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What's in Store for SoundHound AI's (SOUN) Q2 Earnings?

Zacks Equity Research
·3-min read

SoundHound AI SOUN is slated to release second-quarter 2023 results on Aug 8.

The Zacks Consensus Estimate for second-quarter 2023 revenues is pegged at $7.89 million, suggesting a 28.29% growth from the figure reported in the year-ago quarter.

The consensus mark for loss has remained unchanged at 12 cents per share in the past 30 days, suggesting a 36.84% growth from the figure reported in the year-ago quarter.

SoundHound’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and matched the mark once. SOUN has a trailing four-quarter earnings surprise of 21.19%, on average.

SoundHound AI, Inc. Price and EPS Surprise

 

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SoundHound AI, Inc. price-eps-surprise | SoundHound AI, Inc. Quote

 

Let’s see how things have shaped up for the upcoming announcement.

Factors to Consider

SoundHound is expected to have experienced strong demand and adoption of its conversational AI platform, powered by the recent popularization of Generative AI and large language models.

Its performance in the second quarter is likely to have benefited from the launch of SoundHound Chat AI, which combines the power of conversational AI and machine learning generative AI to deliver a virtual assistant experience.

SoundHound experiences a solid demand for its independent AI-powered products, reflected by its strong customer engagement and sound execution. The company invests in R&D to develop and scale its cloud offerings and innovation in AI and machine learning to meet evolving demand.

SoundHound has been leveraging Generative AI capabilities to improve its voice-based ecosystem. Its solutions, like Dynamic Interaction and Smart Answering, combine with Generative AI to provide real-time audiovisual feedback and respond to more open-ended questions with personalized answers. This is expected to have increased its adoption among product creators, driving the top line.

The company may have gained from a growing partner base in the second quarter. It has expanded its partnership with enterprises like Oracle, Qualcomm and LG and a series of companies in the automotive space to deliver SoundHound’s voice AI on devices and services on a global scale.

SoundHound has also partnered with a series of companies from the restaurant business to expand its AI customer service solutions like Smart Ordering and Smart Answering. These partnerships are likely to improve adoption, user experience and revenue per device in the to-be-reported quarter.

What Our Model Says

The Zacks model predicts that the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

SoundHound has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

PubMatic PUBM has an Earnings ESP of +9.09% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

PUBM’s shares have gained 51.6% year-to-date. PubMatic is set to post second-quarter 2023 results on Aug 8.

Twilio TWLO has an Earnings ESP of +6.9% and a Zacks Rank of 2 at present.

Twilio’s shares have gained 26.3% year to date. TWLO is set to report its second-quarter 2023 results on Aug 8.

Chegg CHGG has an Earnings ESP of +20.89% and a Zacks Rank #2.

Chegg’s shares have declined 58.7% year to date. CHGG is set to report second-quarter 2023 results on Aug 7.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Chegg, Inc. (CHGG) : Free Stock Analysis Report

Twilio Inc. (TWLO) : Free Stock Analysis Report

PubMatic, Inc. (PUBM) : Free Stock Analysis Report

SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report

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Zacks Investment Research