Cerence (CRNC) Shares Plunge Post Dismal Q2 Performance: The Details - Cerence (NASDAQ:CRNC)

Cerence Inc CRNC reported a second-quarter FY23 revenue decline of 20.7% year-on-year to $68.39 million, beating the consensus of $65.96 million.
Non-GAAP EPS loss of $(0.04) beat the consensus loss of $(0.12).
Segments: Revenue from Licenses fell 33.5% Y/Y to $30.8 million, Connected services decreased by 2.1% Y/Y to $18.9 million, and Professional services declined by 9.6% Y/Y to $18.7 million.
Margins: The non-GAAP gross margin contracted 940 bps to 65.3%.
The non-GAAP operating margin loss was (0.1)%, down from 25.2% a year ago.
The adjusted EBITDA margin declined to 3.6%, down from 27.9% a year ago.
Cerence generated $5.2 million in free cash flow and held $107.04 million in cash and equivalents.
Stefan Ortmanns, Chief Executive Officer at Cerence, commented, "We continue to deliver on our commitments, with our Q2 results showing another strong quarter based on the performance of our core automotive business."
Outlook: Cerence expects Q3 revenue of $58 million - $62 million (consensus $74.49 million).
Cerence raised the low end of the initial FY23 revenue guidance to $280 million - $290 million, up from $275 million - $290 million (consensus $286.22 million).
Price Action: CRNC shares traded lower by 11.10% at $23.69 on the last check Tuesday.

Cerence Shares Plunge Post Dismal Q2 Performance: The Details