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SoundHound AI (SOUN) is jumping 14% after the company reported stronger-than-expected fourth-quarter financial results yesterday following the closing of the market. The company also increased its 2025 revenue guidance.
The Highlights of SoundHound's Q4 Results and Guidance
The company's per-share loss of 5 cents, excluding certain items, compared with analysts' average estimate of a per-share loss of 8 cents. SOUN's revenue jumped 101% versus the same period a year earlier to $34.5 million. The latter figure was $840,000 above analysts' mean estimate.
SoundHound increased its 2025 revenue guidance from a range of $155 million to $175 million to a range of $157 million to $177 million. Analysts' average estimate heading into the Q4 results was $165.27 million.
SOUN's Comments
“We had a breakthrough year, expanding our leadership position in voice and conversational AI through major customer wins, expanded partnerships, groundbreaking generative AI innovation, and strategic acquisitions, " CEO Keyvan Mohajer said in a statement. " We built an enterprise-grade platform that powers some of the world's largest organizations. This laid the foundation for us to capitalize on the fast-growing voice AI market," the CEO added on the company's Q4 earnings call yesterday.
The Recent Price Action of SOUN Stock
In the last month, SOUN has dropped 26%, while it has climbed 13% in the last three months.
While we acknowledge the potential of SOUN, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SOUN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.