SoundHound AI COO sells shares worth over $97,000 By Investing.com

SoundHound AI , Inc. (NASDAQ:) Chief Operating Officer Michael Zagorsek has sold a total of 24,091 shares of Class A Common Stock on June 20, 2024, for a total value exceeding $97,000. The transaction was executed at a price of $4.0399 per share, as reported in a recent SEC filing.

Michael Zagorsek, who serves as the COO of the company specializing in prepackaged software services, completed the sale to meet tax withholding obligations related to the vesting of restricted stock units. These units were granted on various dates including August 4, 2022, September 7, 2022, and August 3, 2023. Following this transaction, Zagorsek still owns a substantial number of shares, with his total holdings amounting to 765,323 shares, which includes 12,562 shares acquired through the SoundHound AI, Inc. 2022 Employee Stock Purchase Plan in May 2024.

The sale represents a significant transaction by a key executive at SoundHound AI and provides insight into the trading activities of the company’s upper management. For investors, such transactions offer a glimpse into the confidence levels of company insiders regarding the firm’s current valuation and future prospects.

SoundHound AI, Inc. is incorporated in Delaware and is known for its services in the prepackaged software industry. The company’s business address is located in Claymont, DE, and it operates under the trading symbol SOUN on the NASDAQ stock exchange.

In other recent news, SoundHound AI, known for its voice artificial intelligence technology, has prepaid its $100 million debt, thus eliminating future interest and fees of over $55 million. This strategic move has freed up approximately $14 million of previously restricted cash, leaving the company with a cash reserve of about $180 million and no outstanding debt.

In financial news, SoundHound AI reported a 73% increase in revenue in Q1, with earnings exceeding $11 million. Despite reporting an operating loss and a net loss for the quarter, the company has raised its full-year revenue guidance.

Analysts noted that SoundHound’s AI solutions have been well-received, with significant adoption of its Dynamic Interaction drive-thru service by global QSR brands and strong adoption of its Smart Ordering by partners like Applebee’s and Jersey Mike’s. The company’s partnerships with NVIDIA (NASDAQ:) and Perplexity AI aim to further enhance its voice assistant capabilities.

SoundHound’s financial health is further evidenced by a backlog of $682 million, indicating commitment from customers and long-term contracts. The company has set its sights on achieving adjusted EBITDA profitability by 2025, and has raised the lower end of their full-year revenue guidance to $65 million to $77 million. These are recent developments that highlight the company’s robust growth and strategic financial decisions.

InvestingPro Insights

As investors digest the news of SoundHound AI, Inc. (NASDAQ:SOUN) COO Michael Zagorsek’s recent stock sale, it’s important to consider the company’s financial health and market performance for a broader perspective. According to InvestingPro data, SoundHound AI holds a market capitalization of $1.32 billion USD, which is significant for a company in the prepackaged software industry. Despite a challenging market, the company has demonstrated notable sales growth, with a 51.31% increase in revenue over the last twelve months as of Q1 2024. This growth is further accentuated by an even more impressive quarterly revenue growth of 72.86% in Q1 2024.

From an investment standpoint, SoundHound AI’s stock has experienced substantial volatility, as evidenced by a 34.85% decline in the 3-month price total return, contrasted with a 93.24% increase over the last six months as of mid-2024. This volatility highlights the stock’s potential for both risk and reward, depending on market conditions and investor sentiment. Moreover, the company’s liquid assets exceed its short-term obligations, indicating a strong liquidity position that could help weather short-term market fluctuations.

InvestingPro Tips suggest that while analysts are optimistic about SoundHound AI’s sales growth in the current year, they do not expect the company to be profitable this year. The stock’s recent poor performance over the last month, with a -20.95% return, aligns with this cautious outlook. Nevertheless, with the company’s cash reserves exceeding its debt, there is a financial cushion that might support future growth initiatives or weather economic downturns.

For those interested in a deeper dive into SoundHound AI’s financials and strategic positioning, InvestingPro offers additional insights. There are currently 11 more InvestingPro Tips available for SoundHound AI at https://www.investing.com/pro/SOUN. To access these valuable insights, use the promo code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a comprehensive toolkit for informed investment decisions.

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