Cerence Inc. - CRNC STOCK NEWS

Cerence reported its Q3 FY2024 results, showing GAAP revenue of $70.5 million, up from $61.7 million YoY. The GAAP net loss was $313.5 million, primarily due to a $357 million goodwill impairment charge. Non-GAAP net income was $8.4 million, contrasting with a $1.7 million loss last year.

The company generated a positive cash flow of $12.9 million and announced five generative AI programs in production.

Transformation plans aim for $35-40 million in annualized cost savings by FY25. Key performance indicators include 53% of worldwide auto production incorporating Cerence technology and a 33% YoY increase in adjusted total billings.

Q4 FY2024 revenue is projected between $44 million to $50 million, with a GAAP net loss of $28-$32 million. FY2024 revenue guidance is set at $321-$327 million with a GAAP net loss of $596-$600 million.

Cerence Inc. (NASDAQ: CRNC), a company specializing in AI for mobility, has announced that it will release its fiscal third quarter financial results for the period ending June 30, 2024, on August 8, 2024. The results will be disclosed at 7:00 a.m. Eastern Time. Following the release, Cerence will host a live conference call and webcast at 8:30 a.m. Eastern Time to discuss the quarterly performance. Investors and analysts can participate in the audio conference by registering online. The webcast and accompanying slides will be accessible through the Investor section of Cerence's website.

Cerence Inc. (NASDAQ: CRNC) has announced a collaboration with smart, the all-electric automobile brand, to develop AI-powered solutions for smart's next-generation in-car experiences. The partnership will debut with the Concept #5 model, leveraging Cerence's core technologies and new AI capabilities to transform driver-vehicle interactions.

Key features of the collaboration include:

• Cerence Car Knowledge: Enables intuitive voice-based inquiries about car features and functions
• Cerence Chat Pro: Allows engaging conversations with the in-car assistant
• Hybrid embedded and cloud-based approach for consistent access
• Integration with smart's intelligent in-vehicle avatars for voice control of various functionalities

This partnership aims to create a more intuitive, integrated, and AI-powered user experience, setting new industry benchmarks in Europe and other markets outside Mainland China.

Cerence Inc. (NASDAQ: CRNC) announced that Chief Product Officer Nils Schanz will take on the additional role of Chief Technology Officer following Iqbal Arshad's departure on July 5, 2024. Schanz, who has driven innovation in Cerence's AI products such as Cerence Chat Pro and Cerence Car Knowledge, will now also oversee the company's global technology, engineering, and product development. CEO Stefan Ortmanns believes this move will enhance alignment and support the company's generative AI roadmap. The company reaffirmed its third-quarter fiscal 2024 guidance, expecting revenue between $66 million and $72 million, GAAP net income between ($4) million and $2 million, and Adjusted EBITDA between $4.5 million and $10.5 million.

Audi has selected Cerence's generative AI technology to enhance the capabilities of its in-car assistant.

Cerence Chat Pro will be deployed in Audi vehicles equipped with the MIB 3 infotainment platform, starting with the 2021 model year, via back-end activation.

Additionally, Cerence Chat Pro will be integrated into Audi's new high-performance computing and infotainment platform, HCP3, which will be used in both electric and combustion-engine vehicles.

This partnership aims to improve user experience by leveraging AI to provide accurate and relevant responses to a wide range of queries, thereby enhancing safety, comfort, and productivity on the road.

Volkswagen has announced the deployment of Cerence Chat Pro, an AI-powered in-car voice assistant integration using ChatGPT, across its European vehicle lineup, including both new and legacy models. This marks the first time the solution is available to drivers. The deployment covers five languages and includes multiple Volkswagen Group brands such as Cupra, Seat, and Skoda. Initially introduced at CES 2024, this integration aims to provide drivers with a more interactive and conversational experience. Volkswagen plans to extend this rollout globally, including the US, by early 2025.

Cerence (NASDAQ: CRNC) has promoted Jennifer Salinas to the newly created role of Executive Vice President & Chief Administrative Officer, effective June 7, 2024. In this role, Salinas will oversee the company's day-to-day administrative activities, strategic planning, and policy improvement efforts. She will continue her responsibilities as General Counsel and lead the Global Technology Services organization, reporting directly to CEO Stefan Ortmanns. With over 25 years of experience, including senior roles at Lenovo and a background in law, Salinas aims to drive Cerence's transformation and balance cost structures while ensuring the delivery of its AI roadmap.

Cerence (NASDAQ: CRNC) has appointed Antonio ('Tony') Rodriquez as Interim Chief Financial Officer, effective June 4, 2024. Tony Rodriquez brings over 25 years of financial leadership experience in various sectors, including eCommerce, SaaS, and consumer marketing. He will oversee the company's finance organization, encompassing accounting, tax, FP&A, treasury, facilities, and procurement. Rodriquez is a partner at CSuite Financial Partners and previously served as CFO of The Bouqs Company and TouchCommerce. CEO Stefan Ortmanns expressed confidence in Rodriquez's ability to contribute to the team while the search for a permanent CFO continues.

Cerence announced that the BMW Group has integrated Cerence Emergency Vehicle Detection (EVD) into its BMW Personal Pilot L3 conditional automated driving system. This technology uses Cerence’s Audio AI to detect emergency sirens from police cars, fire trucks, and ambulances, enhancing safety by alerting drivers to take control of the vehicle. The system also lowers the volume of the car's media to ensure drivers are aware of nearby emergency vehicles. The BMW Personal Pilot L3, available in the BMW 7 Series in Germany, offers automated driving features such as speed control, distance management, and lane positioning under certain conditions, aligning with SAE Level 3 automation standards.