Cerence (CRNC) Investor presentation summary

Financial performance and guidance

• Q4 FY25 revenue reached $60.6M, exceeding guidance, with gross margin at 72.6% and net loss narrowing to $13.4M from $20.4M YoY.

• Adjusted EBITDA improved to $8.3M, and cash provided by operating activities rose to $12.8M.

• Adjusted total billings TTM increased 8.4% YoY to $236M; 5-year backlog stands at $1.0B.

• FY26 revenue guidance is $300M–$320M with gross margin of 79%–80% and adjusted EBITDA of $50M–$70M.

• Q1 FY26 revenue guidance is $110M–$120M, with gross margin of 85%–86%.

Business model and revenue streams

• Revenue is generated from variable and fixed license contracts, connected services, and professional services.

• Variable licenses are recognized based on production volume; fixed licenses are prepaid and recognized at signing.

• Connected services revenue is recognized over the subscription period; professional services are recognized based on project completion.

• Average technology price per vehicle (PPU) increased to $5.05 TTM, up from $4.50 YoY.

Market position and operational metrics

• Technology shipped in 52% of worldwide auto production (TTM), with 12M units shipped in Q4 FY25.

• Connected attach rate rose to 32.5% from 28.8% YoY; connected cars shipped up 14% TTM.

• Partnerships with over 80 global OEMs and Tier 1s, and 525M+ cars shipped with the technology.

• 5-year backlog of $1.0B reflects strong future revenue visibility.