SoundHound Speechless After Earnings Miss

Disappointing First-Quarter Results

SoundHound AI reported weaker-than-expected financials for the first quarter of 2024, undershooting Wall Street forecasts and immediately sending its stock into a downward spiral. While revenue came in at $11.6 million—a 73% boost year-over-year—it still fell short of the $12.6 million consensus estimate. The company’s net loss of 7 cents per share, though narrower than the previous year’s loss, also missed investor expectations. The earnings miss reflects investor anxiety around the company’s ability to convert broad excitement over voice-based AI into a viable, scalable business.

Modest Outlook, Big Questions

Adding to the market jitters, SoundHound offered a relatively conservative forecast for the full year, projecting revenue between $63 million and $77 million. That range hints at slowing momentum compared to earlier guidance and stands in contrast to the explosive hype surrounding conversational AI. With competition heating up in the voice assistance space—from giants like Google and Amazon, as well as newer startups—SoundHound’s cautious tone sparked renewed concerns over whether it can maintain its early-mover edge or become another AI hopeful struggling to meet lofty expectations.