SoundHound AI Acquires Amelia, Expands Reach in Conversational AI

SoundHound AI Posts Q2 Beat, But Analysts Focus On Amelia Acquisition - SoundHound AI (NASDAQ:SOUN)

The company announces the acquisition of Amelia in a "transformative deal." SoundHound AI Inc SOUN shares tanked in early trading on Friday, despite the company reporting upbeat second-quarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways. Cantor Fitzgerald On SoundHound AI Analyst Brett Knoblauch upgraded the rating from Neutral to Overweight, while raising the price target from $5 to $7. SoundHound AI reported "solid" results for the second quarter, with revenue of $13.5 million coming in slightly higher than expected, Knoblauch said in a note. Management raised its full-year revenue guide to at least $80 million and introduced a 2025 target of $150 million, "primarily related to today's acquisition of Amelia, an enterprise AI software company," he added. This could be a "transformative acquisition" for the company, as it brings "a very high profile customer base," significant recurring revenues, and "a sizable sales force that SOUN can rely upon to meet what it characterizes as overwhelming demand," the analyst wrote. The acquisition was attractively priced for SoundHound AI, he further stated. Check out other analyst stock ratings. Wedbush On SoundHound AI Analyst Daniel Ives reiterated an Outperform rating and price target of $9. SoundHound AI delivered revenue and earnings beats, as it "continues to see demand for its voice AI products pick up across its automotive and restaurant segments, signing various large brand deals fueling growth while grabbing market share in the conversational AI market," Ives said. The company also announced plans to acquire Amelia for $80 million in cash and equity, "an enterprise AI software company which has $45+ million in recurring AI software revenue that will improve SOUN's position within voice and conversational AI while expanding into new verticals such as retail, financial services, healthcare, smart devices, and more," the analyst wrote. Following the deal, SoundHound AI raised its full-year revenue guidance from $65.0 million-$77.0 million to $80.0 million, he added. DA Davidson On SoundHound AI Analyst Gil Luria maintained a Buy rating and price target of $9.50. SoundHound AI reported revenues of $13.5 million, representing 54% year-on-year growth, Luria said. "Interest in SoundHound's solution from large global brands remains profound," he added. The acquisition of Amelia is a "transformative deal," as it improves SoundHound AI's position in the customer service space beyond restaurants, the analyst stated. "We are confident in management's ability to effectively integrate Amelia and see significant benefits from its deep customer relationships across industries and supplemental technology," he further wrote. SOUN Price Action: Shares of SoundHound AI had declined by 4.61% to $4.97 at the time of publication on Friday. Read Next: * Wall Street Shifts To 'Bossing The Fed Into Big Rate Cuts' After Bank Of Japan's Policy U-Turn, Analyst Says Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

SoundHound AI guides for higher-than-consensus FY revenue, announces Amelia deal By Investing.com

The voice AI technology company posted Q2 revenue of $13.5 million, up 54% YoY and ahead of analyst estimates of $13.09 million. Non-GAAP loss per share came in at $0.04, narrower than the $0.09 loss analysts expected. SoundHound significantly boosted its 2024 revenue guidance, now expecting to exceed $80 million compared to the previous consensus estimate of $70.29 million. The company also provided an initial 2025 revenue outlook of over $150 million. "This has been a milestone quarter, with strong customer momentum across all of our key industries - including several new global brands," said CEO Keyvan Mohajer. "We believe the demand for voice and conversational AI is increasing and are committed to strengthening our leadership position in this growing market." The company highlighted several business wins in the quarter, including signing one of the world's largest pizza chains and expanding relationships with major automakers like Stellantis (NYSE:STLA). SoundHound also announced the acquisition of enterprise AI company Amelia to accelerate growth in new verticals. Following the report, analysts at Cantor Fitzgerald upgraded the stock to Overweight, highlighting the Amelia deal as a potential "transformative acquisition." "Amelia will add financial services and healthcare customer exposure to SOUN, and while they would have entered these markets, it likely would have taken them several years to do so," analysts wrote. Alongside the upgrade, they also upped their target price on the stock from $5 to $7. SoundHound ended Q2 with $201 million in cash after prepaying $100 million in debt during the quarter. The company's cumulative subscriptions and bookings backlog metric roughly doubled YoY to $723 million. While posting strong top-line growth, SoundHound's GAAP net loss widened to $37.3 million from $23.3 million a year ago. Non-GAAP adjusted EBITDA loss was $13.8 million.

SoundHound AI upgraded following 'transformative acquisition': Cantor Fitzgerald

SoundHound AI was upgraded to Overweight from Neutral by Cantor Fitzgerald as its acquisition of Amelia, an enterprise artificial intelligence software company, is expected to almost double its revenue in 2025. SoundHound, which specializes in conversational AI solutions for businesses, announced the acquisition on Thursday, along with their second quarter 2024 financial results, which beat estimates. With 2024 revenue expected to hit at least $80M, SoundHound now projects 2025 revenue to exceed $150M due to the acquisition. Amelia is slated to add $45M through recurring AI software revenue along with professional services and agent-related fees. SoundHound shares surged 21% by the time markets closed Thursday. They were down slightly during pre-market trading on Friday. Cantor Fitzgerald increased its price target to $7 from $5. "We believe this could be a transformative acquisition for SOUN," said Cantor Ftizgeral analyst Brett Knoblauch, in a note. "Amelia will add financial services and healthcare customer exposure to SOUN, and while they would have entered these markets, it likely would have taken them several years to do so," he added. SoundHound acquired Amelia for $10M in cash, $70M in stock, and agreed to pay down $70M of Amelia's $100M debt. "In other words, a purchase multiple of ~4.5x for a company that has meaningful recurring revenue and is operating across very synergistic end markets," Knoblauch said. This follows the June acquisition announcement of Allset, a food ordering platform with nearly 7,000 restaurant partners in the U.S. SoundHound revealed locking down a number of new deals with major clients. Its voice AI ordering system will be rolled out at Beef 'O' Bradys' in more than 20 states across the US. It also signed deals with a major pizza chain to handle phone ordering services. What's more, Employee Assist, SoundHound's voice AI offering for back-of-house staff, will be utilized by two coffee shop chains. SoundHound expanded its partnership with Stellantis (STLA) to six brands. SoundHound has a Hold rating from Seeking Alpha analysts, but a Buy rating from Wall Street analysts. It has a Hold rating from Seeking Alpha's Quant system, which routinely beats the market. More on SoundHound AI SoundHound AI, Inc. (SOUN) Q2 2024 Earnings Call Transcript The Voice AI Market Could Be Worth $100 Billion, Pay Up For SoundHound AI Eyes On The FOMC, Tech Heavyweight Reports, And OPEC+ Meeting SoundHound announces deal to acquire Amelia AI SoundHound AI Q2 2024 Earnings Preview

SoundHound AI Acquires Enterprise Conversational AI Provider Amelia For $80M, Expands Into New Verticals - SoundHound AI (NASDAQ:SOUN)

The $80m transaction boosts Soundhound's portfolio, targeting $150m combined revenue by 2025. SoundHound AI SOUN, a leading voice artificial intelligence (AI) company, has announced the acquisition of Amelia, an enterprise AI software company. This move unlocks new verticals, partnerships, and cross-selling opportunities across the quickly growing voice AI space. "Amelia is an innovative company that shares our passion for AI-fueled conversations. We are looking forward to leveraging our shared capabilities to offer the best AI customer support solutions available anywhere," said Keyvan Mohajer, SoundHound AI's CEO and co-founder. "This acquisition positions SoundHound as a strong force with range, scale, and world-class technology," he added. Following the acquisition of food-ordering platform Allset, this acquisition targets new market segments, bringing SoundHound's proprietary voice AI technology across industries like healthcare, financial services, and retail. Now read: Humane's AI Pin Reportedly Faces Major Setback As Returns Outnumber Sales: Marques Brownlee Says 'Shoutout To Everyone That Watched The Review And Still...' After this transaction, Amelia, one of the world's largest privately held AI software companies, will enter the publicly accessible market. Amelia was founded in 1998 under the name IPsoft. Its main products are Amelia, a Conversational AI platform, and AIOps, an IT operations management platform. Backed by strategic investments from BuildGroup and Monroe Capital MRCC, Amelia built its brand into a market leader in enterprise AI solutions. Alongside partner relationships built over the last 25 years, Amelia brings additional expertise and new intellectual property to SoundHound's portfolio. "We're excited to bring Amelia's experience and relationships to SoundHound AI, bolstering the company's growing AI customer service business to form a new category leader in the space," said Lanham Napier, President of Amelia and co-founder of BuildGroup. Per the deal's terms, the transaction is worth $80 million in cash and equity, with partial payment, assumption of Ameila's debt, and future earnout potential aligned to revenue milestone achievements. SoundHound AI is also granting an aggregate of 3,738,317 restricted stock units (RSUs) as inducement awards to 350 Amelia employees in accordance with Nasdaq Listing Rule 5635(c)(4). The latest data shows that the combined company holds around $160 million of cash and $39 million of debt. Combined revenue in 2025 is expected to reach $150 million, with Amelia contributing over $45 million. Read Next: Alphabet's Historic Antitrust Ruling 'Credit Negative' For Google's Parent And Apple, Says Moody's: 'May Need To Alter Its Very Profitable Business Model' Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

SoundHound AI Acquires Amelia, Significantly Expanding Its Scale and Reach In Conversational AI Across New Verticals and Hundreds of Enterprise Brands

SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice artificial intelligence, today announced the acquisition of Amelia, a leading enterprise AI software company. The business combination positions SoundHound AI as the foremost provider of voice and conversational generative AI, with reach across multiple industries - including retail, financial services, healthcare, automotive, smart devices, restaurants, and more. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240808316868/en/ The companies will bring together decades of experience in conversational AI - and highly complementary product portfolios - to offer best-in-class, scalable customer service support to a vast spectrum of businesses. These include some of the very largest multinational enterprise brands, top 15 global banks, and Fortune 500 organizations, with the combined company spanning nearly 200 marquee customers. For SoundHound AI, the deal marks a significant and strategic expansion of its existing customer service pillar, adding breadth and depth to a division that has seen substantial growth amid the accelerated adoption of voice and conversational generative AI solutions. The acquisition positions the company at the center of this burgeoning space, as enterprise spending on generative AI is forecast to gather more momentum, reaching between $175 billion and $250 billion by 2027 (McKinsey, June 2024). Customer service is identified as a key area for disruption. As well as accelerating and scaling SoundHound AI's customer service offering, this move also allows the company's vision of a voice commerce ecosystem to become more ambitious in its scope. With its recent acquisition of food ordering marketplace Allset, SoundHound AI began to expedite plans to bring voice transactions - like food ordering - to its range of voice-enabled products, including vehicles, TVs, and devices. Now Amelia brings new industries to this monetization pillar, with the potential to add consumer transactions across healthcare, financial services, and retail to the vision. "SoundHound AI has emerged as a leader in bringing voice-enabled conversational AI to products and services. Now with more businesses choosing voice AI technology for customer service - and more consumers expecting a seamless, AI-powered service - this acquisition positions SoundHound as a strong force with range, scale, and world class technology,"said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI. "Amelia is an innovative company that shares our passion for AI-fueled conversations. We are looking forward to leveraging our shared capabilities to offer the best AI customer support solutions available anywhere." "We're excited to bring Amelia's experience and relationships to SoundHound AI, bolstering the company's growing AI customer service business to form a new category leader in the space," said Lanham Napier, President of Amelia and Co-Founder of BuildGroup. "With impressive penetration into a range of vertical industries, proprietary technology, and decades of combined AI experience, SoundHound is well positioned to take advantage of burgeoning interest in conversational AI customer support." Alongside partner relationships built over 25 years, Amelia brings additional AI expertise to SoundHound, as well as new intellectual property, and the ability to effortlessly execute on a broader range of integrations with enterprise software. Amelia has a reputation for excellence in conversational AI, being recognized as a leader in the Gartner® Magic Quadrant™ for Enterprise Conversational AI Platforms for 2 consecutive years. UBS Investment Bank served as the exclusive financial advisor to SoundHound. Additional Information In connection with the transaction, the Company is granting an aggregate of 3,738,317 restricted stock units (RSUs) as inducement awards to 350 Amelia employees in accordance with Nasdaq Listing Rule 5635(c)(4). The RSUs are being issued pursuant to the Company's recently adopted 2024 SoundHound AI, Inc. Employment Inducement Incentive Award Plan (the "Inducement Plan"), have been approved by the Company's Compensation Committee and are a material inducement for the retention of Amelia employees following completion of the merger. The RSUs begin vesting after one year of service and will vest monthly thereafter in equal installments through the fourth anniversary of the grant date, subject to the relevant employee's continued service to the Company on each vest date. Additionally, the Compensation Committee approved the granting of 949,450 RSUs to 26 new hires of the Company under the Inducement Plan. The RSUs, which are a material inducement for each employee entering into employment with the Company, begin vesting after one year of service and will vest monthly thereafter in equal installments through the fourth anniversary of the grant date, subject to the relevant employee's continued service to the Company on each vest date. SoundHound (Nasdaq: SOUN), a global leader in conversational intelligence, offers voice AI solutions that let businesses offer incredible conversational experiences to their customers. Built on proprietary technology, SoundHound's voice AI delivers best-in-class speed and accuracy in numerous languages to product creators across automotive, TV, and connected devices, and to customer service industries via groundbreaking AI-driven products like Smart Answering, Smart Ordering, and Dynamic Drive Thru, an AI-powered multimodal food ordering solution. Along with SoundHound Chat AI, a powerful voice assistant with integrated Generative AI, SoundHound powers millions of products and services, and processes billions of interactions each year for world class businesses. About Amelia Amelia is one of the world's largest privately held AI software companies and a global leader in Enterprise Conversational AI. The company's technology is trusted by organizations across an array of industries to automate operations, improve customer experience and optimize business outcomes. Amelia's platform develops and deploys AI tools that manage critical tasks and processes, enabling employees to be more productive and deliver better results while reducing operational costs. Consistently recognized by third-party analyst firms including Gartner's Magic Quadrant 2023 as a market leader, Amelia has powered the voice operations of global Fortune 500 leaders. Backed by strategic investments from the Build Group and Monroe Capital, Amelia is headquartered in New York City and serves customers globally. Forward Looking Statements This press release contains forward-looking statements, which are not historical facts, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. These forward-looking statements include, but are not limited to, statements concerning our ability to implement our business strategy and anticipated business and operations, including our ability to successfully integrate Amelia and realize the benefits of the acquisition, and our expected financial performance, including our ability achieve our 2025 revenue forecast and be adjusted EBITDA positive by the end of 2025. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. Our actual results may differ materially from those expressed or implied by these forward-looking statements as a result of risks and uncertainties impacting SoundHound AI's business including, the challenges and costs of integrating and achieving anticipated synergies and benefits of the Amelia acquisition and the risk that the anticipated benefits of the transaction may not be fully realized or take longer to realize than expected, our market opportunity and our ability to acquire new customers and retain existing customers, including customers of Amelia, and those other factors described in our risk factors set forth in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

What's Going On With SoundHound AI Stock Friday? - SoundHound AI (NASDAQ:SOUN)

SoundHound AI's 2024 revenue guidance exceeded $80 million, boosted by strong demand. SoundHound AI, Inc. SOUN stock is trading lower Friday after the company reported an upbeat second-quarter print, boosted its guidance, and announced a fresh acquisition Thursday. The voice AI and speech recognition company reported revenue of $13.5 million, up 54% year over year and beating the analyst consensus estimate of $13.1 million. EPS loss of $(0.04) beat the analyst consensus loss estimate of $(0.09). Also Read: SoundHound's AI Is Fueling Revenue Surge From Strong Demand In Automotive And Restaurant Sectors: Analyst SoundHound AI doubled its cumulative subscriptions & bookings backlog to $723 million. The company's annual run rate of queries grew by 90% Y/Y to over 5 billion. The adjusted gross margin plunged 1,350 bps to 66.5%. SoundHound expects 2024 revenue to exceed $80 million (prior $65 million-$77 million) versus analyst consensus of $70.5 million. SoundHound expects 2025 revenue to exceed $150 million, versus the consensus estimate of $103.5 million. The company snapped Amelia, an enterprise AI software company, for $80 million, with earnout potential aligned to revenue milestone achievements. Combined revenue in 2025 will likely exceed $150 million, with Amelia contributing over $45 million in recurring AI software revenue. The transaction will likely be accretive to SoundHound earnings in the second half of 2025, with meaningful revenue and cost synergies. The combined company holds $160 million in cash and $39 million in debt. Keyvan Mohajer, CEO and Co-Founder of SoundHound AI, said,"We believe the demand for voice and conversational AI is increasing and are committed to strengthening our leadership position in this growing market." SoundHound has experienced a turbulent journey since its 2021 SPAC merger, initially valued at $2.1 billion. By 2023, it laid off nearly half its workforce and secured additional funding to stabilize, TechCrunch reports. SoundHound is acquiring Amelia to expand into new financial services and healthcare sectors. This acquisition allows SoundHound to quickly enter markets with complex integration needs, as Mohajer told TechCrunch. Although the price disparity between Amelia's past funding and its sale is notable, Mohajer emphasized the strategic value of the deal in advancing both companies' growth in the competitive AI landscape. SoundHound AI stock gained 153% in the last 12 months. Cantor Fitzgerald analyst Brett Knoblauch upgraded SoundHound AI from Neutral to Overweight and raised the price target from $5 to $7. Price Action: SOUN shares are trading lower by 4.5% at $4.87 at last check Friday. Read Next: Benzinga's 'Stock Whisper' Index: 5 Stocks Investors Secretly Monitor But Don't Talk About Yet Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

SoundHound AI: Not Impressed By Amelia Deal (NASDAQ:SOUN)

Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios. Learn More " SoundHound AI, Inc. (NASDAQ:SOUN) has risen again, but not as high as the recent AI hype highs. The AI voice company has a promising future, but the business just doesn't ever scale fast enough in the dynamic AI market. My investment thesis is Neutral on the stock around $5 with another deal likely to boost revenues, but not help with the key organic growth. Unimpressive Results SoundHound AI reported solid growth for Q2'24, but the company trades based on the hype surrounding automotive and restaurant AI voice deals that never really flow into quarterly results. The company reported the following numbers: AI hype has been around for nearly two years now, and SoundHound AI reported another quarter with minimal revenues. Besides, a decent part of the growth is attributed to acquisitions in a period when companies like OpenAI and such have grown to $1 billion in annual revenue overnight. SYNQ3 and Allset have both been acquired since December to boost AI voice ordering capabilities. Neither company was included in the majority of 2023 financials. SoundHound AI reported an adjusted EBITDA loss of $13.8 million. The company is reasonably operating in a manner to approach breakeven in the 2H when revenues were already set to accelerate towards the $20-$25 million range. SoundHound AI now lists a $723 million cumulative subscriptions and bookings backlog, up from $682 million in the prior quarter. Another Deal While analyzing the Q2 results are important, the real story is the deal to acquire Amelia. The deal brings a legacy business in enterprise AI across key verticals of finance, insurance, retail and healthcare, though the press release hints at customer service contracts. Amelia is expected to be accretive in the second half of 2025 and management suggests the business has lower margins and slower growth rates. SoundHound AI would already seem to be heavily focused on a 100,000 restaurant pipeline or AI voice ordering, so the integration of another business would be distracting from an already big opportunity. The deal value immediately sets off some alarm bells as well. SoundHound AI is only paying $80 million in cash and equity for a company listed as generating over $45 million in recurring AI software revenue next year, plus other non-software revenues. In essence, SoundHound AI isn't even paying 2x 2025 sales in cash and equity for the business. SoundHound AI currently trades at nearly 17x the prior estimates for 2025 revenues of $103 million. The deal valuation is even more perplexing, with Amelia listed in the Top 50 AI software companies. The list includes the well known generative AI firms like OpenAI and Anthropic topping the list, with Amelia at #47 and SoundHound AI at #38. The other firms have valuations in the billions, similar to SoundHound AI. Even BigBear.ai (BBAI) listed at #41 has a publicly listed valuation of $300 million. The financial details of the transaction change the valuation a lot. SoundHound AI is paying $10 million in cash and ~$70 million in stock via issuing 13.1 million shares at a price of $5.35. The catch is that the company assumed $110 million in debt, having already paid off $70 million. Also, the owners of Amelia can earn 16.8 million in earnest shares starting with software revenue topping $55 million in 2025. These additional shares could increase the purchase value by up to $90 million. SoundHound AI updated financial targets based on this deal, with full year 2024 revenue now to exceed $80 million and its 2025 revenue outlook to exceed $150 million. The details suggest maybe Amelia isn't growing very fast. The consensus estimates had SoundHound AI producing $70 million in 2024 revenues, becoming $103 million next year. The Amelia revenue of $45+ million next year fits with the new $150 million target for 2025, though the numbers suggest SoundHound AI hasn't hiked their estimates despite supposedly booming demand for automotive and restaurant voice AI, including dynamic ordering at restaurants. The revenue forecast for 2024 jumps to $80 million, suggesting somewhere around $10 million from the Amelia business. SoundHound isn't clear when this deal will close. If immediately, Amelia is a $30 million business in 2024, growing at a roughly 50% clip. Again, the question is why the owners of Amelia would want to cash out at this valuation. If the deal closes later in the year, the new AI business has very limited growth more supportive of the low valuation, even when assuming the debt portion. SoundHound AI lists an expectation to have $160 million in cash and $39 million in debt at closing. The company ended Q2 with $201 million in cash, suggesting a potential offsetting cash amount to cover some of the debt payments along with the assumption of $39 million in debt. The stock has a current market cap of $1.66 billion based on the 332 million shares outstanding. The merger only boosts outstanding shares to a minimal 13 million, again questioning why Amelia holders would want in on this valuation. SoundHound AI still trades at 12x updated sales targets for 2025. The forward P/S multiple is lower, but the company will have substantially reduced organic growth rates. The market might push the stock higher based on some misunderstanding of organic sales growth dynamic when SoundHound AI reports 2025 quarters, but the gains won't hold. Takeaway The key investor takeaway is that SoundHound AI still isn't producing the growth at scale to make the stock attractive. The Amelia deal isn't as appealing as the headlines, and likely a distraction from already appealing market opportunities in automotive and restaurant voice AI. The stock might rally on some sales growth confusion after the deal closes, but SoundHound AI isn't appealing unless the stock dips back to prior lows. If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to start August, consider joining Out Fox The Street. The service offers a model portfolio, daily updates, trade alerts and real-time chat. Sign up now for a risk-free 2-week trial. Stone Fox Capital (aka Mark Holder) is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 10 years as a portfolio manager. Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential multibaggers while managing portfolio risk via diversification. Features include various model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and access to community chat and direct chat with Mark for questions. Learn more. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

SoundHound AI Stock: A Deep Dive Into Analyst Perspectives (4 Ratings) - SoundHound AI (NASDAQ:SOUN)

Analysts' ratings for SoundHound AI SOUN over the last quarter vary from bullish to bearish, as provided by 4 analysts. The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective. Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total Ratings 2 2 0 0 0 Last 30D 0 2 0 0 0 1M Ago 1 0 0 0 0 2M Ago 0 0 0 0 0 3M Ago 1 0 0 0 0 Insights from analysts' 12-month price targets are revealed, presenting an average target of $7.5, a high estimate of $9.00, and a low estimate of $7.00. Surpassing the previous average price target of $7.00, the current average has increased by 7.14%. Breaking Down Analyst Ratings: A Detailed Examination An in-depth analysis of recent analyst actions unveils how financial experts perceive SoundHound AI. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets. Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target Daniel Ives Wedbush Maintains Outperform $9.00 $9.00 Brett Knoblauch Cantor Fitzgerald Raises Overweight $7.00 $5.00 Scott Buck HC Wainwright & Co. Maintains Buy $7.00 $7.00 Scott Buck HC Wainwright & Co. Maintains Buy $7.00 $7.00 Key Insights: Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to SoundHound AI. This information provides a snapshot of how analysts perceive the current state of the company. Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of SoundHound AI compared to the broader market. Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance. Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of SoundHound AI's market standing. Stay informed and make data-driven decisions with our Ratings Table. Stay up to date on SoundHound AI analyst ratings. If you are interested in following small-cap stock news and performance you can start by tracking it here. Delving into SoundHound AI's Background SoundHound AI Inc is an innovator of conversational intelligence, offering an independent Voice AI platform that enables businesses across industries to deliver high-quality conversational experiences to customers. SoundHound AI: Financial Performance Dissected Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position. Revenue Growth: Over the 3 months period, SoundHound AI showcased positive performance, achieving a revenue growth rate of 72.86% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers. Net Margin: SoundHound AI's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -287.67%, the company may face hurdles in effective cost management. Return on Equity (ROE): SoundHound AI's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -39.86%, the company may encounter challenges in delivering satisfactory returns for shareholders. Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -15.21%, the company may need to address challenges in generating satisfactory returns from its assets. Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.59, caution is advised due to increased financial risk. The Core of Analyst Ratings: What Every Investor Should Know Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks. Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts. This article was generated by Benzinga's automated content engine and reviewed by an editor. Market News and Data brought to you by Benzinga APIs