Cerence Inc. (NASDAQ: CRNC) shares are witnessing a remarkable leap on the US stock charts today following the release of its earnings report. At $4.94 as of the most recent check, CRNC stock was up an astounding 75.17%.
Cerence exceeded revenue projections to end its fiscal year on a positive note. The total yearly revenue increased significantly from $294.5 million to $331.5 million. Additionally, net income per diluted share increased dramatically from $0.36 to $1.23 over the previous year.
Momentum in Generative AI Solutions
With its developments in generative AI and large language model (LLM)-based solutions, Cerence has established a niche in the rapidly changing automotive sector. In partnership with top automakers, the business introduced six generative AI initiatives throughout the fiscal year.
CRNC’s strategy focus on creating next-generation solutions to improve productivity and customer happiness is in line with this trend. The business is still hopeful that it will see lucrative, long-term growth in the years to come.
With 52% of global vehicle production now utilizing Cerence’s technology, the company’s global reach has grown as well. Additionally, the number of connected cars shipped grew by 16% year-over-year, while Adjusted Total Billings saw a modest 1% increase.
Introduction of CaLLM Edge: A Game-Changer in Automotive AI
A key highlight of its innovation roadmap is the launch of CaLLM Edge (Cerence Automotive Large Language Model Edge), an embedded small language model (SLM) designed specifically for automotive applications. This cutting-edge solution, developed in partnership with Microsoft, combines advanced AI capabilities with seamless functionality, even in offline environments.
CaLLM Edge, leveraging Microsoft’s Phi-3 SLM family and CRNC’s proprietary automotive dataset, supports commands for car controls, navigation, and conversational interactions. With its compact 3.8 billion parameters, it integrates effortlessly into vehicle head units, ensuring high performance while maintaining data privacy.
Driving Innovation and Cost Efficiency
The CaLLM Edge is fine-tuned with Microsoft’s Phi-3 models and integrates Cerence’s automotive expertise to handle various car control functions, navigation, and conversational interactions. This innovation not only improves user experience but also provides automakers with cost-effective solutions by embedding the SLM directly into vehicles, ensuring enhanced data privacy and continuous service, even when cloud connectivity is unavailable.
