Retail darling SoundHound hits record sales as more restaurants flip the AI switch
“We are seeing demand everywhere,” CEO Keyvan Mohajer told Sherwood.
Voice-enabled AI company SoundHound AI reported record sales in Q3, along with a smaller-than-expected quarterly loss, as the company — which has built a following among retail shareholders — says it’s seeing growing traction for the AI services it sells to device-makers and service providers like restaurants. The market didn’t respond well, however, with the shares falling more than 10% in the after-hours session.
Revenue rose 89% to $25.1 million. The company still reported a GAAP loss of $22 million, but raised its revenue target for 2025 to between $155 million and $175 million. It previously had said it expected 2025 revenue “to exceed $150 million.”
The company’s cash reserves dropped, though CEO Keyvan Mohajer told Sherwood its financial position remains robust.
“This year our cash balance has been a source of strength,” he said, adding that the company had “a very small debt.”
“That’s enough to take us to being profitable,” he said, saying that SoundHound expects to be adjusted-EBITDA-positive by the end of 2025.
Mohajer also noted that SoundHound had recently announced an at-the-money equity-offering program, enabling the company to sell up to $120 million in stock.
Before the earnings were released on Tuesday, SoundHound was up more than 250% in 2024. For more on the company, check out our Q&A with Mohajer in the most recent edition of Sherwood’s interview series, “Final Boss.”
