SoundHound AI (SOUN) outperformed expectations in the first quarter, reporting a loss of just 7 cents per share on sales of $11.6 million. This beat analyst estimates, and the company predicted revenue of $65 million to $77 million for the full year, with the midpoint of $71 million surpassing expectations.
SoundHound is based in Santa Clara, California, and specializes in voice-based conversational AI technology. The company’s technology can interact with users in multiple languages and is utilized in various industries, including customer service call centers, restaurant ordering systems, and automobiles. Popular restaurants such as Applebee’s, Church’s Chicken, and Krispy Kreme use SoundHound’s technology for their ordering systems.
After reporting positive financial results, SOUN stock rose by 14.5% in after-hours trading. This increase followed a previous spike in March when AI chip leader Nvidia announced an investment in SoundHound. Nvidia also disclosed investments in other companies such as Arm Holdings, Nano-X Imaging, and Recursion Pharmaceuticals.
Chief Executive Keyvan Mohajer noted that demand for voice AI in customer service is growing rapidly. SoundHound’s technology has become essential for businesses looking to improve their customer service experience. The company’s ability to provide innovative solutions in the AI sector has contributed significantly to its success in the marketplace.
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In summary, SoundHound exceeded expectations for the first quarter by reporting a loss of just 7 cents per share on sales of $11.6 million while providing positive sales guidance for the full year at $71 million surpassing expectations . Its specialty is voice-based conversational AI technology that interacts with users in multiple languages utilized across different industries like customer service call centers and automobiles