SoundHound AI reports better-than-expected earnings
The company has been fighting a running battle with short sellers.
SoundHound AI, which became a retail trading darling last year after Nvidia disclosed a stake, reported Q2 results after the close of trading Thursday that exceeded analysts’ predictions.
The voice AI software company reported:
A Q2 adjusted loss per share of $0.03 vs. Wall Street expectations for a $0.09 loss.
Q2 sales of $42.7 million vs. expectations for $32.9 million from analysts, per FactSet.
The roughly $5 billion market cap company’s shares have slumped from peaks reached at the end of last year, when the stock was up roughly 1,000%.
News that Nvidia had disposed of its SoundHound stake pummeled the shares in February, as the company decided to delay filing its annual report in light of ongoing “material weaknesses” it had discovered in its financial controls.
Short sellers began to circle. But a much better-than-expected Q1 report held them at bay, as did some bullish analyst coverage, and seemed to squeeze some of them out of the stock — albeit briefly. But there is still very high short interest in the company, with nearly 35% of the public float sold short, according to the most recent data from FactSet.
