SoundHound AI Inc. saw GAAP losses swell in the latest quarter and continue to dwarf revenue, but top-line growth came in better than expected.
SoundHound's stock was down 4% more in the extended session.
The company, which makes software for conversational artificial intelligence, on Thursday posted a net loss of $37.3 million in the second quarter, equating to 11 cents a share. The net loss was greater than the $23.3 million figure seen in the year-earlier period, though SoundHound (SOUN) posted an 11 cent loss per share in that quarter as well.
On an adjusted basis, SoundHound lost 4 cents a share, compared with 7 cents a share a year before.
Revenue for the latest quarter was $13.46 million, up 54% from a year before and ahead of the $13.1 million FactSet consensus view.
"This has been a milestone quarter, with strong customer momentum across all of our key industries - including several new global brands," Chief Executive Keyvan Mohajer said in a release.
Earlier in the day, SoundHound announced the acquisition of Amelia, an enterprise-AI software company, for $80 million. "The business combination positions SoundHound AI as the foremost provider of voice and conversational generative AI, with reach across multiple industries," SoundHound said in its earlier release.
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The company now expects upward of $80 million in overall revenue this year, when factoring in the acquisition, along with upward of $150 million in revenue for 2025.
In the release announcing the acquisition and the $150 million combined revenue target for next year, SoundHound said that the forecast implies "Amelia contributing over $45 million in recurring AI software revenue, plus other non-software revenues such as professional services and agent-related fees."
