SoundHound AI (NASDAQ: SOUN) delivered second quarter revenue of $61.9 million, surpassing Wall Street estimates of $52.41 million and representing 45% year-on-year growth.
Adjusted earnings per share came in at -$0.02, beating analyst expectations of -$0.05, a 63% outperformance that underscored meaningful progress toward profitability.
The company’s operating margin improved dramatically to -70%, compared to -183% in the same quarter last year, reflecting stronger operating leverage across the business.
Billings reached $55.53 million at quarter end, up 45.7% year on year, while the company’s market capitalization stood at $3.29 billion following the results.
CEO Keyvan Mohajer attributed the strong performance to rapid adoption of the OASYS agentic AI platform, which he described as “the most intuitive and easiest to navigate” among competing solutions.
Mohajer highlighted that OASYS automates agent creation and deployment, leading to higher win rates and faster implementation, particularly in complex enterprise environments.
Cantor Fitzgerald analyst Thomas Blakey asked about integration of acquired technologies like Amelia and Interactions into OASYS and how that may translate to opportunities with LivePerson’s customer base.
Mohajer responded that OASYS is designed to rapidly integrate and upgrade legacy customers, reducing time-to-value and lowering implementation costs across the platform.
D.A. Davidson analyst Gil Luria questioned the composition of a recent eight-figure deal, with Mohajer confirming it was a channel commitment involving rollout across 20 countries, with potential for further expansion.
Luria also pressed management on guidance scenarios with and without the pending LivePerson acquisition, and Mohajer clarified that current guidance excludes LivePerson until the deal closes, while reiterating expectations for increased scale and revenue once integrated.
Northland Capital Markets analyst Vijay Devar asked about the main technology benefits from the LivePerson deal, and Mohajer cited complementary product offerings and the ability to offer voice solutions where LivePerson previously focused on chat.
Blakey followed up on the recurring nature of large deals in the pipeline, with Mohajer noting that while some large deals may not be strictly recurring, the company consistently secures sizable contracts each quarter.
SoundHound AI’s stock moved to $7.44 following the earnings release, up from $6.43 just before the results were published.
Looking ahead, key areas to monitor include the pace of integrating LivePerson’s customer base onto OASYS, expansion in healthcare and automotive verticals across Asia and among Fortune 100 brands, and the rollout of new voice commerce capabilities in vehicles and home electronics.
