SoundHound AI reports strong sales growth but remains unprofitable

SoundHound AI has seen significant growth, with its stock price rising over 500% in the past year. The company reported an 89% increase in sales for the third quarter, reaching $25.1 million, and expects revenue to nearly double in 2025. The company has diversified its customer base, reducing reliance on large clients from 72% to 12% of sales. Its revenue now comes from various sectors, including automotive, restaurants, and healthcare, improving its financial stability. Despite this growth, SoundHound remains unprofitable, reporting a loss of $0.04 per share in the latest quarter. Analysts predict continued losses in the coming years, and the stock's high price-to-sales ratio suggests it may be overvalued at this time.