SoundHound AI (SOUN) has reported better-than-expected results for the first quarter and given optimistic sales guidance for the full year, leading to a surge in its stock during extended trading. Based in Santa Clara, California and backed by investor Nvidia, SoundHound reported a loss of 7 cents per share on sales of $11.6 million in the March quarter. This performance surpassed analyst estimates of a loss of 9 cents per share on sales of $10.1 million. In the same period last year, SoundHound reported a loss of 8 cents per share on $6.7 million in sales.
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. SoundHound specializes in voice-based conversational AI technology that is used in various platforms such as customer service call centers, restaurant ordering systems, and automobiles. The company’s AI system can communicate with users in multiple languages, demonstrating its versatility and broad application.
Following the positive report, SOUN stock surged 14.5% to $5.44 in after-hours trading after declining by 1.3% during regular trading session and closing at $4.75. Investors are closely monitoring SoundHound’s progress as it utilizes various restaurants for their ordering systems including 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 according to Chief Executive Keyvan Mohajer who stated “We’re seeing an increasing adoption rate across various industries as companies look to streamline their operations through voice-based technology.”
On March 14th SOUN stock reached a two-year high of $10.25 after Nvidia announced an investment in the company alongside other companies like Arm Holdings, Nano-X Imaging and Recursion Pharmaceuticals showcasing its potential for growth and innovation within the field of AI technology
