Cerence forecasts full-year revenue of $310 mln to $314 mln
Overview
U.S. conversational AI provider's Q3 revenue rose 12% yr/yr, slightly missing analyst expectations
Adjusted EBITDA for Q3 rose 50% yr/yr and exceeded the high end of company guidance
Company authorized its first-ever $30 mln share repurchase program
Result Drivers
Connected services - Revenue from Connected Services rose more than 20% yr/yr, reflecting continued adoption of the company's connected solutions
Fixed license contracts - Revenue growth was primarily driven by the timing of fixed license contract execution
Professional services decline - Professional Services revenue fell yr/yr as the company focused on standardization and higher-margin implementations
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
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