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Cerence (Cerence) Net Margin %

: 17.25% (As of Dec. 2023)
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Net margin is calculated as Net Income divided by its Revenue. Cerence's Net Income for the three months ended in Dec. 2023 was $23.9 Mil. Cerence's Revenue for the three months ended in Dec. 2023 was $138.3 Mil. Therefore, Cerence's net margin for the quarter that ended in Dec. 2023 was 17.25%.

The historical rank and industry rank for Cerence's Net Margin % or its related term are showing as below:

CRNC' s Net Margin % Range Over the Past 10 Years
Min: -94.8   Med: 6.99   Max: 33.06
Current: -8.66


CRNC's Net Margin % is ranked worse than
66.65% of 2762 companies
in the Software industry
Industry Median: 1.72 vs CRNC: -8.66

Cerence Net Margin % Historical Data

The historical data trend for Cerence's Net Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cerence Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Net Margin %
Premium Member Only Premium Member Only Premium Member Only 33.06 -5.53 11.85 -94.80 -19.10

Cerence Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Net Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.58 -38.15 -26.69 -14.30 17.25

Competitive Comparison

For the Software - Application subindustry, Cerence's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cerence Net Margin % Distribution

For the Software industry and Technology sector, Cerence's Net Margin % distribution charts can be found below:

* The bar in red indicates where Cerence's Net Margin % falls into.



Cerence Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Cerence's Net Margin for the fiscal year that ended in Sep. 2023 is calculated as

Net Margin=Net Income (A: Sep. 2023 )/Revenue (A: Sep. 2023 )
=-56.254/294.475
=-19.10 %

Cerence's Net Margin for the quarter that ended in Dec. 2023 is calculated as

Net Margin=Net Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=23.857/138.335
=17.25 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Cerence  (NAS:CRNC) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Cerence Net Margin % Related Terms

Thank you for viewing the detailed overview of Cerence's Net Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Cerence (Cerence) Business Description

Traded in Other Exchanges
Address
1 Burlington Woods Drive, Suite 301A, Burlington, MA, USA, 01803
Cerence Inc is a United States-based software company. It is involved in developing mobility-based solutions for drivers and their cars. The customers include all automobile original equipment manufacturers, or OEMs, or their tier 1 suppliers. The company's revenue is generated by selling software licenses and cloud-connected services. Geographically, it derives a majority of its revenue from the United States and also has a presence in Other Americas; Germany; Other Europe, the Middle East, Africa; Japan, and Other Asia-Pacific.
Executives
Stefan Ortmanns officer: Executive Vice President WALTER-SCHEIBLER-STR 24, MONSCHAU 2M 52156
Iqbal Arshad officer: EVP, CTO CERENCE INC., 1 BURLINGTON WOODS DRIVE, SUITE 301A, BURLINGTON MA 01803
Thomas L Beaudoin director NUANCE COMMUNICATIONS, INC., 1 WAYSIDE ROAD, BURLINGTON MA 01803
Marcy S Klevorn director ONE AMERICAN ROAD, DEARBORN MI 48126
Prateek Kathpal officer: EVP & CTO 1 BURLINGTON WOODS DRIVE, BURLINGTON MA 01803
Christophe Couvreur officer: SVP, Core BU 1 BURLINGTON WOODS DRIVE, BURLINGTON MA 01803
Douglas Lee Davis director 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Marc Montagner officer: Chief Financial Officer C/O ENDURANCE INT'L GROUP HOLDINGS, INC., 10 CORPORATE DRIVE, SUITE 300, BURLINGTON MA 01803
Sanjay Dhawan director, officer: Chief Executive Officer C/O HARMAN INTERNATIONAL INDUSTRIES, INC, 400 ATLANTIC STREET, STAMFORD CT 06901
Leanne Fitzgerald director, officer: Vice President and Secretary 1 WAYSIDE ROAD, BURLINGTON MA 01803
Mark J Gallenberger officer: President LTX-CREDENCE CORPORATION, 825 UNIVERSITY AVENUE, NORWOOD MA 02062
Alfred A Nietzel director ONE ADP BOULEVARD, ROSELAND NJ 07068
Kristi Ann Matus director C/O EQUITABLE HOLDINGS, INC., 1290 AVENUE OF THE AMERICAS, NEW YORK NY 10104
Marianne Budnik director C/O ACME PACKET, INC., 100 CROSBY DRIVE, BEDFORD MA 01730
Sanjay K Jha director 15 WAYSIDE ROAD, BURLINGTON MA 01803