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, ...

Cerence NASDAQ: CRNC is an AI stock that has burst onto the radar of many investors lately. Since its latest earnings release on Nov. 21, shares have skyrocketed 155% as of the Nov. 25 close. So, what does this company do, and why am I mentioning it in the same breath as the lauded SoundHound AI NASDAQ: SOUN? I’ll answer those questions, as well as provide my overall view of the stock. Get Cerence alerts:Cerence: AI Automotive Assistants Compete With SoundHound AI Cerence TodayCRNCCerence$6.46 -0.60 (-8.50 ...

Financial Performance - Cerence generated revenue of $331.5 million in fiscal year 2024, a 12.6% increase from $294.5 million in fiscal year 2023[20] - The company recorded a net loss of $588.1 million for fiscal year 2024, a 945.4% increase in loss compared to $56.3 million in fiscal year 2023[20] - Total revenue increased by $37.0 million, or 12.6%, from $294.5 million to $331.5 million in fiscal year 2024[150] - Operating margin decreased by 165.7 percentage points from negative 9.2% to negative 174.9% in fiscal year 2024[150] - Cash from operating activities changed by $9.7 million, or 129.4%, from cash provided by operating activities of $7.5 million to $17.2 million in fiscal year 2024[150] - Total operating expenses increased by 263.9% during fiscal year 2024, primarily due to a goodwill impairment charge of $609.2 million[147] - Total gross profit increased by $45.0 million, or 22.6%, from $199.3 million to $244.3 million for fiscal year 2024[168] - The provision for income taxes for fiscal year 2024 was $3.5 million, a decrease of $16.4 million, or 82.5%, from $19.9 million in fiscal year 2023[201] Revenue Breakdown - License revenue for fiscal year 2024 was $124.7 million, a decrease of $20.5 million, or 14.1%, from $145.2 million in fiscal year 2023[158] - Connected services revenue for fiscal year 2024 was $133.4 million, an increase of $58.3 million, or 77.8%, from $75.1 million in fiscal year 2023[159] - Professional services revenue for fiscal year 2024 was $73.3 million, a decrease of $0.9 million, or 1.3%, from $74.2 million in fiscal year 2023[160] - License revenue as a percentage of total revenue decreased by 11.7 percentage points from 49.3% in fiscal year 2023 to 37.6% in fiscal year 2024[158] Market Position and Strategy - Cerence's solutions have been installed in over 500 million automobiles, with 46 million new vehicles incorporating its technologies in fiscal year 2024[20] - Approximately 52% of all cars shipped in fiscal year 2024 included Cerence technologies, indicating strong market penetration[20] - The company has established relationships with nearly all major OEMs and Tier 1 suppliers, supporting long-term customer retention[20] - The automotive cognitive assistance market is rapidly expanding, driven by increasing consumer demand for hands-free access to virtual assistants[20] - The company aims to expand into adjacent transportation markets, exploring opportunities in two-wheel vehicles, trucks, recreational vehicles, public transit, and fleet markets[38] Research and Development - Total research and development expenses were approximately $121.6 million, $123.3 million, and $107.1 million for fiscal years 2024, 2023, and 2022, respectively, indicating a slight decrease in 2024[44] - The company employs approximately 800 research and development personnel globally, contributing to its innovation in automotive cognitive assistance[44] - The company intends to continue investing in developing core product functionality and expanding its software platform's capabilities to maintain market share in edge software components and grow in cloud-connected functionalities[38] Challenges and Risks - The automotive industry is experiencing a semiconductor shortage, negatively impacting vehicle production and sales, which could materially affect the company's business and financial condition[57] - Economic uncertainty has led to falling demand for goods and services, reduced credit availability, and increased borrowing costs, which may adversely affect the company's operations[57] - Pricing pressures from major OEMs could impact sales and profit margins, necessitating continuous cost reductions to maintain profitability[63] - The company is facing challenges in developing new cloud-connected products, which may increase research and development costs and adversely affect revenue growth[62] - The company faces challenges in attracting and retaining skilled employees, particularly in technical areas, due to high demand and competition for talent[75] Corporate Governance and Leadership - Brian Krzanich succeeded Stefan Ortmanns as Chief Executive Officer in October 2024, marking a significant leadership transition[72] - The departure of key leadership personnel can result in a loss of knowledge and experience, potentially affecting the company's strategic direction[73] Financial Obligations and Debt - The company has issued $175 million in 3.00% convertible senior notes due June 1, 2025, and $210 million in 1.50% convertible senior notes due July 1, 2028[104] - The company may face significant cash flow challenges in servicing its debt, which could adversely affect its business and results of operations[104] - The company’s ability to comply with covenants under its Senior Credit Facilities may be affected by economic conditions, potentially leading to defaults[104] - The company believes it can secure additional liquidity through equity or debt offerings, although market conditions may affect this ability[205] Community Engagement and Diversity - The company has contributed over 600 community service hours globally in fiscal year 2024, reflecting its commitment to community engagement[48] - The company supports a Gender Diversity Initiative aimed at promoting leadership development and career advancement for women, with approximately 30% of women actively involved[51]

Financial Performance - The company reported a loss of 7 cents per share in Q4 FY2024, surpassing the Zacks Consensus Estimate by 78.13% [1] - Revenues were $55 million, beating the Zacks Consensus Estimate by 13.85% but declining 32.1% year-over-year [2] - Adjusted Total Billings for the trailing 12 months amounted to $220.7 million, reflecting a 1% increase year-over-year [5] - Adjusted EBITDA loss was $1.9 million against adjusted EBITDA of $16.6 million reported in the year-ago quarter [10] - Operating loss was $4 million against operating income of $14.4 million reported in the year-ago quarter [11] Revenue Breakdown - License revenues (46.2% of revenues) of $25.3 million beat the Zacks Consensus Estimate by 28.64% but missed 41% year-over-year [4] - Connected Services (22.1% of revenues) of $12.1 million beat the Zacks Consensus Estimate by 11.1% but declined 36.9% year-over-year [4] - Professional Services (31.7% of revenues) of $17.4 million missed the Zacks Consensus Estimate by 1.10% and was down 6.1% year-over-year [4] Operational Metrics - The company shipped 10.6 million cars with its technology in Q4 FY2024, down 14% year-over-year [6] - The number of Cerence-connected cars shipped increased 16% over the trailing 12 months [5] - The company reported a five-year backlog of approximately $969 million, indicating strong long-term visibility [6] Cost and Expenses - Non-GAAP gross margin contracted 790 basis points year-over-year to 64.9% from 72.9% [8] - Research and development expenses declined 28.2% year-over-year to $25.2 million [8] - General and administrative expenses increased 15.2% year-over-year to $13.2 million [8] - Sales and marketing expenses declined 17.5% year-over-year to $4.8 million [9] - Total operating expenses dropped 17.5% year-over-year to $43.24 million [10] Cash Flow and Balance Sheet - Cash, cash equivalents, and marketable securities were $126.9 million as of Sept. 30, 2024, compared with $120.9 million as of June 30, 2024 [12] - Long-term debt, net of discounts and issuance costs, amounted to $194.8 million as of Sept. 30, 2024 [13] - Cash provided by operating activities came in at $6.1 million, down from $12.9 million reported in the prior quarter [13] - Free cash flow was $4.6 million compared with $12.078 million reported in the previous quarter [14] Guidance - For Q1 FY2025, the company expects revenues between $47 million and $50 million, including a $1 million headwind [15] - Adjusted EBITDA is projected to be in the range of negative $9 million to negative $6 million for Q1 FY2025 [16] - Non-GAAP earnings loss for Q1 FY2025 is projected to be between 32 and 25 cents per share [16] - For FY2025, the company expects revenues in the range of $236-$247 million [17] - Adjusted EBITDA is forecasted to be in the range of $15-$26 million for FY2025 [18] - Non-GAAP earnings are expected to be between a loss of $0.15 and a gain of $0.10 per share for FY2025 [19] Market and Industry Position - The company's penetration of global auto production for the trailing 12 months declined slightly to 52% from 53% in the previous quarter [3] - The company reported strong progress in generative AI solutions, with 10 customer wins and six program launches in FY2024, including partnerships with Volkswagen, Renault, and Audi [7] - CRNC's shares have plunged 70.3% against the Zacks Computer and Technology sector's growth of 27.6% in the year-to-date period [19]