Business is booming for SoundHound AI (SOUN).
“Every business unit delivered success,” SoundHound AI CEO Keyvan Mohajer said on Yahoo Finance’s Market Catalysts.
The voice AI company is expanding across industries from restaurants to enterprises. Its stock rocketed nearly 30% following an impressive earnings report that boasted a 217% year over year jump in revenue. The company reported a loss of $0.19 per share on $43 million of revenue.
Mohajer attributed the company’s “blowout quarter” to growth that’s fueled by new deals and cross-selling across sectors. It raised its guidance for fiscal 2025, forecasting revenue between $160 million and $178 million.
The 20-year-old company has also made significant strides in the voice commerce space, particularly with agentic AI. Agentic AI refers to systems that can handle complex tasks and make decisions independently, much like a human, and it’s a key technology SoundHound says sets it apart.
“Imagine you’re driving home from work … what if you could find a restaurant that your family likes and place an order for dinner by talking to the car, maybe [book] healthcare or salon appointments … SoundHound is doing that,” Mohajer explained, adding the company is working with prominent auto players in Europe and North America.
Restaurants can also use SoundHound to take orders using its voice assistant technology, which reduces costs while boosting speed.
Its stock has gained over 160% in the past 12 months, though it’s down 32% year to date.
“SoundHound continues to win large new logos including major OEMs and restaurants resulting in rapid growth in its pipeline,” D.A. Davidson Gil Luria wrote in a note. Its expanding customer base include new partnerships with Red Lobster, Dine Brands (DIN) owned IHOP, and Chipotle (CMG).
As more chains embrace automation, SoundHound is poised to grow. The company is active in 14,000 restaurant locations, up from 13,000, Luria wrote.
Luria raised his price target to $15 from $10.72, due to the company’s “impressive progress” and increasing market share in a “massive and underpenetrated” market. SoundHound is capturing significant share in AI-driven customer service, he added.
While SoundHound remains in growth mode, Mohajer said the company aims to achieve adjusted EBITDA profitability by the end of fiscal year 2025.
SoundHound has also been on an acquisition streak. The company “explored a lot of cost synergies” after acquiring three companies last year, a move that helped it gain traction in new verticals like financial services, healthcare, and insurance, per Mohajer.
