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Cerence (CRNC) Reports Q4 Earnings: What Key Metrics Have to Say

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Cerence (CRNC - Free Report) reported $80.76 million in revenue for the quarter ended September 2023, representing a year-over-year increase of 38.9%. EPS of $0.09 for the same period compares to -$0.14 a year ago.

The reported revenue represents a surprise of +9.15% over the Zacks Consensus Estimate of $74 million. With the consensus EPS estimate being $0.13, the EPS surprise was -30.77%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Cerence performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenues- Connected services: $19.17 million compared to the $20.18 million average estimate based on two analysts. The reported number represents a change of +5.9% year over year.
  • Revenues- License: $43.11 million versus $32.15 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +126.9% change.
  • Revenues- Professional services: $18.49 million versus the two-analyst average estimate of $21.61 million. The reported number represents a year-over-year change of -12.2%.
View all Key Company Metrics for Cerence here>>>

Shares of Cerence have returned +14.2% over the past month versus the Zacks S&P 500 composite's +7.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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