SoundHound AI (SOUN) exceeded expectations for the first quarter and provided optimistic sales guidance for the full year, which led to a surge in its stock during extended trading. The company, based in Santa Clara, California and backed by investor Nvidia, 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. This increase came after a 1.3% decline during the regular trading session, closing at $4.75. SoundHound’s technology is utilized by 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.
On March 14th, SOUN stock reached a two-year high of $10.25 after Nvidia announced an investment in the company. Nvidia, a leader in AI chips, 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 with Nvidia 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.