SoundHound AI (SOUN) late Tuesday beat Wall Road’s targets for the third quarter and guided to gross sales above views for the total yr and subsequent yr. However SOUN inventory dropped in prolonged buying and selling.
The maker of conversational synthetic intelligence voice know-how misplaced 6 cents a share on gross sales of $25.1 million within the September quarter. Analysts polled by FactSet had anticipated SoundHound to lose 7 cents a share on gross sales of $23 million. Within the year-earlier interval, it misplaced 9 cents a share on gross sales of $13.3 million.
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For the total yr, it forecast gross sales of $83.5 million, primarily based on the midpoint of its outlook. Analysts had been searching for $82.6 million. For 2025, it guided to gross sales of $165 million vs. the consensus estimate of $152.1 million.
SoundHound’s know-how is utilized by corporations to work together with prospects in name facilities and restaurant drive-thrus. Its voice-response know-how additionally could be present in vehicles and televisions.
“We imagine that voice is the ‘killer app’ for utilized generative AI,” Chief Govt Keyvan Mohajer stated in a information launch. “Because of our best-in-class know-how, mastery of complicated vertical integrations, and proprietary AI software program, SoundHound is ideally positioned to capitalize on this large and rising alternative.”
SoundHound Inventory Retreats After Report
In after-hours buying and selling on the inventory market right this moment, SoundHound inventory fell greater than 6% to 7.05. In the course of the common session Tuesday, SOUN inventory dropped 2.7% to shut at 7.56.
On Nov. 7, SoundHound inventory broke out of a cup-with-handle base at a purchase level of 6.25, in line with IBD MarketSurge charts. SOUN inventory was responding to unconfirmed experiences that Taco Bell, a unit of Yum Manufacturers (YUM), was utilizing SoundHound know-how for its drive-thru order-taking.
Restaurant chains utilizing SoundHound know-how embody Chipotle Mexican Grill (CMG), Jersey Mike’s Subs and White Fortress.
SoundHound inventory jumped in February after AI chipmaker Nvidia (NVDA) revealed that it had invested within the firm.
SOUN inventory went public in April 2022 after its merger with a special-purpose acquisition firm. It started buying and selling at 8.72.
Observe Patrick Seitz on X, previously Twitter, at @IBD_PSeitz for extra tales on shopper know-how, software program and semiconductor shares.
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