SoundHound AI expands into banking sector amid revenue growth

SoundHound AI is expanding its presence in the financial services sector, securing contract renewals or expansions with two of the top seven global banking institutions and a major global insurer. The company is targeting regional banks and credit unions to automate customer service through AI agents. This expansion follows the acquisition of LivePerson, which integrates digital messaging across voice, web, and mobile channels.

Financially, SoundHound reported a 45% year-over-year revenue increase to $61.9 million in the second quarter, though the company remains unprofitable with an adjusted EBITDA loss of $9.6 million. The stock has faced significant pressure, declining approximately 38% to 40% year-to-date.

In a recent regulatory filing, CEO Keyvan Mohajer sold 137,290 Class A shares, valued at approximately $868,853, to cover tax obligations related to vested restricted stock units. Despite the sale, Mohajer retains over 3.6 million shares. Meanwhile, analysts at Piper Sandler lowered their price target for the stock to $6.00.