Shares of SoundHound AI (SOUN 17.34%) soared on Monday, finishing the day up 17.3%. The spike came as the S&P 500 and Nasdaq Composite both lost 0.3%.
The voice-focused artificial intelligence (AI) company's stock is continuing to climb after releasing better-than-expected earnings on Thursday and announcing major new capabilities and partnerships on Friday.
SoundHound delivers "strongest ever quarter"
SoundHounds' second quarter was a major success for the company and its "strongest ever quarter," according to CEO Keyvan Mohajer. The company delivered an adjusted loss per share of $0.03, better than Wall Street's expected loss of $0.05 per share. Sales jumped 217% year over year, hitting $43 million and handily beating the expected $33 million.
CFO Nitesh Sharan said that the company was "moving with speed to capture the explosion we're seeing in the voice and conversational AI industry." The success looks like it will continue in the near term with the company lifting its full-year guidance of between $157 million and $177 million to $160 million to $178 million.
Image source: Getty Images.
Vision AI adds real‑time visual understanding to SoundHound's platform
The company followed up the positive earnings with the launch of its" Vision AI," an "advanced visual understanding engine." CEO Keyvan Mohajer said that the product's integration in their platform "[is] extending our leadership in voice and conversational AI to redefine how humans interact with products and services offered and used by businesses." Investors appeared to agree.
There is no doubt that SoundHound has significant momentum, and its Vision AI product will help it continue its technical leadership. However, its current valuation is too high for my taste. The company's stock trades at nearly 50 times sales.
