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About Nuance Communications, Inc.

Nuance Communications helps machines navigate the subtleties of human speech. The company is a market leader in conversational artificial intelligence (AI) and ambient clinical intelligence, working people in industries such as healthcare, financial services, telecommunications, government, and retail. It employs artificial intelligence, cognitive science, and machine learning in developing its products with some 1,600 language scientists, developers, and engineers on staff. Nuance has customers worldwide, although most of its revenue comes from the US. 


Nuance's operating segments are healthcare, enterprise, and other.

Its healthcare segment (more than half of sales) provides intelligent systems that support a more natural and insightful approach to clinical documentation, freeing clinical to spend more time caring for patients. Its healthcare solutions communicate to more than 300 million patient stories each year, helping more than 500,000 clinicians in 10,000 global healthcare organizations. Its Automatic Speech Recognition self-service system is available in about 90 languages and dialects. 

The enterprise segment (about 35% of sales) provides customer service through voice, mobile, web, and messaging channels, with inbound and outbound customer service and engagement, voice biometrics, and virtual assistant capabilities. 

Overall, sales to professional services and hosting accounts for nearly 65% of total sales while, product and licensing generates about 20% and maintenance and support accounts the rest. 

Geographic Reach

Nuance is based in Burlington, Massachusetts, and has an international headquarters in Dublin, Ireland. The company operates specialized data centers in Massachusetts, Washington, and Texas in the US, as well as in China withand smaller facilities around the world.

The company counts operations and sales force in nearly 30 countries. counts more than 80 international locations and a sales presence in more than 85 countries.

Nuance makes about three-quarters of its sales to customers in the US. 

Sales and Marketing

Nuance sells directly and through distributors, resellers, system integrators, e-commerce websites, and telecom carriers. Distribution and reseller partners include Avaya, Cisco, Genesys, Telstra, and Verint.

Healthcare segment customers include Cleveland Clinic, Johns HopkinsUniversity of Rochester Medical Center, and Partners Healthcare among others. The Enterprise segment customers include American Airlines, Barclays, Coca-Cola, Delta Airlines, Esurance, FedEx, HSBC, and Jetstar. While, Automotive segment customers include major automotive OEMs, such as Ford, Daimler, BMW, Toyota, Fiat Chrysler, Volkswagen, and Geely. 

Nuance sales and marketing expeseexpenses advertising costs were $17.2 million, $16.5 million and $19.4 million $273.3 million, $247 million, and $286.8 million for fiscal years 202019, 20198 and 20187, respectively. 

Financial Performance

Nuance's revenue went down to $1.4 billion in 2020 from $1.5 billion in 2019, resulting to a total of 2.8% change. The healthcare segment decreased by $35.3 million, primarily driven by  growth of the Dragon Medical cloud-based products, and more EHR implementations. The enterprise segment also grew by $19.2 million due to the growth in digital engagement solutions; while the other segment went down by $27.6 million due to the wind-down of Devices and the sale of the company's Mobile Operator Services business in 2019.

 In 2020, the company increased spending on research and development by $33.6 million due to higher compensation costs as the company continued to invest in its core technologies to enhance new products and solutions. Nuance's accumulated deficit is about $272 million.

The company's cash on hand fell to $301 million in 2020 from $561 million in 2019. Operations generated $254.6 million in cash, while investing activities used $72.7 million, and financing activities used $586.2 million. 


There's little nuance in Nuance's strategy: the company is focusing on its speech capabilities, developed with artificial intelligence methods and delivered via cloud computing. To do that, the company is spinning off its automotive business into a separate public company, selling its imaging business to Kofax, and winding down its mobile operator services and devices business. 

Nuance is investing in domain-specific and embedded conversational AI, which, the company expects, will increase the size of its healthcare addressable market. Specifically, the company is getting its Dragon Medical One  platform to more doctors in North America and international markets. It also speeding up its conversational AI technology, Computer-Assisted Physician Documentation that brings real-time intelligence to physicians at the point of care. 

The company is expanding its sales force to reach under-penetrated and new markets. In the healthcare segment, the company is pursuing under-served markets such as community hospitals, ambulatory clinics, and surgery centers. In the enterprise segment, it is expanding their Intelligent Engagement solutions into its existing IVR customers and delivering new AI development tools,

Nuance's restructuring included job cuts and facility closures. 

Nuance is well established in the medical community but emerging competition threatens it in other fields. Digital assistants like Amazon's Alexa, Google Home, and Apple's Siri have found users for applications that include smart home elements of the internet of thing.

Nuance Communications, Inc.

1 Wayside Rd
Burlington, MA 01803-4609
Phone: 1 (781) 565-5000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: NUAN
Stock Exchange: , NASDAQ
Chairman and CEO: Paul A. Ricci
Chief Technology Officer: Vlad Sejnoha
EVP and CFO: Daniel D. Tempesta
Employees (This Location): 700
Employees (All Locations): 7,100

Major Office Locations

Burlington, MA

Other Locations

Menlo Park, CA
Oakley, CA
Sunnyvale, CA
Melbourne, FL
Plantation, FL
Berkley, MA
Billerica, MA
Farmington Hills, MI
Mahwah, NJ
White Plains, NY
Austin, TX
Hampton, VA
Lynchburg, VA
Seattle, WA
Tukwila, WA
Waterloo, Canada
Moscow, Russia
Ieper, Belgium
Merelbeke, Belgium
Ulm, Germany