SoundHound AI (SOUN) has successfully surpassed its third-quarter forecasts and raised its annual sales outlook. The company specializes in conversational voice artificial intelligence and operates from Santa Clara, California. Despite the positive results, its stock experienced a decline in after-hours trading.
Third Quarter Performance
In the third quarter, SoundHound reported an adjusted loss of 3 cents per share, with sales reaching $42 million. This performance exceeded analysts’ expectations, who had predicted a loss of 9 cents per share on revenues of $40.5 million.
Year-On-Year Comparison
In the same period last year, SoundHound incurred a loss of 6 cents per share on sales of $25.2 million. This year’s results demonstrate significant growth in both revenue and a reduction in losses.
Annual Revenue Outlook
SoundHound has raised its full-year revenue guidance to between $165 million and $180 million. The midpoint of $172.5 million exceeds the consensus estimate of $166 million, indicating a strong future outlook for the company.
Market Reaction
Following the earnings announcement, SoundHound’s stock fell over 3% in after-hours trading, reaching $13.78. In the regular trading session earlier that day, shares had already dropped 9.5%, closing at $14.23.
Business Applications
SoundHound’s technology is predominantly utilized by businesses to enhance customer interactions in various settings, such as call centers and restaurant drive-thrus. This application of advanced voice AI continues to position SoundHound as a leader in the field.
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