Nuance Communications continues to see growth in its healthcare and enterprise security business lines. The company has issued an update for the quarter ended September 30, 2021 – the fourth quarter of its fiscal calendar.
The company is reporting revenues of $333.1 million for the quarter, up from $307.7 million from the same period last year. According to CEO Mark Benjamin, that success is largely attributable to ARR growth on the part of Nuance’s cloud solutions, especially its Dragon Medical and DAX AI platforms for healthcare operations. Overall revenues from the healthcare sector were up 12 percent year-over-year.
Meanwhile, the company’s Security & Biometrics and Digital Engagement solutions have seen full year growth of one percent compared to 2020, with Benjamin noting that the increase “marks the sixth consecutive year of organic growth for the Enterprise division.” While Nuance has focused most strongly on the healthcare sector in recent years, its other offerings include voice recognition technology that can improve customer service while guarding against fraud.
As for Nuance’s net result for Q4, the company is reporting a GAAP net loss of $10.8 million, an improvement over its GAAP net loss of $32.4 million in the same period last year. Nuance also reports a non-GAAP net income of $28.8 million for the latest quarter, though this is down from its non-GAAP net income of $42.1 million a year ago.
In announcing the results, Nuance noted that it had completed the sale of its medical transcription and electronic healthcare record implementation businesses in March of this year, and explained that “the businesses’ results of operations have been included within discontinued operations in our condensed consolidated financial statements.”
The company also noted its upcoming merger with Microsoft. The latter had entered into an agreement to buy Nuance in a multibillion-dollar deal earlier this year, with Microsoft CEO Satya Nadella asserting at the time that “Nuance provides the AI layer at the healthcare point of delivery and is a pioneer in the real-world application of enterprise AI.”
The pending transactions means that this will be one of Nuance’s last quarterly updates as its own company. Nuance expects the deal to close by the end of the first quarter of 2022, or early in the second quarter.
November 22, 2021 – by Alex Perala