24/7 Market News Snapshot 08 Aug 2024 – SoundHound AI, Inc. Class A Common Stock (NASDAQ: SOUN)
DENVER, Colo., 08 August, 2024 (247marketnews.com) – (Nasdaq:SOUN) are discussed in this article.
SoundHound AI, Inc. (SOUN) exhibited a remarkable surge today, bolstering investor confidence with a notable bullish movement. The stock opened at $4.48 and experienced a significant rally, closing impressively at $5.31, marking a substantial gain. With a soaring trading volume of 59.4M and a striking 30.61% rise from the market open, SOUN demonstrated robust market momentum. This massive price increase signifies strong investor interest and potential positive underlying company dynamics, making SOUN a key stock to watch in the tech-driven AI sector. The session’s performance underscores SoundHound AI’s promising growth trajectory.
SoundHound AI has announced a milestone acquisition of Amelia, a renowned leader in enterprise conversational AI. This strategic move is set to significantly enhance SoundHound’s footprint across new enterprise verticals, including finance, insurance, and healthcare.
Keyvan Mohajer, CEO and Co-founder of SoundHound AI, expressed his enthusiasm about the acquisition, stating, “We announced a significant acquisition that will expand SoundHound’s reach across multiple new enterprise verticals. We believe the demand for voice and conversational AI is increasing and are committed to strengthening our leadership position in this growing market.” This move is expected to leverage Amelia’s established reputation and technological prowess to offer unparalleled customer service solutions to SoundHound’s extensive and diverse clientele.
In addition to this expansion, SoundHound AI has reported impressive financial results for the second quarter of 2024. The company achieved a record revenue of $13.5 million, marking a substantial 54% increase year-over-year. The successful quarter saw a GAAP gross margin of 63% and a non-GAAP gross margin of 67%. While the GAAP net loss was $37.3 million, SoundHound managed a smaller non-GAAP net loss of $14.8 million, demonstrating significant cost management improvements.
Nitesh Sharan, CFO of SoundHound AI, remarked, “We continued to realize strong growth in the second quarter while meaningfully improving our capital structure. This is allowing us to further accelerate our organic business while capitalizing on high-impact mergers and acquisitions. Today’s acquisition of Amelia is a key step towards harnessing the immense growth potential in conversational AI and helps us scale even faster.”
Additional highlights from this quarter include the completion of a $100 million debt prepayment, which is projected to save over $55 million in interest and fees. SoundHound also completed the conversion of all preferred equity into class A common stock and reported a robust cash balance of $201 million at the end of the second quarter.
With a cumulative bookings backlog of $723 million, nearly doubling year-over-year, SoundHound AI is well-positioned for continued growth and expansion. The company’s annual run rate now exceeds five billion queries, with the second quarter demonstrating an impressive 90% year-over-year increase.
As SoundHound AI integrates Amelia into its ecosystem, the company looks forward to offering an even more comprehensive suite of conversational AI solutions to global brands and expanding its leadership in the voice AI space.
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