SoundHound AI stock jumps after raising 2024 revenue outlook

Shares of SoundHound AI (SOUN) are jumping Friday morning in pre-market trading as the company boosted its full-year revenue outlook for 2024. The artificial intelligence voice and speech recognition developer posted first-quarter revenue $11.6 million, a growth of 73% while closing the quarter with $226 Million in cash.

Morning Brief Anchors Brad Smith and Seana Smith break down the latest development for SoundHound AI and analyst commentary around the AI stock.

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This post was written by Nicholas Jacobino

Video transcript

Soundhound shares, they are surging after boosting their full year revenue outlook.

The company's CEO saying Voice A I is quickly becoming a must have tool for customer service shares of soundhound.

They're up over 100 20% so far this year, and here this morning you're seeing them moving higher on the back of this news as we were continuing to track this going into the start of today's trading there, saying that this first quarter sets the tone for another year of strong growth for soundhound here and then, additionally, one of the other things that they note 73% Q 1 revenue growth the first quarter closing with about $226 million in cash gonna be an interesting kind of calculus of how they start to deploy some of that cash over time as well.

Yeah, right.

You're exactly right.

And And when you take a look at the analyst reaction initially to this report, you can see some of the enthusiasm playing out in these quick comments from Web Bush.

They're saying that this report is a major step in the right direction for the company, as they do continue to build towards profitable growth with stable revenue pillars.

Again, this is according to Wedbush.

They have an outperform rating on the stock, a price target of nine bucks a share.

And Ken Fitzgerald was also very upbeat following the heel or following these results, saying that some of the partnerships that were announced when it comes to the car space when it comes to the restaurant space that is going to be beneficial here to future growth.

So we certainly have talked a lot about this name here over the last several months, been trading questions about how much certainly has been trading in tandem here with some of the fundamentals of the business.

But at least from these results here and from the quick commentary that we're getting here from analysts, there does seem to be at least a real reason to be optimistic about this name.

In the longer term, I I'm I'm just smirking and laughing here a little bit because, uh, I mean, this has gotta be one of the first earnings reports where I've seen church's chicken shouted out, uh, you know, you talked about the the restaurant business and you you put the very the very, uh, classy term on it, but, uh, yeah, churches, chicken getting a shout out in the sound hound.

A IS report here.

One of the big deals.

Yeah, Quick service restaurants.

It sounds like that's gonna be one of the areas that soundhound can really play into, as of right now.

So good for you.

Churches, chicken and Martine shares a rally as a result of these, uh, better than expected results.

So, again, a name to keep on your radar here, this trading site.