SoundHound, a company based in Santa Clara, California that specializes in voice-based conversational AI technology, has exceeded expectations for the first quarter and provided optimistic sales guidance for the full year. This performance led to a surge in its stock during extended trading. In the March quarter, SoundHound reported a loss of 7 cents per share on sales of $11.6 million, surpassing analyst estimates of a loss of 9 cents per share on sales of $10.1 million. For the full year, SoundHound is projecting revenue between $65 million to $77 million, with a midpoint of $71 million, which surpasses the consensus estimate of $69 million.
SoundHound’s AI system can communicate with users in multiple languages and has broad application across various platforms such as customer service call centers, restaurant ordering systems, and automobiles. The company’s technology is utilized by popular chains like Applebee’s, Church’s Chicken, Jersey Mike’s, Krispy Kreme, and White Castle for their ordering systems. The growing demand for voice AI in customer service is driving subscriptions and revenue growth for SoundHound. According to Chief Executive Keyvan Mohajer, “SoundHound’s technology is revolutionizing customer service by providing quick and efficient solutions.”
Following the positive report on March 14th, SOUN stock reached a two-year high of $10.25 after Nvidia announced an investment in the company. Nvidia disclosed a $3.67 million stake in SoundHound as well as investments in other companies like Arm Holdings, Nano-X Imaging, and Recursion Pharmaceuticals. This partnership 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.
On April 28th SOUN stock closed at $4.75 after declining 1% during regular trading session but surged 14% to $5.44 during after-hours trading following positive news from the company regarding its Q1 performance and sales guidance for the full year.
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