Cerence Inc. Files 2024 Annual Report

TL;DR

Cerence Inc. dropped its 2024 10-K. All systems go for now.

AI Summary

Cerence Inc. filed its 10-K for the fiscal year ending September 30, 2024, reporting on its financial performance and business operations. The company, incorporated in Delaware, is headquartered in Burlington, MA. This filing provides a comprehensive overview of its activities and financial standing for the period.

Why It Matters

This 10-K filing provides investors and stakeholders with a detailed look at Cerence Inc.'s financial health, strategic direction, and potential risks for the fiscal year 2024.

Risk Assessment

Risk Level: medium — The filing details the company's financial performance and operational risks, which are typical for a 10-K but require careful review.

Key Players & Entities

• Cerence Inc. (company) — Filer of the 10-K
• 2024-09-30 (date) — Fiscal year end
• Burlington, MA (location) — Company headquarters
• DE (location) — State of incorporation

FAQ

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share CRNC The Nasdaq Global Se
• $172.7 million — ar remaining performance obligations of $172.7 million. As of September 30, 2024, we had varia
• $780.0 m — 4, we had variable five-year backlog of $780.0 million, which includes estimated future
• $952.7 m — we estimate our five-year backlog to be $952.7 million, including $172.7 million of five
• $780.0 million — r remaining performance obligations and $780.0 million of five-year variable backlog. As of Se
• $1.2 billion — 23, the estimated five-year backlog was $1.2 billion. Our solutions have been installed in
• $331.5 m — scal year 2024, we generated revenue of $331.5 million, an increase of 12.6% compared to
• $294.5 million — llion, an increase of 12.6% compared to $294.5 million for the fiscal year ended September 30,
• $588.1 million — ember 30, 2023. We recorded net loss of $588.1 million for the fiscal year ended September 30,
• $56.3 million — hange of 945.4% compared to net loss of $56.3 million recorded for the fiscal year ended Sept

Filing Documents

• crnc-20240930.htm (10-K) — 4287KB
• crnc-ex10_34.htm (EX-10.34) — 28KB
• crnc-ex10_35.htm (EX-10.35) — 32KB
• crnc-ex19_1.htm (EX-19.1) — 72KB
• crnc-ex21_1.htm (EX-21.1) — 104KB
• crnc-ex23_1.htm (EX-23.1) — 3KB
• crnc-ex31_1.htm (EX-31.1) — 16KB
• crnc-ex31_2.htm (EX-31.2) — 16KB
• crnc-ex32_1.htm (EX-32.1) — 9KB
• crnc-ex32_2.htm (EX-32.2) — 9KB
• crnc-ex97_1.htm (EX-97.1) — 43KB
• img166059119_0.jpg (GRAPHIC) — 183KB
• img166059119_1.jpg (GRAPHIC) — 51KB
• img166059119_2.jpg (GRAPHIC) — 27KB
• img179565752_0.jpg (GRAPHIC) — 7KB
• img179565752_1.jpg (GRAPHIC) — 2KB
• img180489273_0.jpg (GRAPHIC) — 7KB
• 0000950170-24-130642.txt ( ) — 18585KB
• crnc-20240930.xsd (EX-101.SCH) — 2041KB
• crnc-20240930_htm.xml (XML) — 3728KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 15 Item 1B. Unresolved Staff Comments 33 Item 1C. Cybersecurity 33 Item 2.

Properties

Properties 33 Item 3.

Legal Proceedings

Legal Proceedings 33 Item 4. Mine Safety Disclosures 35 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36 Item 6 Reserved 37 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 61 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 62 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 103 Item 9A.

Controls and Procedures

Controls and Procedures 103 Item 9B. Other Information 103 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 104 PART III Item 10. Directors, Executive Officers and Corporate Governance 105 Item 11.

Executive Compensation

Executive Compensation 105 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 105 Item 13. Certain Relationships and Related Transactions, and Director Independence 105 Item 14. Principal Accounting Fees and Services 105 PART IV Item 15. Exhibits, Financial Statement Schedules 106 Item 16 Form 10-K Summary 109

SIGNATURES

SIGNATURES 110 i CAUTIONARY STATEMENT CONCERNIN G FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K, or Form 10-K, filed by Cerence Inc. together with its consolidated subsidiaries, "Cerence", the "Company," "we," "us" or "our" unless the context indicates otherwise, contains "forward-looking statements" that involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions, plans and projections about our business, operations, industry, financial results, financial condition, strategy, goals, or prospects. Forward-looking statements often include words such as "anticipates," "estimates," "expects," "projects," "forecasts," "intends," "plans," "continues," "believes," "may," "will," "goals" and words and terms of similar substance in connection with discussions of our business and future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Our actual results may vary materially from those expressed or implied in our forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by us or on our behalf. Although we believe that the forward-looking statements contained in this Form 10-K are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to: the highly competitive and rapidly changing market in which we operate; adverse conditions in the automotive industry or the global economy more generally, including, without limitation, the continuation of the semiconductor shortage being experienced by the automotive industry, consumer

B usiness

Item 1. B usiness. Overview Cerence builds AI powered virtual assistants for the mobility/transportation market. Our primary target is the automobile market, but our solutions can apply to all forms of transportation including but not limited to two-wheel vehicles, planes, tractors, cruise ships and elevators. Our solutions power natural conversational and intuitive interactions between vehicles, drivers and passengers, and the broader digital world. We are a premier provider of AI-powered assistants and innovations for connected and autonomous vehicles, including one of the world's most popular software platforms for building automotive virtual assistants, such as " Hey BMW " and " Ni hao Banma ". Our customers include nearly all major automobile original equipment manufacturers, or OEMs, or their tier 1 suppliers worldwide, including BMW, Daimler, FCA Group, Ford, Geely, GM, Renault-Nissan, SAIC, Toyota, Volkswagen Group, Aptiv, Bosch, Continental, DENSO TEN, NIO, XPeng and Harman. We deliver our solutions on a white-label basis, enabling our customers to deliver customized virtual assistants with unique, branded personalities and ultimately strengthening the bond between their brands and end users. Our vision is to enable a more enjoyable, safer journey for everyone. Our platform utilizes industry-leading speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic modeling technology to provide a conversational AI-based solution. Virtual assistants built with our platform can enable a wide variety of modes of human-vehicle interaction, including speech, touch, handwriting, gaze tracking and gesture recognition, and can support the integration of third-party virtual assistants into the in-vehicle experience. Our software platform is a market leader for building integrated, branded and differentiated virtual assistants for automobiles. As a unified platform and common interface for automotive cognitive assista