SoundHound stock surges 15% following better-than-expected earnings, continues growth momentum

SoundHound, the company known for its AI voice technology, experienced a significant surge in trading following its impressive Q4 earnings report and raised outlook for 2025. CEO Keyvan Mohajer proudly stated that the company saw its revenue double year over year, reaching $34.5 million, making it the “strongest quarter on record.” This performance surpassed analyst expectations of $33.7 million in revenue. Additionally, the company reported an adjusted loss per share of $0.05, which outperformed Wall Street’s projected loss of $0.08 per share, as cited by Barron’s.

The positive momentum for SoundHound comes at a time when many other growth stocks faced challenges in the market, with some experiencing significant sell-offs. Despite the broader market conditions, SoundHound was able to deliver strong results and gain as much as 15% in trading.

SoundHound’s journey began with its initial public offering in 2022, during which it spent nearly two years trading as a penny stock. However, the company’s fortunes changed dramatically in February 2024 when Nvidia, a prominent player in the AI industry, revealed its stake in SoundHound. This announcement led to an impressive 800% increase in SoundHound’s share price over the following year.

At the start of 2025, SoundHound faced challenges, with its shares plummeting approximately 30%. The situation worsened when Nvidia disclosed in an SEC filing that it had completely divested its stake in SoundHound in Q4. This news triggered a single-day drop of around 28% in SoundHound’s stock price. Despite these setbacks, CEO Mohajer remained optimistic and downplayed the market reaction as “a bit of an overreaction,” reassuring stakeholders in an interview with Barron’s.

SoundHound has carved out a niche for itself by specializing in voice AI solutions for businesses. The company’s technology is currently used to automate customer orders in more than 10,000 restaurants across the United States, including popular chains like Chipotle and Jersey Mike’s. In a bid to expand its offerings, SoundHound recently introduced an in-car voice commerce platform that allows drivers to place orders and make payments for takeout without using their hands. However, investors did not respond favorably to this announcement, and the company’s shares declined by 10% following the news.

In conclusion, SoundHound’s recent performance in the market reflects its resilience and potential for growth despite facing challenges. The company’s ability to deliver strong financial results and attract prominent partnerships underscores its position as a key player in the AI voice technology sector.