SOUN Q4 Earnings Miss Estimates, Stock Rises on Upbeat Outlook

SoundHound AI SOUN incurred a fourth-quarter 2024 loss of 69 cents per share, wider than the year-ago quarter’s loss of 6 cents. The figure missed the Zacks Consensus Estimate by 527.27%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues surged 101.5% year over year to $34.5 million, beating the Zacks Consensus Estimate by 3.14%. This growth was driven by major customer wins, expanded partnerships and advancements in generative AI. Strong adoption in quick-service restaurants, in-vehicle voice commerce and strategic acquisitions fueled this growth.SOUN stock jumped 6.3% to $9.79 in the pre-market trading on Friday, driven by its raised 2025 guidance and strong revenue growth, signaling investor confidence in its expanding AI-driven business.SoundHound AI, Inc. Price, Consensus and EPS Surprise  SoundHound AI, Inc. price-consensus-eps-surprise-chart | SoundHound AI, Inc. QuoteSOUN’s Operating DetailsIn fourth-quarter 2024, operating expenses were $291.6 million, higher than the year-ago quarter’s $29.5 million. The increase was primarily due to higher research and development, and general and administrative expenses, with acquisitions also playing a key role.In the reported quarter, general and administrative expenses were $16.4 million (47.6% of the total revenues), skyrocketing 115.1% year over year.In fourth-quarter 2024, research and development expenses were $20.4 million (59% of the total revenues), surging 60.4% year over year.In the reported quarter, sales and marketing expenses were $9.6 million (27.7% of the total revenues), soaring 114.1% year over year.The adjusted EBITDA loss widened to $16.8 million in the fourth quarter from $3.6 million in the year-ago quarter due to strategic acquisitions and growth investments across the business.In the fourth quarter of 2024, the operating loss widened to $257.1 million from $12.4 million in the year-ago quarter.SoundHound’s Q4 Business HighlightsIn the fourth quarter of 2024, SOUN unveiled the first in-vehicle voice commerce platform at CES 2025, enabling voice-controlled food ordering. The event also highlighted key partnerships with NVIDIA, Perplexity, Lucid Motors, LG and top restaurant brands, showcasing its leadership in voice AI innovation.SoundHound secured its largest deal of the fourth quarter in the energy sector, partnering with one of the largest electric utilities in the United States. This expansion strengthens its diverse customer portfolio and marks a significant entry into a new industry.SOUN recently announced a partnership with Rekor, a leader in roadway intelligence technology, to develop a first-of-its-kind audio-visual AI, enabling hands-free voice control for emergency vehicle technology.SoundHound is leading the Agentic AI revolution, leveraging its proven platform and strong market position to deliver next-generation capabilities that shape the future of AI functionality for its customers.SOUN’s Balance SheetAs of Dec. 31, 2024, cash and cash equivalents were $198.2 million compared with $135.6 million as of Sept. 30, 2024.In the fourth quarter, the company fully repaid the remaining outstanding debt from the acquisition, closing 2024 with a debt-free balance sheet.SoundHound Raises FY25 GuidanceThe company forecasts 2025 revenue between $157 million and $177 million, indicating year-over-year growth of 97%.SOUN’s Zacks Rank & Stocks to ConsiderSoundHound currently carries a Zacks Rank #3 (Hold).Okta OKTA, CrowdStrike CRWD and Marvell Technology MRVL are some better-ranked stocks in the broader sector.Okta flaunts a Zacks Rank #1 (Strong Buy) at present, and CrowdStrike and Marvell Technology (MRVL) carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Okta shares have gained 13.2% year to date. OKTA is set to report fourth-quarter fiscal 2025 results on March 03.CrowdStrike’s shares have gained 11.6% year to date. CRWD is scheduled to release fourth-quarter fiscal 2025 results on March 04.Marvell Technology’s shares have declined 20% year to date. MRVL is set to report third-quarter fiscal 2025 results on March 05.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report Okta, Inc. (OKTA): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis Report SoundHound AI, Inc. (SOUN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks