Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at SoundHound AI (NASDAQ:SOUN) and the best and worst performers in the automation software industry.
The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.
The 6 automation software stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.8% while next quarter’s revenue guidance was 2% above.
Luckily, automation software stocks have performed well with share prices up 16.7% on average since the latest earnings results.
Best Q2: SoundHound AI (NASDAQ:SOUN)
Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ:SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.
SoundHound AI reported revenues of $61.9 million, up 45% year on year. This print exceeded analysts’ expectations by 18.1%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ billings estimates.
SoundHound AI scored the biggest analyst estimate beat and fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 24% since reporting and currently trades at $4.89.
Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it’s free.
Microsoft (NASDAQ:MSFT)
Originally named “Micro-soft” for microcomputer software when founded in 1975, Microsoft (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices, and AI solutions for consumers, businesses, and organizations worldwide.
Microsoft reported revenues of $90.01 billion, up 17.7% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 37.5% since reporting. It currently trades at $537.10.
