SoundHound AI (SOUN - Free Report) incurred third-quarter 2023 loss of 9 cents per share, in line with the Zacks Consensus Estimate. However, the bottom line marked an improvement of 40% year over year.
Revenues increased 18.6% year over year to $13.3 million, beating the Zacks Consensus Estimate by 7.9%.
The year-over-year growth can be attributed to portfolio strength that combines software engineering and generative AI. This has helped SoundHound attract new customers.
The cumulative bookings backlog grew to $341.7 million in the reported quarter, up 13% year over year.
Operating Details
In third-quarter 2023, operating expenses decreased 27.3% year over year to $27.8 million.
The year-over-year fall in operating expenses was primarily attributable to lower marketing & sales expenses (down 33%), research and development expenses (down 33.8%), and general and administrative expenses (down 28.2%).
Adjusted EBITDA loss of $7.3 million was narrower than the year-ago quarter’s figure of $16.9 million.
In the third quarter of 2023, operating loss was $14.5 million, narrower than a loss of $27.1 million reported in the year-ago quarter.
Balance Sheet
As of Sep 30, 2023, cash & cash equivalents were $96.1 million compared with $115.7 million as of Sep 30, 2022.
Long-term debt, as of Sep 30, 2023, was $85 million, up from $66.4 million as of Jun 30, 2023.
Guidance
For the fourth quarter of 2023, SoundHound expects revenues to be between $16 million and $20 million.
In addition, the company aims to report positive adjusted EBITDA in the current quarter.
Zacks Rank & Stocks to Consider
SoundHound AI currently carries a Zacks Rank #4 (Sell).
NVIDIA (NVDA - Free Report) , Asure Software (ASUR - Free Report) and Dell Technologies (DELL - Free Report) are some better-ranked stocks that investors can consider from the broader Zacks Computer & Technology sector, each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA’s shares have surged 221.3% year to date. NVDA is set to report its second-quarter fiscal 2024 results on Nov 21.
Asure Software shares have declined 9.6% year to date. Asure Software is set to report its third-quarter fiscal 2024 results on Nov 13.
Dell Technologies shares have returned 79.6% year to date. Dell Technologies is set to report its third-quarter fiscal 2024 results on Nov 30.
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SoundHound AI (SOUN - Free Report) incurred third-quarter 2023 loss of 9 cents per share, in line with the Zacks Consensus Estimate. However, the bottom line marked an improvement of 40% year over year.
Revenues increased 18.6% year over year to $13.3 million, beating the Zacks Consensus Estimate by 7.9%.
The year-over-year growth can be attributed to portfolio strength that combines software engineering and generative AI. This has helped SoundHound attract new customers.
The cumulative bookings backlog grew to $341.7 million in the reported quarter, up 13% year over year.
Operating Details
In third-quarter 2023, operating expenses decreased 27.3% year over year to $27.8 million.
The year-over-year fall in operating expenses was primarily attributable to lower marketing & sales expenses (down 33%), research and development expenses (down 33.8%), and general and administrative expenses (down 28.2%).
Adjusted EBITDA loss of $7.3 million was narrower than the year-ago quarter’s figure of $16.9 million.
In the third quarter of 2023, operating loss was $14.5 million, narrower than a loss of $27.1 million reported in the year-ago quarter.
Balance Sheet
As of Sep 30, 2023, cash & cash equivalents were $96.1 million compared with $115.7 million as of Sep 30, 2022.
Long-term debt, as of Sep 30, 2023, was $85 million, up from $66.4 million as of Jun 30, 2023.
Guidance
For the fourth quarter of 2023, SoundHound expects revenues to be between $16 million and $20 million.
In addition, the company aims to report positive adjusted EBITDA in the current quarter.
Zacks Rank & Stocks to Consider
SoundHound AI currently carries a Zacks Rank #4 (Sell).
NVIDIA (NVDA - Free Report) , Asure Software (ASUR - Free Report) and Dell Technologies (DELL - Free Report) are some better-ranked stocks that investors can consider from the broader Zacks Computer & Technology sector, each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA’s shares have surged 221.3% year to date. NVDA is set to report its second-quarter fiscal 2024 results on Nov 21.
Asure Software shares have declined 9.6% year to date. Asure Software is set to report its third-quarter fiscal 2024 results on Nov 13.
Dell Technologies shares have returned 79.6% year to date. Dell Technologies is set to report its third-quarter fiscal 2024 results on Nov 30.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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