Nuance Reports Mixed Q3 Results

Nuance Communications Inc NUAN reported third-quarter FY21 revenue growth of 12.7% year-on-year to $336.6 million, beating the analyst consensus of $333.53 million.
Hosting and professional services revenue grew 12.2% Y/Y to $208.2 million. Product and licensing revenue rose 36.1% Y/Y to $66.3 million.
Healthcare revenue increased by 22% Y/Y from cloud revenue strength.
The Digital Engagement and Security & Biometrics solutions in the Enterprise segment saw continued adoption throughout Q3. As a result, Enterprise revenue increased 5% Y/Y.
The non-GAAP operating margin expanded 60 bps to 22%. GAAP operating margin was 1.4% versus 4.0% last year.
Non-GAAP EPS of $0.16 missed the analyst consensus of $0.17.
Nuance generated $47.8 million in operating cash flow.
The company held $300.9 million in cash and cash equivalents as of June 30, 2021.
In April, Microsoft Corp MSFT confirmed that it would acquire Nuance for $19.7 billion.
Price action: NUAN shares traded lower by 0.21% at $54.78 on Thursday.