Shares of SoundHound AI (SOUN) experienced a significant jump in pre-market trading on Friday morning after the company raised its revenue outlook for 2024. The artificial intelligence voice and speech recognition developer reported a first-quarter revenue of $11.6 million, marking a 73% growth from the previous period. SoundHound AI closed the quarter with a substantial cash reserve of $226 million, setting a positive tone for the rest of the year.
CEO Voice AI emphasized the increasing importance of voice AI as a crucial tool for customer service. SoundHound shares have surged by over 120% since the beginning of the year, reflecting the market’s confidence in the company’s growth prospects. Analysts, including Web Bush and Ken Fitzgerald, have expressed optimism about SoundHound’s future based on the impressive first-quarter results.
Web Bush commented that the report signifies a significant step in the right direction for SoundHound, with a focus on building towards profitable growth supported by stable revenue streams. The firm has an ‘outperform’ rating on the stock with a price target of $9 per share. Fitzgerald highlighted the potential benefits of the partnerships SoundHound has secured in the car and restaurant sectors, indicating a positive outlook for future growth.
The company’s expansion into new business areas, such as the restaurant industry, underscores its strategic diversification and growth strategy. The latest earnings report has instilled a sense of optimism among analysts and investors alike, with SoundHound positioned for continued success in the long run. The strong performance in the first quarter and positive analyst sentiment suggest a promising outlook for SoundHound AI moving forward.
