SoundHound AI Reports Surprise Loss, Fueling Stock Market Rally: Investor Nvidia-Backed Company Projects Mid-Year Revenue of $71 Million.

In the first quarter, SoundHound AI (SOUN) reported a loss of 7 cents per share on sales of $11.6 million, exceeding analyst expectations and leading to a surge in its stock during extended trading. The company, which is based in Santa Clara, California and backed by investor Nvidia, had projected a loss of 9 cents per share on sales of $10.1 million. In the same period last year, SoundHound reported a loss of 8 cents per share on $6.7 million in sales.

For the full year, SoundHound is projecting revenue between $65 million to $77 million, with a midpoint of $71 million, surpassing the consensus estimate of $69 million. The company specializes in voice-based conversational AI technology that is used in various platforms such as customer service call centers, restaurant ordering systems, and automobiles. SoundHound’s AI system can communicate with users in multiple languages, demonstrating its versatility and broad application.

Following the positive report, SOUN stock surged 14.5% to $5.44 in after-hours trading after a 1.3% decline during the regular trading session closing at $4.75. SoundHound’s technology is utilized by various restaurants for their ordering systems including popular chains like Applebee’s, Church’s Chicken, Jersey Mike’s Krispy Kreme and White Castle. The growing demand for voice AI in customer service is driving subscriptions and revenue growth for SoundHound according to Chief Executive Keyvan Mohajer.

On March 14th, SOUN stock reached a two-year high of $10