SoundHound AI Revenue Grows Over 80% But Stock Pulls Back on Lack of Game-Changing Announcements
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SoundHound AI's Q4 revenue grew 80.5% year-over-year to $17.15 million, but fell slightly short of expectations. Loss per share was $0.07, better than expected.
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Stock had risen sharply recently on AI excitement, so pullback wasn't surprising despite strong growth. Valuation was very high.
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Investors hoped for game-changing announcements of new tech or deals at Mobile World Congress, but announcements were more modest.
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SoundHound has strong long-term predictions for AI customer service and voice interfaces, backed by $661 million backlog. But revenue conversion has been slow.
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Despite pullback, stock still trades at 22x expected revenue, so remains speculative. AI tailwinds help but high valuation means stock still high-risk.