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Tuesday, Aug 6
Nuance provides light FQ4 guidance, shares now -6.1% AH
- In prepared remarks, Nuance (NUAN) guides for FQ4 revenue of $470M-$500M and EPS of $0.24-$0.32, below a consensus of $519.8M and $0.38.
- The company blames its shift to recurring/subscription-based revenue streams, which leads to lower up-front sales. Mobile/consumer is singled out as an area where the shift "has the effect of elongating revenue."
- FQ3 healthcare sales +2% Y/Y (boosted by acquisitions), even with FQ2; division made up 55% of segment profit. Mobile/consumer sales slumped: revenue -19% vs. -2%. Enterprise improved: revenue +7% vs. -20% in FQ2. Imaging -4% vs. -10%.
- Healthcare transcription sales still weak, Clintegrity and Dragon Medical stronger. 1.8B cloud mobile/consumer transactions in FQ3, +80% Y/Y. Enterprise lifted by demand for Nina voice assistant apps.
- Deferred revenue balance (stems from subscriptions/recurring revenue) was $396.5M, +2% Q/Q and +32% Y/Y. Operating cash flow was $85.5M vs. $141.5M a year ago.
- $115M spent on buybacks.
- FQ3 results, PR