Why SoundHound AI Stock Skyrocketed Today
Key Points
SoundHound AI reported its second-quarter results yesterday and beat Wall Street's sales and earnings targets.
The software specialist's sales momentum was very strong in the quarter, and the company raised its full-year sales outlook.
SoundHound AI is set to record huge sales growth this year.
Shares of SoundHound AI (NASDAQ: SOUN) posted explosive gains in Friday's trading. The conversational and agentic artificial intelligence (AI) specialist's stock closed out the daily session up 26.4% and had been up as much as 32.9% earlier in trading today.
SoundHound AI released its second-quarter results after the market closed yesterday and delivered performance that crushed Wall Street's expectations. Besides sales and earnings beats last quarter, the company issued guidance that has investors feeling bullish.
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SoundHound stock rockets higher on a huge Q2 sales beat
The company reported an adjusted loss of $0.03 per share on sales of $42.7 million in the second quarter. Although it posted a loss in the period, performance came in far better than the market had anticipated.
The average Wall Street analyst estimate had called for an adjusted loss of $0.05 per share on revenue of roughly $32.9 million. Instead, it delivered a huge sales beat in the quarter, and revenue was up roughly 217% year over year.
What's next for SoundHound AI?
On the heels of its strong second-quarter results, SoundHound AI raised its full-year revenue forecast to between $160 million and $178 million. Previously, management had guided for sales between $157 million and $177 million this year.
Hitting the midpoint of management's new guidance range would mean delivering annual sales growth of roughly 99.5%. Company revenue has actually been accelerating significantly recently, and there seems to be a good chance that SoundHound AI can meet or exceed the high range of its updated sales guidance.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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