SoundHound AI late Tuesday beat Wall Street's targets for the third quarter and guided to sales above views for the full year and next year. But SOUN stock dropped in extended trading.
The maker of conversational artificial intelligence voice technology lost 6 cents a share on sales of $25.1 million in the September quarter. Analysts polled by FactSet had expected SoundHound to lose 7 cents a share on sales of $23 million. In the year-earlier period, it lost 9 cents a share on sales of $13.3 million.
For the full year, it forecast sales of $83.5 million, based on the midpoint of its outlook. Analysts had been looking for $82.6 million. For 2025, it guided to sales of $165 million vs. the consensus estimate of $152.1 million.
SoundHound's technology is used by companies to interact with customers in call centers and restaurant drive-thrus. Its voice-response technology also can be found in cars and televisions.
"We believe that voice is the 'killer app' for applied generative AI," Chief Executive Keyvan Mohajer said in a news release. "Thanks to our best-in-class technology, mastery of complex vertical integrations, and proprietary AI software, SoundHound is ideally positioned to capitalize on this huge and growing opportunity."
SoundHound Stock Retreats After Report
In after-hours trading on the stock market today, SoundHound stock fell more than 6% to 7.05. During the regular session Tuesday, SOUN stock dropped 2.7% to close at 7.56.
On Nov. 7, SoundHound stock broke out of a cup-with-handle base at a buy point of 6.25, according to IBD MarketSurge charts. SOUN stock was responding to unconfirmed reports that Taco Bell, a unit of Yum Brands, was using SoundHound technology for its drive-thru order-taking.
Restaurant chains using SoundHound technology include Chipotle Mexican Grill, Jersey Mike's Subs and White Castle.
SoundHound stock jumped in February after AI chipmaker Nvidia revealed that it had invested in the company.
SOUN stock went public in April 2022 after its merger with a special-purpose acquisition company. It began trading at 8.72.
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