SoundHound AI (NASDAQ:SOUN) is gearing up for the unveiling of its third-quarter 2023 financial results, scheduled for November 9.
Market analysts’ consensus estimate for SoundHound’s third-quarter 2023 revenues stands at $12.29 million, indicating a noteworthy 9.86% growth compared to the figures reported in the corresponding period last year.
The consensus projection for earnings per share remains steady at 9 cents, unchanged over the past 30 days. This suggests a substantial 40% increase from the earnings reported in the third quarter of the previous year.
SoundHound AI has showcased its earnings prowess, surpassing the Zacks Consensus Estimate in three of the last four quarters, with one instance of a matching result. On average, SoundHound has displayed a trailing four-quarter earnings surprise of 10.05%.
Key Considerations
SoundHound is poised to benefit from robust demand and increased adoption of its conversational AI platform. This surge in interest can be attributed to the recent surge in popularity of Generative AI and large language models.
The company’s performance in the third quarter is anticipated to have been bolstered by the launch of SoundHound Chat AI. This innovative offering combines conversational AI with machine learning generative AI to create a virtual assistant experience.
SoundHound’s independent AI-powered products continue to attract a strong customer base, evident in robust customer engagement and effective execution.
Furthermore, SoundHound’s dedication to operational efficiency is expected to drive growth in the upcoming quarter, in addition to its solid positioning in the automotive sector.
SoundHound has harnessed the capabilities of Generative AI to enhance its voice-based ecosystem. Solutions such as Dynamic Interaction and Smart Answering, in tandem with Generative AI, provide real-time audiovisual feedback and personalized responses to open-ended questions, contributing to an increase in adoption among product creators.
The company has expanded its partner network in the third quarter, securing partnerships with prominent enterprises such as Oracle, Qualcomm, LG, and various automotive companies. These collaborations are designed to facilitate the global deployment of SoundHound’s voice AI on a wide range of devices and services.
SoundHound’s partnership initiatives also extend to the restaurant industry, where the company is working with multiple businesses to enhance its AI customer service solutions, including Smart Ordering and Smart Answering. These strategic partnerships are expected to boost adoption rates, improve user experiences, and increase revenue per device in the forthcoming quarter.
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