Shares of SoundHound AI (SOUN +10.11%) popped on Thursday after the conversational intelligence leader boosted its full-year revenue forecast.
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AI agent-fueled growth
SoundHound's revenue jumped 45% year over year to $62 million in the second quarter.
Chief financial officer James Hom said SoundHound's recently launched agentic AI platform, OASYS, was helping it win more business from large corporate clients. The self-learning system helps companies use conversational AI agents to automate transactions and other tasks for their customers and employees.
"We are excited by the strong interest we are already seeing with OASYS, which is a testament to the category-defining technology we continue to deliver to the market," Hom said.
NASDAQ: SOUN
Key Data Points
All told, SoundHound's adjusted net loss narrowed to $9 million from $12 million in the year-ago quarter. Its adjusted loss per share of $0.02 was also better than Wall Street's estimate of $0.05.
"Our exceptional Q2 results demonstrate the momentum SoundHound is building, achieving a strong revenue performance, disciplined cost management, and industry-leading platform validation," CEO Keyvan Mohajer said.
An intriguing merger is advancing
These solid results prompted SoundHound to lift its full-year 2026 revenue target to between $230 million and $260 million.
Management also said it would provide investors with an updated financial forecast after the expected closing of SoundHound's acquisition of fellow conversational AI pioneer LivePerson.
"We recently secured all key regulatory clearances and continue to expect the deal to close before the end of the year," Mohajer said during a conference call with analysts.
