Shares of SoundHound (SOUN 0.42%) are trading lower on Tuesday. The company's stock had lost 12.2% as of 11:30 a.m. ET, but had been down as much as 13.6% earlier in the day. This comes as the S&P 500 had slipped 1.8% and the Nasdaq Composite had lost 1.6%.
The company, which develops artificial intelligence-powered voice solutions, delayed the filing of its annual report with the Securities and Exchange Commission (SEC), and this upset investors.
SoundHound will delay its 10-K
The company said in an SEC filing today that it would not be able to meet the deadline to file the required report, citing increased complexity due to its acquisitions of two companies last year. This comes just a year after the company revealed it had identified "material weaknesses in its internal control over financial reporting." The company says these continue to exist.
Investors don't take kindly to missteps of this kind and the stock was hit hard on Tuesday.
Strong revenue growth, but a growing loss
Despite the filing delay, SoundHound reported earnings just days ago, showing strong sales growth for its Q4. The company delivered $34.5 million in revenue, up 101% year over year, and raised guidance for 2025, projecting $157 million to $177 million by year-end.
Despite the top-line growth, SoundHound's net losses are getting larger. For the full year, the company's net loss was $351.1 million, 283% more than in 2023. Given the company is still in its early days, the growing losses can be forgiven in light of its major sales growth and the apparent demand for its AI solutions.
SoundHound said it expects to file its 10-K no later than March 18.
