Yahoo Finance Sounhound AI (SOUN) to Post Q1 Earnings: What's in the Offing?
SoundHound AI SOUN is slated to release first-quarter 2024 results on May 9.
The Zacks Consensus Estimate for first-quarter 2024 is pegged at $10.12 million, indicating year-over-year growth of 50.86%.
The consensus mark for earnings is pegged at a loss of 9 cents per share, unchanged in the past 30 days, suggesting a 25% improvement from the figure reported in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, in line in two and missed the same on one occasion, with a negative surprise of 0.83%, on average.
SoundHound AI, Inc. Price and EPS Surprise
SoundHound AI, Inc. price-eps-surprise | SoundHound AI, Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
SoundHound is likely to have benefited from the growing demand for its conversational AI platform, owing to the increasing popularity of generative AI and large language models.
The demand for AI-driven customer service solutions, particularly in the restaurant and auto sectors, is expected to have remained a key factor in driving SOUN’s performance in the to-be-reported quarter.
SoundHound's offerings, such as Smart Ordering, Employee Assist, and Smart Answering, cater to this demand and are expected to have contributed to revenue growth in the first quarter.
SoundHound's Pillar 1 strategy, emphasizing partnerships and growth in sectors such as automotive on the back of collaboration with NVIDIA NVDA, is expected to have been a significant contributor to revenue growth in the quarter under review.
In March, SoundHound AI introduced an in-vehicle voice assistant powered by a large language model on the NVIDIA Drive platform, offering real-time and generative AI capabilities for seamless responses without cloud connectivity, transforming driver experiences. This partnership is expected to have boosted SOUN’s clientele.
Clients like Olo OLO and Oracle ORCL leverage SOUN’s voice AI solutions to enhance their offerings in the restaurant landscape. This is likely to have strengthened SOUN’s position in the conversational AI space during the to-be-reported quarter.
In the fourth quarter of 2023, SOUN announced the integration of its Smart Ordering voice AI technology with Oracle MICROS Symphony point-of-sale (POS) for restaurants. This integration is likely to have enhanced order efficiency and customer experience in the hospitality industry during the quarter under review.
SoundHound AI also partnered with Olo in the fourth quarter to bring its voice AI technology to approximately 77,000 restaurant locations, enabling high-speed, accurate order processing and enhancing the guest experience, which is likely to have acted as growth driver during the quarter under review.
However, increasing competition in the AI market, particularly in the customer service and voice assistant space, is expected to have hurt SOUN’s performance in the to-be-reported quarter.
SoundHound AI currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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