Cerence (CRNC Quick QuoteCRNC - Free Report) is benefiting from an expanding clientele and strong partner base with its recent collaboration with Volkswagen (VWAGY Quick QuoteVWAGY - Free Report) .

Cerence's recent collaboration extends to Skoda, a prominent brand within the Volkswagen group, aiming to transform the daily driving experience by incorporating Cerence Chat Pro for innovative in-car assistant features.

Cerence Chat Pro, recognized for its speed and ease of integration, harnesses the power of Cerence's large language model (LLM) to offer a conversational companion capable of handling more than 10,000 open-ended questions and answers.

This collaboration highlights Cerence's commitment to delivering innovative AI solutions and underscores the company's dedication to customization, privacy protection and seamless integration for an enhanced driving experience.

Strong Partner Base Aids Cerence’s Prospects

The latest move is in sync with Cerence’s focus on advancing AI-driven innovations in the automotive industry, exemplified by products like Cerence Assistant with Natural Language Understanding (NLU) Plus, Cerence ChatPro, and Cerence Car Knowledge, which redefines the future of in-car technology.

Building on this momentum, Cerence recently partnered with Great Wall Motor Company (GWM), utilizing Cerence Assistant and Speech Signal Enhancement to deliver an intuitive, multilingual in-car experience across GWM's global lineup, enhancing user interactions in 20 countries and 13 languages.

In addition to the Volkswagen and GWM partnership, Cerence recently collaborated with NVIDIA (NVDA Quick QuoteNVDA - Free Report) and Microsoft (MSFT Quick QuoteMSFT - Free Report) .

Cerence introduced the Cerence Automotive Large Language Model (CaLLM), powered by NVIDIA, to revolutionize in-car computing platforms, address automaker challenges and enhance user experiences with generative AI capabilities.

Cerence's collaboration with Microsoft integrates OpenAI's ChatGPT model into vehicles through Microsoft Azure, enhancing in-car user experiences with Cerence's automotive technology and Microsoft's cloud capabilities.

This Zacks Rank #1 (Strong Buy) company is boosting its top-line growth through the expansion of its clientele in the automotive industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cerence’s shares have returned 10% in the past three months compared with the Zacks Computer & Technology sector’s rise of 13.5%.

For the first quarter of fiscal 2024, Cerence expects revenues between $128 million and $132 million. The Zacks Consensus Estimate for revenues is pegged at $130.89 million, indicating year-over-year growth of 56.46%.

Non-GAAP earnings for the fiscal first quarter are expected to be in the range of 84-92 cents per share. The consensus mark for earnings is pegged at 90 cents per share, unchanged in the past 30 days.