SoundHound AI (NASDAQ: SOUN) stock jumped about 4% in pre-market trading Monday after the company beat analysts’ first-quarter revenue estimates and revised up its annual sales guidance.
SoundHound AI (SOUN) recently announced its first-quarter financial results, surpassing quarterly revenue estimates and raising its full-year sales guidance amidst burgeoning demand for artificial intelligence (AI) speech recognition software.
For the three months ending March 31, the Silicon Valley-based tech company reported revenue of $11.6 million, marking a 73% increase from the corresponding quarter of the prior year. This revenue figure comfortably exceeded analysts’ expectations of $10.1 million. However, the company posted a net loss of $33 million, or 12 cents a share, broader than the consensus view of a 9 cents per share loss. The adjusted net loss came in at $19.9 million or 7 cents per share.
Full-Year Sales Outlook
Looking ahead, SoundHound AI raised the lower end of its full-year revenue guidance, anticipating a top-line range between $65 million to $77 million, up from the prior forecast of $63 million to $77 million. Wall Street had previously estimated annual net sales totaling $69.5 million.
CEO Keyvan Mohajer expressed optimism about the company’s performance, stating,
“Our first quarter sets the tone for 2024 as another year of strong growth for SoundHound.”
He highlighted the increasing significance of Voice AI as an indispensable tool for customer service, reflecting the burgeoning demand for subscriptions.
SoundHound AI has already secured partnerships across various sectors, including restaurants and automobiles, for its voice AI assistant tools. Its clientele includes Applebees, a subsidiary of Dine Brand, which has rolled out the use of SoundHound’s technology at its franchises. Additionally, the company has secured agreements with Stellantis (STLA) and an unnamed U.S.-based EV maker for in-vehicle integrations of its voice AI tools.
In a separate announcement, the company revealed a partnership with AI-powered answer engine company Perplexity to incorporate large language model (LLM) capabilities into its voice assistant technology.
Despite its relatively modest market capitalization of $1.52 billion, SoundHound AI gained investor attention this year after a regulatory filing disclosed that AI chipmaker Nvidia (NVDA) had acquired a stake in the company, holding 1.73 million shares as of the end of 2023.
SoundHound AI (NASDAQ: SOUN) Stock Price Action
As of 04:58 a.m. (Eastern Time) Monday, SOUN stock traded at $5.28, marking a 3.73% increase compared to the previous trading session.
