SoundHound AI (SOUN) Surges 26.4% on Strong Earnings, Higher Growth Outlook

We recently published 10 Stocks with Eye-Popping Gains; 5 Jump to New Highs. SoundHound AI, Inc. (NASDAQ:SOUN) is one of the best-performing stocks on Friday.

SoundHound AI snapped a two-day losing streak on Friday, soaring 26.4 percent to close at $13.55 apiece as investor sentiment was boosted by its strong earnings performance and higher growth outlook for the year.

In an updated report, SoundHound AI, Inc. (NASDAQ:SOUN) said it narrowed its non-GAAP net loss by 20 percent to $11.86 million from $14.89 million in the same period last year, but widened its GAAP net loss by 100 percent to $78 million from $37 million year-on-year.

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Revenues, on the other hand, soared by 217 percent to $42.68 million from only $13.46 million in the same period last year.

Encouraged by the strong figures, SoundHound AI, Inc. (NASDAQ:SOUN) raised its full-year revenue growth outlook to a range of $160 million to $178 million, from the previous forecast of $156 million to $177 million.

Following the results, Northland Securities raised its price target for the company to $14.5 from $8 previously, while upgrading its rating to “outperform” from “market perform” on expectations that SoundHound AI, Inc. (NASDAQ:SOUN) will achieve a 36-percent growth in the second half of the year and 52 percent in the fourth quarter alone.