Financial Performance - Q3 FY2024 revenue was $70.5 million, up 14.2% from $61.7 million in Q3 FY2023, with a year-to-date revenue of $276.7 million compared to $213.7 million in the previous year[1]. - GAAP net loss for Q3 FY2024 was $(313.5) million, significantly higher than $(16.5) million in Q3 FY2023, with a year-to-date net loss of $(567.7) million compared to $(44.7) million last year[1]. - Non-GAAP net income for Q3 FY2024 was $8.4 million, a recovery from a loss of $(1.7) million in Q3 FY2023, with year-to-date non-GAAP net income at $59.1 million compared to $10.8 million[1]. - For Q4 FY2024, revenue is projected to be between $44 million and $50 million, with a GAAP net loss expected in the range of $(32) million to $(28) million[4]. - Full fiscal year 2024 revenue is expected to be between $321 million and $327 million, including an estimated $30 million from fixed contracts, with a GAAP net loss projected at $(600) million to $(596) million[4]. - Adjusted EBITDA for Q4 FY2024 is expected to be between $(19) million and $(13) million, with full-year adjusted EBITDA projected at $64 million to $70 million[4]. - GAAP revenue for the three months ended June 2024 was $70,539,000, an increase of 14.4% compared to $61,660,000 for the same period in 2023[25]. - GAAP gross profit for the nine months ended June 2024 was $209,377,000, representing a 47.8% increase from $141,576,000 in the prior year[25]. - GAAP net loss for the nine months ended June 2024 was $567,662,000, compared to a net loss of $44,702,000 for the same period in 2023[26]. - Non-GAAP operating income for the nine months ended June 2024 was $76,254,000, significantly higher than $17,388,000 in the previous year[25]. - Adjusted EBITDA for the nine months ended June 2024 was $82,550,000, up from $24,932,000 in the same period of 2023[25]. - Free cash flow for the latest quarter was $12,078, a significant increase from $(9,717) in the previous quarter[28]. Customer and Market Developments - Five generative AI customer programs have been released to production, with eight generative AI wins year-to-date and four additional launches expected by year-end[2]. - Cerence's technology is present in 53% of worldwide auto production, with a 19% increase in the number of connected cars shipped year-over-year[3]. - The company shipped over 500 million cars with Cerence technology, showcasing its extensive market penetration and experience in the automotive sector[21]. - Future outlook includes a focus on expanding connected mobility solutions and enhancing AI-powered interactions between consumers and vehicles[21]. Cost Management and Savings - The company anticipates net annualized cost savings of approximately $35 to $40 million from transformation plans, expected to benefit the business model starting in FY2025[2]. Asset and Liability Changes - The total assets decreased to $673,981,000 as of June 30, 2024, from $1,297,590,000 as of September 30, 2023, indicating a significant reduction in asset base[23]. - Current liabilities increased to $183,242,000 as of June 30, 2024, compared to $148,093,000 as of September 30, 2023, reflecting a rise in short-term obligations[23]. Research and Development - Research and development expenses for the quarter were $31,184,000, slightly up from $30,202,000 in Q2 2023, highlighting continued investment in innovation[22]. Stock-Based Compensation - Stock-based compensation for the nine months ended June 2024 totaled $19,291,000, down from $31,801,000 in the previous year[25]. - Stock-based compensation for FY2024 is expected to be around $23,300[30].

Cerence (NASDAQ: CRNC) is the global industry leader in creating unique, moving experiences for the mobility world. As an innovation partner to the world's leading automakers and mobility OEMs, it is helping advance the future of connected mobility through intuitive, AI-powered interaction between humans and their vehicles, connecting consumers' digital lives to their daily journeys no matter where they are. Cerence's track record is built on more than 20 years of knowledge and 500 million cars shipped with ...

Core Insights - Cerence Inc. has announced a collaboration with smart Automobile to develop AI-powered solutions for next-generation in-car experiences, starting with the Concept 5 model [8] - The partnership aims to enhance user experience through intuitive, voice-powered interactions, leveraging Cerence's advanced AI technologies [4][10] Company Overview - Smart Automobile has undergone a comprehensive brand and business model renewal, focusing on becoming a leading new-premium, intelligent, all-electric auto brand [6][11] - The company has launched two all-electric SUV models, the smart 1 and smart 3, with deliveries currently underway [6] Technology and Innovation - Smart will utilize Cerence's generative AI solutions, including speech recognition and natural language understanding, to create a more integrated and user-friendly in-car experience [3][9] - The AI-powered features will allow drivers to control various functionalities using voice commands, enhancing convenience and safety [9] Market Strategy - Smart is expanding its presence in multiple markets, including China, Europe, Southeast Asia, and the Middle East, with plans to introduce a new all-electric model each year from 2022 to 2025 [2][8] - The collaboration with Cerence is part of smart's strategy to set new industry benchmarks in user experience and urban mobility solutions [8][10]

"It is a privilege to take on this additional responsibility at an important time for the company," said Nils Schanz, Chief Product Officer, Cerence. "Bringing our product and technology teams together reflects how we've already been operating as a company to seamlessly deliver for our customers. We have a strong team in place, and I look forward to continuing to advance our strategy and execute on our generative AI roadmap." Mr. Schanz joined Cerence in October 2022 following a 15-year tenure at Mercedes-B ...

"As Chief Product Officer, Nils has been a driving force behind our continued innovation across our core products and new generative AI portfolio. He was instrumental to launching Cerence Chat Pro, our uniquely intelligent, automotive-grade ChatGPT integration that has quickly been adopted by Volkswagen, Audi, and others, as well as generative AI-powered Cerence Car Knowledge," said Stefan Ortmanns, CEO, Cerence. "Our product and technology teams already work closely together to create immersive, AI-powered ...

Core Insights - Cerence Inc. announced a partnership with Audi to enhance its in-car assistant using generative AI technology [1][2] - Audi will implement Cerence Chat Pro in vehicles equipped with the MIB 3 infotainment platform, starting with model year 2021 and future models [2][3] - The collaboration aims to improve the user experience by providing automotive-grade generative AI applications for safer and more enjoyable driving [3][4] Company Overview - Cerence is a leader in AI-powered interaction for the automotive industry, with over 20 years of experience and 475 million cars equipped with its technology [5] - The company focuses on creating intuitive, AI-driven experiences that connect consumers' digital lives with their mobility needs [5] - Cerence's solutions are designed to enhance safety, comfort, and productivity for drivers and passengers [4][5]

With a dual focus on creating added value for cars already on the road as well as advancing its in-car assistant capabilities for the future, Audi will first deploy Cerence Chat Pro in Audi vehicles equipped with the MIB 3 infotainment platform, beginning with model year 2021 via back-end activation as well as upcoming models. In addition, Cerence Chat Pro will be integrated as part of Audi's in-car assistant, extending its capabilities within HCP3, the new, high-performance computing and infotainment platf ...

Core Insights - Cerence is expanding its presence in the automotive industry with the deployment of Cerence Chat Pro, an advanced ChatGPT integration, across Volkswagen Group's European lineup [1][9] - The collaboration with Volkswagen, initially announced at CES 2024, enhances driver interactions through the IDA voice assistant, utilizing generative AI technology [2][8] - Cerence's partnerships with major automotive players like BMW Group, NVIDIA, and Microsoft are strengthening its market position and expanding its client base [10] Product Developments - Cerence Chat Pro is now available in five languages, integrating vehicle command and control features with real-time cloud-based information, improving the in-car experience for various Volkswagen models [5] - The introduction of Cerence Automotive Large Language Model (CaLLM), powered by NVIDIA, aims to transform in-car computing platforms and enhance user experiences with generative AI capabilities [6] Financial Performance - Cerence expects revenues between $66 million and $72 million for the third quarter of fiscal 2024, with a Zacks Consensus Estimate for revenues at $70.33 million, indicating a year-over-year growth of 14.06% [7][12] - The stock has experienced a significant decline of 84.4% year to date, contrasting with a 24% rise in the Zacks Computer & Technology sector, primarily due to intense competition in the automotive voice assistance market [11]

Core Insights - Cerence Inc. has launched Cerence Chat Pro, an AI-powered voice assistant integrated into Volkswagen's vehicles across Europe, marking the first deployment of this technology to drivers [1][5] - The collaboration between Cerence and Volkswagen was first announced at CES 2024, focusing on enhancing the in-car assistant with generative AI capabilities [1][2] Group 1: Product Features - Cerence Chat Pro allows users to engage in conversational interactions with the in-car voice assistant, utilizing ChatGPT's large language model for credible responses to a wide range of queries [2][4] - The voice assistant is designed specifically for in-car use, combining vehicle command features with access to cloud-based content and real-time information [2][3] Group 2: Language and Model Availability - The service is currently available in five languages: English (US), English (UK), German, Spanish, and Czech, across various Volkswagen Group brands including Volkswagen, Cupra, Seat, and Skoda [3][5] - The rollout includes both new models like the Volkswagen ID. series and updated versions of existing models such as the Golf, Tiguan, and Passat [3] Group 3: Strategic Importance - Volkswagen emphasizes its commitment to democratizing technology, making advanced AI accessible to a broad audience through its vehicles [4] - The partnership aims to enhance the driving experience by making the IDA voice assistant more knowledgeable and capable, contributing to safer and more enjoyable journeys [5] Group 4: Future Plans - The rollout of Cerence Chat Pro will expand globally, including the US, with additional features and improvements expected through early 2025 [5]

BURLINGTON, Mass., June 12, 2024 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, today announced that Jennifer Salinas, Senior Vice President & General Counsel, has been promoted to the newly created role of Executive Vice President & Chief Administrative Officer, effective June 7, 2024. In her expanded role, Ms. Salinas will oversee the company's day-to-day administrative activities and corporate operations, including facilitating strategic planning, partnering with the leadershi ...