SoundHound AI Increases Revenue in Second Quarter and Acquires LivePerson
Artificial intelligence company SoundHound AI recorded strong revenue growth in the second quarter while completing the acquisition of LivePerson and sharing its future targets.
SoundHound AI significantly increased its revenues in the second quarter of the year and incorporated LivePerson into its structure. Despite the drop in its shares and cash burn risks, the company paints an optimistic picture regarding its future growth targets.
Strong Revenue Growth in the Second Quarter
SoundHound AI's revenues increased by 45 percent in the second quarter compared to the same period of the previous year, reaching $61.9 million.
The adjusted EBITDA loss improved by 33 percent year-over-year, declining to $9.6 million.
Financial Condition and Cash Reserves
The company completed the second quarter with $230 million in cash and debt-free.
Management expects fiscal year 2026 revenues to be between $230 million and $260 million.
LivePerson Acquisition Completed
SoundHound AI officially completed the LivePerson acquisition on September 4.
With this move, the company expanded its enterprise reach by serving 25 of the companies on the Fortune 100 list.
Future Period Revenue Projections
Management anticipates generating between at least $350 million and $400 million in revenue in 2027.
The company's ultimate target is to reach a revenue scale of $500 million on an annual basis.
Market Challenges and Stock Status
Despite all these developments, SoundHound AI shares have lost approximately 71 percent of their value since their peak level in October 2025.
The company also faces certain risks stemming from cash consumption, operational execution, and LivePerson's declining legacy revenues.