SoundHound’s AI Revolution: Can It Turn a Profit?

SoundHound AI, the company behind some of the most advanced voice technology, just reported massive revenue growth—but there’s a catch. While sales are climbing at a record pace, its losses are growing just as fast.

In the last quarter alone, SoundHound’s revenue doubled, hitting $34.5 million, while full-year revenue soared 85% to $84.7 million. That’s a big win for the company, proving that businesses are embracing AI-powered voice technology more than ever.

But with growth comes growing pains. SoundHound also reported a $19 million net loss—nearly double what it lost last year.

Big Partnerships Are Fueling Growth

A major reason for SoundHound’s success is its partnerships with big-name brands. The company has teamed up with Burger King UK and Peet’s Coffee, bringing its AI-powered voice assistants to restaurants.

One of its most exciting innovations? A voice assistant that lets drivers order food directly from their car’s infotainment system. Imagine pulling up to a drive-thru, placing your order without rolling down your window, and paying with just your voice. That’s the kind of convenience SoundHound is betting on.

The Downside: Rising Losses and Shrinking Margins

While the company is making more money, it’s also spending a lot more to keep up with demand. Profit margins are shrinking:

• GAAP gross margin dropped from 77.2% to 39.9%
• Non-GAAP gross margin fell from 77.9% to 52.1%

Translation? SoundHound is bringing in more revenue but keeping less of it.

Investors React: Stock Jumps After Rough Month

Despite the losses, Wall Street seems optimistic. After the earnings report, SoundHound’s stock jumped 9% in after-hours trading. That’s a relief for investors, especially since the stock had fallen 35% over the past month.

What’s Next? A Big 2025 Forecast

SoundHound is optimistic about the future. The business increased its 2025 revenue projection, which was previously projected to be between $157 million and $177 million.

CEO Keyvan Mohajer is placing a large bet on artificial intelligence, claiming that SoundHound is “uniquely positioned” to capitalize on the rising demand for voice-activated technologies.

The Big Question: Can SoundHound Turn Growth into Profit?

There’s no doubt that SoundHound is making waves in the AI world. Its technology is in demand, and big brands are lining up to use it. But for now, the company is still burning through cash faster than it can earn it.

Will it be able to turn its growing revenue into real profits? Or will the losses keep piling up? That’s the big question investors—and the industry—will be watching closely in the months ahead.