Nuance Communications, Inc. (NUAN) stock is lower today after the company, a pioneer in AI technology, announced financial results for the fourth quarter of 2021.
The company reported GAAP and Non-GAAP revenue of $333.1 million, compared to $307.7 million in the same period last year.
GAAP EPS also increased to a loss of $0.03 per share, a $.08 jump from the fourth quarter of 2020.
Shift to Cloud-Based Offerings
Mark Benjamin, CEO at Nuance, commented, "In Healthcare, we continue to drive cloud ARR growth, seeing particularly strong growth from our Dragon Medical and DAX solutions."
"This full year ARR growth led, in part, to our full year Healthcare revenue growth of 12% year-over-year, as we continued shifting towards cloud-based offerings across our Healthcare portfolio."
Nuance's increasing reliance on its cloud-based offerings also entailed a strategy shift away from its medical transcription business.
On March 1, Nuance completed the sale of its medical transcription and electronic healthcare record implementation businesses to DeliverHealth in a move meant to accelerate its growth as an AI leader.
Microsoft Acquisition
Nuance's fourth-quarter earnings report might be it's last as a public company.
On April 11, 2021, Nuance entered into an agreement with Microsoft under which Microsoft agreed to acquire all of the outstanding shares of Nuance common stock for $56.00 per share in an all-cash transaction.
The acquisition is expected to close by the end of the first quarter or early in the second quarter of the fiscal year 2022.
