On August 7, SoundHound AI Inc rose 8.55% in regular trading, trading at $7.685/share, with turnover of $125 million. The stock extended its rally driven by dual catalysts: a strong Q2 earnings beat and proxy advisory firm Glass Lewis recommending that LivePerson shareholders vote in favor of SoundHound AI's acquisition proposal.
On the earnings front, SoundHound AI reported Q2 revenue of $61.9 million, up 45% year-over-year, significantly exceeding the consensus estimate of $52.39 million. Adjusted EPS came in at a loss of $0.02, well ahead of the expected loss of $0.06. The company also raised the lower end of its full-year guidance, holding $203 million in cash with zero debt as of quarter-end. Interim CFO James Hom attributed revenue growth to the OASYS platform.
On the M&A front, Glass Lewis has recommended LivePerson shareholders approve the $43 million acquisition by SoundHound AI. The deal has received all regulatory approvals, and a special shareholder meeting is set for August 20. Wedbush estimates the combined entity could generate $350-$400 million in revenue by 2027, with LivePerson's existing customers contributing at least $100 million.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
Comments