Soundhound AI's Q2 revenue increased by 54%, but losses expanded by 30%, with a more than 10% rise in after-hours trading followed by a decline｜Financial Report Insights
Soundhound's second-quarter revenue growth slowed to 54%, still stronger than expected, while EBITDA losses expanded by 30%, far exceeding expectations and ten times that of the first quarter. After the financial report, Soundhound initially rose more than 10% in after-hours trading, then fell by nearly 8%. Updates ongoing
Specializing in AI in the field of speech AI and language recognition, SoundHound AI, Inc. (SoundHound), had a mixed performance in the second quarter, with revenue growth slowing down but stronger than expected. The company raised its full-year revenue guidance for this year, but the severity of the second-quarter loss expansion exceeded market expectations.
After the U.S. stock market closed on Thursday, August 8th, SoundHound announced its financial data for the second quarter of this year, as well as performance guidance for the full year and next year.
1) Key Financial Data
Revenue: In the second quarter, revenue was $13.5 million, a 54% year-on-year increase, analysts expected $13.1 million, and a 73% year-on-year increase in the first quarter.
EBITDA: In the second quarter, adjusted EBITDA under the non-GAAP method was a loss of $13.8 million, a 30% year-on-year expansion, analysts expected a loss of $11.9 million, and a 3% expansion in EBITDA loss in the first quarter.
Gross Profit: Adjusted gross profit in the second quarter was $8.95 million, a 28% year-on-year increase, and a 57% year-on-year increase in the first quarter.
Gross Margin: The gross profit margin in the second quarter was 66.5%, a 13.5 percentage point decrease year-on-year, analysts expected 63.9%, and a 6.8 percentage point decrease in gross margin year-on-year to 65.5% in the first quarter.
After the financial report was released, SoundHound's stock price surged by nearly 21.2% on Thursday, with further gains in after-hours trading, rising by over 10% at one point before turning lower, with a drop of nearly 8% in after-hours trading