Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
Help & Tutorial 
Cancel anytime
- Chart
- Upturn Summary
- Highlights
- Revenue
- Valuation
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
09/16/2025: CRNC (4-star) is a WEAK-BUY. BUY since 23 days. Simulated Profits (-10.90%). 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 83.97% | Avg. Invested days 36 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  4.0 |
| Profits based on simulation | Last Close 09/16/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 449.66M 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 2.79 | 52 Weeks Range 2.37 - 27.50 | Updated Date 09/16/2025 |
52 Weeks Range 2.37 - 27.50 | Updated Date 09/16/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.57 |
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 34.6 | Enterprise Value 587359977 | Price to Sales(TTM) 1.83 |
Enterprise Value 587359977 | Price to Sales(TTM) 1.83 | ||
Enterprise Value to Revenue 2.39 | Enterprise Value to EBITDA 11.04 | Shares Outstanding 43319700 | Shares Floating 42608342 |
Shares Outstanding 43319700 | Shares Floating 42608342 | ||
Percent Insiders 7.47 | Percent Institutions 71.94 |
Upturn AI SWOT
Cerence Inc
Company Overview
History and Background
Cerence Inc., spun off from Nuance Communications in October 2019, focuses on AI-powered automotive assistants. Nuance had been developing voice recognition technology for cars for years. Cerence became an independent entity to concentrate solely on the automotive market.
Core Business Areas
- Automotive Assistant Platforms: Development and licensing of AI-powered virtual assistants for vehicles, including voice recognition, natural language understanding, and text-to-speech capabilities.
- Connected Services: Providing cloud-based connected car services, such as over-the-air updates, remote diagnostics, and data analytics.
- Professional Services: Offering customization, integration, and support services to automotive manufacturers to integrate and optimize Cerence's technologies.
Leadership and Structure
Stefan Ortmanns is the CEO. The company has a typical corporate structure with departments focusing on engineering, sales, marketing, finance, and operations.
Top Products and Market Share
Key Offerings
- Cerence Drive: AI-powered automotive assistant platform that enables voice control of in-car systems, navigation, and entertainment. Market share is estimated around 50-60% in the automotive voice assistant market. Competitors include Google (Android Automotive), Amazon (Alexa Auto), and Apple (CarPlay).
- Cerence ARK: A software suite for automotive manufacturers to build their own branded voice assistants. Limited adoption so difficult to determine market share. Competitors include less specific players in the general voice AI space.
Market Dynamics
Industry Overview
The automotive voice assistant market is growing rapidly, driven by increasing demand for connected car features and enhanced driver safety and convenience. Key trends include personalization, natural language understanding, and integration with other connected devices.
Positioning
Cerence is a leading provider of AI-powered automotive assistants, with a strong focus on voice recognition and natural language processing. Its competitive advantages include deep automotive expertise, a large installed base, and strong relationships with automotive manufacturers.
Total Addressable Market (TAM)
Estimated TAM is around $10 billion for automotive AI and voice recognition. Cerence is positioned to capture a significant share of this TAM with its established relationships and technology leadership.
Upturn SWOT Analysis
Strengths
- Deep automotive expertise
- Strong relationships with automotive manufacturers
- Large installed base
- Leading AI-powered voice recognition technology
- Specialized focus on auto industry
Weaknesses
- High customer concentration
- Reliance on automotive industry cycles
- Relatively small compared to big tech competitors like Google and Amazon
- Integration complexity for automotive manufacturers
- Limited diversification outside automotive sector
Opportunities
- Expanding into new automotive segments, such as electric vehicles and autonomous driving
- Developing new AI-powered features and services
- Partnering with other technology companies
- Leveraging data analytics to improve the user experience
- Growing demand for in-car voice assistants
Threats
- Competition from big tech companies like Google and Amazon
- Disruptive technologies, such as alternative user interfaces
- Economic downturns impacting automotive sales
- Changing consumer preferences
- Cybersecurity threats related to connected car services
Competitors and Market Share
Key Competitors
- GOOGL
- AMZN
- AAPL
Competitive Landscape
Cerence has a competitive advantage in deep automotive expertise, but faces intense competition from big tech companies with greater resources. Cerence has been able to achieve integrations that Google/Amazon have struggled with due to auto manufactuers' desire to protect IP and data.
Major Acquisitions
Cubic Telecom
- Year: 2023
- Acquisition Price (USD millions): 479
- Strategic Rationale: Acquisition of Cubic Telecom to expand connected car service capabilities and global reach.
Growth Trajectory and Initiatives
Historical Growth: Growth has been primarily driven by increasing adoption of Cerence Drive in new vehicles.
Future Projections: Analysts project continued growth in revenue and earnings, driven by new car production volume increases. Key automotive partnerships will prove strong over time.
Recent Initiatives: Recent initiatives include developing new AI-powered features, expanding into new automotive segments, and partnering with other technology companies.
Summary
Cerence is a leader in automotive voice AI, but faces tough competition from tech giants. The company's deep automotive expertise and partnerships are strengths, while dependence on auto sales and integrations present challenges. Growth depends on car production. Future connected services revenue is promising, but it requires a continued focus on innovation and diversification. The recent acquisition should accelerate future growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Cerence Investor Relations
- Third-party market research reports
- Analyst estimates
- SEC Filings
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Financial data and market estimates are subject to change and may not be entirely accurate. Investment decisions should be based on individual research and consultation with a financial advisor.
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.
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.