By Patrick Seitz

SoundHound AI logo is seen near computer motherboard in this illustration. REUTERS

SoundHound AI (SOUN), a leader in conversational voice artificial intelligence for businesses, late Thursday beat Wall Street's targets for the third quarter and increased its full-year sales guidance. But SoundHound stock fell in extended trading.

The Santa Clara, Calif.-based company lost an adjusted 3 cents a share on sales of $42 million in the September quarter. Analysts polled by FactSet had expected SoundHound to lose 9 cents a share on sales of $40.5 million. In the year-earlier period, it lost 6 cents a share on sales of $25.2 million.

SoundHound also raised its full-year revenue outlook to a range of $165 million to $180 million. The midpoint of $172.5 million topped the consensus estimate of $166 million.

SoundHound's technology is used by companies to interact with customers in call centers and restaurant drive-thrus. Its tech also is available in automobiles from select brands such as Jeep.

"Enterprise AI adoption is booming globally, and SoundHound is strengthening its leading position with deployments in millions of end points across highly diversified industries and customers," Chief Executive Keyvan Mohajer said in a news release. "We see enormous potential in the near- and long-term horizon, and we're positioning our business to take full advantage."

In after-hours trading on the stock market today, SoundHound stock slid more than 3% to 13.75. During the regular session Thursday, SoundHound stock fell 9.5% to close at 14.23.

SoundHound stock is on the IBD Tech Leaders list.

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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This article was first published on Investor's business daily file photo from Reuters.