BURLINGTON, Mass. - Cerence Inc . (NASDAQ:CRNC), a leader in AI-driven in-car experiences, has announced a collaboration with the all-electric vehicle brand smart to develop AI-powered in-car solutions. The partnership aims to enhance the driving experience for smart’s upcoming Concept #5 model by integrating Cerence’s AI technologies.
smart has chosen Cerence for its expertise in creating intuitive user experiences within vehicles. The collaboration will see the implementation of Cerence’s AI solutions, including Cerence Car Knowledge and Cerence Chat Pro, into smart’s next-generation vehicles. These technologies are designed to enable drivers to interact with their cars more naturally, using voice commands to access information and control various car functions.
Cerence Car Knowledge utilizes deep learning and generative AI to allow drivers to ask questions or describe situations to find information about their vehicle. Cerence Chat Pro offers conversational interaction capabilities, drawing from large language models to provide relevant responses to user queries.
The AI solutions will be part of a hybrid system combining both embedded and cloud-based approaches to ensure functionality even without internet access. Drivers will be able to control features such as phone calls, messaging, media, climate, navigation, and vehicle settings through voice commands. The system will also provide access to information like weather, news, and general knowledge.
Yang Jun, Global CTO of smart Automobile, highlighted the importance of the AI-powered user experience in meeting the evolving needs of drivers for connected capabilities. Stefan Ortmanns, CEO of Cerence, expressed pride in supporting smart's transformation, emphasizing the goal to create a safer and more enjoyable driving experience through conversational AI.
smart is undergoing a brand transformation, focusing on becoming a leading new-premium, intelligent, all-electric auto brand. The brand has been actively expanding its all-electric SUV lineup, with the smart #1 and smart #3 models already in delivery in various markets, including China and Europe.
The information in this article is based on a press release.
In other recent news, Cerence Inc. has seen several significant developments. The AI-driven solutions provider for the automotive industry reported second-quarter 2024 earnings, with revenue exceeding initial expectations at $67.8 million. However, due to slower growth in adjacent markets and a downturn in customer production expectations, the company adjusted its full-year revenue forecast to between $318 million and $332 million.
In leadership changes, Cerence appointed Nils Schanz as Chief Technology Officer and Antonio Rodriguez as interim Chief Financial Officer. These changes aim to strengthen Cerence's operational efficiency and financial strategy.
In terms of collaborations, Cerence announced partnerships with Audi and the global premium electric vehicle brand Zeekr. Audi will incorporate Cerence Chat Pro, a generative AI feature, into its MIB 3 infotainment platform. Simultaneously, Zeekr aims to enhance the in-car experience of its vehicles by integrating Cerence's conversational AI technology.
These recent developments reflect Cerence's ongoing efforts to navigate the challenges in the automotive industry while strengthening its market presence.
InvestingPro Insights
As Cerence Inc. (NASDAQ:CRNC) forges ahead with its collaboration with the smart automobile brand, investing insights reveal a mixed financial landscape. With a market capitalization of $136.61 million, Cerence is navigating through challenging times, reflected in its negative Price/Earnings (P/E) ratio of -0.47. This metric often suggests investor skepticism about future earnings or the presence of significant losses. The company's Price/Book ratio, which stands at a low 0.29, may indicate that the stock is undervalued relative to its net asset value, presenting a potential opportunity for investors seeking entry points into the market.
Cerence's revenue growth remains positive at 16.49% for the last twelve months as of Q2 2024, demonstrating the company's ability to increase sales. However, the company's profitability challenges are underscored by its Basic and Diluted Earnings Per Share (EPS), both at -6.9 USD, indicating that it has not been profitable over the last year. This is consistent with one of the InvestingPro Tips highlighting Cerence's lack of profitability during this period.
The stock's price volatility is another point of interest for investors, as Cerence's stock has experienced significant price fluctuations over various timeframes. Notably, the stock has seen a strong return over the last month, with a 15.55% price total return, yet it has taken a substantial hit over the last six months, with an 84.48% decline. This aligns with the InvestingPro Tips that describe the stock as trading with high price volatility and having undergone significant price drops over the last year.
For investors interested in deeper analysis and additional tips, there are 11 more InvestingPro Tips available at https://www.investing.com/pro/CRNC. Furthermore, to enhance your investing strategy, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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