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Upturn AI SWOT - About
Cerence Inc (CRNC)

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Upturn Advisory Summary
12/01/2025: CRNC (4-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $12.5
1 Year Target Price $12.5
| 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 PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 497.92M USD | Price to earnings Ratio - | 1Y Target Price 12.5 |
Price to earnings Ratio - | 1Y Target Price 12.5 | ||
Volume (30-day avg) 7 | Beta 2.57 | 52 Weeks Range 5.94 - 27.50 | Updated Date 11/30/2025 |
52 Weeks Range 5.94 - 27.50 | Updated Date 11/30/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.43 |
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 2025-11-20 | When After Market | Estimate -0.22 | Actual -0.1242 |
Profitability
Profit Margin -7.43% | Operating Margin (TTM) -1.79% |
Management Effectiveness
Return on Assets (TTM) 1.23% | Return on Equity (TTM) -12.83% |
Valuation
Trailing PE - | Forward PE 36.9 | Enterprise Value 627591427 | Price to Sales(TTM) 1.98 |
Enterprise Value 627591427 | Price to Sales(TTM) 1.98 | ||
Enterprise Value to Revenue 2.49 | Enterprise Value to EBITDA 52.51 | Shares Outstanding 44938757 | Shares Floating 43243218 |
Shares Outstanding 44938757 | Shares Floating 43243218 | ||
Percent Insiders 6.58 | Percent Institutions 69.19 |
Upturn AI SWOT
Cerence Inc

Company Overview
History and Background
Cerence Inc. was formed in 2019 as a spin-off from Nuance Communications. It focuses on AI-powered virtual assistants and connected mobility solutions, building upon Nuance's automotive expertise.
Core Business Areas
- Automotive: Provides AI-powered virtual assistants and connected car technologies for the automotive industry. It has the widest range of cars and vehicles with AI-powered assistance.
Leadership and Structure
The leadership team is headed by Stefan Ortmanns as CEO. The company has a functional organizational structure, focused on product development, sales, and marketing.
Top Products and Market Share
Key Offerings
- Cerence Drive: An AI-powered automotive assistant that integrates voice, touch, gesture, and gaze recognition. It is designed to improve the driving experience. It has a significant market share within the automotive AI assistant sector. Competitors include Google Automotive Services and Amazon Alexa Auto.
Market Dynamics
Industry Overview
The automotive AI market is growing rapidly, driven by demand for connected cars, autonomous driving, and personalized in-car experiences.
Positioning
Cerence is a leading provider of AI-powered virtual assistants for the automotive industry, with a strong focus on innovation and customer experience.
Total Addressable Market (TAM)
The total addressable market for automotive AI is expected to reach billions of dollars in the coming years. Cerence is positioned to capture a significant portion of this market.
Upturn SWOT Analysis
Strengths
- Strong market position in automotive AI
- Deep expertise in voice recognition and natural language processing
- Long-standing relationships with automotive manufacturers
- Comprehensive product portfolio
Weaknesses
- High customer concentration
- Dependence on the automotive industry
- Limited diversification beyond automotive
- History of inconsistent profits
Opportunities
- Expansion into new automotive segments
- Integration with other connected car technologies
- Partnerships with technology companies
- Increased demand for autonomous driving features
Threats
- Intense competition from technology giants
- Rapid technological changes
- Economic downturn in the automotive industry
- Cybersecurity risks
Competitors and Market Share
Key Competitors
- GOOG
- AMZN
- NVDA
Competitive Landscape
Cerence benefits from automotive industry knowledge and integrations, while facing strong competition from larger tech companies with diverse AI offerings.
Major Acquisitions
Cubic Telecom
- Year: 2023
- Acquisition Price (USD millions): 244
- Strategic Rationale: Enhanced its connected car platform and expanded its global reach.
Growth Trajectory and Initiatives
Historical Growth: Cerence's growth has been driven by increasing adoption of AI-powered virtual assistants in cars.
Future Projections: Analysts project continued growth for Cerence, driven by expanding demand for connected car technologies.
Recent Initiatives: Recent initiatives include new partnerships with automotive manufacturers and the introduction of new AI-powered features.
Summary
Cerence is a leading provider of AI-powered automotive assistants with a strong market position, but faces competition from tech giants. Its automotive focus provides expertise, while the company must continue to innovate and diversify its offerings. Acquisitions strengthen the portfolio and reduce risk. Managing macroeconomic factors and cyber security is critical.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Filings
- Analyst Reports
- Market Research Reports
Disclaimers:
This analysis is based on publicly available information and is not financial advice.
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 1300 | Website https://www.cerence.com |
Full time employees 1300 | Website https://www.cerence.com | ||
Cerence Inc. provides AI-powered assistants for the mobility/transportation market in the United States, the rest of the Americas, Germany, the rest of Europe, the Middle East, Africa, Japan, and the rest of the Asia-Pacific. The company offers edge software components, cloud-connected components, virtual assistant, and professional services. It also provides conversational and generative artificial intelligence-based solutions, including speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic tuning. The company has a strategic partnership with Arm Kleidi; and SiMa.ai 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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