SHANGHAI and BURLINGTON, Mass., April 23, 2025 (GLOBE NEWSWIRE) -- Just ahead of Auto Shanghai 2025, Cerence Inc. (NASDAQ:CRNC) ("Cerence AI"), a global leader pioneering conversational AI-powered user experiences, today announced a new partnership with MediaTek and expanded collaboration with NVIDIA to deliver the next generation of CaLLM™ Edge, its embedded small language model (SLM) purpose-built for automotive user experiences. With new multi-modal capabilities powered by NVIDIA AI Enterprise software, ...

Core Insights - Cerence Inc. will announce its second quarter financial results for the period ending March 31, 2025, on May 7, 2025, at 4:05 PM Eastern Time [1] - A live conference call and webcast will be held on the same day at 5:00 PM Eastern Time to discuss the results [2] Company Overview - Cerence Inc. is a global leader in creating AI-powered user experiences in the automotive and transportation sectors [3] - The company has shipped over 500 million cars equipped with its technology and collaborates with leading automakers and technology firms [3] - Cerence is headquartered in Burlington, Massachusetts, and has a global presence dedicated to advancing AI innovation [3]

Core Insights - Cerence Inc. has been awarded the Best Technology Award by HARMAN, highlighting its commitment to innovative AI solutions for enhancing in-car experiences [1][2][4] - The recognition reflects a long-term collaboration between Cerence AI and HARMAN, focusing on automotive technology innovations [2][4] - HARMAN's recent introduction of the "Luna" avatar, powered by Cerence AI's technology, showcases the integration of emotionally intelligent AI systems in vehicles [3] Company Overview - Cerence Inc. is a leader in creating AI-powered experiences in the automotive sector, with over 500 million cars equipped with its technology [5] - The company specializes in voice, generative AI, and large language models to enhance user experiences in transportation [5] - Cerence AI is headquartered in Burlington, Massachusetts, and operates globally, partnering with major automakers and technology firms [5]

Core Insights - Cerence Inc. has been awarded the Best Technology Award by HARMAN, highlighting its commitment to innovative AI solutions for enhancing in-car experiences [1][2][4] - The recognition is a result of a long-term collaboration between Cerence AI and HARMAN, focusing on innovations that shape the future of automotive technology [2][4] Company Overview - Cerence Inc. is a global leader in creating AI-powered experiences in the automotive and transportation sectors, with over 500 million cars equipped with its technology [5] - The company specializes in voice, generative AI, and large language models to provide safer and more enjoyable journeys for drivers and passengers [5] Recent Developments - At CES 2025, HARMAN introduced its "Luna" avatar, which is powered by Cerence AI's voice assistant, enhancing personalized interactions in vehicles [3] - Cerence AI's CaLLM™ Edge SLM has been integrated into HARMAN's Ready Upgrade, facilitating third-party app development for in-car applications while ensuring data security [3]

Group 1: Company Achievements - Cerence Inc. received the Best Contribution Award at the 2025 ECARX Partnership Conference, marking the second consecutive year of recognition for its contributions to ECARX and its OEM customers [1] - The partnership between Cerence AI and ECARX has been ongoing since ECARX's founding in 2017, focusing on automotive programs for various Geely brands, including Audio AI solutions and multilingual support [2] Group 2: Partnership Developments - The collaboration has recently expanded to include the deployment of Cerence's generative AI-powered solutions, enhancing the driving experience for smart drivers [3] - The ECARX Antora 1000 platform, utilized in the Hongqi 007/009 models, features advanced voice functionalities, including English speech recognition and text-to-speech capabilities in 17 languages, supporting Hongqi's global market expansion [3] Group 3: Company Overview - Cerence Inc. is a leader in creating AI-powered experiences in the automotive sector, with over 500 million cars shipped with its technology [5] - ECARX, founded in 2017 and listed on Nasdaq in 2022, has over 1,800 employees and its products are present in over 7.3 million vehicles worldwide [6][7]

Core Insights - Cerence Inc. has appointed Marion Harris, a former executive at Ford Motor Company, as an independent, non-executive director effective April 1, 2025 [1] - Harris brings over 25 years of experience in the automotive and financial services sectors, including his role as Chairman and CEO of Ford Motor Credit Company, where he led a successful digital transformation [2] - The addition of Harris to the Cerence AI Board is expected to provide strategic insights as the company continues to innovate in automotive and expand into the broader mobility market [3][4] Company Overview - Cerence Inc. is a global leader in creating AI-powered user experiences in the automotive and transportation sectors, with over 500 million cars equipped with its technology [5] - The company focuses on leveraging voice, generative AI, and large language models to enhance safety and connectivity for drivers and passengers [5] - Cerence is headquartered in Burlington, Massachusetts, and collaborates with leading automakers and technology companies to advance user experiences [5]

BURLINGTON, Mass., March 13, 2025 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ:CRNC) ("Cerence AI"), a global leader pioneering conversational AI-powered user experiences, today introduced Cerence xUI™, its agentic AI assistant platform that works across the edge and the cloud to advance the next generation of LLM-powered in-vehicle user experiences. Underscoring its deep expertise at the intersection of AI innovation and the unique requirements of the automotive UX, Cerence AI has already signed several strate ...

The global virtual assistants market is growing at a compound annual growth rate of 22.3% and is projected to be worth $23.57 billion by 2033. Integration of virtual assistants with smart home devices such as speakers, thermostats, lighting systems, andFirst Principles Partners is an equity research analyst specializing in technology, innovation, and sustainability investment. My unique approach, "First Principles," involves breaking down complex problems to their most basic elements in terms of financial a ...

Core Viewpoint - Cerence (CRNC) has shown significant stock performance, returning 75.1% year to date, outperforming the broader technology sector and the IT services industry [1] Financial Performance - In the first quarter of fiscal 2025, Cerence reported a non-GAAP loss of 3 cents per share, exceeding the Zacks Consensus Estimate by 88.89% [2] - Revenues for the same quarter were $50.9 million, surpassing the Zacks Consensus Estimate by 3.62%, although this represents a 63.2% decline year over year [2] Market Position and Technology - Cerence's technology was utilized in 51% of auto production in the first quarter of fiscal 2025, with approximately 11 million cars shipped, reflecting a 2.6% sequential increase but a 10.5% year-over-year decrease [3] - The company powers over 500 million cars globally, indicating strong market reach and leadership in automotive AI [4] Growth Prospects - For fiscal 2025, Cerence anticipates revenues between $236 million and $247 million, with adjusted EBITDA expected between $15 million and $26 million [7] - The second quarter of fiscal 2025 is projected to generate revenues between $74 million and $77 million, including an estimated $20 million from fixed contracts [7] - The Zacks Consensus Estimate for second-quarter fiscal 2025 revenues is $76.57 million, indicating a 12.89% growth compared to the previous year [8] Clientele and Partnerships - Cerence has expanded its automotive clientele, achieving 10 customer wins and launching six Gen AI programs in fiscal 2024 [11] - The company set a record with 22 platform launches in 2024 and has secured a multi-year agreement with JLR for next-generation in-car experiences [12] - Collaborations with NVIDIA and Microsoft enhance Cerence's technological capabilities, integrating advanced AI solutions into vehicles [13][14] Valuation and Market Sentiment - Despite strong growth prospects, Cerence shares are considered overvalued, indicated by a Value Score of D, and are trading above the 50-day and 200-day moving averages, suggesting a bearish trend [15][16] - The company faces intense competition in the automotive voice assistance domain, which may impact its future prospects [17]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $50.9 million, exceeding the high end of guidance of $47 million to $50 million [20] - Adjusted EBITDA was $1.4 million, significantly better than the anticipated loss of $6.6 million to $9 million [23] - Gross margin for the quarter was 65%, surpassing the guidance of 60% [21] - The net loss for Q1 was $22.4 million, compared to a net income of $23.9 million in the same quarter of the previous year [24] - Cash and marketable securities at the end of the quarter were $110.5 million, down $19.9 million from the previous fiscal year [25] Business Line Data and Key Metrics Changes - License revenue increased to $22.7 million, up 9.1% year-over-year [27] - Connected services revenue rose to $13.7 million, a 34% increase from $10.2 million in the same quarter last year [27] - Professional services revenue decreased year-over-year but performed at a higher gross margin than anticipated [21][28] Market Data and Key Metrics Changes - The penetration of global auto production declined by 2% to 51% [31] - Approximately 11 million cars were shipped with Cerence technology in Q1, a 2.6% increase quarter-over-quarter but a 10.5% decrease year-over-year [32] - Worldwide car production declined by 1.2% compared to the same quarter last year [32] Company Strategy and Development Direction - The company aims to return to profitability in fiscal year 2025, focusing on cost management and operational efficiency [6][17] - Key deliverables for 2025 include launching the next-gen product Cerence XUI, growing business with new and existing customers, and continuing transformation efforts [11][15][16] - Partnerships with leading AI companies like Nvidia and Microsoft are expected to enhance product performance and cost efficiency [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year cash flow expectations and projected revenue guidance for Q2 between $74 million and $77 million [17][35] - The company is optimistic about its ability to navigate challenges in the automotive industry, including cost pressures and geopolitical factors [11] - Management noted that the recent tariff announcements are not expected to have a meaningful impact on Q2 results [43] Other Important Information - The company repurchased $27 million of convertible notes due in June 2025 as part of its debt management strategy [7] - The restructuring efforts have resulted in a significant reduction in operating expenses, down 23% year-over-year [22] Q&A Session Summary Question: What is the size of the first major customer program with Cerence XUI? - The first major customer program is with a European auto manufacturer, expected to involve several million units over the contract's life, with approximately one million units in the first year [47] Question: Can you provide insights on the competitive landscape for digital assistance? - The competitive landscape remains similar, with major players like Google and Amazon, as well as DIY solutions from OEMs. Cerence's agnostic approach allows for customization and flexibility [67][68] Question: What are the one-time items that contributed to better-than-expected results? - The $2 million royalty true-up and a $2.5 million international tax credit were significant contributors to improved profitability [86][88] Question: How quickly can the adoption of XUI ramp up? - Adoption rates depend on the contracts, which typically range from one to ten years, with most being two to three years [101] Question: What is the company's strategy regarding the remaining convertible notes? - The company plans to extinguish the remaining $60 million of convertible notes due in June through a combination of payoff and financing [39][127]