Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
Help & Tutorial 
Cancel anytime
- Chart
- Upturn Summary
- Highlights
- Revenue
- Valuation
- Analyst Ratings
Upturn AI SWOT - About
CRNC 
Cerence Inc (CRNC)
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- Pass (Skip investing)
Stock price based on last close (see disclosures)
- ALL
- YEAR
- MONTH
- WEEK
Upturn Advisory Summary
04/01/2025: CRNC (3-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 168.55% | Avg. Invested days 40 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 340.84M USD | Price to earnings Ratio - | 1Y Target Price 12.58 |
Price to earnings Ratio - | 1Y Target Price 12.58 | ||
Volume (30-day avg) 1382073 | Beta 2.87 | 52 Weeks Range 2.34 - 27.50 | Updated Date 04/1/2025 |
52 Weeks Range 2.34 - 27.50 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -15.27 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -260.68% | Operating Margin (TTM) -11.54% |
Management Effectiveness
Return on Assets (TTM) -1.25% | Return on Equity (TTM) -149.38% |
Valuation
Trailing PE - | Forward PE 243.9 | Enterprise Value 503341044 | Price to Sales(TTM) 1.4 |
Enterprise Value 503341044 | Price to Sales(TTM) 1.4 | ||
Enterprise Value to Revenue 2.06 | Enterprise Value to EBITDA 11.04 | Shares Outstanding 43199000 | Shares Floating 42497873 |
Shares Outstanding 43199000 | Shares Floating 42497873 | ||
Percent Insiders 7.47 | Percent Institutions 79.11 |
Analyst Ratings
Rating 3.29 | Target Price 7.2 | Buy - | Strong Buy 1 |
Buy - | Strong Buy 1 | ||
Hold 6 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Cerence Inc
Company Overview
History and Background
Cerence Inc. was founded in 2019 as a spin-off from Nuance Communications' automotive division. It focuses on AI-powered virtual assistants and connected car technologies. It evolved from developing voice recognition technology to providing comprehensive in-car experiences.
Core Business Areas
- Automotive Assistant: Development and licensing of voice-powered AI assistants for automotive manufacturers. This includes voice recognition, natural language understanding, and dialogue management capabilities.
- Connected Car Services: Provision of cloud-based services for connected cars, such as over-the-air updates, remote vehicle control, and data analytics.
- Emerging Mobility: AI technology aimed at addressing current and future needs of new mobility models, covering micro-mobility, public transportation and autonomous vehicles.
Leadership and Structure
The leadership team includes Stefan Ortmanns (CEO). The organizational structure is typical of a technology company, with departments focusing on engineering, sales, marketing, and finance.
Top Products and Market Share
Key Offerings
- Cerence Drive: Cerence Drive is the core automotive assistant platform, integrating voice recognition, natural language understanding, and text-to-speech capabilities. Cerence has relationships with many major automobile manufacturers. Competitors include Google (Android Automotive), Amazon (Alexa Auto), and Apple (CarPlay) and smaller bespoke systems developed by car manufacturers.
- Cerence Pay: Enables secure in-car payments for services like tolls, parking, and fuel. Market share data is not readily available, but it aims to compete with integrated payment solutions from companies like Visa and Mastercard in the automotive space.
Market Dynamics
Industry Overview
The automotive AI market is growing due to the increasing demand for connected car features and advanced driver-assistance systems (ADAS). There's a push for more natural and intuitive in-car experiences.
Positioning
Cerence is positioned as a leading provider of AI-powered virtual assistants for the automotive industry. Its competitive advantage lies in its specialized expertise in automotive voice recognition and its strong relationships with automotive manufacturers.
Total Addressable Market (TAM)
The total addressable market for automotive AI is estimated to be worth tens of billions of dollars. Cerence is positioned to capture a significant share of this market, based on its established relationships and proven technology.
Upturn SWOT Analysis
Strengths
- Deep domain expertise in automotive AI
- Strong relationships with automotive manufacturers
- Proprietary voice recognition and natural language understanding technology
- Large installed base of vehicles using Cerence technology
Weaknesses
- Dependence on the automotive industry
- Exposure to fluctuations in the automotive market
- Potential for disruption from larger technology companies
- Customer concentration.
Opportunities
- Expansion into new automotive markets (e.g., electric vehicles, autonomous vehicles)
- Development of new AI-powered features for connected cars
- Partnerships with other technology companies
- Growth in the market for in-car payment solutions
Threats
- Competition from larger technology companies (Google, Amazon, Apple)
- Technological advancements that could render Cerence's technology obsolete
- Economic downturn in the automotive industry
- Shift in consumer preferences away from voice-based interfaces
Competitors and Market Share
Key Competitors
- GOOG
- AMZN
- AAPL
Competitive Landscape
Cerence's advantage lies in its specialized automotive expertise, but it faces strong competition from larger, more diversified technology companies with greater resources.
Major Acquisitions
Cubic Telecom
- Year: 2024
- Acquisition Price (USD millions): 157.7
- Strategic Rationale: Extends Cerence's connected car platform with seamless connectivity. Increases reach of its technology.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by the increasing adoption of connected car features and the demand for more intuitive in-car experiences.
Future Projections: Future growth is projected to be driven by the expansion into new automotive markets (e.g., electric vehicles, autonomous vehicles) and the development of new AI-powered features.
Recent Initiatives: Recent strategic initiatives include partnerships with other technology companies and the development of new AI-powered features for connected cars.
Summary
Cerence is a key player in automotive AI, leveraging strong industry relationships and specialized expertise. However, dependence on the automotive sector and competition from tech giants pose challenges. Recent initiatives and acquisitions aim to diversify and strengthen its position. While possessing unique strengths, it must navigate a dynamic market landscape carefully.
Similar Companies
AMZN
Amazon.com Inc
AMZN
Amazon.com Inc
GOOG
Alphabet Inc Class C
GOOG
Alphabet Inc Class C
MSFT
Microsoft Corporation
MSFT
Microsoft Corporation
NVDA
NVIDIA Corporation
NVDA
NVIDIA Corporation
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Analyst estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market conditions and company performance are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Cerence Inc
Exchange NASDAQ | Headquaters Burlington, MA, United States | ||
IPO Launch date 2019-10-02 | President, CEO & Director Mr. Brian Matthew Krzanich | ||
Sector Technology | Industry Software - Application | Full time employees 1400 | Website https://www.cerence.com |
Full time employees 1400 | Website https://www.cerence.com | ||
Cerence Inc. provides AI powered virtual assistants for the mobility/transportation market in the United States, rest of the Americas, Germany, rest of Europe, the Middle East, Africa, Japan, and rest of the Asia-Pacific. The company offers edge software components, cloud-connected components, virtual assistant coexistence, and professional services. It also provides conversational artificial intelligence-based solutions, including speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic modeling technology. Cerence Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.
Upturn is now on iOS and Android!
Experience Upturn on your mobile. Install it now!
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.