Nuance Communications, Inc. (NASDAQ:NUAN) Q4 2019 Earnings Conference Call - Final Transcript
Nov 20, 2019 • 05:00 pm ET
Ladies and gentlemen, thank you for standing by, and welcome to the Nuance Q4 2019 Results Conference Call. At this time, all participants are in a listen-only mode. (Operator Instructions) I would now like to hand the conference over to your speaker today, Tracy Krumme, Senior Vice President, Investor Relations. Thank you. Please go ahead.
Good afternoon, everyone. Before we begin, I would like to remind everyone that our discussion includes predictions, estimates, expectations and other forward-looking statements. These statements are subject to risks and uncertainties that could cause material differences in our actual 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. As noted in our press release, we issued prepared remarks in advance of this call, which are available on our IR website. That material is intended to supplement our comments on the call today.
I would also like to note that there is a PowerPoint presentation also on our IR website that accompanies this call. Please take a moment to access it, if you have not already done so. It will remain on our site after today's call as well.
In terms of format, Mark will cover the quarter and year's highlights, then Dan will provide financial insights as well as our outlook for 2020. Following that, we'll open the call to Q&A.
And with that, I'd like to turn the call over to Mark.
Thanks, Tracy. And good afternoon and thanks for joining us. Q4 marked another quarter of solid execution by our global teams and I couldn't be prouder of what they have accomplished. We posted strong financial results, drove higher growth in our cloud-based ARR and continued to make significant progress toward the strategic initiatives we announced last November.
Today, we are a stronger, more agile and more unified company than ever before. But before I get ahead of myself, I want to take the opportunity to thank my team for their hard work and dedication. The level of commitment and determination they've exhibited over this past year has been amazing. We work together to execute on our fiscal 2019 goals and critical initiatives, which have sharpened our focus and positioned us well for fiscal 2020.
Turning to Slide 4. As you know, we took a number of significant strategic actions over the year to transform Nuance into a simpler, more growth-focused company. We exit 2019 as the undisputed leader in conversational AI for healthcare and enterprise with a strong market position in fast-growing verticals.
Transitioning our solutions to the cloud has been a top priority, and this enables us to shift our revenue mix to a more subscription-based higher value recurring model. During the year, we made significant progress migrating incremental Dragon Medical on-prem customers to the cloud with Dragon Medical One or DMO and saw success with the early launch of our new cloud solutions and created a go-to-market approach that align sales compensation to our cloud