Cerence Inc. (NASDAQ:CRNC) Q2 2024 Earnings Conference Call May 9, 2024 8:30 AM ET Company Participants Rich Yerganian - SVP, Investor Relations Stefan Ortmanns - Chief Executive Officer Daniel Tempesta - Chief Financial Officer Conference Call Participants Jeff Van Rhee - Craig-Hallum Nick Doyle - Needham & Company Operator Thank you for standing by. My name is Romani [ph] and I will be your conference operator today. At this time, I would like to welcome everyone to Cerence Q2 2024 earnings call. All line ...

Cerence (CRNC) came out with a quarterly loss of $0.09 per share versus the Zacks Consensus Estimate of a loss of $0.23. This compares to loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 60.87%. A quarter ago, it was expected that this automotive artificial intelligence developer would post earnings of $0.90 per share when it actually produced earnings of $1.12, delivering a surprise of 24.44%.Over the last four q ...

Cerence Announces Second Quarter Fiscal Year 2024 Results • Q2 revenue above the high end of the guidance range due to OEM-related adjustments; however, Company lowering its FY24 guidance and withdrawing its multi-year plan • Company believes that initial success with new generative AI products, including six design wins, and early validation of its next-gen platform will provide a solid foundation to reinvigorate future growth Results Summary (1,2) | --- | --- | --- | --- | --- | --- | --- | --- | --- | |- ...

Wall Street analysts expect Cerence (CRNC) to post quarterly loss of $0.23 per share in its upcoming report, which indicates a year-over-year decline of 475%. Revenues are expected to be $62.22 million, down 9% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a company's earnings announcement, it is crucial to consider ...

Tech stocks have been on an absolute tear over the past two and a half decades, handily outperforming all other sectors. And with artificial intelligence now supercharging these companies, I believe the tech sector is poised to continue seeing accelerating growth over the next 20 years as well. That’s why it’s critical to have meaningful exposure to top tech stocks in your portfolio, if you want to maximize returns.However, that’s only part of the equation. While tech giants can provide market-beating retur ...

BURLINGTON, Mass., March 21, 2024 (GLOBE NEWSWIRE) --  Cerence Inc. (NASDAQ:CRNC), AI for a world in motion, today announced early momentum for CaLLM™ (Cerence Automotive Large Language Model), its automotive-specific LLM that serves as the foundation for Cerence's next-generation in-car computing platform. Cerence is working with three major global automakers as the first customers for its NVIDIA technology-powered solution. Unveiled at CES 2024, CaLLM™ brings the future of the integrated in-car experience ...

BURLINGTON, Mass., March 19, 2024 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ:CRNC) (the "Company"), AI for a world in motion, today announced that, in connection with Daniel Tempesta's recent appointment as Chief Financial Officer effective March 18, 2024, the Company granted Mr. Tempesta an initial equity award with a target aggregate value of $3 million. Such award consists of 102,599 time-based restricted stock units and 102,599 performance-based restricted stock units, based on the average closing price o ...

metamorworks Cerence (NASDAQ:CRNC) is a leading company in the field of automotive AI assistants. They develop technology that allows drivers to use their voice to control various aspects of their car, such as the navigation system, entertainment system, and climate settings. Their technology is used by many major car manufacturers around the world. Upon its spin-off from Nuance in 2019, share performance has been lackluster. It reached an all-time high of $133 in 2021, a significant return from its spin-of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR For the transition period from __________ to __________ Commission File Number: 001-39030 CERENCE INC. (Exact name of registrant as specified in its charter) Delaware 83-4177087 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 2 ...

Financial Data and Key Metrics Changes - Q1 revenue reached $138.3 million, exceeding guidance by approximately $6 million, driven by several one-time events [29] - GAAP gross margin was 81%, with GAAP net income at $23.9 million, translating to GAAP income per share of $0.53 [14] - Non-GAAP income per share was $1.12, with adjusted EBITDA at $70.4 million, representing a 50.9% margin [14][19] - Negative cash flow of about $2.8 million was reported, attributed to the timing of customer payments expected in Q2 [14] Business Line Data and Key Metrics Changes - Connected services revenue saw a slight increase due to accelerated non-cash revenue from a legacy contract, with new connected revenue up 5% quarter-over-quarter and 13% year-over-year, excluding the acceleration [15] - The license business remained strong despite a negative true-up of approximately $4.8 million due to overreported royalties [31] - Total adjusted billings increased by 4%, indicating potential future revenue growth [32] Market Data and Key Metrics Changes - The penetration of global auto production remained steady at 54%, with 12.4 million cars equipped with Cerence technology shipped in the quarter [17][30] - Monthly active users of connected services increased by 30% year-over-year, reflecting growing popularity among end users [32] Company Strategy and Development Direction - The company is focused on capitalizing on momentum from CES, aiming to secure new business and target potential win-back opportunities [8] - Partnerships with Microsoft and NVIDIA are pivotal for enhancing product offerings and accelerating the rollout of AI-based solutions [68] - The introduction of the Cerence Automotive Large Language Model (CaLLM) aims to leverage NVIDIA's capabilities for training automotive-specific models [68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration of Generative AI and large language models into products, which are expected to enhance customer value and create new revenue opportunities [4][12] - The company anticipates a ramp in new connected services in FY '24 as delayed programs go into production [15] - Future revenue guidance for Q2 is projected between $60 million to $64 million, with full fiscal year revenue expected between $355 million to $375 million [19] Other Important Information - The company showcased advancements in Generative AI at CES, receiving positive feedback from OEMs and media [7][20] - A major North American OEM extended an existing program with Cerence due to delays in a competitor's solution [4] Q&A Session Summary Question: Clarification on customer leaving with Toyota - The customer had a separate contract and was not expected to cancel, but they informed Cerence after Toyota's notification [22][48] Question: Gauging end-user satisfaction compared to alternatives - The company is focused on customer engagement and feedback from OEMs to assess satisfaction levels [25] Question: Impact of delayed production starts on revenue - Delayed production starts are expected to improve in the coming months, with some programs going live soon [39] Question: Feedback on Chat Pro from OEMs - OEM feedback has been overwhelmingly positive, with many expressing eagerness to implement the technology [60] Question: OpEx implications of focus on Generative AI - The company is sensitive to costs and does not anticipate significant increases in operational expenses due to new AI initiatives [45]