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Cerence Inc. (CRNC-2.25%) has submitted its 10-K filing for the fiscal year ended September 30, 2024.
The filing includes financial statements for the year, showing total revenue of $331.5 million, an increase of 12.6% compared to $294.5 million for the fiscal year ended September 30, 2023. This growth was primarily driven by an increase in connected services revenue.
License revenue decreased by 14.1% to $124.7 million, attributed to a lower volume of licensing royalties. Connected services revenue increased by 77.8% to $133.4 million, driven by the early termination of a legacy contract.
Professional services revenue decreased by 1.3% to $73.3 million, influenced by the structure of arrangements and timing of fulfilling performance obligations.
The company reported a net loss of $588.1 million for the fiscal year, a significant increase from a net loss of $56.3 million in the previous year. This increase was primarily due to a goodwill impairment charge of $609.2 million recognized in fiscal year 2024.
Total operating expenses increased by 263.9% to $824.2 million, primarily driven by the goodwill impairment charge. Excluding this charge, operating expenses decreased by 5.1%, reflecting cost savings initiatives.
Cerence's cash provided by operating activities was $17.2 million, compared to $7.5 million in the previous year, reflecting improvements in working capital management.
The company identified several risk factors, including competitive pressures, adverse conditions in the automotive industry, and challenges related to the development and adoption of new products.
Cerence continues to focus on its growth strategies, which include maintaining product leadership, investing in interoperability with third-party virtual assistants, and expanding into adjacent transportation markets.
The filing also details various legal proceedings, including a shareholder class action and derivative actions, with certain cases resulting in settlements funded by insurance proceeds.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cerence Inc. annual 10-K report dated November 25, 2024. To report an error, please email earnings@qz.com.