SoundHound, a voice-based conversational AI technology company based in Santa Clara, California, reported better-than-expected results for the first quarter and provided optimistic sales guidance for the full year. The company’s stock surged during extended trading after reporting a loss of 7 cents per share on sales of $11.6 million in the March quarter, surpassing analyst estimates of a loss of 9 cents per share on sales of $10.1 million.
SoundHound specializes in developing AI systems that are used in various platforms such as customer service call centers, restaurant ordering systems, and automobiles. Its technology is utilized by popular chains like Applebee’s, Church’s Chicken, Jersey Mike’s, Krispy Kreme, and White Castle. The growing demand for voice AI in customer service is driving subscriptions and revenue growth for SoundHound.
For the full year, SoundHound is projecting revenue between $65 million to $77 million, with a midpoint of $71 million, surpassing the consensus estimate of $69 million. Chief Executive Keyvan Mohajer attributed this growth to the company’s versatile and broad application.
On March 14th, SOUN stock reached a two-year high of $10.25 after Nvidia announced an investment in the company. Nvidia, a leader in AI chips, disclosed a $3.67 million stake in SoundHound along with investments in other companies like Arm Holdings, Nano-X Imaging, and Recursion Pharmaceuticals. This partnership with Nvidia showcases SoundHound’s potential for growth and innovation in the field of AI technology. Investors and industry experts are closely monitoring SoundHound’s progress anticipating further developments in the AI sector.
Following the positive report on May 28th SOUN stock surged 14.5% to $5.44 during after-hours trading after regular trading session decline of 1%. The surge was driven by the news that SoundHound had exceeded expectations for its Q1 earnings report and had provided optimistic sales guidance for the full year which led to an increase in investor confidence about its future prospects.
In conclusion