In this article:
-
SoundHound AI stock shot up after its latest report, thanks to its outstanding growth and improved guidance.
-
The company's voice AI solutions are in hot demand, and its terrific growth pace has legs.
-
Though the stock is expensive right now, it can justify its valuation because of its rapid growth.
SoundHound AI (NASDAQ: SOUN) has had a forgettable 2025 despite reporting strong growth quarter after quarter, with shares of the company trading down about 20% so far this year as of this writing. However, it looks like the voice-powered artificial intelligence (AI) company's fortunes are about to change following its latest quarterly results.
SoundHound AI stock shot up more than 26% after releasing its second-quarter 2025 results on Aug. 7. Let's see what has investors excited and check why this beaten-down AI stock has the potential to double by next year.
SoundHound AI provides a platform that allows its customers in various industries to develop different types of voice AI systems, including AI assistants, chatbots, and online ordering systems (among other things). The company's platform has quickly gained traction, and it's now being deployed in the automotive, hospitality, healthcare, retail, financial services, and e-commerce industries.
That's why revenue more than tripled in the previous quarter to a record level of $43 million. The company also managed to reduce its adjusted loss per share by a penny to $0.03 despite a significant increase of 64% in its research and development expenses and a 180% spike in sales and marketing outlay.
Wall Street would have settled for $33 million in revenue and a loss of $0.09 per share. SoundHound blew past those estimates thanks to new customers last quarter. The company reports that 15 large enterprise customers are now using its voice-powered agentic AI platform, Amelia, which is impressive considering that it was introduced just three months ago.
The company reported "numerous wins, renewals, expansions, and cross-selling" in the restaurant industry. Other customer additions included a new automotive original equipment manufacturer (OEM) in China and bigger contracts with four of its financial services customers. In all, it benefited from a combination of new customers and more business from existing ones.
This trend is likely to continue, considering the $140 billion total addressable market that management projects across various industries. Also, the company says that it has been granted over 190 patents for its voice AI solutions, with another 110 pending. A strong intellectual property (IP) portfolio should provide a competitive advantage in the voice AI market and open up new sources of revenue growth through licensing.