Cerence Inc. reported Q3 FY2024 revenue of $70.5 million, up 14.4% year-over-year, driven by a 66.6% increase in license revenue to $43.1 million. However, the company recorded a significant goodwill impairment charge of $357.1 million due to macroeconomic conditions and stock price declines, resulting in a net loss of $313.5 million compared to a $16.5 million loss last year.Connected services revenue declined 41.1% to $10.9 million, while professional services revenue decreased 4% to $16.5 million. Gross profit increased 23.8% to $50.4 million, with gross margin improving to 71.5%. Operating expenses surged to $405.3 million primarily due to the goodwill impairment charge, compared to $49.2 million in the prior year period.The company announced a new restructuring plan in August 2024 aimed at reducing operating expenses, with expected cash restructuring charges of $18-22 million. Cerence maintained a solid liquidity position with $126.3 million in cash and marketable securities as of June 30, 2024. The company also modified its credit agreement terms and remains focused on cost optimization while investing in AI technology development.

Cerence Inc. reported Q3 FY2024 revenue of $70.5 million, up 14.4% year-over-year, driven by a 66.6% increase in license revenue to $43.1 million. However, the company recorded a significant goodwill impairment charge of $357.1 million due to macroeconomic conditions and stock price declines, resulting in a net loss of $313.5 million compared to a $16.5 million loss last year.Connected services revenue declined 41.1% to $10.9 million, while professional services revenue decreased 4% to $16.5 million. Gross profit increased 23.8% to $50.4 million, with gross margin improving to 71.5%. Operating expenses surged to $405.3 million primarily due to the goodwill impairment charge, compared to $49.2 million in the prior year period.The company announced a new restructuring plan in August 2024 aimed at reducing operating expenses, with expected cash restructuring charges of $18-22 million. Cerence maintained a solid liquidity position with $126.3 million in cash and marketable securities as of June 30, 2024. The company also modified its credit agreement terms and remains focused on cost optimization while investing in AI technology development.