SoundHound AI Stock Tumbles as Margins Drop

Group 1 - Shares of SoundHound AI dropped 16% following a significant decline in gross margins despite record revenue and a smaller-than-expected loss [1][2] - The company's GAAP gross margin fell by 24.3 percentage points to 48.6%, while non-GAAP gross margin decreased by 14.0 percentage points to 59.7% [2] - SoundHound AI reported a revenue increase of 89% year-over-year, reaching a record $25.1 million, surpassing analyst forecasts [2] Group 2 - The CEO of SoundHound AI emphasized that voice technology is the "killer app" for generative AI, positioning the company to leverage its advanced technology and proprietary software [3] - The company revised its full-year revenue outlook for 2024 to a range of $82 million to $85 million, up from the previous estimate of over $80 million, and projected 2025 revenue between $155 million and $175 million [3] - Despite the recent stock decline, shares of SoundHound AI have tripled in value so far in 2024 [3]