Cerence Inc (NASDAQ:CRNC) stock fell 4.70% (As on Nov 23, 11:50:46 AM UTC-4, Source: Google Finance) after the company gave forecast for fiscal first quarter that was below Wall Street’s expectations. The software specialist guided for a range of $91 million to $96 million, short of the $101.3 million Wall Street anticipated. For fiscal 2021, Cerence sees revenue growing 12% compared to flat auto production while adjusted EBITDA will be in a range of $144 million to $163 million. For fiscal year 2022, accounting for the industry headwinds due to semiconductor shortages and notwithstanding the approximately $23 million revenue reduction from the “legacy*” contract, the company still expects to grow above the IHS auto production forecast. Further, for the fiscal quarter ending December 31, 2021, IHS auto production forecast is expected to be down 21% for the same period. Adjusted EBITDA is expected to be in the range of approximately $31M to $35M. For full year, IHS auto production forecast is expected to be flat for the same period. The company had another strong year for bookings at $590 million of which 20% were for the new products. These bookings included some key strategic wins, such as VinFast, and included multiple competitive takeaways. The company also signed a contract with one of the top elevator manufacturers in the world to deliver voice AI technology and connected services creating the elevator of the future. This represents a key opportunity for the company to expand into a new market with the potential to be a strong revenue contributor to the FY24 target for the new mobility market. This has increased backlog to approximately $2 billion.

Moreover, the company has won first major customer in the building mobility market for the connected elevator of the future. VinFast, Vietnam’s first domestic car company and a leader in electric vehicle innovation worldwide, selected Cerence to power conversational AI across its lineup of smart EVs. Cerence Pay receives coveted Automotive News PACE Award, the industry benchmark for innovation

CRNC in the third quarter of FY 21 has reported the adjusted earnings per share of 66 cents, beating the analysts’ estimates for the adjusted earnings per share of 56 cents. The company had reported the adjusted revenue growth of 7.5 percent to $98.1 million in the third quarter of FY 21, beating the analysts’ estimates for revenue of $97.9 million.