SoundHound AI (SOUN) has exceeded expectations for the first quarter and provided positive sales guidance for the full year. The company, based in Santa Clara, California, reported a loss of 7 cents per share on sales of $11.6 million in the March quarter, beating analyst estimates. SoundHound predicted revenue of $65 million to $77 million for the full year, with the midpoint of $71 million surpassing expectations.
SoundHound specializes in voice-based conversational AI technology and offers systems that can interact with users in multiple languages. Their technology is utilized in various industries, including customer service call centers, restaurant ordering systems, and automobiles. Popular restaurants such as Applebee’s, Church’s Chicken, and Krispy Kreme use SoundHound’s technology for their ordering systems.
After reporting positive financial results, SOUN stock rose by 14.5% in after-hours trading. This increase followed a previous spike in March when AI chip leader Nvidia announced an investment in SoundHound. Nvidia also disclosed investments in other companies such as Arm Holdings, Nano-X Imaging, and Recursion Pharmaceuticals.
The demand for voice AI in customer service is growing according to Chief Executive Keyvan Mohajer. SoundHound’s technology is becoming essential in assisting businesses to improve their customer service experience. The company’s ability to provide innovative solutions in the AI sector has contributed to its success in the market.
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