SoundHound AI Inc (NASDAQ:SOUN) reported third-quarter financial results after the market close on Tuesday. Here's a look at the key metrics from the quarter.
Q3 Earnings: SoundHound reported third-quarter revenue of $25.1 million, beating the consensus estimate of $23.02 million. The company reported an adjusted loss of six cents per share, beating analyst estimates for a loss of seven cents per share, according to Benzinga Pro.
Total revenue was up 89% on a year-over-year basis. SoundHound said it significantly improved customer concentration in the quarter with only 12% of revenue attributed to its largest customer, down from 72% in the prior year. The company reported an adjusted EBITDA loss of $15.9 million.
SoundHound ended the quarter with total cash and cash equivalents of $136 million.
"This is SoundHound's largest quarter on record as the company takes its first steps into important new verticals. Our increased scale, combined with incredible market enthusiasm for conversational AI, is allowing us to execute on the company's vision," said Keyvan Mohajer, co-founder and CEO of SoundHound AI.
Outlook: SoundHound raised its full-year revenue outlook for 2024 and 2025. The company expects full-year 2024 revenue to be in the range of $82 million to $85 million. SoundHound sees full-year 2025 revenue in the range of $155 million to $175 million.
"We believe that voice is the 'killer app' for applied generative AI. 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," Mohajer said.
SoundHound executives will hold a conference call with analysts and investors to further discuss the quarter at 5 p.m. ET.
SOUN Price Action: SoundHound AI shares were down 2.51% in after-hours, trading at $7.37 at the time of publication Tuesday, according to Benzinga Pro.
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