SoundHound AI (NASDAQ: SOUN) stock plummeted over 12% in the extended trading Thursday after the company reported worse-than-expected Q4 financial results.
SoundHound AI (SOUN) has released fourth-quarter financial results for the fourth quarter following the market close on Thursday.
The report showcased a substantial year-over-year increase in revenue, reaching $17.147 million, marking an impressive 80% surge. However, this figure fell short of the consensus estimate of $17.746 million. The company also reported a quarterly loss of 7 cents per share, disappointing analysts who had estimated a loss of 6 cents per share.
SoundHound posted a combined cumulative subscriptions and bookings backlog of $661 million by the quarter’s end, effectively doubling from the previous year. The company boasted a healthy cash reserve, concluding the quarter with about $109 million and revealing that its current balance exceeds $200 million.
Keyvan Mohajer, the co-founder and CEO of SoundHound AI, expressed optimism about the company’s performance, labeling the year as a “breakthrough” period.
He said,
“This was a breakthrough year in which SoundHound rapidly integrated powerful new generative AI capabilities. Our real-world voice AI applications are already live and driving consumer engagement across vehicles, devices, and customer service businesses.”
Outlook For Full-Year 2024 and 2025
SoundHound forecasts full-year 2024 revenue to range between $63 million and $77 million. The company also introduced its 2025 guidance, forecasting accelerated growth with revenue surpassing $100 million and achieving positive adjusted EBITDA.
SOUN stock surged over 300% in the past month leading up to the announcement. Nvidia’s recent disclosure in a 13-F filing with the SEC about its investments in multiple companies about two weeks ago triggered a massive rally in SoundHound shares.
SoundHound AI (NASDAQ: SOUN) Stock Price Action
SOUN stock plunged 14.02% in the after-hours trading, after closing the regular trade at $7.42 on Thursday. The traders had exchanged hands with 158,940,058 (158.94 million) shares compared to the average daily trading volume of 29.70 million.
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