Voice AI recognition company SoundHound (NASDAQ:SOUN) will be announcing earnings results tomorrow after market hours. Here’s what to look for.
SoundHound AI beat analysts’ revenue expectations by 7.5% last quarter, reporting revenues of $25.09 million, up 89.1% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates.
Is SoundHound AI a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting SoundHound AI’s revenue to grow 96.9% year on year to $33.76 million, improving from the 80.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SoundHound AI has missed Wall Street’s revenue estimates twice over the last two years.
Looking at SoundHound AI’s peers in the automation software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Microsoft delivered year-on-year revenue growth of 12.3%, beating analysts’ expectations by 1.1%, and Pegasystems reported revenues up 3.5%, topping estimates by 4.4%. Microsoft traded down 6.1% following the results while Pegasystems was also down 19.6%.
Read our full analysis of Microsoft’s results here and Pegasystems’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the automation software stocks have shown solid performance, the group has generally underperformed, with share prices down 8% on average over the last month. SoundHound AI is down 35.2% during the same time and is heading into earnings with an average analyst price target of $13.79 (compared to the current share price of $9.23).
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