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Upturn AI SWOT - About
CRNC 
Cerence Inc (CRNC)
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Upturn Advisory Summary
08/28/2025: CRNC (4-star) is a REGULAR-BUY. BUY since 11 days. Profits (-16.78%). Updated daily EoD!
Upturn Star Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Number of Analysts
7 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
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 71.83% | Avg. Invested days 34 | Today’s Advisory Regular Buy |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  4.0 |
| Profits based on simulation | Last Close 08/28/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 459.62M 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 2.86 | 52 Weeks Range 2.37 - 27.50 | Updated Date 08/28/2025 |
52 Weeks Range 2.37 - 27.50 | Updated Date 08/28/2025 | ||
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 2025-08-06 | When - | Estimate -0.13 | Actual -0.06 |
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 34.97 | Enterprise Value 591691942 | Price to Sales(TTM) 1.87 |
Enterprise Value 591691942 | Price to Sales(TTM) 1.87 | ||
Enterprise Value to Revenue 2.41 | Enterprise Value to EBITDA 11.04 | Shares Outstanding 43319700 | Shares Floating 42608342 |
Shares Outstanding 43319700 | Shares Floating 42608342 | ||
Percent Insiders 7.47 | Percent Institutions 71.91 |
Upturn AI SWOT
Cerence Inc
Company Overview
History and Background
Cerence Inc. was formed in 2019 as a spin-off from Nuance Communications. Nuance's automotive division was established to focus on providing voice recognition and AI solutions for the automotive industry.
Core Business Areas
- Connected and Mobility Services: Provides cloud-based services such as over-the-air updates, connected navigation, and remote vehicle access. This involves software that allows cars to communicate with the internet and receive updates, providing drivers with real-time information and new features. The service is based on natural language voice interaction.
- Core Automotive Software: Develops embedded software for voice recognition, natural language understanding, and speech output in vehicles. This is the underlying software that allows drivers to interact with their car using their voice, controlling functions like music, navigation, and phone calls.
Leadership and Structure
Stefan Ortmanns is the CEO. The company has a functional organizational structure with departments focused on engineering, sales, marketing, and finance.
Top Products and Market Share
Key Offerings
- Cerence Drive: The core AI-powered automotive assistant platform, offering voice recognition, natural language understanding, and speech output. Cerence claims to be in over 475 million cars on the road today. Competitors include Google (Android Automotive), Amazon (Alexa Auto), and Apple (CarPlay). Market share information is difficult to precisely pinpoint, but Cerence has a leading, though declining, position.
- Cerence ARK (Assistant, Reader, Knowledge): A conversational AI platform enabling automotive OEMs to develop branded in-car assistants. This platform allows car manufacturers to create their own unique voice assistants that can understand and respond to driver commands. Competitors include other conversational AI platforms and custom solutions developed by OEMs.
Market Dynamics
Industry Overview
The automotive AI market is growing rapidly, driven by demand for enhanced in-car experiences, advanced driver-assistance systems (ADAS), and autonomous driving. Voice recognition and natural language processing are becoming increasingly important for driver safety and convenience.
Positioning
Cerence is a leading provider of AI-powered solutions for the automotive industry, with a focus on voice recognition and natural language understanding. While facing increased competition, Cerence maintains a strong presence with numerous partnerships with major automotive manufacturers.
Total Addressable Market (TAM)
The TAM for automotive AI is projected to reach hundreds of billions USD over the next decade. Cerence is positioned to capture a significant portion of this market, though competition continues to intensify.
Upturn SWOT Analysis
Strengths
- Strong expertise in voice recognition and natural language understanding.
- Established relationships with major automotive manufacturers.
- Extensive portfolio of AI-powered automotive solutions.
- Large installed base in vehicles worldwide.
Weaknesses
- Dependence on the automotive industry, making them susceptible to automotive economic cycles.
- Competition from larger tech companies with more resources (Google, Amazon, Apple).
- The technology can be impacted by the user's accent and language, which may result in inaccurate results.
- Potential for data privacy concerns related to voice data collection.
Opportunities
- Expanding into new automotive applications, such as ADAS and autonomous driving.
- Developing new AI-powered solutions for other industries, such as healthcare and enterprise.
- Partnering with other technology companies to offer integrated solutions.
- Growth in electric vehicle market creates new opportunity for advanced voice integration.
Threats
- Increased competition from larger technology companies.
- Rapid technological advancements that could render existing solutions obsolete.
- Economic downturns in the automotive industry.
- Cybersecurity threats to connected vehicle systems.
Competitors and Market Share
Key Competitors
- GOOGL
- AMZN
- AAPL
Competitive Landscape
Cerence faces significant competition from larger tech companies with deeper pockets, and must maintain a focus on niche product development.
Major Acquisitions
Cubic Telecom
- Year: 2023
- Acquisition Price (USD millions): 157
- Strategic Rationale: Extends Cerenceu2019s connectivity capabilities and broadens its solutions for the connected car, enabling seamless global access to services.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been tied to the automotive industry's adoption of voice assistants.
Future Projections: Future growth is dependent on expanding market share, innovation, and overall health of auto market.
Recent Initiatives: Focus on developing new AI solutions for electric vehicles and autonomous driving.
Summary
Cerence is a key player in the automotive AI space, but faces intense competition. Its established relationships and niche focus are strengths, but it must continue to innovate and adapt to changing technologies. The company's acquisitions have helped it broaden its service offerings, which should help grow market share. Further product differentiation is necessary for continued success. The company is average overall.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Website
- Industry Reports
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market data is 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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