SoundHound AI Shares Rise 15% on Well-Received Q4 Earnings and Forward Guidance

SoundHound AI (SOUN) shares surged 15% in after-hours trading on Thursday, following the company's well-received fourth-quarter earnings report and positive forward guidance. The global leader in voice artificial intelligence (AI) reported adjusted earnings of $0.05 per share, beating analyst estimates for a loss of $0.10 per share, and revenue of $34.54 million, surpassing the consensus estimate of $33.69 million. The company also raised its full-year 2025 revenue outlook to a range of $157 million to $177 million, up from a prior range of $155 million to $175 million.

SoundHound AI's strong performance was driven by a 101% year-over-year increase in fourth-quarter revenue, which reached $34.5 million, and a 85% increase in full-year revenue to $84.7 million. The company's non-GAAP gross margin was 52.1% in the fourth quarter and 58.5% for the full year. Despite reporting an adjusted EBITDA loss of $16.8 million in the fourth quarter and $61.9 million for the full year, SoundHound AI's cash and cash equivalents balance stood at nearly $200 million at the end of the year.



Keyvan Mohajer, CEO and co-founder of soundhound ai, attributed the company's success to its breakthrough year, marked by major customer wins, expanded partnerships, groundbreaking generative AI innovation, and strategic acquisitions. He also highlighted the company's strong market position and proven platform, which enable it to capitalize on the emerging Agentic AI category.

Nitesh Sharan, CFO of SoundHound AI, emphasized the company's accelerating momentum and its deep foundation, with a rapidly growing and diversified customer base and a highly capable team executing with tenacity to capture the tremendous opportunities in front of us.



SoundHound AI's customer momentum is evident in its expanding presence across various industries, including restaurants, healthcare, automotive, retail, energy, government, telecom, financial services, insurance, and travel and hospitality. The company works with over 30% of the top 20 quick-service restaurant brands, has expanded its healthcare partnerships, and is expanding adoption across leading EV manufacturers. In the retail sector, SoundHound AI is expanding AI solutions for multi-location retail brands, and in the energy sector, the company is expanding into new industries, adding one of the largest electric utilities in the United States to its portfolio.

SoundHound AI's strategic pivot towards Agentic AI positions the company at the forefront of the evolving AI landscape, enabling it to deliver next-generation agentic capabilities to its customers. The company's strong market position, proven platform, and diverse customer base make it well-positioned to capitalize on this emerging category and drive long-term growth and success.

In conclusion, SoundHound AI's well-received fourth-quarter earnings report and positive forward guidance have driven a 15% increase in the company's share price. The company's strong revenue growth, expanding customer base, and strategic pivot towards Agentic AI position it well for continued success in the evolving AI landscape. Investors should monitor the company's progress towards meeting or exceeding its forward guidance and capitalize on any opportunities that arise from its strategic initiatives.