SoundHound AI Inc (SOUN) stock plunged 6.49% in the pre-market trading session on Tuesday, following the company's wider-than-expected earnings loss for the fourth quarter reported last Thursday.
The AI company, which specializes in conversational intelligence and voice AI platforms, saw its shares tumble despite impressive revenue growth projections. According to the article, SoundHound's total sales are forecasted to soar 96% to $166.2 million in the current fiscal year, after nearly doubling to $85 million in the previous year.
However, the company's path to profitability remains uncertain. SoundHound posted an adjusted loss of -$1.02 per share in the fiscal year 2024, a significant decline compared to -$0.38 in 2023. While the company is expected to move closer to profitability in the next two fiscal years, with estimated losses per share of -$0.25 and -$0.19 respectively, the wider-than-expected loss in the latest quarter seems to have spooked investors, leading to the pre-market sell-off.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.