12:22 PM EST, 11/13/2024 (MT Newswires) -- SoundHound AI ( SOUN ) delivered Q3 earnings and revenue that surpassed expectations, driven by growing demand for its voice artificial intelligence technology across multiple industries, as the company looks to add more products and broaden its target market, Wedbush Securities said in a note Wednesday.

In the pipeline is Polaris, a new large language model that learns faster by digesting data quickly. The company is also expected to demonstrate at the CES 2025 voice generative AI without cloud connectivity in partnership with Nvidia (NVDA), Wedbush said.

SoundHound updated its revenue guidance for 2024 and 2025 as the company is "well-positioned to capitalize on growing demand for its voice-enabled ecosystem to accelerate growth and margins," according to the note.

"The company continues to build toward profitable growth with strong monetization capabilities across industries and geographies to capture demand while seeking ways to optimize efficiencies to expand the bottom-line over the coming years," Wedbush analysts, including Daniel Ives, said in the note.

Wedbush raised its price target on SoundHound stock to $10 from $9, while reiterating an outperform rating.

SoundHound shares fell more than 19% in recent trading.

Price: 6.10, Change: -1.47, Percent Change: -19.38