SoundHound AI Stock Is Trading Lower Tuesday: What's Going On?

SoundHound AI Inc SOUN shares are trading lower Tuesday after the company filed for a mixed shelf offering of up to $500 million.

What To Know: SoundHound AI on Monday filed for a prospectus to implement a shelf registration process. The company also filed a sales agreement prospectus for a $250 million at-the-market offering program under the shelf registration statement.

The base prospectus covers the offering, issuance and sale of up to $500 million of SoundHound’s Class A common stock. The sales agreement prospectus covers the offering, issuance and sale of up to $250 million of Class A common stock. The $250 million that may be offered, issued and sold by SoundHound under the sales agreement prospectus is included in the $500 million total under the base prospectus.

SoundHound said it entered into an equity distribution agreement on Jan. 27 under which the company may offer and sell up to $250 million of its Class A common stock from time to time. The agents in the offering will be entitled to commission at a fixed rate of 2% of the gross sales price of the shares.

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SoundHound is due to report fourth-quarter financial results in February. The company is expected to report a loss of 10 cents per share and revenue of $33.72 million, according to estimates from Benzinga Pro.

Last quarter, SoundHound beat analyst estimates on the top and bottom lines as revenue grew 89% year-over-year. The company ended the quarter with total cash and cash equivalents of $136 million.

SoundHound guided for full-year 2024 revenue in the range of $82 million to $85 million. SoundHound said it expects full-year 2025 revenue to be in the range of $155 million to $175 million.

SOUN Price Action: SoundHound AI shares were down 4.69% at $13.43 at the time of publication Tuesday, according to Benzinga Pro.

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