Cerence (CRNC) Expands Automotive Footprint With Chat Pro

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]