Shares of SoundHound AI Inc (SOUN) surged 14.74% in pre-market trading on Friday, following the company's impressive second-quarter earnings report released after market close on Thursday. The voice artificial intelligence technology provider delivered results that significantly exceeded analyst expectations and raised its full-year revenue guidance, sparking investor enthusiasm.
SoundHound reported Q2 revenue of $42.7 million, representing a staggering 217% increase year-over-year and handily beating the analyst consensus of $32.9 million. The company's adjusted earnings per share came in at a loss of $0.03, outperforming the expected loss of $0.09 per share. In response to the strong performance, SoundHound raised its full-year 2025 revenue outlook to a range of $160 million to $178 million, up from its previous forecast of $157 million to $177 million.
CEO Keyvan Mohajer highlighted the company's success across multiple fronts, stating, "In SoundHound's strongest ever quarter, many of our previous strategic moves delivered high-impact results with growth across every business unit." The company saw significant wins in its automotive, enterprise AI, and restaurant segments, with its voice commerce ecosystem gaining traction and contributing to overall growth.
SoundHound AI specializes in voice artificial intelligence solutions for businesses, enabling spoken interactions and intelligent responses in products and services. The company's technology powers conversational agents for automotive, restaurants, enterprise, and various customer-facing applications. As businesses increasingly adopt AI-powered customer service solutions, SoundHound is well-positioned to capitalize on this growing trend.
"We are at the inflection point of AI adoption by enterprises," Mohajer said in an interview. "Every business is going to need an AI transformation." This optimistic outlook, combined with the company's strong financial performance, appears to be driving investor confidence in SoundHound's growth trajectory and market position in the rapidly evolving voice AI industry.