SoundHound AI Inc (SOUN) witnessed a 5.02% surge in its stock price during the pre-market trading session on Thursday. The upward movement coincides with the voice AI recognition company's upcoming Q4 earnings report, scheduled for release after the market closes later today.
Investors appear optimistic about SoundHound AI's performance, bolstered by the growing prominence of generative AI and automation software. Analysts expect the company to report revenue growth of 96.9% year-over-year to $33.76 million, accelerating from the 80.5% increase recorded in the same quarter last year. However, an adjusted loss of $0.08 per share is also anticipated.
While SoundHound AI has missed Wall Street's revenue estimates twice in the past two years, its peers in the automation software segment have recently reported solid results, potentially fueling positive sentiment. Microsoft and Pegasystems both exceeded analysts' revenue expectations in their latest quarters, although their stock prices reacted differently to the news.
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