- SoundHound AI (SOUN) surpasses Q1 estimates and raises full-year sales guidance, driving a surge in stock prices.
- The AI company, backed by Nvidia (NVDA), reported adjusted losses of 7 cents per share on sales of $11.6 million in the March quarter, beating analyst expectations.
- SoundHound’s voice-based conversational AI technology is increasingly in demand across various sectors, including customer service and restaurant ordering systems.
SoundHound AI (SOUN), a Nvidia-backed company, beats Q1 estimates and raises its full-year sales guidance, resulting in a surge in its stock prices in extended trading.
SoundHound Beats Q1 Estimates
The Santa Clara, California-based company reported adjusted losses of 7 cents per share on sales of $11.6 million in the March quarter. This performance surpassed the expectations of analysts polled by FactSet, who had predicted SoundHound would lose 9 cents per share on sales of $10.1 million. In the same period last year, SoundHound reported adjusted losses of 8 cents per share on sales of $6.7 million.
Full-Year Sales Guidance Raised
For the full year, SoundHound has forecasted revenue between $65 million and $77 million. The midpoint of this range, $71 million, exceeds the consensus estimate of $69 million. SoundHound’s technology, which provides voice-based conversational AI, is used in a variety of applications, including customer service call centers, restaurant ordering systems, and automobiles.
SOUN Stock Surges Post-Report
Following the report, SOUN stock soared 14.5% to 5.44 in after-hours trading. During the regular session on Thursday, the stock had slipped 1.3% to close at 4.75. “Voice AI is fast becoming a must-have tool for customer service, and that’s reflected in the demand we’re seeing for subscriptions,” said Chief Executive Keyvan Mohajer.
Nvidia’s Investment in SoundHound
On March 14, SOUN stock spiked to a two-year high of 10.25 after AI chip leader Nvidia announced an investment in the firm. Nvidia revealed the investment in a regulatory filing on Feb. 14, also disclosing stakes in Arm Holdings (ARM), Nano-X Imaging (NNOX), and Recursion Pharmaceuticals (RXRX). Nvidia reported a $3.67 million stake in SoundHound.
Conclusion
SoundHound’s impressive Q1 performance and raised full-year sales guidance reflect the growing demand for its voice-based conversational AI technology. The company’s stock surge also underscores the positive market response to these developments. With the backing of AI chip leader Nvidia, SoundHound is well-positioned to continue its upward trajectory.
