Core Viewpoint - Cerence Inc. reported strong financial results for Q2 FY2025, exceeding revenue and adjusted EBITDA guidance, and achieving its fourth consecutive quarter of positive free cash flow, indicating robust performance amid industry challenges [4][6]. Financial Performance - GAAP revenue for Q2 FY2025 was $78.0 million, up from $67.8 million in Q2 FY2024, representing a year-over-year increase of approximately 1.8% [2][27]. - GAAP gross margin improved to 77.1% in Q2 FY2025 from 69.2% in Q2 FY2024 [2][32]. - GAAP net income for Q2 FY2025 was $21.7 million, a significant recovery from a net loss of $278.0 million in Q2 FY2024 [2][27]. - Adjusted EBITDA for Q2 FY2025 was $29.5 million, compared to a loss of $0.3 million in Q2 FY2024 [2][32]. Key Performance Indicators - Cerence's technology was present in 51% of worldwide auto production over the trailing twelve months [5]. - The number of Cerence connected cars shipped increased by 10% year-over-year [5]. - Adjusted Total Billings remained unchanged year-over-year [5][7]. Future Outlook - For Q3 FY2025, revenue is projected to be between $52 million and $56 million, with gross margins expected to be between 66% and 68% [8][9]. - The full-year revenue guidance remains unchanged, but the net loss is now projected to be between $35 million and $29 million, with adjusted EBITDA expected to range from $28 million to $34 million [9]. Company Overview - Cerence Inc. is a leader in AI-powered user experiences in the automotive sector, with over 500 million cars shipped with its technology [25]. - The company focuses on enhancing user experiences through innovations like Cerence xUI, which supports automakers in developing next-generation infotainment platforms [4].

Core Viewpoint - Cerence Inc. has filed a lawsuit against Microsoft and Nuance Communications for copyright infringement and breach of contract, focusing on its text-to-speech technology, which is crucial for its product offerings in automotive and other sectors [1][2][3]. Company Overview - Cerence Inc. is a global leader in AI-powered user experiences, particularly in the automotive and transportation industries, with over 500 million cars equipped with its technology [4]. - The company emphasizes its commitment to protecting its intellectual property rights and plans to defend its innovations vigorously [3][4]. Legal Context - The lawsuit aims to safeguard Cerence's significant investments in its intellectual property portfolio, particularly its text-to-speech technology, which is foundational to its operations [2][3]. - The action against Microsoft and Nuance is seen as necessary to uphold the company's culture of innovation and protect its market position as it expands beyond automotive applications [3].

BURLINGTON, Mass., May 05, 2025 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC) (“Cerence AI”), a global leader pioneering conversational AI-powered user experiences, today announced an expanded collaboration with its long-time partner and distributor, Code Factory, to introduce VoiceTopping, a new solution that will bring conversational AI to self-service kiosks in a variety of industries. The announcement marks an important step as Cerence AI begins its strategic expansion into new markets, bringing the p ...

Core Insights - Cerence Inc. has announced a partnership with MediaTek and expanded collaboration with NVIDIA to enhance its CaLLM™ Edge, an embedded small language model designed for automotive user experiences [1][2] - The new multi-modal capabilities powered by NVIDIA AI Enterprise software will improve in-car interactions, making them smarter, safer, and more secure [1][2] - The partnership aims to deliver advanced features for both drivers and automakers, unlocking new subscription-based services and revenue streams [3][4] Group 1: Partnership and Technology - The collaboration between Cerence, MediaTek, and NVIDIA focuses on integrating MediaTek's automotive-grade Dimensity Auto Cockpit chipsets with NVIDIA's technologies to create a high-performance, cost-efficient solution for automakers [2][4] - CaLLM Edge will be showcased at Auto Shanghai 2025, demonstrating its capabilities in a production-ready automotive reference design [3][6] - The multi-modal edge solution is designed to enhance contextual awareness both inside and outside the vehicle, improving the overall in-vehicle experience [2][5] Group 2: Innovations and Features - Key innovations include the ability for the in-car assistant to understand and respond to multiple users simultaneously, enhancing interaction [5] - The system can provide contextual information about the vehicle's surroundings, such as translating road signs and identifying buildings [5] - Cerence AI has developed automotive guardrails optimized for NVIDIA DRIVE AGX to ensure safe and reliable in-car interactions, even with limited connectivity [5][6] Group 3: Market Impact - The advancements in CaLLM Edge are expected to reduce cloud bandwidth requirements and costs for OEMs, while also enabling new revenue opportunities through generative AI-powered features [3][4] - The collaboration is positioned as a significant addition to the automotive ecosystem, allowing global automotive brands to accelerate their next-generation designs [4][6] - Cerence AI's technology has been integrated into over 500 million cars, highlighting its established presence in the automotive industry [8]

Full experience of Cerence xUI, including its multi-modal SLM, will be available for demo for the first time, in partnership with Great Wall Motor and TCL SHANGHAI and BURLINGTON, Mass., April 22, 2025 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC) ("Cerence AI"), a global leader pioneering conversational AI-powered user experiences, will demo Cerence xUI™, its agentic AI assistant platform that works across the edge and the cloud, for the first time at Auto Shanghai 2025. The platform will be showcased in ...

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 Viewpoint - SoundHound AI has experienced significant stock price growth since the rise of artificial intelligence in late 2022, with a 429% increase in 2023 despite recent pullbacks [2] Company Overview - SoundHound specializes in voice-activated technology, serving industries such as restaurants and automotive [2][5] - The company launched its Houndify platform in 2016, enabling brands to create conversational voice assistants [5] - Cerence focuses on AI-powered virtual assistants specifically for the mobility and transportation market, with a strong presence in the automotive sector [7][8] Financial Performance - SoundHound reported an 85% revenue increase to $84.5 million in 2024, but its path to profitability remains uncertain with an adjusted EBITDA loss of $61.9 million [9][10] - For 2025, SoundHound anticipates revenue to double, projecting between $157 million and $177 million [10] - Cerence's revenue grew 12.5% to $331.5 million in fiscal 2024, but it expects a decline to $236 million-$247 million due to a lost contract with Toyota [11] - Cerence is profitable, reporting an adjusted net income of $56.1 million in fiscal 2024 [11] Valuation Metrics - SoundHound has a price-to-sales ratio of 37, reflecting its rapid growth potential [12] - Cerence trades at a trailing price-to-earnings ratio of less than 8, but its forward P/E is about 60 due to expected earnings declines [12] Investment Considerations - SoundHound is seen as a high-growth but high-risk investment, facing competition from major tech companies [13][14] - Cerence is viewed as a more stable investment, with established profitability and potential for future growth through partnerships, such as its recent collaboration with Nvidia [14]