SoundHound AI (NASDAQ:SOUN) shares jumped Friday on the back of its latest quarterly results, which saw it top earnings estimates.
The company's loss per share for the first quarter was ($0.07), $0.02 better than the analyst estimate of ($0.09). Revenue for the quarter came in at $11.6 million versus the consensus estimate of $11.86 million.
Revenue grew 73% year-on-year (YoY), while the company's Cumulative subscriptions and bookings backlog customer metric was $682 million, rising approximately 80% year over year.
"Our first quarter sets the tone for 2024 as another year of strong growth for SoundHound. Voice AI is fast becoming a must-have tool for customer service, and that's reflected in the demand we're seeing for subscriptions," said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI
Looking ahead, the company sees FY2024 revenue between $65 million and $77 million, versus the consensus of $69.494 million.
SoundHound AI shares are currently up 14% on Friday, trading well over the $5 per share mark.
Reacting to the report, analysts at Ladenburg Thalmann said the results highlight the company's growing utility and strong demand. They reiterated a Buy rating and $7 price target on the stock.
"Momentum continues to build in both business segments as the company looks to carve out a leading position in voice across multiple fronts," said the firm.
"The growing momentum in the Pillar II SaaS software for restaurants represents one very large use case whereby SOUN's voice technology is able to harness the power of Large Language Models for specific business use cases to drive positive outcomes."