SoundHound AI, which counts Nvidia as an investor, late Thursday beat estimates for the first quarter and with its sales guidance for the full year. SOUN stock jumped in extended trading.
The Santa Clara, Calif.-based company lost an adjusted 7 cents a share on sales of $11.6 million in the March quarter. Analysts polled by FactSet had expected SoundHound to lose 9 cents a share on sales of $10.1 million. In the year-earlier period, SoundHound lost an adjusted 8 cents a share on sales of $6.7 million.
For the full year, SoundHound predicted revenue of $65 million to $77 million. The midpoint of $71 million topped the consensus estimate of $69 million.
SoundHound provides voice-based conversational AI technology. The company's artificial intelligence system can converse with users in numerous languages. Its tech can be found in customer service call centers, restaurant ordering systems, automobiles and more.
SOUN Stock Jumps After Report
In after-hours trading on the stock market today, SOUN stock surged 14.5% to 5.44. During the regular session Thursday, SOUN stock slid 1.3% to close at 4.75.
"Voice AI is fast becoming a must-have tool for customer service, and that's reflected in the demand we're seeing for subscriptions," Chief Executive Keyvan Mohajer said in a news release.
Restaurants using SoundHound's technology for their ordering systems include Applebee's, Church's Chicken, Jersey Mike's, Krispy Kreme and White Castle.
On March 14, SOUN stock spiked to a two-year high of 10.25 after AI chip leader Nvidia announced an investment in the firm. Nvidia revealed the investment in a regulatory filing on Feb. 14. Nvidia also disclosed stakes in Arm Holdings, Nano-X Imaging and Recursion Pharmaceuticals.
Nvidia reported a $3.67 million stake in SoundHound.
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