Core Viewpoint - SoundHound AI's latest earnings and guidance lay the foundation for the next phase of growth in its AI-related business, according to Wedbush, which maintains an "outperform" rating with a target price of $18, representing a nearly 26% upside from the stock's closing price of $14.23 on Thursday [1][2]. Financial Performance - For Q3, SoundHound AI reported revenue of $42.049 million, a year-over-year increase of 68% [1]. - Under Non-GAAP accounting, gross profit was $24.917 million, up 66% year-over-year; adjusted EBITDA was -$145 million, compared to -$159 million in the same period last year; and net loss was $130 million, improved from a net loss of $150 million year-over-year [1]. - The company raised its full-year revenue forecast for 2025 to between $165 million and $180 million, up from a previous guidance of $160 million to $178 million [2]. Market Outlook - Demand across various verticals remains strong, with slight improvement in the automotive sector and robust growth in other areas [2]. - Despite increasing competition and an uncertain macro environment, SoundHound AI demonstrates strong monetization capabilities in multiple high-potential AI markets, continuing its path toward profitable growth [2].

Core Insights - SoundHound AI, Inc. (SOUN) reported Q3 results that met estimates for the September quarter, indicating stable performance despite market conditions [1] - The company experienced strong revenue momentum driven by ongoing enterprise investments in conversational AI technology, highlighting a positive trend in its business operations [1] Financial Performance - The Q3 results were in line with market expectations, suggesting that the company is maintaining its financial stability [1] - Revenue growth is attributed to enterprise-driven investments, which may indicate a robust demand for conversational AI solutions [1]

Core Insights - SoundHound AI, Inc. (SOUN) reported Q3 results that met estimates for the September quarter, indicating stable performance despite market conditions [1] - The company experienced strong revenue momentum driven by ongoing enterprise investments in conversational AI technology, highlighting a positive trend in its business operations [1] Financial Performance - The Q3 results were in line with market expectations, suggesting that the company is maintaining its financial stability [1] - Revenue growth is attributed to enterprise-driven investments, which may indicate a robust demand for conversational AI solutions [1]

Voice AI technology company SoundHound AI (NASDAQ:SOUN) reported Q3 CY2025 results beating Wall Street’s revenue expectations , with sales up 67.6% year on year to $42.05 million. Its GAAP loss of $0.27 per share was significantly below analysts’ consensus estimates. Is now the time to buy SoundHound AI? Find out in our full research report. SoundHound AI (SOUN) Q3 CY2025 Highlights: Revenue: $42.05 million vs analyst estimates of $40.93 million (67.6% year-on-year growth, 2.7% beat) EPS (GAAP): -$0.27 ...

Financial Data and Key Metrics Changes - Q3 revenue reached $42 million, representing a 68% year-over-year increase [25][30] - Year-to-date revenue for 2025 is $114 million, up 127% compared to the previous year [4] - GAAP gross margin was 43%, while non-GAAP gross margin was 59% [31][32] - GAAP net loss was $109.3 million, with a non-GAAP net loss of $13 million [34] Business Line Data and Key Metrics Changes - All three business pillars grew in double digits, with significant contributions from IoT, enterprise, and restaurant sectors [30][31] - The automotive sector faced pressure due to global tariffs and industry softness, but there are signs of improvement [31] - The company has diversified its industry mix, with no single customer contributing more than 10% of revenue [31] Market Data and Key Metrics Changes - Strong adoption in the IoT and robotics market, including a significant deal with a large Chinese company for AI-enabled smart devices [11] - Continued penetration in the automotive market, with new partnerships and deployments [12][14] - Expansion in financial services, energy, retail, and healthcare sectors, with multiple new contracts signed [12][15][16] Company Strategy and Development Direction - The company is focusing on enterprise AI and agentic AI solutions, leveraging its long history of innovation [18][19] - The acquisition of Interactions aims to enhance workflow orchestration capabilities and expand market reach [10][18] - The company is preparing for the launch of Voice Commerce in 2026, integrating voice AI with various services [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of enterprise AI and the company's ability to capitalize on market opportunities [24][36] - The company expects to achieve revenue between $165 million and $180 million for the full year 2025 [36] - Anticipated acquisition cost synergies of approximately $20 million on an annual run-rate basis will be realized more fully in 2026 [37] Other Important Information - The company celebrated its 20th anniversary, highlighting its long-term focus and strategic execution [4] - The company is actively investing in innovation and expanding its product capabilities to maintain technological leadership [32][36] Q&A Session Summary Question: About the eight-figure Chinese robotics deal - The deal involves a robotics company, not a humanoid robot, with a commitment of double-digit millions over the next two to three years [38][39] Question: Impact of the Interactions acquisition - The acquisition is expected to enhance capabilities in automotive, technology services, retail, financial services, and healthcare [40][41] Question: Percentage of revenue from term license versus SaaS within Amelia - The majority of revenue is recurring, with a shift towards outcome-based contracts [42][44] Question: Number of customers committed to upgrading to Amelia 7 - The company expects about 75% of customers to migrate to Amelia 7 by mid-next year [45] Question: Update on the competitive environment - The company feels confident in its competitive position, leveraging its own technology against competitors who rely on third-party models [56][57]

Core Viewpoint - SoundHound AI reported better-than-expected third-quarter results but experienced a decline in stock price despite raising its full-year sales guidance [1][4]. Financial Performance - In the September quarter, SoundHound AI lost an adjusted 3 cents per share on sales of $42 million, surpassing analyst expectations of a 9 cents loss on $40.5 million in sales [2]. - The company improved from a loss of 6 cents per share on sales of $25.2 million in the same period last year [2]. - SoundHound raised its full-year revenue outlook to a range of $165 million to $180 million, with a midpoint of $172.5 million, exceeding the consensus estimate of $166 million [2]. Business Operations - SoundHound's technology is utilized by various companies for customer interactions in sectors such as call centers and restaurant drive-thrus, and is also integrated into select automobile brands like Jeep [3]. - The CEO highlighted the global boom in enterprise AI adoption and the company's strategy to leverage its leading position across diverse industries [4]. Stock Market Reaction - Following the earnings report, SoundHound's stock fell more than 3% in after-hours trading to $13.75, after a 9.5% decline during the regular session, closing at $14.23 [4].

Revenue and Growth - Total revenues for the three months ended September 30, 2025, were $42,049,000, representing a 67.5% increase from $25,094,000 in the same period of 2024[4] Expenses and Losses - Operating expenses for the nine months ended September 30, 2025, totaled $179,706,000, compared to $134,431,000 for the same period in 2024, reflecting a 33.6% increase[4] - The net loss for the nine months ended September 30, 2025, was $54,063,000, a decrease from a net loss of $92,082,000 in the same period of 2024, indicating a 41.2% improvement[4] - The company incurred $60,956,000 in stock-based compensation for the nine months ended September 30, 2025, compared to $23,292,000 for the same period in 2024, representing a 161.5% increase[6] - Cash flows used in operating activities for the nine months ended September 30, 2025, were $76,336,000, slightly higher than $75,755,000 for the same period in 2024[6] Cash and Assets - Cash and cash equivalents as of September 30, 2025, were $268,936,000, up from $198,240,000 as of December 31, 2024, showing a 35.4% increase[2] - The total assets increased to $702,217,000 as of September 30, 2025, compared to $553,953,000 as of December 31, 2024, marking a 26.8% growth[2] Liabilities and Capital - The total liabilities decreased to $302,981,000 as of September 30, 2025, down from $371,300,000 as of December 31, 2024, reflecting a 18.4% reduction[2] - The company reported a significant increase in additional paid-in capital, rising to $1,396,094,000 as of September 30, 2025, from $1,125,470,000 as of December 31, 2024, which is a 24% increase[2] Financing Activities - The net cash provided by financing activities for the nine months ended September 30, 2025, was $204,514,000, compared to $115,445,000 for the same period in 2024, indicating a 77% increase[6]

Core Viewpoint - The company is increasing its full-year guidance due to the significant growth in enterprise AI adoption [1] Group 1 - The company attributes its optimistic outlook to the "booming" adoption of enterprise AI technologies [1]

Core Insights - SoundHound AI, Inc. reported a strong financial performance for Q3 2025, with revenue reaching $42.0 million, a 68% increase year-over-year [6][14] - The company is expanding its presence in key vertical markets and forming strategic partnerships to enhance its AI leadership through the Agentic+ framework [1][4] Financial Highlights - Revenue for Q3 2025 was $42.0 million, up from $25.1 million in Q3 2024, marking a 68% increase [6][14] - GAAP gross margin was 42.6%, while non-GAAP gross margin was 59.3% [6][14] - GAAP net loss was $109.3 million, compared to a loss of $21.8 million in the same quarter last year [6][14] - Adjusted EBITDA loss was $14.5 million, showing an improvement from a loss of $15.9 million in Q3 2024 [6][14] Business Developments - The company launched the Amelia 7.3 update, enhancing its voice AI capabilities with Speech-to-Meaning technology [7] - Significant contracts were secured across various sectors, including automotive, healthcare, and financial services, indicating a diverse customer base [12][19] - SoundHound is raising its full-year 2025 revenue outlook to a range of $165 - $180 million [18] Strategic Partnerships and Market Position - SoundHound is working with major brands in automotive and healthcare to deploy its AI solutions, including a custom assistant for a sports car brand and a pioneering AI solution for a precision medicine provider [12][19] - The company has established partnerships with leading technology distributors and service providers to enhance its market reach [12][19] Cash Flow and Liquidity - As of September 30, 2025, the company had total cash and cash equivalents of $269 million, with no debt [16]

Core Insights - SoundHound AI Inc. (NASDAQ:SOUN) is experiencing significant stock decline, dropping 11.57% to close at $15.13 as investors sell off ahead of its upcoming earnings report [1] - The company is set to release its financial results for Q3 after market close on November 6, with a revenue target for full-year 2025 projected between $160 million and $178 million [2] - SoundHound AI has partnered with Telarus to promote its AI solutions, including the Amelia 7 AI Agent and Autonomics platforms, to technology advisors and enterprise customers [3] Financial Performance - The stock has shown a notable decline of 11.57% in recent trading sessions, indicating investor apprehension ahead of earnings [1] - The revenue target for 2025 is set between $160 million and $178 million, reflecting the company's growth ambitions [2] Product Development - The Amelia 7 platform is designed to manage complex user queries through multiple AI agents, facilitating transactions and problem resolution without human intervention [4] - The Autonomics platform offers end-to-end automation of IT systems, enhancing traditional IT infrastructure monitoring by providing insights into issue resolution [5]