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.

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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.