SoundHound AI (NASDAQ: SOUN), a provider of conversational AI software, reported a revenue of $29.1 million for Q1 2025, marking a 151% increase year-over-year. The company expects to generate around $167 million in revenue for the full year 2025. However, it also faces challenges with a non-GAAP loss of $22.3 million, up 10% from the previous year.
Nvidia (NASDAQ: NVDA) sold its entire stake in SoundHound in early February 2025, contributing to a 53% decline in SoundHound’s stock value since its peak of about $24 in late 2024. Nvidia’s decision raises questions about the valuation of SoundHound, which has a price-to-sales ratio of 39.3, significantly higher than Nvidia’s 26.1.
SoundHound’s order backlog was reported at $1.2 billion at the end of 2024 and is expected to convert into revenue over the next six years, indicating potential future growth despite its current financial strains.
