SANTA CLARA, Calif. - SoundHound AI , Inc. (NASDAQ:SOUN) reported better-than-expected second-quarter results and full-year revenue outlook, sending shares up 1.3% in Friday's premarket trade.
The voice AI technology company posted Q2 revenue of $13.5 million, up 54% YoY and ahead of analyst estimates of $13.09 million. Non-GAAP loss per share came in at $0.04, narrower than the $0.09 loss analysts expected.
SoundHound significantly boosted its 2024 revenue guidance, now expecting to exceed $80 million compared to the previous consensus estimate of $70.29 million. The company also provided an initial 2025 revenue outlook of over $150 million.
"This has been a milestone quarter, with strong customer momentum across all of our key industries - including several new global brands," said CEO Keyvan Mohajer. "We believe the demand for voice and conversational AI is increasing and are committed to strengthening our leadership position in this growing market."
The company highlighted several business wins in the quarter, including signing one of the world's largest pizza chains and expanding relationships with major automakers like Stellantis (NYSE:STLA). SoundHound also announced the acquisition of enterprise AI company Amelia to accelerate growth in new verticals.
Following the report, analysts at Cantor Fitzgerald upgraded the stock to Overweight, highlighting the Amelia deal as a potential "transformative acquisition."
"Amelia will add financial services and healthcare customer exposure to SOUN, and while they would have entered these markets, it likely would have taken them several years to do so," analysts wrote.
Alongside the upgrade, they also upped their target price on the stock from $5 to $7.
SoundHound ended Q2 with $201 million in cash after prepaying $100 million in debt during the quarter. The company's cumulative subscriptions and bookings backlog metric roughly doubled YoY to $723 million.
While posting strong top-line growth, SoundHound's GAAP net loss widened to $37.3 million from $23.3 million a year ago. Non-GAAP adjusted EBITDA loss was $13.8 million.
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