Cerence Inc. (CRNC), a leading provider of conversational AI solutions, saw its stock plunge by 5.02% in pre-market trading on Friday, following the release of its quarterly earnings report.

The company reported a quarterly adjusted loss of $0.03 per share for the quarter ended December 31, compared to an earnings per share of $1.12 in the same quarter last year. Additionally, revenue fell by 63.2% year-over-year to $50.9 million, slightly above analysts' expectations of $50.84 million.

Despite beating analysts' estimates on earnings and revenue, Cerence Inc.'s disappointing financial performance, with a reported quarterly loss of $24.29 million, likely contributed to the stock's pre-market decline. Investors may also be concerned about the company's growth prospects, as the average analyst rating on the shares remains a "hold" with a median 12-month price target of $10.00.