Voice AI recognition company SoundHound (NASDAQ: SOUN) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.
SoundHound AI beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $34.54 million, up 101% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ billings estimates.
Is SoundHound AI a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting SoundHound AI’s revenue to grow 163% year on year to $30.46 million, improving from the 72.9% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.06 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SoundHound AI has missed Wall Street’s revenue estimates twice over the last two years.
Looking at SoundHound AI’s peers in the automation software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Pegasystems delivered year-on-year revenue growth of 44.1%, beating analysts’ expectations by 33.1%, and Microsoft reported revenues up 13.3%, topping estimates by 2.3%. Pegasystems traded up 28.8% following the results while Microsoft was also up 8.4%.
Read our full analysis of Pegasystems’s results here and Microsoft’s results here.
There has been positive sentiment among investors in the automation software segment, with share prices up 17% on average over the last month. SoundHound AI is up 28.7% during the same time and is heading into earnings with an average analyst price target of $13.93 (compared to the current share price of $9.24).
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