MW SoundHound earnings mean the stock could end its tough month on a high note

By Emily Bary

SoundHound saw accelerating growth in the latest quarter and touted new voice-based AI deals with fast-food restaurants

SoundHound AI Inc. doubled revenue in its latest quarter while reiterating its relationship with Nvidia Corp., which recently disclosed that it sold its stake in the artificial-intelligence company.

The stock is set for a bounce to cap off a tough month. SoundHound's (SOUN) stock rose 9% in Thursday's extended session, after having fallen about 35% on the month through Thursday's close. They also lost about 27% over the course of January.

Revenue for SoundHound's fiscal fourth quarter came in at $34.5 million, above expectations for $33.7 million. That marked 101% growth relative to a year before, an acceleration relative to the 89% growth seen in the fiscal third quarter.

See also: Nvidia's stock is in a funk. Earnings didn't help, but here's what could.

The company said it's seeing traction for its voice-based AI offerings with major quick-service restaurants, and it's seen expansion recently through deals with Burger King UK and Peet's Coffee.

"We believe the pace of adoption of our customer service in restaurants is increasing," with SoundHound already being the largest provider with dozens of prominent brands and well over 10,000 locations," Chief Executive Keyvan Mohajer said on the earnings call.

He's upbeat about an in-vehicle voice assistant that the company showed off at the CES conference earlier this year. The service lets people order food from car-based infotainment systems. "It delivers new leads, and it creates a monetizable moment for SoundHound with revenue sharing opportunities" for carmakers, Mohajer said on the call.

Mohajer also discussed SoundHound's relationship with Nvidia $(NVDA)$, a hot topic after SoundHound shares plunged 28% on Feb. 14 after the chip giant filed a 13-F with the Securities and Exchange Commission that showed it had unloaded its shares of SoundHound.

Read: SoundHound's stock sinks as Nvidia sells off stake. What comes next?

The two companies still have a "collaboration," Mohajer said, and SoundHound will be showing off its voice assistant at Nvidia's GTC conference next month.

Following the DeepSeek developments, SoundHound's management thinks the company can benefit from proliferation in AI models, some of which are open source, and drive its costs down while running a more accurate platform. The company also sees room to bring its technology more "on the edge," meaning on devices themselves, rather than through the cloud.

SoundHound now expects to do $157 million to $177 million in revenue this fiscal year, whereas its prior guidance range was for $155 million to $175 million.

The company is still losing money, and it posted a loss of $19 million in the latest quarter, roughly double what it recorded a year earlier.

-Emily Bary

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February 27, 2025 21:42 ET (02:42 GMT)

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