SoundHound AI Inc (SOUN) saw its stock price plummet 5.14% in after-hours trading on Thursday, despite reporting a record first quarter with significant revenue growth. The AI-powered voice recognition company announced its Q1 2025 financial results, which showed mixed performance relative to market expectations.
SoundHound reported Q1 revenue of $29.1 million, representing a staggering 151% year-over-year increase. However, this figure fell short of the $30.4 million estimated by analysts, according to IBES data. The company's earnings per share (EPS) came in at $0.31, with a net income of $129.9 million for the quarter. Despite the strong growth, the market reaction suggests investors were anticipating even better results.
Looking ahead, SoundHound AI provided a full-year revenue outlook of $157-177 million, indicating continued optimism for growth. However, the after-hours stock plunge highlights the high expectations set for AI companies in the current market environment. Investors will be closely watching how SoundHound AI navigates the competitive landscape and delivers on its growth promises in the coming quarters.