SoundHound AI rallied Friday after the maker of conversational AI technology posted a huge jump in revenue. SoundHound stock soared more than 20% in early trades.
The company on Thursday reported revenue of $42.7 million, up more than 200% from the year-earlier period. SoundHound posted an adjusted loss for the June quarter of 3 cents a share, compared to 4 cents a share in the year-ago period.
The company raised its full-year revenue outlook to a range of $160 million to $178 million.
CEO Keyvan Mohajer said the company recorded its "strongest ever quarter."
"Many of our previous strategic moves delivered high-impact results with growth across every business unit," Mohajer said in a statement. "We have demonstrated a repeatable success formula."
SoundHound also raised its full-year revenue outlook to a range of $160 million to $178 million, compared to a previous forecast of $157 million to $177 million.
Wedbush analyst Daniel Ives said the forecast was likely conservative "as demand remains strong across all verticals as it continues to expand channel partner relationships which are further accelerating growth."
SoundHound gained more than 23% to 13.24 in early trades. The stock has rallied more than 34% this week, though it's still off more than 30% year-to-date, according to IBD MarketSurge.
SoundHound has a Relative Strength rating of 89, according to MarketSurge.
The stock also rallied last month on its big push into agentic AI.
