Nuance Announces 3rd Quarter 2021 Results.

BURLINGTON, Mass: Nuance Communications, Inc. (NASDAQ: NUAN) today announced financial results for its third quarter ended June 30, 2021:

GAAP revenue of $336.6 million and GAAP earnings per diluted share of $(0.09).

Non-GAAP revenue of $336.6 million and non-GAAP earnings per diluted share of $0.16.

"We are pleased to report another quarter of execution on our key strategic objectives, leading to solid Q3 results on both our top-line and bottom-line," said Mark Benjamin, Chief Executive Officer at Nuance. "In Healthcare, our shift towards cloud-based offerings across our portfolio helped drive a healthy ARR performance. This performance led in part to our second consecutive quarter of 29% year-over-year growth in Dragon Medical and DAX Cloud revenue. In total, Healthcare revenue increased by 22% year-over-year due to cloud revenue strength. In Enterprise, our Digital Engagement and Security & Biometrics solutions saw continued adoption throughout the quarter, leading to a return to year-over-year growth in Q3. Overall, Enterprise revenue increased 5% year-over-year, driven by the adoption of these solutions. We are encouraged by the company's overall performance year-to-date, and feel we are set up for a strong end to fiscal year 2021."

On March 1, 2021, we completed the sale of our medical transcription and electronic healthcare record implementation businesses. Accordingly, for all periods presented, the businesses' results of operations have been included within discontinued operations in our condensed consolidated financial statements. All commentary is provided on a continuing operations basis. A reconciliation of continuing and discontinued operations to total operations is provided in the accompanying tables.

Q3 2021 Performance Summary

Q3 2021 results for continuing operations include:

GAAP and Non-GAAP revenue of $336.6 million, compared to $298.6 million in the same period last year.

GAAP operating income of $4.8 million, compared to $11.9 million in the same period last year.

Non-GAAP operating income of $74.2 million, compared to $63.8 million in the same period last year.

GAAP operating margin of 1.4%, compared to 4.0% in the same period last year.

Non-GAAP operating margin of 22.0%...