) $(20,617) $(205,803) $(22,594)Stock-based compensation 4,745 12,355 13,125 24,827 Amortization of intangible assets 555 2,498 1,203 4,951 Restructuring and other costs, net 4,551 5,714 5,256 9,903 Goodwill Impairment 252,096 - 252,096 - Non-GAAP operating (loss) income $(2,436) $(50) $65,877 $17,087 GAAP operating margin -389.8% -30.1% -99.8% -14.9%Non-GAAP operating margin -3.6% -0.1% 32.0% 11.2% GAAP net loss $(277,976) $(26,089) $(254,119) $(28,247)Stock-based compensation 4,745 12,355 13,125 24,827 Amortization of intangible assets 555 2,498 1,203 4,951 Restructuring and other costs, net 4,551 5,714 5,256 9,903 Goodwill Impairment 252,096 - 252,096 - Depreciation 2,143 2,527 4,181 5,082 Total other expense, net (1,946) (1,766) (2,328) (697)Provision for income taxes 11,647 3,706 45,988 4,956 Adjusted EBITDA $(293) $2,477 $70,058 $22,169 GAAP net loss margin -409.8% -38.1% -123.3% -18.6%Adjusted EBITDA margin -0.4% 3.6% 34.0% 14.6% CERENCE INC.
Condensed Consolidated Statements of Operations(in thousands, except per share data) Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 Revenues: License $35,527 $30,800 $56,350 $76,217 Connected services 13,597 18,926 110,417 37,320 Professional services 18,701 18,667 39,393 38,514 Total revenues 67,825 68,393 206,160 152,051 Cost of revenues: License 1,404 2,209 3,008 3,823 Connected services 5,359 6,114 12,662 12,656 Professional services 14,119 16,587 31,444 34,511 Amortization of intangible assets — 104 103 207 Total cost of revenues 20,882 25,014 47,217 51,197 Gross profit 46,943 43,379 158,943 100,854 Operating expenses: Research and development 31,846 28,494 65,152 57,988 Sales and marketing 5,619 8,217 11,690 17,379 General and administrative 16,659 19,177 29,452 33,434 Amortization of intangible assets 555 2,394 1,100 4,744 Restructuring and other costs, net 4,551 5,714 5,256 9,903 Goodwill impairment 252,096 — 252,096 — Total operating expenses 311,326 63,996 364,746 123,448 Loss from operations (264,383) (20,617) (205,803) (22,594)Interest income 1,190 1,163 2,622 2,033 Interest expense (3,111) (4,003) (6,347) (7,517)Other (expense) income, net (25) 1,074 1,397 4,787 Loss before income taxes (266,329) (22,383) (208,131) (23,291)Provision for income taxes 11,647 3,706 45,988 4,956 Net loss $(277,976) $(26,089) $(254,119) $(28,247)Net loss per share: Basic $(6.66) $(0.65) $(6.13) $(0.70)Diluted $(6.66) $(0.65) $(6.13) $(0.70)Weighted-average common share outstanding: Basic 41,724 40,219 41,452 40,088 Diluted 41,724 40,219 41,452 40,088 CERENCE INC.
