SoundHound AI (SOUN) 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.
SoundHound AI, Inc. Price, Consensus and EPS Surprise
SoundHound AI, Inc. price-consensus-eps-surprise-chart | SoundHound AI, Inc. Quote
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).
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