Cerence at TD Cowen Conference: AI Voice Innovations in Focus

On Thursday, 29 May 2025, Cerence Inc. (NASDAQ:CRNC) presented at TD Cowen’s 53rd Annual Technology, Media & Telecom Conference 2025. Executive Vice President and CFO Tony Rodriguez outlined Cerence’s strategic direction, emphasizing its leadership in AI-powered voice interaction for the automotive industry. While Cerence is capitalizing on its established market presence, it faces competition from large tech companies. The company is focused on expanding its technology stack and exploring new revenue models.

Key Takeaways

• Cerence’s AI voice technology is present in over 50% of new cars, totaling more than 500 million vehicles.
• The company aims to complete and roll out the Cerence XUI agentic multimodal platform by the end of 2025, with vehicle implementation starting in 2026.
• Cerence is exploring opportunities beyond the automotive sector, including trucking and two-wheelers.
• The competitive landscape includes major tech companies, but automakers prefer to retain control over branding and data.
• Cerence is focused on profitable growth, leveraging pricing strategies and connectivity enhancements.

Company Overview and Strategy

• Company History: Cerence was spun off from Nuance Communications in 2019, with a 25-year legacy in voice recognition.
• Market Position: As a global leader in AI voice communication, Cerence’s technology is embedded in over 50% of new cars.
• Competitive Landscape: While facing competition from big tech, Cerence benefits from automakers’ reluctance to share branding and data.

Product and Technology Updates

• AI-Driven Interaction: Cerence’s AI enables natural interactions with vehicles, moving beyond prescriptive commands.
• Connectivity: Enhanced connectivity supports access to content both inside and outside the car.
• Automotive LLM: Cerence has developed an automotive-specific small language model, CALM, for in-car use.
• Cerence XUI: The multimodal AI interaction platform is set for completion by the end of 2025, with deployment starting in 2026.
• OTA Updates: Over-the-air updates allow for continuous improvements to older vehicles.
• Speed of Implementation: The time to integrate new technology into vehicles has reduced to 3-4 months.

Pricing and Revenue Model

• Per-Car Pricing: Enhanced technologies allow for higher pricing.
• Penetration Strategy: Cerence seeks to increase revenue by expanding its technology stack within its existing market share.
• Usage-Based Revenue: The company is exploring revenue models based on AI and LLM feature usage.
• Revenue Recognition: Connected features are billed at shipment but recognized over a subscription period.
• Billings Metric: Billings provide insight into future connected revenue.

Future Outlook

• Primary Goal: Completion of the Cerence XUI platform remains a top priority.
• Implementation Timing: Vehicle deployment is anticipated to begin in 2026.
• Industry Expansion: Cerence is exploring applications in trucking, two-wheelers, and even consumer electronics like Garmin watches and LG TVs.

Conclusion

For a detailed understanding of Cerence’s strategic initiatives and market positioning, readers are encouraged to refer to the full transcript of the conference call.

Full transcript - TD Cowen’s 53rd Annual Technology, Media & Telecom Conference 2025:

Unidentified speaker, Interviewer: Morning, everybody. We’re continuing on with our next session. Very pleased to have Cerence with us at the conference for a fireside chat. Lots of very interesting topics to talk about in in automotive, AI. From the company, we’re very pleased to have Tony Rodriguez, executive vice president and CFO, of of the company.

We’ll keep it to a fireside chat session. If you do have any questions in the room, feel free to raise your hand. We’ll get to you. I’m sure we’ll cover a lot of interesting topics. Funny, good to see you.

Thanks so much for being here.

Tony Rodriguez, Executive Vice President and CFO, Cerence: Thanks. Thanks for having us.

Unidentified speaker, Interviewer: Great. So maybe we could just begin, for those who are newer to the story with maybe a brief overview of the company, the history, the opportunity, maybe a bit of a teach in on, you know, what your story is today.

Tony Rodriguez, Executive Vice President and CFO, Cerence: Yeah, absolutely. So the company’s roots go back a long time, twenty five years ago or so in the original voice recognition software. So we were part of Nuance Communications at that time. We were spun off in 2019 as really being a a pure play automotive software companies in 02/2019. And today, we’re a global leader in AI voice communication interaction within within the auto automobile industry.

We’ve got or, you know, we’ve typically tout our some of our metrics, you know, we’re in 50 plus percent of the cars that roll off the the line have our technology in them. We’ve our technology has been in 500,000,000 plus cars. And and we’ve rolled out our we’re the first of to to roll out a automotive specific LLM for the for the industry. And and we’re at a position where we can utilize that AI agentic platform outside of automotive as well.

Unidentified speaker, Interviewer: Interesting. Maybe talk a bit more about how the product offering has shifted, and particularly now with AI, what the software can do, what’s in it for consumers and automakers as they kind of go through this transition.

Tony Rodriguez, Executive Vice President and CFO, Cerence: Yeah. Well, as consumers utilize AI in their normal life outside of automotive, it’s increasingly important for OEMs within the car. And consumers are expecting that type of interaction within the car. And, you know, if you think about how the technology has been, in the past, been used, it was very, you know, very prescriptive. So you had to hit a button.

You talked to your car. And you had to be very specific on what you wanted it to do. And so, you know, what has transpired really is two things. One is connectivity. So outside, so you’d be able to do things and address capabilities within your car, but also to look outside of your your car for content and information, all within the same user interface.

So connectivity has has has been enhanced. And then with, you know, the with AI and LLMs, now really the technology is more about a real natural interaction with the car where whereas again you had to be before very prescriptive. Now you can have virtually unlimited ability to say something and have it be executed within car capabilities or outside the car.

Unidentified speaker, Interviewer: Terrific. Can you talk about engagements with automakers as you present this technology to them? What’s the receptivity from what you’ve seen thus far? How quickly do they want to shift to all these exciting LLM based features?

Tony Rodriguez, Executive Vice President and CFO, Cerence: Well, think that’s the opportunity. So when we think about our value proposition, Tendu, one is, you know, our product and the fact that we are have you know, we were first in on, voice interaction in a car and, again, now are in the same spot with regard to AI. And AI is becoming so important to the OEMs that they’re looking for trusted providers that can execute that. And and, you know, with our our penetration within the industry, we are considered a a very trusted adviser to be able to, develop and implement technologies in a proven fashion, that they’re really looking to us to be that provider. And it’s because, again, the consumers are also demanding that technology within the industry.

Unidentified speaker, Interviewer: Absolutely. To segue to just the question on the competitive set, what does it look like today? How has it evolved in the last several years and now with the introduction of AI? Because you brought up a really good point around typically there’s a stickiness that goes on with suppliers, trusted, being able to launch programs. How important is that?

And maybe how does that shape the competitive field today?

Tony Rodriguez, Executive Vice President and CFO, Cerence: So I think that as we think about deals these days, we’re seeing the same competitors that we’ve seen over the last several years. And really, if we think about now our newer competition or or what is our real competition, it is really big tech. And the that’s that’s both a competitive issue for us, but also an advantage, I think, because, you know, what we’re seeing is that OEMs are are somewhat reluctant to give up the either the branding or the data or the interaction within the car to to Big Tech. They want that really to be a brand experience within the OEM. So you couple that with with the fact that, you know, we’re a trusted provider in there and and that the advancements in AI are so important to the cars these days that we’ve become a I think it’s from a competitive standpoint, even though big tech is there, I think that it’s somewhat of a moat for us to be able to help us compete.

Unidentified speaker, Interviewer: Terrific. And how quickly does your technology, let’s say, introduce something new at CES, can make it into production vehicles? Because I believe you have a faster cycle than typical in the auto industry, at least. But I’m just curious how that works. And how does increasing OTA connectivity impact your business in the next, like, a few years?

Tony Rodriguez, Executive Vice President and CFO, Cerence: So a couple of things. Yes. We are, you know, what used to be a twelve month process to work with an OEM and get into a head unit on the embedded side is much shortened now. And we think that’s more in the three to four month time frame. So it’s really less a restriction for us as it is for the automotive industry and how quickly they overall are moving to the next models.

But I think that we can implement very quickly. With regard to OTA and connectivity, it’s important for two aspects because we can do that over the air improvements and updates where when we were purely embedded before we we couldn’t. Right? So so again, if you have an older car now that has the all that technology, it’s it’s very difficult to get that updated now with connectivity and over the air updates. That that’s much improved.

Unidentified speaker, Interviewer: Is there anything kind of hindering adoption from your automaker customers? It sounds like very natural. Of course, you want to have AI, LLMs, all these features. If an engagement is not going well or at least delayed, what’s the reason why that would be? Is it just the automakers trying to get their software defined architectures correct?

Is it just the timing complexity of all this technology coming together? Just curious how

Tony Rodriguez, Executive Vice President and CFO, Cerence: you think It is the latter. It’s complexity of all the software within their vehicle and how long it’s taking them to get to start a production on a newer model. So the good news with we have our Cerence XUI product, is a full, multi modal AI, interaction platform. And the good news is that we’ve that and that’s expected to be done in, the end of this calendar year and and and again to be rolled out in in, OEMs in in ’26. But there’s components of that that are already using AI and components of that now.

So that, you know, what they can do is if they’re making smaller adjustments, say we can utilize our technology now and and get into updates in current models and as they plan for their future models with the full suite.

Unidentified speaker, Interviewer: Got it. Perfect. So how should we frame the long term opportunity in auto when thinking about the percentage of connected and maybe even software defined vehicles as well as the PPU metric that you shared last quarter, which was very helpful, by the way, so thank you. But in terms of directionally, where could that go in a world where all this technology exists and those architectures that the automakers are bringing are finally about?

Tony Rodriguez, Executive Vice President and CFO, Cerence: Yeah. So I think that and you’re seeing it in in advertisements, OEMs advertisements. There’s a focus on technology that you’re seeing in those advertisements and a lot of focus on voice that you’re seeing in those advertisements. So I think it’s within the industry, there’s an increasing component of software. And for us, we believe that our newer products can ascribe a higher price.

So when we think about our PPO and the metric that we put out, one thing to remember is that it is representative of what we believe the technology value is per car right now that we’re in. And there are certain levers that we can use to to increase that that PPU and see as the opportunity going forward to increase revenue. And you’ve touched on this on some. But one is the the fact that these are more valuable to the consumer and therefore the OEM and we can can ascribe a higher higher price for these enhanced technologies. So price is one.

The other is that even, you know, we’ve given the the the metric that we’re in every other car that rolls off the off the lot. But of that 50% penetration, not all of it has our full stack. So some of it has, you know, just certain components of our stack. So as we are are are trusted advisers within the industry and they’re adopting newer, broader AI products, it’s our hope, of course, is to increase PPU by getting more of the stack within that penetration, so penetration within the penetration. And then within those, you know, it’s the embedded piece and the connected piece.

How many of the cars are gonna be more or more cars are gonna be connected? So between the connect adoption rate, our higher price, and selling within our relationships more of our stack, we believe that we can that’s the opportunity to increase PPU within the industry. The other side of that equation is volume. And we know that we’re in a unique time right now with tariffs in the industry and overall volumes and expectations. But we believe that there’s certainly opportunity on the PPU side.

Unidentified speaker, Interviewer: Absolutely. And as cars get more advanced, could your revenue model even evolve depending on and customer usage of the AI LM’s features where the more they use, value goes higher?

Tony Rodriguez, Executive Vice President and CFO, Cerence: It could. We’re not there yet. But you think about utilizing the LLMs. I mean, we think about our Cerence XUI two, the full platform multimodal. Well, part of that includes you know, the visual side of it too.

So you’re driving along and you see, you know, on one hand, safety standpoint, you see a road sign. You can actually interact with the car and say, what did that road sign say? But the other side of it is you see a billboard. And what did that billboard say? What’s the phone number?

And if you’re able to connect to there, could there be a revenue model for the OEMs that would be more beneficial to them and therefore wanting us in the car? Or could there conceivably be a way to monetize that as well? And I think there is, but that’s very early stages at this point.

Unidentified speaker, Interviewer: Yeah. That sounds very exciting to integrate it with the outside sensors and be able to move with that. Maybe talk about the company’s relationships with SOC providers, tier one suppliers. For those who are newer to the story, kind of where do you fit in that value chain? How do kind of work with different partners?

Tony Rodriguez, Executive Vice President and CFO, Cerence: Yeah. We’ve talked about our relationships with NVIDIA and most recently ARM. And in those for us, it’s really having trusted partnerships which enhance the performance of executing our software. So you think about the compute time, latency, and all of those things, being connected, having good partnerships with these SoCs are critical for us because it’s asking the car do a lot more and to have those capabilities and to be able to produce it at a balancing with the OEMs the performance and the connectivity cost, you know, for them as well. So I think those relationships are critical from an SOC standpoint.

The tier ones, you know, we’re, you know, when we say we’re in virtually all the major automotive manufacturers, some of those are direct with OEMs and some are with some of our great relationships with our tier ones, Harman and others where Panasonic and others that where we’ve actually been received awards within their programs for our technologies. Absolutely. Maybe going back to adoption and the broader opportunity, can you

Unidentified speaker, Interviewer: talk about the differences you’re seeing regionally perhaps, including what’s happening in China? Should give a bit of a landscape on how the different global markets are adopting and your positioning in those respective markets?

Tony Rodriguez, Executive Vice President and CFO, Cerence: I think certainly China moves much quicker than anyone else. So and, you know, we’re when we think about our our our selling into China, we we have not been overly successful selling China within China. I think there’s a lot of, you know, limitations there with regard to competitors within in the country that are nationally supported, etcetera. Where we are good there is China outside of China. So when they’re manufacturing, especially they’re, you know, selling quite a bit to European countries and we have language capabilities.

So we we do well. China manufacturers outside of China and worldwide manufacturers selling into China. So if we put China aside, I think the adoption rates are are very similar for European manufacturers and and US manufacturers. All are effectively clamoring for UI, AI products that consumers are demanding.

Unidentified speaker, Interviewer: Absolutely. When you think about typically adoption of new technologies in automotive started premium luxury levels and kind of worked their way down, It seems like yours can be scaled much faster. But are the automakers thinking about it along typical lines of we start high and move low? Or could your business actually see much more rapid adoption across mass market vehicles as well?

Tony Rodriguez, Executive Vice President and CFO, Cerence: Well, I think they’re similar. Because, yes, I mean, we think about certain features. Yes, the broader features are at the higher price points. But when you think about the wide adoption of interacting with your phone, you know, consumers are demanding that now. So I think that the consumers will push a higher adoption of the connected products and the AR products.

Unidentified speaker, Interviewer: Perfect. Maybe shifting to non automotive opportunities as well. Maybe give us an overview of what you’re pursuing, what’s maybe most exciting across non auto. I know you came up on the conference call as well. Thought it was pretty interesting.

Tony Rodriguez, Executive Vice President and CFO, Cerence: Yeah. Well, so when we think about non auto, we still think of transportation. So, you know, two wheelers and focus on two wheelers and trucks and and utilize the technology there. And then outside automotive, you know, the company has has already got our toe in outside of automotive and that’s, you know, we’re in Garmin watches and LG TVs and and other others. But we haven’t pushed it.

Think and and since Brian Extendisch, our our new CEO, has been on boarded, there really is, you know, let’s focus on winning in automotive and but start to look at where we can compete and where our AI agentic platform can be utilized outside of automotive and enhance, you know, user interaction with these. And we we did announce that, you know, a kiosk related voice relationship. And and and that’s that’s that’s an example of where we can go in, use a partner, have effectively high margins and and limit, which is very critical to us, are the profitability aspect of our business. You know, we we have worked hard at the end of our fiscal twenty twenty four going in ’25 to to produce a 2025 year where we’re we’re increasing profitability, increasing positive cash flow. And we want to make sure that when we look at the opportunities outside of automotive that we look at it in that fashion, that how can we move forward and grow the business there but do it in a smart fashion.

Unidentified speaker, Interviewer: Absolutely. And maybe within sort of non auto auto verticals like trucking, two wheelers, maybe talk about what your are those opportunities as well to kind of where you

Tony Rodriguez, Executive Vice President and CFO, Cerence: can maybe leverage the auto side? Yeah, absolutely. I mean, because those are certainly transportation is similar to automotive and, you know, our the utilization within trucks as an example is something where it’s very similar. And we’re seeing, honestly, higher price points within those lower volume areas within transportation. But there definitely is a synergy there and an ability to execute.

And we’re seeing that already.

Unidentified speaker, Interviewer: Absolutely. Maybe if there’s anyone there’s a question.

Tony Rodriguez, Executive Vice President and CFO, Cerence: Can I sneak one in? Sure.

Unidentified speaker, Attendee: On the LLM. So you mentioned, obviously, being the first to push out the auto specific LLM. When we think about the evolution of these LLM’s and the scalability to kind of get to that embedded nature of a car, can you maybe talk about the progress behind that? Where are you guys staying on kind of going into that vertical and maybe how that kind of plays out from a pricing point of view relative to a cloud based oriented solution?

Tony Rodriguez, Executive Vice President and CFO, Cerence: So, yeah, good good question. And I think that we talked about opening up a twenty five year history of being connected in automotive industry and and voice and how that’s evolved into where we are today. And and the most recent, you know, real push for AI and LLMs has been important. And it but all that history would allowed us to have a real, specific even though we we call it this it’s CALM, our product, Cerence Systems LLM, it’s really a small language model. Right?

Because it has to be able to be, you know, embedded at well, right now we’re utilizing it on a on a connected basis, but ultimately in the in the next version, will be an embedded, product and still allow you to do all those capabilities without the connection, but having all those natural language capabilities for for the in car usage. And and that’s important. Right? Because it’s it’s really about the adoption of that and the usability. So if you the old technology people, you know, if you hit the button and and were you had to be so prescriptive that that you really, you know, said, well, I I can figure this out and push the button on my seat heater instead of asking it to turn on my seat heater.

Right? And so, it’s our history and our relationship that allowed us to create that that auto specific LLM and to be able to utilize some of the SoCs and everything to be able to to be able to use that without a connected feature, but having those same capabilities when the car has been critical. And then the from a price point, yes. So we think about our newer products. They are ascribing our rack pricing right now and what we’re seeing out of the blocks, you know, again limited because we’re just selling those products, have seen a higher price point.

But typically, that’s been on the connected side, which we’ve been able to sell even now. When we get to that point, the the license side will go up as well because that’s that’s a much more capability within within the car. Maybe

Unidentified speaker, Interviewer: a couple of questions on the business itself. And I know last year, you took a number of actions to improve operational efficiencies. You talked about growing profitably this year. Maybe review some of those actions and kind of how you’re thinking about kind of driving further margin performance going forward.

Tony Rodriguez, Executive Vice President and CFO, Cerence: Yes. So I think the company was in a tough spot a year ago. We retracted our guidance for the fiscal twenty twenty four year and pulled our 2025 guidance. So from a market standpoint, we’re we’re you know, it was in a gray area. What the company did even prior to me coming aboard said, okay.

Look. If this is our new run rate on revenue, we need to really rationalize our expenses. And for for us, the the majority of our costs are people related costs. So so we really took a hard look at everything we’re doing within technology and basically every department within that organization to see how we can be more efficient. And we’re you know, did a very successful restructuring in q four of last year.

Brian came on board in October of of twenty four, so literally the first week of our new year. But he, you know, he’s experienced CEO, Intel and CDK, and and he believes too that there’s there’s there’s other opportunities within in this that can look at all facets of what we do to, get better at what we do. We think can we talk about, AI? Well, you know, how is AI helping our, our technologists? So, you know, how do we code, more efficiently and do those that that that helps us either maintain as as we increase revenue, maintaining a certain cost base or or reducing that cost base.

But we’re also looking at AI throughout the entire organization to how to improve processes and be more efficient. And then we were you know, we’ve got, you know, things like, you know, how many legal entities we have and how many official sites we’re in and other ways that we can reduce costs. So we we see more efficiencies within the business, but we did a a big chunk to to execute that profitability in q four. And then I think that we do have operating leverage as the as the business grows of being able to still maintain, not having a variable cost that rises as revenues grow, that really we can maintain or decrease those operating costs while while, you know, growing the business.

Unidentified speaker, Interviewer: Very helpful. Maybe just a quick follow-up on that. As you grow the business, in a best case scenario that everybody wants to adopt the technology, are there incremental costs to launch product? Or is it pretty scalable?

Tony Rodriguez, Executive Vice President and CFO, Cerence: No, it’s scalable within our organization. That’s where I really think we have the operating leverage.

Unidentified speaker, Interviewer: Perfect. One thing I want to go back to on the business. I think on the last earnings call, you mentioned some discussions with your automaker customers on pricing and discounts. Curious where those discussions sit today and maybe an update.

Tony Rodriguez, Executive Vice President and CFO, Cerence: There has been a lot of movement since the earnings call. And again, I think Brian’s comment was, hey, look, we’re in a very unique position with tariffs and the impacts on on auto automotive manufacturers. And there are, you know, these initial discussions around pricing. Well, you know, maybe what didn’t come out of there, what’s should be clear is that, you know, yes, those discussions are happening. But I think the way we look at it is, look, we can help you save on your cost per car.

Think about, you know, by reducing our overall rates. But we’d only do that, and that’s our existing products. We’d only do that if we can get more more of the stack. Right? And and we’ll help you as a manufacturer decrease your overall cost by giving you a reduction of it.

But for us, it would be, you know, a slightly, you know, hit on margin, but give us more revenue dollars and more more gross profit dollars. That’s kind of our approach on on pricing. And then, yes, as the new products come out, those are the rack rates for those because they’re more valuable, are higher. And so could we see, you know, some discount off of a higher price than our existing, our existing prices? Yes.

But but but nothing’s been, you know, we haven’t really finalized anything there. But we we do see those pressures, but we think we can help manufacturers while still growing our revenue.

Unidentified speaker, Attendee: As you migrate effectively into those embedded solutions for the next gen product, do you see that as the potential to unlock incremental convenience features for the consumer whereby previously you’re gated by connections and whether or not there’s availability to access effectively the cloud via the pipe to the car.

Tony Rodriguez, Executive Vice President and CFO, Cerence: If you’re embedded, does it

Unidentified speaker, Attendee: for example, will OEMs enable more convenient features that kind of allows those your technology to effectively go into different spaces that hasn’t been previously in older versions?

Tony Rodriguez, Executive Vice President and CFO, Cerence: Yeah. I I absolutely think so. And and I think but those are still more within the car, but more more optimizing those features within the car. Again, I think that the connected aspect will still have to, you know, as you think about, you know, whether it’s directions or finding a favorite restaurant or, you know, a football score, those are still going to need a connected piece. But within, I think as consumers get more used to using those in their daily life, they’re going to expect that in the car and hopefully, a connected piece so that they’re interacting with their car, doing those same things outside of the car.

But they’re going to expect it within the car. And to have those embedded LLM within the car, you’re able to talk more like you would do it with a connected feature.

Unidentified speaker, Interviewer: So as investors kind of look ahead, what would you say are the most important metrics to track for the company and the industry?

Tony Rodriguez, Executive Vice President and CFO, Cerence: Yeah. Well, I mean, from the broader industry, we should all be looking at overall IHS volumes and where where the those volumes are. And and then for us specifically, you start thinking about, you know, again, our penetration rate. I think you need to put that in context with that 50% is worldwide volumes as we’ve described. We’re we’re not really in China within China.

So you have to have to kind of factor that in to that 50% of worldwide volume. So I think that’s an important metric. The connectivity rate is important. I think we said it’s around 29% for trailing twelve month period. And I think that looking at that and tracking the connectivity rate will be important because that will hopefully lead to increased PPU as well.

And then our adjusted cash flow, which is a trailing twelve month adjusted cash flow. Excuse me. The adjust for doesn’t include professional services, really technology cash flow and adjust for prepaids and other things. But it really shows the direction of our business because we mentioned that our connected feature, we bill when the car is shipped But we don’t recognize that. We recognize it over a subscription period.

So that billings number helps give you a little visibility into where that connected revenue will be in the future as well.

Unidentified speaker, Interviewer: Got it. Sounds like the billings and cash flow are critical. And what are your goals, the company’s goals, over the next six to twelve months?

Tony Rodriguez, Executive Vice President and CFO, Cerence: Yeah, the top of mind, of course, is continuation of the Secarence XUI agentic multimodal platform, right, is completing that. And as we’ve said, that we’re on track for the end of this calendar year and hopefully getting into then vehicles in the beginning of twenty twenty six. That’s the most important. But then as you think about that product, well, how does that increase revenue? So, you know, what does that mean to price?

What does that mean to penetration? So even though we’re in 50% of those of every vehicle, not every vehicle has our full platform they may be using because of IP reasons or others that they only have a piece of our technology stack. So how do we do we win more of that of that technology solution within those cars and so utilizing our product to to really enhance revenue and then at the same time looking at profitability. It’s at the top of mind of both Brian and myself to say, how do we run a growing business that is increasingly profitable? Absolutely.

Unidentified speaker, Attendee: You guys have once made big contracts on the AI Can you just talk about maybe how those are going with growth guidance and the other players?

Tony Rodriguez, Executive Vice President and CFO, Cerence: Yeah, yeah. We’ve, so a couple of things. So we’ve won some already that have components of the overall platform, Cerencex UI platform, right? So we won those and those are implemented and working and I think are well received. When we think about something like JLR that we announced, you know, really utilized in the beginning of ’26.

And you’ve got to think about that relationship as more of being the basis of their new infotainment system and using Serin’s XUI for that. But I think those wins have been important, and I think that they’ve been well received. And we’re at the beginnings of the revenue impact of those relationships because, again, if we we announced that we won something, so we got to get to start a production, then if if if it’s the full suite, then, you know, some of that embedded revenue will come in once we start billing for that. The the connected piece will be over time. So So the impact of revenue is still really more in the latter ’26 and the ’27.

Unidentified speaker, Interviewer: Great. I think with that we are over time, so we’ll end it there. Tony, thank you so much. Thank Great discussion. Learned a lot.

And thank you everybody for your great questions. Thank you. Thank you.

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