Cerence Inc. reported fiscal year 2024 revenue of $331.5 million, a 12.6% increase from $294.5 million in fiscal 2023. Connected services revenue surged 77.8% to $133.4 million, driven by early contract terminations, while license revenue declined 14.1% to $124.7 million due to lower licensing royalties. The company recorded a net loss of $588.1 million compared to a $56.3 million loss in the prior year, primarily due to a $609.2 million goodwill impairment charge.Operating expenses increased significantly to $824.2 million from $226.5 million, mainly attributed to the goodwill impairment recorded in two phases - $252.1 million in Q3 and $357.1 million in Q4. The company implemented cost reduction initiatives, with restructuring charges of $17.1 million including $13.4 million in severance costs. Gross profit improved by 22.6% to $244.3 million, while gross margin expanded due to higher connected services revenue.As of September 30, 2024, Cerence...Show More

Cerence Inc. reported fiscal year 2024 revenue of $331.5 million, a 12.6% increase from $294.5 million in fiscal 2023. Connected services revenue surged 77.8% to $133.4 million, driven by early contract terminations, while license revenue declined 14.1% to $124.7 million due to lower licensing royalties. The company recorded a net loss of $588.1 million compared to a $56.3 million loss in the prior year, primarily due to a $609.2 million goodwill impairment charge.Operating expenses increased significantly to $824.2 million from $226.5 million, mainly attributed to the goodwill impairment recorded in two phases - $252.1 million in Q3 and $357.1 million in Q4. The company implemented cost reduction initiatives, with restructuring charges of $17.1 million including $13.4 million in severance costs. Gross profit improved by 22.6% to $244.3 million, while gross margin expanded due to higher connected services revenue.As of September 30, 2024, Cerence maintained a strong liquidity position with $130.4 million in cash, cash equivalents, and marketable securities. The company announced a restructuring plan in August 2024 aimed at reducing operating expenses and positioning for profitable growth. The plan's implementation is expected to be substantially complete by the end of Q1 fiscal 2025, with approximately $4.4 million in additional restructuring charges anticipated.