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Upturn AI SWOT - About
Cerence Inc (CRNC)

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Upturn Advisory Summary
10/24/2025: CRNC (4-star) is a SELL. SELL since 1 days. Simulated Profits (-9.33%). Updated daily EoD!
1 Year Target Price $11.75
1 Year Target Price $11.75
| 0 | Strong Buy |
| 1 | Buy |
| 6 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 87.21% | Avg. Invested days 41 | Today’s Advisory SELL |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 500.78M USD | Price to earnings Ratio - | 1Y Target Price 11.75 |
Price to earnings Ratio - | 1Y Target Price 11.75 | ||
Volume (30-day avg) 7 | Beta 2.83 | 52 Weeks Range 2.80 - 27.50 | Updated Date 10/25/2025 |
52 Weeks Range 2.80 - 27.50 | Updated Date 10/25/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.58 |
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 -10.48% | Operating Margin (TTM) -0.16% |
Management Effectiveness
Return on Assets (TTM) 0.51% | Return on Equity (TTM) -16.63% |
Valuation
Trailing PE - | Forward PE 44.25 | Enterprise Value 713853358 | Price to Sales(TTM) 2.04 |
Enterprise Value 713853358 | Price to Sales(TTM) 2.04 | ||
Enterprise Value to Revenue 2.9 | Enterprise Value to EBITDA 11.04 | Shares Outstanding 43319651 | Shares Floating 41916094 |
Shares Outstanding 43319651 | Shares Floating 41916094 | ||
Percent Insiders 6.82 | Percent Institutions 72.9 |
Upturn AI SWOT
Cerence Inc

Company Overview
History and Background
Cerence Inc. was formed in 2019 as a spin-off from Nuance Communications' automotive division. Nuance acquired multiple speech technology companies over the years to build it's business including Dictaphone, and Philips Speech Processing. Cerence became a standalone company focusing solely on AI-powered automotive assistants.
Core Business Areas
- Automotive AI Solutions: Develops and licenses AI-powered virtual assistants for vehicles, including voice recognition, natural language understanding, and speech synthesis.
Leadership and Structure
Stefan Ortmanns is the CEO. The company is structured around product development, sales, and marketing functions, reporting to the CEO.
Top Products and Market Share
Key Offerings
- Cerence Drive: AI-powered automotive assistant platform that provides voice-controlled access to navigation, entertainment, communication, and vehicle functions. Cerence has a dominant market share in the automotive AI space, with deals with many of the world's major automakers. Competitors include Amazon (Alexa Auto), Google (Android Automotive), and other smaller AI providers.
Market Dynamics
Industry Overview
The automotive AI market is growing rapidly, driven by increasing demand for connected car features, autonomous driving capabilities, and enhanced in-car experiences.
Positioning
Cerence is a leading provider of automotive AI solutions, with a strong market position and established relationships with automakers.
Total Addressable Market (TAM)
The automotive AI TAM is estimated to be tens of billions of dollars. Cerence is well-positioned to capture a significant share of this market.
Upturn SWOT Analysis
Strengths
- Leading market position in automotive AI
- Strong relationships with automakers
- Advanced AI technology
- Deep domain expertise
Weaknesses
- Concentration of revenue with a few large customers
- Dependence on the automotive industry cycle
- Competition from large tech companies
Opportunities
- Expanding into new geographic markets
- Developing new AI-powered automotive solutions
- Partnering with other technology companies
- Growth of electric and autonomous vehicles
Threats
- Competition from large tech companies with significant resources
- Disruptive technologies
- Economic downturns
- Changes in consumer preferences
Competitors and Market Share
Key Competitors
- ALXN
- GOOGL
- AMZN
Competitive Landscape
Cerence's advantage lies in its dedicated focus and domain expertise in the automotive industry. Big Tech has the advantage of resources, but less focus. Small competitors are niche players.
Major Acquisitions
None Recent
- Year: 2024
- Acquisition Price (USD millions): 0
- Strategic Rationale: No significant recent acquisitions.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been dependent on partnerships with automakers and expansion of the digital automotive market.
Future Projections: Future growth projections are based on expansion of the connected car market and increased demand for automotive AI.
Recent Initiatives: Focus on expanding its product portfolio and partnerships to address broader automotive needs.
Summary
Cerence is a leading provider of AI-powered automotive assistant platforms. They have established relationships with major automakers and strong domain expertise. The company faces competition from larger tech companies and fluctuations in the automotive industry cycle. Cerence is strategically positioned for continued growth with the expanding market for connected cars, but must navigate the challenges of a competitive landscape.
Peer Comparison
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 data and estimates 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. The company has a strategic partnership with Arm Kleidi to advance the capabilities and performance of CaLLM Edge. Cerence Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.

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