SoundHound AI Stock Slides After Hours Despite 'Watershed Moment' For Artificial Intelligence

SoundHound AI Inc SOUN shares are volatile in extended trading Tuesday after the company reported fourth-quarter financial results and issued solid guidance

Q4 Results: SoundHound said fourth-quarter revenue increased 84% year-over-year to $9.5 million, which beat estimates of $8.84 million, according to Benzinga Pro. The company reported a quarterly loss of 15 cents per share, which beat estimates for a loss of 17 cents per share.

Gross margins came in at 71%. SoundHound said it has a cumulative bookings backlog of $332 million at the end of 2022.

"Conversational AI is at a watershed moment and our proprietary Dynamic Interaction and Generative AI solutions are perfectly positioned. From electricity to telecommunications to internet search, each generation has established a new foundational capability to better serve society, and AI will catalyze this next horizon," said Keyvan Mohajer, co-founder and CEO of SoundHound AI.

The company also announced the upcoming launch of a chat AI service that combines the power of software engineering and machine learning with Generative AI.

SoundHound anticipates revenue growth of 50% in 2023, given the "strong business momentum" the company is seeing for its voice AI products and services. SoundHound expects 2023 revenue to be between $43 million and $50 million versus estimates of $46.05 million. The company expects to become adjusted EBITDA positive in the fourth quarter of 2023.

See Also: Why CrowdStrike Stock Is Surging After Hours

SOUN Price Action: SoundHound has a 52-week high of $18.14 and a 52-week low of 93 cents.

The stock was down 6.01% at $3.13 at the time of publication, according to Benzinga Pro.

Photo: Lukas from Pixabay.

Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsPenny StocksSmall CapAfter-Hours CenterMoversAIwhy it's moving
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...