Latest news with #Cerence
Yahoo
2 days ago
- Business
- Yahoo
Jim Cramer on Cerence: 'I Think the Current Version Has Got More Upside'
Cerence Inc. (NASDAQ:CRNC) is one of the stocks on Jim Cramer's radar. Cramer mentioned the stock during the episode and had some positive things to say about the company's CEO, Brian Krzanich. He stated: 'When research director, Ben Stoto, and I played around with the company's website, wow, Cerence could respond, interact, and unlike Alexa, handle interruptions with a plum… Now here's what really matters: Cerence is just a $472 million company… Brian's a big-time CEO at a small-time company. He ran Intel, and then after that, ran CDK Global. He then sold CDK to Brookfield, a private equity firm, for 30% premium versus where the stock was trading before they made the bid. Stock market data showing an upward trajectory. Photo by Burak The Weekender on Pexels Cerence Inc. (NASDAQ:CRNC) develops AI-powered virtual assistant solutions for the transportation industry. The company also provides edge and cloud-based software, integration, and professional services. While we acknowledge the potential of CRNC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
CNBC
7 days ago
- Automotive
- CNBC
Cerence AI CEO explains how new tech can help drivers: 'It's a partner in the vehicle'
In a Monday interview with CNBC's Jim Cramer, Cerence AI CEO Brian Krzanich explained how his company's artificial intelligence technology can help automobile drivers, likening the AI program to "a partner in the vehicle." "We're on an annual cadence of bringing in new technologies and new capabilities, things like measuring your emotions, using the cameras in the car to read street signs and billboards as you're driving down," Krzanich said. Krzanich spoke specifically about Cerence's partnership with Mercedes-Benz to develop a new virtual AI assistant. The program includes a "living" avatar that takes the form of the Mercedes-Benz star logo, according to a press release. Cerence also said in the statement that its technology allows the virtual assistant to "deliver more natural and empathetic interactions," and that based on aspects of the user's voice, the assistant can respond in "varying emotional speaking styles." Before taking the reigns at Cerence, Krzanich served as the CEO of Intel. Krzanich described how he thinks the company has changed since he started, suggesting it is on better financial footing. He also said AI is more central to Cerence's business and operations. According to Krzanich, AI is in all of Cerence's products, and large language models are key to their performance. "Everything we do now has large language models and AI built into it," he said. "We're writing code with AI... we're doing quality assurance with AI. We're doing language improvements with AI because we're in every country. So I use AI every single day of my job." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest
Business Insider
12-07-2025
- Business
- Business Insider
SOUN or CRNC: Which Voice AI Stock Is a Better Buy for Investors?
Voice AI is becoming a critical focus in the tech world, with SoundHound AI (SOUN) and Cerence Inc. (CRNC) standing out as key players in this specialized space. SoundHound is a rising player using its voice AI technology in different industries, including automotive and hospitality. On the other hand, Cerence has long been a dominant force in voice assistant solutions for the automotive sector, working closely with major car manufacturers. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. SOUN stock more than doubled over the last 12 months, but that strong rally has led to volatility. In 2025 so far, the stock has fallen 38% year-to-date. Meanwhile, CRNC stock is showing more stability, gaining over 25% this year after an impressive 200% surge in the last 12 months. Since both stocks are still trading far below their all-time highs, let's explore which one offers greater upside potential for investors. SoundHound AI SoundHound began 2025 on a strong note, reporting Q1 revenue of $29.1 million, marking 151% growth year-over-year. The company expects full-year revenue to double, projecting between $157 million and $177 million, up from $84.5 million in 2024. However, it's still not profitable, with an adjusted EBITDA loss of $61.9 million in 2024. Beyond its financial losses, SoundHound also faces tough competition in the voice AI space from tech giants like Amazon's (AMZN) Alexa, Alphabet's (GOOGL) Google Assistant, and Apple's (AAPL) Siri, all of whom are investing heavily in their platforms. Even so, SoundHound stands out with its adaptable Houndify platform, which enables voice AI solutions across industries. SoundHound offers flexible voice AI tools, making it a good choice for businesses that want to use voice tech without relying on big tech companies. Cerence Unlike SoundHound, Cerence is a larger and profitable company, but its revenue growth is more modest and stable. In 2024, it launched a restructuring plan aimed at reducing costs and improving efficiency. Despite its restructuring, Cerence is rebuilding with a focus on innovation. Its XUI platform and Nvidia (NVDA) -backed CaLLM model aim to boost in-car voice AI, while ChatGPT integration adds to its generative AI edge. Cerence's second-quarter results reflect its progress with the turnaround plan. Revenue rose 15% year over year to $78 million, slightly above expectations. Cost cuts helped lower non-GAAP operating expenses by 32%, leading to a strong rebound in profits. Adjusted EBITDA came in at $29.5 million, and GAAP net income reached $21.7 million, marking a big improvement from last year's loss. Cerence kept its 2025 revenue forecast at $236–$247 million, which is lower than last year due to losing the Toyota (TM) deal and fewer license agreements. However, the company expects adjusted EBITDA of $28–$34 million, highlighting its shift toward profitability over growth this year. Using TipRanks' Stock Comparison Tool, we have compared SOUN and CRNC to see which stock analysts currently favor. SoundHound's stock holds a Moderate Buy rating, but its recent rally has pushed the stock above the average price target of $11.31, suggesting limited near-term upside. Notably, SOUN stock is up over 26% in the past month. On the other hand, CRNC stock has a Hold consensus based on four Hold ratings and one Buy in the past three months. However, Cerence's average price target of $11.60 implies an 18.6% upside from current levels, offering more room for potential gains. Conclusion SoundHound AI and Cerence are both notable players in the voice AI space. SoundHound is a fast-growing disruptor, expanding its revenue and deploying voice AI across diverse industries. While recent gains limit short-term upside, its long-term potential may still appeal to growth-focused investors, though volatility remains a concern. In contrast, Cerence is more stable and profitable, with a stronghold in the automotive sector. However, it faces slower growth due to contract losses and limited market expansion opportunities.
Yahoo
09-07-2025
- Automotive
- Yahoo
Cerence (CRNC) Inks Strategic EV Partnership with Mahindra
Cerence Inc. (NASDAQ:CRNC) is . On July 1, the company announced a strategic partnership with Mahindra. The partnership paves the way for the integration of the company's Audio AI technology into Mahindra's new electric SUV's. A scientist at a computer station, surrounded by a neural network of artificial intelligence code. Cerence Speech Signal Enhancement (SSE) enhances in-car voice interactions by leveraging artificial intelligence-based speech enhancement and advanced acoustic processing. The technology is especially suited for India's noisy road conditions as it ensures clean communication between vehicle occupants. The strategic partnership presents a significant opportunity for Cerence to demonstrate the adaptability of its technology in challenging environments. Additionally, it will enhance the company's footprint in emerging markets. 'Cerence Speech Signal Enhancement is the foundation of meaningful interaction in the car, decreasing noise and therefore increasing the assistant's ability to understand the user,' said Nils Schanz, EVP, Product & Technology, and Cerence AI. 'Accuracy of interactions and the assistant's ability to understand what is being asked are critical to driving long-term usage and adoption of in-car assistants, and we are proud to partner with Mahindra to help create this with their drivers and passengers.' Cerence Inc. (NASDAQ:CRNC), spun off from Nuance, is a technology company that develops AI-powered interaction solutions for use across transportation networks. It works with the world's leading automakers and mobility OEMs to drive innovation in the car, two-wheeler, and truck user experience. While we acknowledge the potential of CRNC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Consumer Goods Stocks Billionaires Are Quietly Buying and Goldman Sachs Penny Stocks: Top 12 Stock Picks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Automotive
- Yahoo
SoundHound AI vs. Cerence: Which Voice AI Stock Holds More Promise?
Voice-driven artificial intelligence is emerging as a key battleground in tech, and SoundHound AI, Inc. SOUN and Cerence Inc. CRNC have positioned themselves at the forefront of this niche. SoundHound is a newer entrant leveraging its conversational voice platform across industries from automotive to restaurants, while Cerence is an established leader in in-car voice assistants for automakers. Both companies operate in the voice AI space, and a comparison is timely as generative AI amplifies demand for voice their common focus on voice AI, SoundHound and Cerence differ in scope and strategy. SoundHound's technology spans multiple industries, powering voice ordering in restaurants and voice-enabled customer service, in addition to automotive voice assistants. In contrast, Cerence is focused on the mobility market, supplying voice assistant software to nearly every major car OEM. The broader market reach of SoundHound compared to Cerence's auto specialization sets the stage for an intriguing comparison. Let's analyze which voice AI stock offers better upside potential now. SoundHound has emerged as a leader in voice AI by combining advanced speech recognition with large language models to power natural, voice-based interactions. Its Polaris AI engine delivers fast, accurate responses — even in noisy settings — supporting applications across industries. The company's acquisitions of SYNQ3, Amelia and Allset have expanded its capabilities in restaurant ordering, customer service and voice commerce. Now operating with a three-pronged strategy — enterprise agents, automotive assistants and voice commerce —SoundHound is gaining traction among automakers and tech firms. Its innovation pace and platform versatility position it as a strong independent player in the voice AI broad industry reach opens up significant growth potential. It's gaining traction in restaurants, with voice ordering in nearly 13,000 locations, and in automotive, powering voice AI for more than 20 car brands. Its enterprise solutions are used by top global banks, reflecting strong B2B adoption. This diversification limits dependence on any single customer. As generative AI demand grows, SoundHound's independent, brand-friendly platform appeals to companies wary of Big Tech. Partnerships with firms like Lucid Motors and NVIDIA extend its footprint into luxury EVs and edge AI. Overall, SoundHound is well-positioned to scale across multiple high-growth first-quarter 2025 results highlight strong momentum, with revenues surging 151% year over year to $29.1 million, driven by organic growth and recent acquisitions. Key contributions came from restaurant and enterprise voice AI solutions, supporting diversification. While the GAAP gross margin fell to 37% due to integration costs, the adjusted gross margin stood at 51%, with management targeting margin improvements over the next 18 to 24 months. The company posted a non-GAAP net loss of $22.3 million but remains well-capitalized, holding $246 million in cash and no debt. The full-year revenue guidance of $157-$177 million implies a near doubling, and SoundHound is targeting adjusted EBITDA breakeven by year-end, signaling a focus on scaling efficiently toward operational momentum, SoundHound faces formidable competition from deep-pocketed tech giants. Alphabet GOOGL, Amazon AMZN and Apple AAPL dominate the AI-powered voice assistant market. Google Assistant powers Android Automotive and is well integrated into in-car experiences globally. Amazon's Alexa, backed by AWS and a large developer community, is expanding into vehicles and has an entrenched smart home base. Apple's Siri benefits from tight integration across its ecosystem, especially via iPhones and CarPlay. These larger players — Alphabet, Amazon and Apple — could leverage their ecosystems to challenge SoundHound's growth. Another risk is the company's heavy spend on R&D and marketing (up 66% year over year due to acquisitions), which must eventually translate into sustainable customer wins. Cerence stands as the leading voice AI provider in the automotive industry, with its technology embedded in more than 500 million vehicles and powering roughly 51% of cars produced in the trailing 12 months ending the fiscal second quarter. Spun off from Nuance Communications, it brings decades of automotive voice expertise and serves nearly all major automakers, offering them white-labeled voice assistants that preserve brand identity and data control — an edge over Big Tech undergoing restructuring, Cerence remains focused on innovation. Its upcoming Cerence XUI platform blends on-device processing with generative AI, while its proprietary CaLLM model (developed with NVIDIA) aims to enhance in-car voice capabilities. Integration with OpenAI's ChatGPT via Microsoft Azure further strengthens its generative AI offerings. Beyond autos, Cerence is expanding into retail and mobility through partnerships with Code Factory and Tuya while defending its IP through active litigation. This combination of scale, neutrality and next-gen AI investment reinforces Cerence's leadership in voice-driven mobility Cerence's fiscal second-quarter results reflect progress in its turnaround strategy. Revenues rose 15% year over year to $78 million, slightly exceeding guidance due to a one-time $21.5 million fixed-license boost. The gross margin improved to 77% on a favorable software mix. Restructuring efforts paid off, and non-GAAP operating expenses dropped 32% to $34.1 million, fueling a sharp profitability rebound. Adjusted EBITDA surged to $29.5 million, well above guidance, while GAAP net income reached $21.7 million — a major swing from last year's loss. Free cash flow remained strong at $13.1 million, and the company ended the quarter with $122.8 million in cash after partially repurchasing its 2025 convertible maintained fiscal 2025 revenue guidance of $236-$247 million, down from fiscal 2024 due to the loss of the Toyota contract and fewer license deals. Still, it expects adjusted EBITDA of $28-$34 million, showing a focus on profitability over growth this year. While the fiscal third quarter will face tough comps, Cerence's leaner cost base positions it to stay cash-flow positive. Cerence faces several challenges despite a strong fiscal second-quarter performance. The absence of fixed-license revenues in the second half will pressure margins and profitability. Auto OEMs are pushing for price reductions amid macro uncertainty and potential tariff impacts. Professional services revenues are declining faster than expected due to product standardization and OEMs' internalizing integration. Legal disputes with Samsung and Microsoft add costs and risks. Lastly, Cerence remains exposed to global auto production trends, with volumes flat and China still a weak spot. SoundHound stock has risen 7.7% over the past three months. Meanwhile, Cerence shares have rallied 10.6% over the same period. Both SOUN and CRNC stocks have underperformed the Zacks Computer and Technology sector during the period. Share Price Performance Image Source: Zacks Investment Research Having a market capitalization of around $3.85 billion, SoundHound's stock has been volatile, reflecting the high expectations built into its valuation. After a huge AI-fueled rally in 2023, the stock pulled back in 2025. Even if revenues double as expected, the forward price-to-sales would be roughly 20X, still lofty relative to most software a market capitalization of around $407.5 million, Cerence trades at roughly 1.61X trailing 12-month sales. SOUN trades at about 20.67X forward 12-month trailing sales, much higher than CRNC's. Image Source: Zacks Investment Research The loss estimate trend for SOUN has remained unchanged over the past 60 days, whereas the market remains skeptical about CRNC's ability to sustain profitability. Over the same period, the estimate has changed to a loss from break-even earnings for CRNC stock for the current estimated figure for SOUN's 2025 bottom line reflects an improvement from a year-ago reported loss of $1.04 per share, unlike CRNC. Cerence management has cited sluggish EV sales and softness in China as headwinds in the current year. For SOUN Image Source: Zacks Investment Research For CRNC Image Source: Zacks Investment Research Both SoundHound AI and Cerence are prominent players in voice AI, yet they present starkly different investment profiles. SoundHound is a high-growth upstart, doubling its revenues and expanding aggressively across industries with cutting-edge voice AI both SoundHound and Cerence — each carrying a Zacks Rank #3 (Hold) — are credible players in voice AI, SoundHound's diversified industry exposure, strong revenue growth and ambitious roadmap position it for broader upside as voice interfaces gain mainstream adoption. Cerence, though more deeply entrenched in the auto market, faces growth constraints and contract headwinds. Given SoundHound's expanding customer base, product versatility and potential to scale across sectors beyond autos, it appears better positioned for long-term growth despite its premium valuation. Cerence's stock arguably has a more limited immediate upside, with its growth currently constrained by industry softness. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Cerence Inc. (CRNC) : Free Stock Analysis Report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
