Share Performance and Growth Drivers - Cerence's shares surged 387.1% over the trailing six months, significantly outperforming the Zacks Computer & Technology Sector's 1.1% return and the Zacks Computers - IT Services industry's 13.6% appreciation [1] - The share price movement was driven by successful integration of generative AI solutions, record platform launches, and a robust partner network [2] - Strong revenue performance and a focus on automotive AI innovations contributed to the growth [2] AI Integration and Partnerships - Cerence collaborated with NVIDIA to utilize advanced chip technology, enhancing the performance and scalability of its offerings [2] - The company achieved 10 customer wins and launched six Gen AI programs in fiscal 2024, demonstrating strong momentum in deploying advanced AI solutions [4] - Cerence's AI technology powers more than 500 million cars globally, highlighting its extensive market reach [5] Market Reach and Customer Wins - Major automotive OEMs, including Microsoft, Volkswagen, BMW, and Renault, have implemented Cerence's voice assistance systems [5] - The company recorded 22 platform launches in 2024, including four in the fourth quarter of fiscal 2024 [6] - Cerence secured a multi-year agreement with JLR to develop next-generation in-car experiences using AI-enabled technologies [6] - Audi selected Cerence's Gen AI technology to enhance its in-car assistant capabilities [6] Competitive Landscape - Rising competition in the automotive AI sector, particularly from companies like SoundHound AI, poses a challenge to Cerence's market share [3][7] - Cerence's technology was integrated into 52% of global auto production for the trailing 12 months, showing a minor dip due to lower production volumes from key customers [7] Financial Performance and Estimates - The Zacks Consensus Estimate for Q2 fiscal 2025 revenues is $57.71 million, indicating a 14.92% year-over-year decline [8] - The non-GAAP earnings estimate for Q2 fiscal 2025 is 2 cents per share, unchanged over the past 30 days, marking a 122.22% year-over-year surge [8] - Fiscal 2025 revenue is expected to be between $236 million and $247 million, with headwinds of $5-$7 million due to a strategic shift from professional service projects [9] - The Zacks Consensus Estimate for 2025 revenues is $241.27 million, indicating a 27.22% year-over-year decline [10] - The non-GAAP loss per share for fiscal 2025 is projected between 92 cents and 67 cents, with a consensus earnings estimate of 15 cents per share, marking an 87.80% year-over-year decline [10] Historical Performance - Cerence has a history of strong quarterly performances, with earnings surpassing the Zacks Consensus Estimate in the trailing four quarters, averaging a 110.86% surprise [11]

Small-Cap Tech Stocks Overview - Innovative small-cap tech stocks like Cerence Inc (NASDAQ: CRNC), Rigetti Computing (NASDAQ: RGTI), and Airship AI (NASDAQ: AISP) are gaining traction in both business and stock prices, indicating potential for significant gains in 2025 [1] - These stocks are benefiting from short-covering rallies, but the sustainability of their market traction and upward trends in 2025 remains uncertain [1] Rigetti Computing - Rigetti Computing builds quantum computers and offers quantum-computing-as-a-service, benefiting from a short squeeze and increased trading volume [2] - The company's stock rally is driven by advancements in quantum computing technology, its industry position, and improved investor confidence, particularly due to Google's Willow chip advancements [2] - Catalysts for 2025 include the anticipated launches of 36- and 100-qubit systems, which could open an $8 billion addressable market [3] - Revenue is expected to grow exponentially from $15 million, but the company may need to raise more cash before achieving profitability, with shareholder value diluted by over 30% in the first nine months of F2024 [3] Cerence Inc - Cerence Inc provides AI assistants for mobility, transportation, and autonomous driving, focusing on voice/audio assistants [4] - The company recently expanded its partnership with NVIDIA, which helps scale its business, improve performance, and advance its technology [4] - Despite weak 2025 guidance, the company benefits from AI growth in the transportation industry, with assistants embedded in both legacy ICE and newer EVs [4] - A short squeeze, fueled by 18% short interest, led to a 700% spike in share price, with the stock expected to consolidate and trend higher in 2025 [5] Airship AI - Airship AI uses AI and machine learning to power its video surveillance platform, enabling real-time monitoring and threat response [7] - The company serves government agencies and Fortune 500 companies, with revenue expected to grow by 50% in F2025 and profitability anticipated next year [8] - Analysts rate the stock as a Buy, viewing it as a deep value with an 80% upside potential from current levels [8] - Despite its growth outlook, Airship AI is not among the top five stocks recommended by top-rated analysts [9]

Stock Performance - Cerence stock has experienced a significant increase, skyrocketing by 150% recently [1] Video Content - The video covers recent updates regarding Cerence (CRNC 8 79%) [1] - Stock prices used in the video were from the trading day of Jan 3, 2025 [1] - The video was published on Jan 6, 2025 [1]

Collaboration Announcement - Cerence announced an increased collaboration with Nvidia [1] Stock Information - Nvidia (NVDA) stock price was 4 45% [1] - Cerence (CRNC) stock price was 143 76% [1] - Stock prices used were the after-market prices of Jan 3 2025 [1] Video Details - The video discussing Nvidia and Cerence was published on Jan 4 2025 [1]

BURLINGTON, Mass., Jan. 06, 2025 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC) (“Cerence AI” or “the Company”), a global leader in AI for transportation, announced today that it will be presenting at the 27th Annual Needham Growth Conference on Tuesday, January 14, 2025 at 12:45 p.m. Eastern Time. The fireside chat format will feature Brian Krzanich and Tony Rodriquez, Cerence AI’s CEO and CFO, respectively. The presentation will be webcast and can be accessed in the “Events” tab under the “Investors” sec ...

Short Squeeze Overview - A short squeeze occurs when a stock price rapidly increases, forcing short sellers to buy shares to cover their positions, leading to further price increases [1] - Short squeezes are powerful due to the unlimited loss potential for short sellers and the self-fulfilling nature of rising prices [1] Identifying Short Squeeze Opportunities - High short interest (10% or higher) is a key attribute for identifying potential short squeeze candidates [2] - Stocks with small floats can move faster than large-cap stocks, making them more susceptible to short squeezes [3] - Unexpected bullish catalysts can accelerate short squeezes by forcing short sellers to cover their positions [3] - A price gap out of a base structure indicates a material change in the company and confirms a trend change [3] - Relative volume explosion confirms accumulation and is a hallmark of the best short squeezes [3] Real-World Example: CRNC Short Squeeze - CRNC, an AI technology provider for the automotive industry, announced an expanded collaboration with Nvidia, triggering a short squeeze [4] - CRNC's short interest was 17% at the market open, and its small float of ~42 million shares made it highly volatile [6] - The stock gapped up more than 30% on the news, with volume swelling thousands of percent above the 50-day average [5] - At the time of writing, CRNC's stock price had surged more than 100% [5] Industry Context - High-growth industries like AI are likely to provide more short squeeze opportunities in the future [8] - Microsoft's announcement of an $80 billion investment in AI data centers highlights the sector's growth potential [8]

Collaboration with NVIDIA - Cerence Inc announced an expanded collaboration with NVIDIA to enhance its CaLLM family of language models, including the cloud-based Cerence Automotive Large Language Model (CaLLM) and the embedded CaLLM Edge [1] - The collaboration leverages NVIDIA AI Enterprise, a cloud-native software platform, and NVIDIA DRIVE AGX Orin for certain aspects of CaLLM Edge [1] - The integration of agentic frameworks with in-car conversations requires a cross-disciplinary effort combining hardware, software, and UX expertise, with NVIDIA hardware and software engineers contributing to the development [2] Technological Advancements - Cerence AI has accelerated the development and deployment of CaLLM by utilizing NVIDIA AI Enterprise software platform, including NVIDIA TensorRT-LLM and NVIDIA NeMo [2] - The optimization and customization of the CaLLM family of models aim to deliver advanced performance, reduced latency, enhanced privacy and security, and robust protection against malicious interactions [2] - The collaboration enables Cerence AI to develop next-generation user experiences in partnership with automaker customers, enhancing driver experiences [2] Executive Insights - Nils Schanz, Executive Vice President of Product & Technology at Cerence AI, highlighted that optimizing the performance of CaLLM models delivers cost savings and improved performance to automaker customers [3] - Rishi Dhall, Vice President of Automotive at NVIDIA, noted that the collaboration helps Cerence AI deploy advanced NVIDIA AI and accelerated computing technologies to optimize LLM development and deployment [3] Company Overview - Cerence Inc is a global leader in creating AI-powered experiences across automotive and transportation, leveraging decades of innovation in voice, generative AI, and large language models [4] - The company has shipped its technology in over 500 million cars and partners with leading automakers, transportation OEMs, and technology companies to advance user experiences [4] - Cerence is headquartered in Burlington, Massachusetts, with global operations and a worldwide team dedicated to AI innovation [4] Specific Implementations - The collaboration aims to deliver faster in-vehicle assistant performance on NVIDIA accelerated computing and SoCs [5] - Cerence is developing an automotive-optimized implementation of NVIDIA NeMo Guardrails to navigate the nuances of in-car interaction [5] - The implementation and optimization of an agentic architecture on CaLLM Edge via NVIDIA DRIVE AGX Orin will advance the next generation of in-vehicle user experiences [5]

Company Overview - Cerence Inc is a global leader in AI-powered experiences for automotive and transportation, leveraging voice, generative AI, and large language models to create safer and more connected journeys [2] - The company has shipped its technology in over 500 million cars and partners with leading automakers, transportation OEMs, and technology companies [2] - Headquartered in Burlington, Massachusetts, Cerence operates globally with a dedicated team focused on AI innovation [2] Financial Strategy - The company plans to repurchase approximately $27 million of its 3.00% Convertible Senior Notes Due 2025 at 98.5% of their principal amount, reducing interest expense and optimizing the balance sheet [4][9] - Cerence intends to terminate its undrawn $50.0 million senior secured first-lien revolving credit facility, contingent upon the completion of the Notes repurchase, saving on ongoing commitment fees [1] - The company plans to pay off the remaining $60.5 million of Notes upon maturity in June 2025 using cash on hand [9] Management Commentary - The repurchase of the Notes demonstrates confidence in Cerence's future and commitment to driving shareholder value, according to CEO Brian Krzanich [5] - CFO Tony Rodriquez highlights the company's careful financial planning, strategic cost-reduction initiatives, and disciplined cash management as key factors enabling these actions [5] Guidance and Outlook - Cerence reaffirms its first quarter fiscal year 2025 and full fiscal year 2025 guidance, previously disclosed in conjunction with its fourth quarter fiscal year 2024 and full year ending September 30, 2024 financial results [1]

Cerence’s (CRNC) shares have surged 151.1% in the past month. The Zacks Computer & Technology sector has risen 5.7%, while the Zacks Computers - IT Services sector has declined 1.7% in the same time frame.The upside can be attributed to Cerence’s strong AI portfolio, expanding clientele and growing global presence in the automotive industry, all of which are supported by a solid network of partners.Cerence’s expanding partnerships with automakers like Volkswagen, Renault (RNLSY) , Skoda, and Audi, along wit ...

BURLINGTON, Mass., Dec. 03, 2024 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC) (“Cerence AI”), a global industry leader in AI for transportation, today announced that it has appointed Antonio (“Tony”) Rodriquez as its Chief Financial Officer (CFO), effective November 29, 2024. As Cerence AI’s CFO, Mr. Rodriquez will be focused on accelerating growth, improving operating results, and driving sustainable, long-term value, leading the Company’s finance organization, including accounting, tax, FP&A, treasury, ...