SoundHound AI Stock Is Surging: What's Going On?

SoundHound AI Inc SOUN shares are trading higher in Tuesday's after-hours session after the company reported second-quarter financial results.

• Q2 Revenue: $8.8 million beat estimates of $8.06 million
• Q2 EPS: loss of 10 cents beat estimates for a loss of 11 cents

Revenues were up 42% year-over-year. Gross margin came in at 79%. SoundHound ended the quarter with approximately $130 million in cash. 

"We mark another quarter of strong growth, with our AI powering millions of devices and services and billions of successful interactions per year. We expect our unique Generative AI integration will result in faster adoption and even greater capabilities," said Keyvan Mohajer, co-founder and CEO of SoundHound.

"And now, we are combining our vast amounts of experience and data to create the first of its kind, multimodal foundation model, supporting speech-to-meaning and enabling incredible new experiences."

Outlook: SoundHound said it continues to expect full-year 2023 revenue in the range of $43 million to $50 million versus a consensus of $45.13 million. The company also reaffirmed that it expects to be adjusted EBITDA positive in the fourth quarter. 

Management will hold a conference call to discuss these results at 5:30 p.m. ET.

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SOUN Price Action: SoundHound shares were up 18.1% after hours at $2.35 at the time of writing, according to Benzinga Pro.

Photo: Gerd Altmann from Pixabay.