SoundHound AI (NASDAQ: SOUN) shares are up 22.20% in premarket trading on Friday, after the company delivered record-breaking second-quarter financial results that far exceeded analyst expectations.
SoundHound’s most successful quarter to date
The stock’s surge followed SoundHound’s announcement of exceptional quarterly performance, posting revenue of $42.7 million, a 217% jump from the prior year’s $13.5 million and well above analyst expectations.
“In SoundHound’s strongest ever quarter, many of our previous strategic moves delivered high-impact results with growth across every business unit. We realized significant new wins as well as cross-sell deals, demonstrating the incredible opportunity we predicted with our 2024 acquisitions,” said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI.
The company’s performance was bolstered by expansion across the company’s core markets, including automotive AI solutions, enterprise customer service AI, and restaurant automation technology.
Management increased full-year 2025 revenue projections to $160-178 million based on the quarter’s strong momentum.
DA Davidson sees another 14% upside
DA Davidson boosted its SoundHound AI price objective to $15.00 from the previous $10.00 target while keeping its Buy recommendation intact. The investment firm highlighted the company’s exceptional quarterly showing that substantially exceeded revenue forecasts, with consistent growth spanning the entire product lineup.
The firm emphasized SoundHound’s success in securing major new partnerships across OEM and restaurant sectors, creating a robust pipeline expansion. Analysts view the company as successfully gaining market position within what they characterize as a large, underdeveloped addressable market while progressing toward sustainable profitability.
Featured image via Shuttertsock.
