SoundHound AI Inc. had a significant moment in the spotlight Thursday, showcasing itself as an artificial-intelligence player. However, despite delivering a positive outlook for fiscal 2025, their stock experienced a downturn.
Financial Performance
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Revenue Growth: SoundHound recorded a “record” top-line revenue of $17.1 million, marking an impressive 80% increase from the previous year. Nonetheless, this figure fell short of the $17.7 million consensus estimate for the fiscal fourth quarter.
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Profitability: The company reported a loss of $18.0 million or 7 cents per share. This was a notable improvement from the net loss of $30.9 million or 15 cents per share in the same period last year.
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Adjusted Earnings: SoundHound disclosed a $3.7 million loss on the basis of adjusted EBITDA for the reported quarter, showcasing progress from the $18.8 million loss recorded a year before.
Future Outlook
Chief Executive Keyvan Mohajer expressed confidence in the company’s performance, mentioning that their pace and agility in the AI space position them as leaders in delivering commercial value.
Revenue Projections
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Fiscal 2024: SoundHound anticipates revenue between $63 million to $77 million, aligning with market expectations.
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Fiscal 2025: The company expects revenue to surpass $100 million with accelerated growth and aims to achieve positive adjusted EBITDA.
Market Response
Despite recent stock volatility, analysts foresee a positive trajectory for SoundHound. The stock has surged over 300% in the last month, garnering attention following Nvidia Corp.’s disclosed position in the company earlier this year.
