Delivers Strong Q1 17 Revenues, EPS, Net New Bookings and
Cash Flows
Nuance Communications, Inc. (NASDAQ: NUAN) today announced
financial results for its first quarter fiscal 2017, ended December
31, 2016. In the first quarter of fiscal 2017 Nuance delivered
strong results across key financial metrics. The Company’s Q1 17
performance was led by increased bookings and revenue for its
enhanced solutions that combine speech and natural language
technologies with artificial intelligence, particularly in
Enterprise, automotive, and clinical documentation.
Nuance delivered a strong first quarter with continued solid
performance and momentum across our business as demonstrated by the
following:
- Net new bookings in the quarter of
$380.3 million, up 23% compared to Q1 16;
- Reported GAAP revenue of $487.7 million
and non-GAAP revenue of $496.0 million;
- Recurring revenue was 72% of total GAAP
revenue in Q1 17, an increase of 500 basis points from Q1 16.
Recurring revenue for the quarter was 73% of total non-GAAP
revenue, an increase of 600 basis points from Q1 16;
- GAAP diluted EPS of $(0.08) and
Non-GAAP diluted EPS of $0.35; and,
- Cash Flow from Operations (CFFO) of
$124.9 million with CFFO as a percent of non-GAAP net income at
122%.
First Quarter of Fiscal 2017 PerformanceIn the first
quarter of fiscal 2017, Nuance reported GAAP revenue of $487.7
million, compared to $486.1 million a year ago. Nuance reported
non-GAAP revenue of $496.0 million, which includes revenue lost to
accounting treatment in conjunction with acquisitions, compared to
$494.9 million in the first quarter of fiscal 2016. In the first
quarter of fiscal 2017, total recurring revenue represented 72% of
total GAAP revenue. On a non-GAAP basis, total recurring revenue
represented 73% of total non-GAAP revenue, compared to 67% a year
ago. In the first quarter of fiscal 2017, Nuance reported net new
bookings of $380.3 million, up 23% from $308.7 million a year
ago.
In the first quarter of fiscal 2017, Nuance reported GAAP net
loss of $(23.9) million, or $(0.08) per share, compared to GAAP net
loss of $(12.1) million, or $(0.04) per share, in the first quarter
of fiscal 2016. Nuance reported non-GAAP net income of $102.5
million, or $0.35 per diluted share, down from non-GAAP net income
of $113.0 million, or $0.36 per diluted share, in the first quarter
of fiscal 2016. Nuance’s first quarter fiscal 2017 GAAP operating
margin was 4.9% down from 6.5% in the first quarter of fiscal 2016.
Nuance’s first quarter fiscal 2017 non-GAAP operating margin was
26.9%, down from 28.6% in the first quarter of fiscal 2016. Nuance
reported cash flow from operations of $124.9 million in the first
quarter of fiscal 2017, down 12% from $141.1 million in the first
quarter of fiscal 2016.
“Nuance delivered strong performance against our guidance in the
first quarter as we continued our execution and momentum across the
business,” said Dan Tempesta, Nuance’s CFO. “We produced solid
results in each of our key financial metrics including net new
bookings, revenue, recurring revenue, deferred revenue, EPS and
cash flow from operations. We believe last quarter’s groundwork and
a robust outlook for the second quarter place the company on track
for our FY17 non-GAAP guidance with a return to organic revenue
growth, and continued strong cost discipline and
profitability.”
Please refer to the “Discussion of Non-GAAP Financial Measures”
and to the “GAAP to Non-GAAP Reconciliations,” included elsewhere
in this release, for more information regarding the company’s use
of non-GAAP measures.
Conference Call and Prepared RemarksNuance is providing a
copy of prepared remarks in combination with its press release.
These remarks are offered to provide shareholders and analysts with
additional time and detail for analyzing results in advance of the
company’s quarterly conference call. The remarks will be available
at http://www.nuance.com/earnings-results/ in conjunction with the
press release.
Nuance will host an investor conference call today that will
begin at 5:00 p.m. ET and will include only brief comments followed
by questions and answers. To access the live broadcast, please
visit the Investor Relations section of Nuance’s website at
http://investors.nuance.com. The call can also be heard by dialing
800-230-1059 or 612-332-0802 at least five minutes prior to the
call and referencing code 416161. A replay will be available within
24 hours of the announcement by dialing 800-475-6701 or
320-365-3844 and using the access code 416161.
About Nuance Communications, Inc.Nuance Communications,
Inc. (NASDAQ: NUAN) is a leading provider of voice and language
solutions for businesses and consumers around the world. Its
technologies, applications and services make the user experience
more compelling by transforming the way people interact with
devices and systems. Every day, millions of users and thousands of
businesses experience Nuance’s proven applications. For more
information, please visit www.nuance.com.
Trademark reference: Nuance and the Nuance logo are registered
trademarks or trademarks of Nuance Communications, Inc. or its
affiliates in the United States and/or other countries. All other
trademarks referenced herein are the property of their respective
owners.
Definitions of Bookings and Net New BookingsBookings
represent the estimated gross revenue value of transactions at the
time of contract execution, except for maintenance and support
offerings. For fixed price contracts, the bookings value represents
the gross total contract value. For contracts where revenue is
based on transaction volume, the bookings value represents the
contract price multiplied by the estimated future transaction
volume during the contract term, whether or not such transaction
volumes are guaranteed under a minimum commitment clause. Actual
results could be different than our initial estimates. The
maintenance and support bookings value represents the amounts
billed in the period the customer is invoiced. Because of the
inherent estimates required to determine bookings and the fact that
the actual resultant revenue may differ from our initial bookings
estimates, we consider bookings one indicator of potential future
revenue and not as an arithmetic measure of backlog.
Net new bookings represents the estimated revenue value at the
time of contract execution from new contractual arrangements or the
estimated revenue value incremental to the portion of value that
will be renewed under pre-existing arrangements. Constant currency
for net new bookings is calculated using current period net new
bookings denominated in currencies other than United States
dollars, converted into United States dollars using the average
exchange rate for those currencies from the prior year period
rather than the actual exchange rate in effect during the current
period.
Definitions of Non-GAAP Organic Revenue GrowthOrganic
revenue growth is calculated by comparing current period non-GAAP
revenue to non-GAAP revenue from the corresponding prior-year
period. For purposes of this calculation, prior period non-GAAP
revenue is adjusted to include revenue from companies acquired by
Nuance as if we had owned the acquired businesses in all periods
presented. Non-GAAP organic revenue growth on a constant currency
basis is calculated using current period non-GAAP revenue for
entities reporting in currencies other than United States dollars,
excluding United States dollar denominated transactions recorded in
those entities, converted into United States dollars using the
average exchange rates from the prior year period rather than the
actual exchange rates in effect during the current period.
Safe Harbor and Forward-Looking StatementsStatements in
this document regarding future performance and our management’s
future expectations, beliefs, goals, plans or prospects constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Any statements that are
not statements of historical fact (including statements containing
the words “believes,” “plans,” “anticipates,” “expects,” or
“estimates” or similar expressions) should also be considered to be
forward-looking statements. There are a number of important factors
that could cause actual results or events to differ materially from
those indicated by such forward-looking statements, including but
not limited to: fluctuations in demand for our existing and future
products; changes to economic conditions in the United States and
internationally; fluctuating currency rates, our ability to control
and successfully manage our expenses and cash position; our ability
to execute our formal transformation program to reduce costs and
optimize processes; the effects of competition, including pricing
pressure; possible quality issues in our products and technologies;
our ability to successfully integrate operations and employees of
acquired businesses; the conversion rate of bookings into revenue;
the ability to realize anticipated synergies from acquired
businesses; and the other factors described in our annual report on
Form 10-K for the fiscal year ended September 30, 2016. We disclaim
any obligation to update any forward-looking statements as a result
of developments occurring after the date of this document.
Discussion of Non-GAAP Financial MeasuresWe utilize a
number of different financial measures, both Generally Accepted
Accounting Principles (“GAAP”) and non-GAAP, in analyzing and
assessing the overall performance of the business, for making
operating decisions and for forecasting and planning for future
periods. Our annual financial plan is prepared both on a GAAP and
non-GAAP basis, and the non-GAAP annual financial plan is approved
by our board of directors. Continuous budgeting and forecasting for
revenue and expenses are conducted on a consistent non-GAAP basis
(in addition to GAAP) and actual results on a non-GAAP basis are
assessed against the non-GAAP annual financial plan. The board of
directors and management utilize these non-GAAP measures and
results (in addition to the GAAP results) to determine our
allocation of resources. In addition and as a consequence of the
importance of these measures in managing the business, we use
non-GAAP measures and results in the evaluation process to
establish management’s compensation. For example, our annual bonus
program payments are based upon the achievement of consolidated
non-GAAP revenue and consolidated non-GAAP earnings per share
financial targets. We consider the use of non-GAAP revenue helpful
in understanding the performance of our business, as it excludes
the purchase accounting impact on acquired deferred revenue and
other acquisition-related adjustments to revenue. We also consider
the use of non-GAAP earnings per share helpful in assessing the
organic performance of the continuing operations of our business.
By organic performance we mean performance as if we had owned an
acquired business in the same period a year ago. By constant
currency organic performance we mean performance excluding the
effect of current foreign currency rate fluctuations. By continuing
operations we mean the ongoing results of the business excluding
certain unplanned costs. While our management uses these non-GAAP
financial measures as a tool to enhance their understanding of
certain aspects of our financial performance, our management does
not consider these measures to be a substitute for, or superior to,
the information provided by GAAP financial statements. Consistent
with this approach, we believe that disclosing non-GAAP financial
measures to the readers of our financial statements provides such
readers with useful supplemental data that, while not a substitute
for GAAP financial statements, allows for greater transparency in
the review of our financial and operational performance. In
assessing the overall health of the business during the three
months ended December 31, 2016 and 2015, our management has either
included or excluded items in six general categories, each of which
is described below.
Acquisition-Related Revenue and Cost of Revenue.We provide
supplementary non-GAAP financial measures of revenue, which include
revenue related to acquisitions, primarily from TouchCommerce,
Notable Solutions, and Quantim for the three months ended December
31, 2016 that we would have recognized but for the purchase
accounting treatment of these transactions. Non-GAAP revenue also
includes revenue that we would have recognized had we not acquired
intellectual property and other assets from the same customer.
Because GAAP accounting requires the elimination of this revenue,
GAAP results alone do not fully capture all of our economic
activities. These non-GAAP adjustments are intended to reflect the
full amount of such revenue. We include non-GAAP revenue and cost
of revenue to allow for more complete comparisons to the financial
results of historical operations, forward-looking guidance and the
financial results of peer companies. We believe these adjustments
are useful to management and investors as a measure of the ongoing
performance of the business because, although we cannot be certain
that customers will renew their contracts, we have historically
experienced high renewal rates on maintenance and support
agreements and other customer contracts. Additionally, although
acquisition-related revenue adjustments are non-recurring with
respect to past acquisitions, we generally will incur these
adjustments in connection with any future acquisitions.
Acquisition-Related Costs, Net.In recent years, we have
completed a number of acquisitions, which result in operating
expenses which would not otherwise have been incurred. We provide
supplementary non-GAAP financial measures, which exclude certain
transition, integration and other acquisition-related expense items
resulting from acquisitions, to allow more accurate comparisons of
the financial results to historical operations, forward-looking
guidance and the financial results of less acquisitive peer
companies. We consider these types of costs and adjustments, to a
great extent, to be unpredictable and dependent on a significant
number of factors that are outside of our control. Furthermore, we
do not consider these acquisition-related costs and adjustments to
be related to the organic continuing operations of the acquired
businesses and are generally not relevant to assessing or
estimating the long-term performance of the acquired assets. In
addition, the size, complexity and/or volume of past acquisitions,
which often drives the magnitude of acquisition-related costs, may
not be indicative of the size, complexity and/or volume of future
acquisitions. By excluding acquisition-related costs and
adjustments from our non-GAAP measures, management is better able
to evaluate our ability to utilize our existing assets and estimate
the long-term value that acquired assets will generate for us. We
believe that providing a supplemental non-GAAP measure which
excludes these items allows management and investors to consider
the ongoing operations of the business both with, and without, such
expenses.
These acquisition-related costs fall into the following
categories: (i) transition and integration costs; (ii) professional
service fees and expenses; and (iii) acquisition-related
adjustments. Although these expenses are not recurring with respect
to past acquisitions, we expect to incur these expenses in
connection with any future acquisitions. These categories are
further discussed as follows:
(i) Transition and integration costs. Transition and integration
costs include retention payments, transitional employee costs, and
earn-out payments treated as compensation expense, as well as the
costs of integration-related activities, including services
provided by third-parties.
(ii) Professional service fees and expenses. Professional
service fees and expenses include financial advisory, legal,
accounting and other outside services in connection with
acquisition activities, and disputes and regulatory matters related
to acquired entities.
(iii) Acquisition-related adjustments. Acquisition-related
adjustments include items that are required to be marked to fair
value each reporting period, such as contingent consideration, and
other items related to acquisitions for which the measurement
period has ended, such as gains or losses on settlements of
pre-acquisition contingencies.
Amortization of Acquired Intangible Assets.We provide
supplemental non-GAAP financial measures, which exclude the
amortization of acquired intangible assets. Amortization of
acquired intangibles assets is inconsistent in amount and frequency
and is significantly impacted by the timing and size of
acquisitions. Providing a supplemental measure which excludes these
charges allows management and investors to evaluate results “as-if”
the acquired intangible assets had been developed internally rather
than acquired and, therefore, provides a supplemental measure of
performance in which our acquired intellectual property is treated
in a comparable manner to our internally developed intellectual
property. Although we exclude amortization of acquired intangible
assets from our non-GAAP expenses, we believe that it is important
for investors to understand that such intangible assets contribute
to revenue generation. Amortization of intangible assets that
relate to past acquisitions will recur in future periods until such
intangible assets have been fully amortized. Future acquisitions
may result in the amortization of additional intangible assets.
Costs Associated with IP Collaboration Agreement.We entered into
IP collaboration agreements with a third party to gain access to
the third party's extensive speech recognition and natural language
and semantic processing technologies. The contracts had terms
ranging between five and six years all ending during or before
fiscal year 2016. Depending on the agreement, some or all
intellectual property derived from these collaborations is jointly
owned by the two parties. We had sole rights to commercialize a
majority of the developed intellectual property for periods ranging
between two to six years, depending on the agreement. These
sole-commercialization rights expired in fiscal year 2016. We
consider these long-term contracts and the resulting acquisitions
of intellectual property from this third-party over the agreements’
terms to be an investing activity occurring outside of our normal,
organic, continuing operating activities. We are therefore
presenting supplemental non-GAAP financial measures to show the
results excluding these expenses. We do not exclude from our
non-GAAP results the corresponding revenue, if any, generated from
these collaboration efforts. Costs associated with the research and
development portion of the agreements have been excluded from
research and development expense and costs for the marketing
exclusivity period are excluded from sales and marketing
expense.
Non-Cash Expenses.We provide supplementary non-GAAP financial
measures relative to the following non-cash expenses: (i)
stock-based compensation; (ii) certain accrued interest; and (iii)
certain accrued income taxes. These items are further discussed as
follows:
Stock-based compensation.
Stock-based compensation consists primarily of expenses for
employee restricted stock and restricted stock unit awards,
including awards associated with acquisitions. We evaluate our
financial performance both with and without these expenses because
they are non-cash, are generally not controllable in the short-term
and can vary significantly based on the Company’s stock price,
timing, size and nature of awards granted, including the timing and
amount of new grants associated with acquisitions. We do not
include such expenses in our operating plans. We expect stock-based
compensation to continue and may vary significantly in future
periods.
Certain accrued interest and income
taxes. We also exclude certain accrued interest and certain
accrued income taxes because we believe that excluding these
non-cash expenses provides senior management, as well as other
users of the financial statements, with a valuable perspective on
the cash-based performance and health of the business, including
the current near-term projected liquidity. These non-cash expenses
will continue in future periods.
Other Expenses.We provide supplementary non-GAAP financial
measures that exclude certain other expenses that arise outside of
the ordinary course of continuing operations in order to measure
the operating performance of the business both with and without
these expenses. By providing this information, we believe
management, as well as other users of our financial statements, are
better able to understand the financial performance of our
continuing operations. Expenses excluded are items such as
restructuring and other charges, net, loss on extinguishment of
debt, and contributions to the Nuance Foundation which was
established to provide grants to educational institutions and other
non-profit organizations to advance charitable, scientific,
literary or educational purposes. Other items such as consulting
and professional services fees related to assessing strategic
alternatives and our transformation program are also excluded.
We believe that providing the non-GAAP information to investors,
in addition to the GAAP presentation, allows investors to view the
financial results in the way management views the operating
results. We further believe that providing this information allows
investors to not only better understand our financial performance,
but more importantly, to evaluate the efficacy of the methodology
and information used by management to evaluate and measure such
performance.
The non-GAAP information included in this press release should
not be considered superior to, or a substitute for, financial
statements prepared in accordance with GAAP.
Financial Tables Follow
Nuance Communications,
Inc. Condensed Consolidated Statements of Operations (in thousands,
except per share amounts) Unaudited Three months ended
December 31, 2016 2015
Revenues: Professional
services and hosting $ 253,417 $ 227,135 Product and licensing
151,752 179,050 Maintenance and support 82,489
79,930 Total revenues 487,658 486,115
Cost of revenues: Professional services and
hosting 164,892 153,259 Product and licensing 18,378 23,412
Maintenance and support 13,598 13,296 Amortization of intangible
assets 15,542 15,631 Total cost of
revenues 212,410 205,598 Gross
profit 275,248 280,517
Operating expenses: Research and development 66,322 70,525
Sales and marketing 101,516 100,590 General and administrative
39,790 40,501 Amortization of intangible assets 27,859 27,033
Acquisition-related costs, net 9,026 2,480 Restructuring and other
charges, net 6,703 7,888 Total
operating expenses 251,216 249,017
Income from operations 24,032 31,500 Other expense,
net (37,608 ) (35,798 ) Loss before income
taxes (13,576 ) (4,298 ) Provision for income taxes
10,353 7,767 Net loss $ (23,929 ) $
(12,065 )
Net loss per share: Basic $ (0.08 ) $ (0.04
) Diluted $ (0.08 ) $ (0.04 )
Weighted average common
shares outstanding: Basic 288,953 307,794
Diluted 288,953 307,794
Nuance Communications,
Inc. Condensed Consolidated Balance Sheets (in thousands) Unaudited
ASSETS December 31, 2016 September 30, 2016
Current assets: Cash and cash equivalents $ 961,607 $
481,620 Marketable securities 133,684 98,840 Accounts receivable,
net 384,639 380,004 Prepaid expenses and other current assets
93,640 78,126 Total current assets 1,573,570
1,038,590 Marketable securities 42,174 27,632 Land, building
and equipment, net 178,220 185,169 Goodwill 3,503,442 3,508,879
Intangible assets, net 762,322 762,220 Other assets 135,402
138,980 Total assets $ 6,195,130 $ 5,661,470
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Current portion of long-term debt $ 977,458 $ -
Contingent and deferred acquisition payments 67,363 9,468 Accounts
payable and accrued expenses 254,200 332,258 Deferred revenue
399,299 349,173 Total current liabilities 1,698,320
690,899 Long-term portion of debt 1,961,230 2,433,152
Deferred revenue, net of current portion 403,155 386,960 Other
liabilities 206,721 219,129 Total liabilities
4,269,426 3,730,140 Stockholders' equity
1,925,704 1,931,330 Total liabilities and stockholders'
equity $ 6,195,130 $ 5,661,470
Nuance Communications, Inc. Consolidated Statements of Cash
Flows (in thousands) Unaudited Three months ended December 31, 2016
2015
Cash flows from operating activities: Net loss $
(23,929 ) $ (12,065 ) Adjustments to reconcile net loss to net cash
provided by operating activities: Depreciation and amortization
58,006 58,275 Stock-based compensation 39,130 42,348 Non-cash
interest expense 13,039 8,636 Deferred tax provision (benefit)
2,006 (351 ) Loss on extinguishment of debt - 4,851 Other 1,856 393
Changes in operating assets and liabilities, net of effects from
acquisitions: Accounts receivable (9,713 ) (3,894 ) Prepaid
expenses and other assets (15,999 ) (20,097 ) Accounts payable
(21,244 ) (5,940 ) Accrued expenses and other liabilities 5,841 305
Deferred revenue 75,907 68,680 Net cash
provided by operating activities 124,900
141,141
Cash flows from investing activities: Capital
expenditures (11,399 ) (20,555 ) Payments for business and
technology acquisitions, net of cash acquired (22,949 ) (674 )
Purchases of marketable securities and other investments (72,797 )
(17,070 ) Proceeds from sales and maturities of marketable
securities and other investments 10,105 14,128
Net cash used in investing activities (97,040 )
(24,171 )
Cash flows from financing activities:
Payments of debt - (511,844 ) Proceeds from issuance of long-term
debt, net of issuance costs 495,000 664,605 Payments for repurchase
of common stock - (189,580 ) Net payments on other long-term
liabilities (87 ) (851 ) Proceeds from issuance of common stock
from employee stock plans 45 36 Cash used to net share settle
employee equity awards (40,360 ) (52,171 ) Net cash
provided by (used in) financing activities 454,598
(89,805 ) Effects of exchange rate changes on cash and cash
equivalents (2,471 ) 39 Net increase in cash
and cash equivalents 479,987 27,204 Cash and cash equivalents at
beginning of period 481,620 479,449
Cash and cash equivalents at end of period $ 961,607 $
506,653
Nuance Communications, Inc. Supplemental Financial
Information - GAAP to Non-GAAP Reconciliations (in thousands,
except per share amounts) Unaudited Three months ended
December 31, 2016 2015
GAAP
revenues $ 487,658 $ 486,115 Acquisition-related revenue
adjustments: professional services and hosting 2,434 2,528
Acquisition-related revenue adjustments: product and licensing
5,716 5,993 Acquisition-related revenue adjustments: maintenance
and support 211 234
Non-GAAP
revenues $ 496,019 $ 494,870
GAAP cost
of revenues $ 212,410 $ 205,598 Cost of revenues from
amortization of intangible assets (15,542 ) (15,631 ) Cost of
revenues adjustments: professional services and hosting (1,2)
(8,410 ) (7,591 ) Cost of revenues adjustments: product and
licensing (1,2) (92 ) (122 ) Cost of revenues adjustments:
maintenance and support (1) (977 ) (1,068 )
Non-GAAP cost of revenues $ 187,389 $ 181,186
GAAP gross profit $ 275,248 $ 280,517 Gross profit
adjustments 33,382 33,167
Non-GAAP
gross profit $ 308,630 $ 313,684
GAAP
income from operations $ 24,032 $ 31,500 Gross profit
adjustments 33,382 33,167 Research and development (1) 8,490 9,933
Sales and marketing (1) 11,969 12,837 General and administrative
(1) 9,192 10,631 Amortization of intangible assets 27,859 27,033
Costs associated with IP collaboration agreements - 2,000
Acquisition-related costs, net 9,026 2,480 Restructuring and other
charges, net 6,703 7,888 Other 2,989 3,850
Non-GAAP income from operations $ 133,642 $
141,319
GAAP provision for income taxes $
10,353 $ 7,767 Non-cash taxes (3,814 ) (1,612 )
Non-GAAP provision for income taxes $ 6,539 $ 6,155
GAAP net loss $ (23,929 ) $ (12,065 )
Acquisition-related adjustment - revenues (2) 8,361 8,755
Acquisition-related adjustment - cost of revenues (2) - (166 )
Acquisition-related costs, net 9,026 2,480 Cost of revenue from
amortization of intangible assets 15,542 15,631 Amortization of
intangible assets 27,859 27,033 Restructuring and other charges,
net 6,703 7,888 Stock-based compensation (1) 39,130 42,348 Non-cash
interest expense 13,039 8,636 Non-cash income taxes 3,814 1,612
Costs associated with IP collaboration agreements - 2,000 Loss on
extinguishment of debt - 4,851 Other 2,989
4,010
Non-GAAP net income $ 102,534 $ 113,013
Non-GAAP diluted net income per share $ 0.35
$ 0.36
Diluted weighted average common
shares outstanding 293,909 314,371
Nuance
Communications, Inc. Supplemental Financial Information - GAAP to
Non-GAAP Reconciliations, continued (in thousands) Unaudited
Three months ended December 31, 2016 2015
(1) Stock-based
compensation
Cost of professional services and hosting $ 8,410 $ 7,757 Cost of
product and licensing 92 122 Cost of maintenance and support 977
1,068 Research and development 8,490 9,933 Sales and marketing
11,969 12,837 General and administrative 9,192 10,631
Total $ 39,130 $ 42,348
(2)
Acquisition-related revenue and cost of revenue
Revenues $ 8,361 $ 8,755 Cost of Professional services and hosting
- (166 ) Total $ 8,361 $ 8,589
Nuance Communications, Inc. Supplemental Financial Information –
GAAP to Non-GAAP Reconciliations, continued (in millions) Unaudited
Hosting
Revenue
Q1 Q2 Q3 Q4 FY Q1
2016 2016 2016 2016 2016
2017 GAAP Revenue $ 177.4 $ 184.6 $ 181.1 $ 187.0 $ 730.2 $
193.3 Adjustment 2.3 2.5 2.0 2.3
9.1 2.3 Non-GAAP Revenue $ 179.7 $ 187.1 $ 183.2 $ 189.3 $
739.2 $ 195.6
Maintenance and
Support Revenue
Q1 Q2 Q3 Q4 FY Q1
2016 2016 2016 2016 2016
2017 GAAP Revenue $ 79.9 $ 79.9 $ 82.5 $ 82.0 $ 324.3 $ 82.5
Adjustment 0.2 0.1 0.0 0.0 0.4
0.2 Non-GAAP Revenue $ 80.2 $ 80.0 $ 82.5 $ 82.0 $ 324.7 $
82.7
Perpetual Product
and Licensing Revenue
Q1 Q2 Q3 Q4 FY Q1
2016 2016 2016 2016 2016
2017 GAAP Revenue $ 115.2 $ 88.0 $ 80.9 $ 99.5 $ 383.6 $
78.7 Adjustment 2.0 2.2 1.4 1.0
6.6 0.7 Non-GAAP Revenue $ 117.2 $ 90.2 $ 82.3 $ 100.5 $
390.2 $ 79.3
Recurring Product
and Licensing Revenue
Q1 Q2 Q3 Q4 FY Q1
2016 2016 2016 2016 2016
2017 GAAP Revenue $ 63.9 $ 70.6 $ 72.1 $ 79.1 $ 285.6 $ 73.1
Adjustment 4.0 3.5 3.3 2.7 13.5
5.1 Non-GAAP Revenue $ 67.9 $ 74.1 $ 75.3 $ 81.7 $ 299.1 $
78.2
Professional
Services Revenue
Q1 Q2 Q3 Q4 FY Q1
2016 2016 2016 2016 2016
2017 GAAP Revenue $ 49.7 $ 55.6 $ 61.2 $ 58.7 $ 225.2 $ 60.1
Adjustment 0.3 0.4 0.3 0.2 1.1
0.2 Non-GAAP Revenue $ 50.0 $ 55.9 $ 61.5 $ 58.9 $ 226.3 $
60.3
Total Recurring
Revenues
Q1 Q2 Q3 Q4 FY Q1
2016 2016 2016 2016 2016
2017 GAAP Revenues $ 326.1 $ 339.6 $ 339.7 $ 352.1 $ 1,357.4
$ 353.0 Adjustment 6.4 6.2 5.3 5.0
22.9 7.5 Non-GAAP Revenues $ 332.5 $ 345.8 $ 345.0 $
357.1 $ 1,380.3 $ 360.5
Schedules may not add due to rounding.
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version on businesswire.com: http://www.businesswire.com/news/home/20170207006426/en/
Nuance Communications, Inc.For InvestorsChristine
Marchuska, 781-565-5000christine.marchuska@nuance.comorFor
MediaRichard Mack, 781-565-5000richard.mack@nuance.com
Nuance Communications (NASDAQ:NUAN)
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Nuance Communications (NASDAQ:NUAN)
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From Sep 2023 to Sep 2024