SoundHound AI Inc. got its first big moment in the spotlight Thursday since emerging into wider consciousness as an AI toy, but its buzzy stock was falling.
SoundHound SOUN shares,
It fell 21% in after-hours traffic on Thursday after the company gave an upbeat forecast for fiscal 2025, a year ago, but fell short of expectations with its latest results.
The company, which offers conversational AI technology, doesn't get much coverage on Wall Street, and only six analysts have estimates for the company's revenue. However, SoundHound's “record” revenue of $17.1 million, up 80% from the previous year, lagged behind the consensus view of $17.7 million for the fiscal fourth quarter.
SoundHound lost more money than it made, posting a loss of $18.0 million, or 7 cents per share. Losses improved compared to the same quarter last year, when SoundHound reported a net loss of $30.9 million, or 15 cents per share.
The company reported a loss of $3.7 million on an adjusted earnings before interest, tax, depreciation and amortization (Ebitda) basis, while it lost $18.8 million on the measure the year before. The FactSet consensus was for a loss of less than $1 million.
“Our pace and agility amidst this AI revolution has put us at the forefront of the field when it comes to delivering real business value,” CEO Kevan Mehajer said in a statement.
SoundHound expects fiscal 2024 revenue to be $63 million to $77 million, which is consistent with the consensus opinion at the midpoint. The company expects revenues for fiscal year 2025 to exceed $100 million, with growth accelerating. The company also expects to record positive adjusted EBITDA at that time.
Analysts tracked by FactSet were modeling revenue of about $100 million for fiscal 2025, along with an adjusted EBITDA loss of about $1 million.
SoundHound stock is up more than 300% over the past month, and appears to be gaining new awareness after Nvidia Corp. NVDA,
She disclosed the position at the company when she filed her 13-F in mid-February.
