Cerence Inc. (CRNC) stock continued the rally on Thursday session as it issued impressive results for the fourth quarter and the entire fiscal year 2020 on Monday, November 16. The technology company posted a double-digit growth as the business continued to raise revenue and hit record levels in the reported quarter.
On Thursday, the stock concluded the session at $77.52 with a rise of 9.72 percent, while the gain reaches to 21.22 percent over the past 5 days.
Cerence raised its order book to an unprecedented high of $1.8 billion at the end of the fiscal year (ended September 30). Fourth-quarter sales grew to $90.9 million year-on-year by 10 percent. Compared to $95.8 million a year ago, the GAAP adjusted income was $6.8 million. Compared to diluted earnings of $2.63 per share in Q4 2019, earnings per diluted share were $0.17 in the reported quarter.
Despite the COVID-19 crisis, which had a strong negative effect on the car industry and Cerence’s other targeted markets, Cerence’s first year of independent activity as a public company after separating from Nuance, was quite effective. Nevertheless, Cerence has continued to become one of the leading suppliers of innovative technology for automakers in voice recognition. The business also launched new services including voice recognition for two-wheeled vehicles and a news reading service for cars.
Cerence’s management expects growth for another year and forecast sales growth in the first quarter of fiscal 2021 of 13 percent to $85-$90 million. Cerence expects sales of $360 – $380 million for the complete year which highlights a growth of +12 percent and an adjusted EBITDA in the range of $31 million to $35 million for that period.
With a current market capitalization of $2.76 billion, Cerence Inc. (CRNC) stock is up 133.49 percent over the past six months while adding 242.55 percent since start of the year to its value.