Cerence (CRNC, Financial) has announced an extension of its partnership with Code Factory to launch VoiceTopping, a cutting-edge solution designed to integrate conversational AI into self-service kiosks across diverse sectors. This development signifies Cerence's strategic move to extend its voice interaction capabilities beyond the automotive industry.
With extensive experience in in-car conversational AI, Cerence aims to revolutionize user interactions across multiple fields by leveraging its advanced voice technology. The collaboration with Code Factory is a strategic step aimed at enhancing the functionality and user-friendliness of self-service kiosks, making them more efficient and accessible across various applications.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Cerence Inc (CRNC, Financial) is $11.58 with a high estimate of $16.00 and a low estimate of $8.00. The average target implies an upside of 20.03% from the current price of $9.65. More detailed estimate data can be found on the Cerence Inc (CRNC) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Cerence Inc's (CRNC, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cerence Inc (CRNC, Financial) in one year is $14.44, suggesting a upside of 49.64% from the current price of $9.65. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cerence Inc (CRNC) Summary page.
CRNC Key Business Developments
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cerence Inc (CRNC, Financial) reported Q1 2025 revenue of $50.9 million, exceeding the high end of their guidance.
- The company achieved an adjusted EBITDA of $1.4 million, surpassing expectations.
- Cerence Inc (CRNC) generated strong free cash flow of $7.9 million during the quarter.
- The company repurchased $27 million of convertible notes due in June 2025, demonstrating proactive debt management.
- Cerence Inc (CRNC) secured six new design wins and two new wins for their Generative AI Solutions, indicating strong market demand.
Negative Points
- Q1 revenue declined by $87.4 million compared to the previous year, primarily due to the decommissioning of a Legacy Connected Services contract.
- The company reported a net loss of $22.4 million for Q1, compared to a net income of $23.9 million in the same quarter of the previous year.
- Cerence Inc (CRNC) experienced a decline in global auto production penetration by 2% to 51%.
- The company faces challenges in penetrating the Chinese domestic market, impacting their market share.
- Professional services revenue was lower than anticipated, although it performed at a higher gross margin.
