Cerence Inc. (NASDAQ:CRNC) Q1 2023 Earnings Conference Call February 8, 2023 8:30 AM ET

Company Participants

Rich Yerganian – Senior Vice President-Investor Relations

Stefan Ortmanns – Chief Executive Officer

Tom Beaudoin – Chief Financial Officer

Conference Call Participants

Luke Junk – Baird

Colin Langan – Wells Fargo

Rajvindra Gill – Needham

Jeff Van Rhee – Craig-Hallum

Gavin Kennedy – Jefferies

Chris McNally – Evercore

Mark Delaney – Goldman Sachs

Operator

Good day and thank you for standing by. Welcome to the Cerence Q1 2023 Earnings Call. At this time all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Rich Yerganian, Senior Vice President of Investor Relations. Please go ahead.

Rich Yerganian

Thank you, Chris. Welcome to Cerence's first quarter fiscal year 2023 conference call. Before we begin, I would like to remind you that this call may involve certain forward-looking statements. Cerence makes no representations to update those statements after today. These statements are subject to risks and uncertainties as described in our SEC filings including the Form 8-K with the press release preceding today's call, our Form 10-Q we filed today, and then our Form 10-K we filed on November 29, 2022. In addition, the company may refer to certain non-GAAP measures, key performance indicators and pro forma financial information during this call. Please refer to today's press release for further details of the definitions, limitations, and uses of those measures and reconciliations of non-GAAP measures to the closest GAAP equivalent. The press release is available in the IR section of our website.

Joining me on today's call is Stefan Ortmanns, CEO of Cerence; and Tom Beaudoin, CFO of Cerence. As a reminder, the only authorized spokespeople for the company are Stefan, Tom and myself. Before handing the call over to Stefan, I would like to announce that we will be presenting at the Virtual Baird's 2023 Vehicle Technology & Mobility Conference on February 15 and in early March at the Morgan Stanley Technology Conference.

Now onto the call. Stefan?

Stefan Ortmanns

Thank you, Rich. Welcome everyone and thank you for joining us to discuss our first quarter earnings. I'm pleased to report we had a strong start to the fiscal year driven by our core auto business. Each of the key financial metrics provided in our guidance came in above the high end of the range. Tom will share the details with you shortly. At our Investor day November, we laid out our strategy for long-term sustainable growth for Cerence, what we are calling Destination Next. We described the evolution of our technology and the role it plays in the car of the future, an immersive companion that goes beyond conversational AI, extending to all aspects of the user experience inside the cabin for both driver and passengers and even outside the car. We also provided our long-term target models, which reflect not only the increasing level of adoption of current – of our current technology with programs already awarded, but also the future adoption of a greater suite of technology that Cerence will bring to the market.