SoundHound AI Inc (SOUN) stock surged 5.18% in pre-market trading on Monday, following the company's impressive fourth quarter 2024 earnings report released after market close on Friday. The artificial intelligence company's strong financial performance and raised guidance for 2025 seem to have fueled investor optimism.
SoundHound AI reported a narrower-than-expected loss per share of 5 cents for Q4, compared to analysts' expectations of an 8-cent loss. Furthermore, the company's revenue soared 101% year-over-year to $34.5 million, exceeding estimates by $840,000. Encouraged by these strong results, SoundHound AI raised its 2025 revenue guidance range to $157 million - $177 million, up from the previous $155 million - $175 million range.
The company's CEO, Keyvan Mohajer, attributed the growth momentum to major customer wins, expanded partnerships, groundbreaking generative AI innovation, and strategic acquisitions. Analysts are optimistic about SoundHound AI's prospects in the rapidly evolving conversational AI market, as the company aims to achieve adjusted EBITDA profitability by the end of 2025.
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