Nuance Communications, Inc. (NASDAQ:NUAN) Q1 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 05:00 pm ET


Nuance Communications, Inc. (NASDAQ:NUAN) Q1 2019 Earnings Conference Call Transcript


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Ladies and gentlemen thank you for standing by. And welcome to Nuance's First Quarter of Fiscal Year 2019 Conference Call. All lines have been placed on mute to prevent any background noise. After the prepared remarks, there will be a question-and-answer session. (Operator Instructions) As a reminder, this call is being recorded.

With us today from Nuance are Chief Executive Officer, Mark Benjamin; Chief Financial Officer, Dan Tempesta and Senior Vice President, Corporate Marketing and Communications, Richard Mack. At this time, I would like to turn the call over to Mr. Mack. Please go ahead.

Richard Mack

Great, Thank you. Before we begin, I want to remind everyone that our discussion this afternoon includes predictions, estimates, expectations and other forward-looking statements. These statements are subject to risk and uncertainty that can cause material differences in our results. Please refer to our recent SEC filings for a discussion of these risks. All references to income statement results are non-GAAP unless otherwise stated. And as noted in our press release, we issued prepared remarks in advance of this call, which are available on the IR portion of our website. Those remarks are intended to supplement our comments on this call today.

For today's call, Mark will cover our first quarter highlights and provide an update on our progress and direction. Dan will discuss our financials and guidance at greater length, and then we'll open the call for questions.

To begin, I'll turn the call over to Mark.

Mark Benjamin

Thanks, Rick. Good afternoon and thank you everyone for joining us to discuss our first quarter results.

As you saw in our materials today, we got off to a great start this fiscal year, delivering a strong first quarter, marked by several key accomplishments. First, we again set out and delivered on what we said we would do, and we even outperformed on several fronts. Second, we made great progress in our growth areas, including Dragon Medical Cloud offerings, our international healthcare expansion, automotive and insecurity and biometrics. Third, we hit additional milestones for a more simplified and focused company. And finally, we delivered on our capital allocation programs with recent share buybacks and another planned debt pay down in March. Overall, I'm incredibly proud of the way our team performed, continuing its great momentum coming out of Q4 '18.

Today we're going to take a little longer than we normally would on these calls especially in the financial section. I recommend staying with us as there are a number of important details associated with the Imaging sale and creating a new baseline for the business and our continuing operations. This is especially relevant in our discussion of guidance and favorable trends.

As you saw in our press release and prepared remarks, we delivered strong results across our P&L. In particular, we delivered revenue, margins, and EPS above our expectations, driven by meaningful progress in our growth and cost initiatives. You also saw that we introduced several accounting updates regarding ASC 606 and discontinued operations from the Imaging