SoundHound sees losses outstrip revenue, though AI company beats on the top line

By Emily Bary

SoundHound, which makes voice-AI technology, saw its stock pop in the regular session after the company made an acquisition announcement

SoundHound AI Inc. saw GAAP losses swell in the latest quarter and continue to dwarf revenue, but top-line growth came in better than expected.

The company, which makes software for conversational artificial intelligence, on Thursday posted a net loss of $37.3 million in the second quarter, equating to 11 cents a share. The net loss was greater than the $23.3 million figure seen in the year-earlier period, though SoundHound (SOUN) posted an 11 cent loss per share in that quarter as well.

On an adjusted basis, SoundHound lost 4 cents a share, compared with 7 cents a share a year before.

Revenue for the latest quarter was $13.46 million, up 54% from a year before and ahead of the $13.1 million FactSet consensus view.

"This has been a milestone quarter, with strong customer momentum across all of our key industries - including several new global brands," Chief Executive Keyvan Mohajer said in a release.

Earlier in the day, SoundHound announced the acquisition of Amelia, an enterprise-AI software company, for $80 million. "The business combination positions SoundHound AI as the foremost provider of voice and conversational generative AI, with reach across multiple industries," SoundHound said in its earlier release.

See also: How Lumen transformed from a 99-cent stock into the latest AI craze

The company now expects upward of $80 million in overall revenue this year, when factoring in the acquisition, along with upward of $150 million in revenue for 2025.

In the release announcing the acquisition and the $150 million combined revenue target for next year, SoundHound said that the forecast implies "Amelia contributing over $45 million in recurring AI software revenue, plus other non-software revenues such as professional services and agent-related fees."

SoundHound's stock rose 21% in Thursday's regular session but fell 5% in the extended session.

-Emily Bary

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08-08-24 2017ET

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