SoundHound AI Shares Tumble Despite Record Financial Performance

SoundHound AI delivered what appeared to be an exceptional quarterly report, yet investors responded by sending shares sharply lower. The artificial intelligence company posted third-quarter revenue of $42 million, surpassing all expectations and prompting an upward revision to its annual forecast. Despite these positive operational metrics, the stock declined over 9% during Friday’s trading session. Market reaction focused on a $66 million accounting loss related to acquisition liabilities, overshadowing the company’s strong underlying business performance.

The voice AI specialist demonstrated impressive growth momentum with revenue surging 68% year-over-year, substantially exceeding analyst projections of $40-40.5 million. Management raised its full-year guidance to a range between $165 million and $180 million. Simultaneously, the company reaffirmed its Read more...