SoundHound AI Unveils Amelia 7.0, Reports Q1 Results, and Expands in Automotive and Restaurant Sectors

SoundHound AI (SOUN) Stock Gains After Company Unveils Amelia 7.0 For Enterprises Ahead Of Q1 Results - SoundHound AI (NASDAQ:SOUN)

SoundHound AI Inc SOUN shares are trading higher by 5.3% to $9.66 during Thursday's session after the company launched Amelia 7.0, the latest version of its flagship voice AI platform, which introduces voice-enabled Agentic AI capabilities for businesses. SoundHound AI is also set to report quarterly results Thursday after the market close. Analysts expect the company to post a loss of 9 cents per share on revenue of $30.38 million. What To Know: Powered by SoundHound's Agentic+ framework, Amelia 7.0 allows companies to deploy autonomous AI agents that can understand, reason, and act across voice and text channels. Read Also: SoundHound AI Q4 Earnings: Revenue Beat, EPS Beat, Raised Guidance Heading Into 'Era Of Agentic AI' SoundHound AI says Amelia 7.0 combines low-latency automatic speech recognition, advanced natural language understanding, and enterprise customization to create seamless customer and employee experiences. The platform integrates large language model reasoning with deterministic flows and third-party integrations, offering end-to-end automation. "SoundHound is not just promising agentic AI -- we're delivering it," said EVP Michael Anderson. The company believes Amelia 7.0 marks a major step forward for enterprise AI adoption, enabling businesses to improve productivity, enhance customer service and reduce operational costs. Read Also: Clear Secure Stock Drops After Mixed Q1 Earnings Report How To Buy SOUN Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in SoundHound AI's case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. According to data from Benzinga Pro, SOUN has a 52-week high of $24.98 and a 52-week low of $3.82. SOUNSoundHound AI Inc$9.705.76%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum96.97Growth83.37Quality-Value7.87Price TrendShortMediumLongOverviewGot Questions? AskWhich AI-driven companies might benefit from Amelia 7.0?How will enterprise productivity be enhanced by AI?Which technology ETFs could leverage AI advancements?Are customer service sectors ready for AI integration?How will operational costs change with AI adoption?What industries will see growth from voice technology?Which traditional companies might struggle with AI competitors?How could SoundHound AI's growth impact its stock price?What other AI platforms are competing with Amelia 7.0?Which financial strategies could maximize returns from AI stocks?Powered ByMarket News and Data brought to you by Benzinga APIs

SoundHound AI Is Winning Over Automakers And Restaurants With Its Voice Commerce Push -- CEO Says Proprietary Polaris AI Is The Secret Weapon - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SoundHound AI (NASDAQ:SOUN)

SoundHound AI SOUN, a leader in voice artificial intelligence solutions, showcased significant year-over-year growth driven by its advanced Polaris foundation model, strategic acquisitions and a record-breaking pipeline despite missing the revenue estimates. What Happened: According to data from Benzinga Pro, SoundHound's first-quarter revenue grew by 151% to $29.1 million, but missed the consensus estimate of $30.38 million. CEO Keyvan Mohajer emphasized the strong underlying performance and the success of the company's investments. A key driver of this growth is the company's proprietary multimodal, multilingual foundation model, Polaris, which reported lower latency, higher accuracy in noisy environments, better word error rate, and extensive language support. "We've been investing in Polaris, our multimodal, multilingual foundation model, and it has proven to be a real differentiator against our closest peers," he explained. The company also credited its strategic acquisitions of SYNQ3, Amelia, and Allset for contributing to its strong performance and expanding market reach. SoundHound's voice commerce initiative attracted interest from major automotive OEMs and restaurant chains. Mohajer noted the unprecedented speed at which OEMs are pursuing proof-of-concepts for this solution. CFO Nitesh Sharan reaffirmed the company's 2025 revenue guidance of $157 to $177 million, despite a $2 million adverse impact from a customer's change of control. He also highlighted the increasing diversification of revenue streams across verticals, including automotive, restaurants, financial services, and healthcare. Looking ahead, SoundHound emphasized its record pipeline, fueled by increasing demand for its advanced voice AI solutions and the growing recognition of its technological differentiation. "We have a strong pipeline of new OEMs, and they, along with the restaurants, are very excited about our voice commerce solutions," he said. Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started See Also: Tinder Parent Match Group Cuts 13% Of Workforce After Earnings Miss, Taps Gen Z Features Like 'Double Date' To Spark Growth Why It Matters: "SoundHound continues to extend its reach and create new possibilities for real-world AI applications. The release of our complete AI agent platform delivers full, voice-enabled Agentic AI for customers across all industries," said Mohajer, co-founder and CEO of SoundHound AI. SOUN shares were lower by 51.69% on a year-to-date basis and 105.05% over a year. On Thursday, the shares closed 6.22% higher and it was 1.54% lower in premarket on Friday. The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, mixed in premarket on Friday. The SPY was up 0.28% at $566.69, while the QQQ declined 0.075% to $488.29, according to Benzinga Pro data. Benzinga Edge Stock Rankings shows that SOUN had a weaker price trend over the medium term but a stronger trend over the short and long term. Its momentum ranking was solid at 96.64th percentile, whereas its value ranking was poor at 7.98th percentile; the details of other metrics are available here. Read Next: Mohamed El-Erian Flags 'Adverse Implications' For Domestic Industries As China's Exports Rise 8% Despite 21% Drop In US Shipments Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image Via Shutterstock QQQInvesco QQQ Trust, Series 1$490.390.43%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum68.00Price TrendShortMediumLongOverviewSOUNSoundHound AI Inc$9.64-1.07%SPYSPDR S&P 500$566.920.33%Got Questions? AskWhich automotive OEMs may partner with SOUN?How could restaurants benefit from voice AI?What impact will Polaris AI have on competitors?Which financial services firms are exploring voice solutions?Are there healthcare companies adopting SoundHound's tech?How will AI advancements reshape customer engagement?What potential does voice commerce hold for new markets?Which ETFs could gain from AI tech growth?What are the risks for companies reliant on voice tech?How might strategic acquisitions affect SOUN's growth?Powered ByMarket News and Data brought to you by Benzinga APIs

SoundHound AI Stock Slides On Mixed Q1 Results, Reaffirms FY25 Outlook - SoundHound AI (NASDAQ:SOUN)

SoundHound AI Inc SOUN reported financial results for the first quarter after the market close on Thursday. Here's a look at the key details from the print. Q1 Earnings: SoundHound reported first-quarter revenue of $29.13 million, missing analyst estimates of $30.38 million, according to Benzinga Pro. The conversational AI company reported an adjusted loss of six cents per share, beating analyst estimates for a loss of nine cents per share. Total revenue was up 151% on a year-over-year basis. The company said no customer accounted for more than 10% of revenue in the quarter, highlighting revenue diversification. The company reported an adjusted EBITDA loss of $22.2 million. SoundHound ended the quarter with $246 million in cash and cash equivalents. "SoundHound continues to extend its reach and create new possibilities for real-world AI applications. The release of our complete AI agent platform delivers full, voice-enabled Agentic AI for customers across all industries," said Keyvan Mohajer, co-founder and CEO of SoundHound AI. "At the same time, our bold growth initiatives are paying dividends, and we're realizing significant cross-sell and upsell opportunities following our acquisitions." Outlook: SoundHound reaffirmed its full-year 2025 revenue guidance, continuing to expect full-year revenue in the range of $157 million to $177 million versus estimates of $166.17 million. SoundHound's management team will further discuss the quarter on a conference call with investors and analysts at 5 p.m. ET. SOUN Price Action: SoundHound AI shares were down 3.80% in Thursday's after-hours session, trading at $9.35 at the time of publication, according to Benzinga Pro. Read Next: Nebius Stock Is Rallying This Week As Amazon's Bezos Leads Funding For AI Data Unit Photo: MacroEcon/Shutterstock. SOUNSoundHound AI Inc$9.281.16%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum96.97Growth83.37Quality-Value7.87Price TrendShortMediumLongOverviewGot Questions? AskWhich AI companies might benefit from SoundHound's growth?How will SoundHound AI's revenue impact competitors?What investors are showing interest in AI platforms?Can tech stocks capitalize on SoundHound's market position?Which industries could leverage SoundHound's AI innovations?How might SoundHound influence future AI investments?What opportunities arise from SoundHound's partnerships?Will voice-enabled AI lead to new market entrants?Which companies are likely to collaborate with SoundHound?How does SoundHound's cash reserve position it against rivals?Powered ByMarket News and Data brought to you by Benzinga APIs

Analyst Expectations For SoundHound AI's Future - SoundHound AI (NASDAQ:SOUN)

Analysts' ratings for SoundHound AI SOUN over the last quarter vary from bullish to bearish, as provided by 4 analysts. In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months. Insights from analysts' 12-month price targets are revealed, presenting an average target of $16.0, a high estimate of $26.00, and a low estimate of $10.00. Highlighting a 9.19% decrease, the current average has fallen from the previous average price target of $17.62. Exploring Analyst Ratings: An In-Depth Overview A comprehensive examination of how financial experts perceive SoundHound AI is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets. Key Insights: Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SoundHound AI. This information provides a snapshot of how analysts perceive the current state of the company. Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SoundHound AI compared to the broader market. Price Targets: Analysts predict movements in price targets, offering estimates for SoundHound AI's future value. Examining the current and prior targets offers insights into analysts' evolving expectations. 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. All You Need to Know About SoundHound AI 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. The company's voice AI delivers speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants via groundbreaking AI-driven products like Smart Answering, Smart Ordering, Dynamic Drive-Thru, and Amelia AI Agents. Financial Milestones: SoundHound AI's Journey Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers. Positive Revenue Trend: Examining SoundHound AI's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 101.45% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector. Net Margin: SoundHound AI's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -748.63%, 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 -108.06%, the company may encounter challenges in delivering satisfactory returns for shareholders. Return on Assets (ROA): SoundHound AI's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -49.09%, the company may face hurdles in achieving optimal financial returns. Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.02. How Are Analyst Ratings Determined? Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions. Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders. Which Stocks Are Analysts Recommending Now? Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market. This article was generated by Benzinga's automated content engine and reviewed by an editor. SOUNSoundHound AI Inc$9.07-6.83%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum96.64Growth83.23Quality-Value7.98Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

SoundHound AI Expansion In Autos And Dining, Plus Q4 Profit Target, Fuels Bullish Analyst View - SoundHound AI (NASDAQ:SOUN)

H.C. Wainwright analyst Scott Buck maintained SoundHound AI Inc SOUN with a Buy and lowered the price target from $26 to $18 on Monday. After the market closed on Thursday, SoundHound AI released its first-quarter 2025 operating results, which included revenue of $29.1 million, just below Buck's $30.2 million estimate and $30.4 million for the Street, driven by contributions from recent acquisitions and high demand for legacy products in the automotive and restaurant space. The GAAP gross margin of 36.5% was down sequentially from 39.9% and down from 59.7% a year ago, reflecting some lower-margin businesses associated with recent M&A. Also Read: SoundHound AI Stock Slides On Mixed Q1 Results, Reaffirms FY25 Outlook Over time, Buck noted the gross margin should continue to move towards 70% levels. The combination of lower revenue, lower gross margin and lower cash operating expense resulted in an adjusted EBITDA loss of $22.2 million versus Buck's $19.0 million loss estimate. The company has a cash balance of $246 million and no debt. While the numbers were just okay compared to expectations, Buck noted several takeaways from the earnings call that should drive increasing investor optimism. These include a series of new customer announcements across multiple sectors, suggesting further diversification in the business. In addition, the company's restaurant business now exceeds 13,000 locations. An estimated $200 per month would represent $31.2 million of annual recurring revenue. Further, the analyst noted the number of locations could increase meaningfully over the remainder of 2025 and expects average monthly revenue to increase over time as additional services are added. While he noted the company could prove its ability to grow organically in 2025, $246 million of available balance sheet cash should allow the company to be opportunistic in pursuing additional M&A. Buck now modeled 2025 revenue of $164 million, down from $170 million but within management's $157 million-$177 million revenue guidance. The analyst's adjusted EBITDA estimate moves to a loss of $50.4 million but includes positive adjusted EBITDA of $0.9 million in the fourth quarter of 2025, a powerful inflection point in the business. He modeled 2026 revenue of $220 million, up 34.1% from 2025 levels, and an adjusted EBITDA loss of $26.1 million. The analyst expects 2026 visibility to improve in the coming quarters as the business scales. SOUN Price Action: SOUN stock was up 22.66% at $11.02 at publication on Monday. Read Next: SoundHound AI Is Winning Over Automakers And Restaurants With Its Voice Commerce Push -- CEO Says Proprietary Polaris AI Is The Secret Weapon SOUNSoundHound AI Inc$11.0523.1%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum96.64Growth83.23Quality-Value7.98Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

SoundHound AI Stock Sinks 8% as Revenue Misses Wall Street's Estimate. Is SOUN Stock a Buy? | The Motley Fool

In the first quarter, the AI-powered voice solutions provider continued to post strong revenue growth, but its sizable losses also continued. SoundHound AI (SOUN -8.16%) stock declined 7.8% on Friday following the conversational artificial intelligence (AI) technology provider's release of its first-quarter 2025 report on the prior afternoon. The drop is largely attributable to the quarter's revenue falling short of Wall Street's expectations. The bottom-line result was in line with the analyst consensus estimate. Investors should focus on the adjusted numbers, which exclude one-time items. Q1 2025 GAAP numbers include an accounting-only (noncash) gain related to acquisitions. Data source: SoundHound AI. GAAP = generally accepted accounting principles. Acquisitions over the last year have helped revenue growth year over year, though we do not know to what degree. In other words, we don't know the organic revenue growth rate. On the positive side, these acquisitions have enabled the company to better diversify its customer base on both individual and industry bases. No single customer accounted for more than 10% of revenue in the quarter. Investors should focus on the adjusted numbers, which exclude one-time items. Wall Street was looking for an adjusted loss of $0.06 per share on revenue of $30.4 million, so SoundHound met the bottom-line expectation but missed the top-line one. SoundHound used $19.2 million in cash to run its operation, slightly better than its operating cash flow of negative $21.9 million in the year-ago period. Free cash flow was negative $19.3 million, compared with negative $25.7 million in the year-ago period. The company ended the quarter with cash and cash equivalents of $246 million and no long-term debt. At the current cash burn rate, SoundHound's cash will last about 12.7 quarters, or just over three years. CEO Keyvan Mohajer's statement in the earnings release: SoundHound continues to extend its reach and create new possibilities for real world AI applications. The release of our complete AI agent platform delivers full, voice-enabled Agentic AI for customers across all industries. At the same time, our bold growth initiatives are paying dividends, and we're realizing significant cross-sell and upsell opportunities following our acquisitions. On the earnings call, CFO Nitesh Sharan reaffirmed the company's prior guidance as follows: SoundHound AI -- the company -- is worth watching for the simple reason that the voice artificial intelligence (AI) market is poised to be massive. That said, SoundHound AI -- the stock -- has been much too hyped by the financial press and on social media over the last year-plus, in my view. It's not the company's fault, however, that its stock price got ahead of itself due to all the hype. Sure, the company has potential -- a lot. But I maintain a healthy skepticism about its ability to be a long-term winner in the AI-powered voice tech space. (Unlike unhealthy skepticism, healthy skepticism has been said to be the basis for critical thinking and involves remaining open-minded.) Indeed, I remain open-minded, especially because it's relatively early innings in the conversational AI space. Before I get into my concerns, a notable positive is that SoundHound's cash will last about 12.7 quarters, or just over three years, at its current cash burn rate. What are my main concerns? The first has to do with the company growing through a large number of acquisitions. Growth strategies that rely significantly on acquisitions are challenging to pull off well, as they involve integrating often-diverse corporate cultures. Moreover -- and this is the main reason I do not like these growth strategies -- they can obscure a company's lack of robust organic (internal) revenue growth and issues with its own core products and tech. It's simply not possible for investors to accurately gauge such a company's performance unless it regularly reveals its organic growth rates (growth excluding that from contributions made by significant acquisitions made within the past year). The second main issue involves profitability -- or, more accurately, the lack thereof. Granted, it's not unusual for newly public tech companies to prioritize revenue growth over achieving profitability. But the lack of progress toward profitability is just one concern. My other concern is how things have played out relative to profitability guidance. The company initially guided for positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in the fourth quarter of 2023. Five quarters later, its adjusted EBITDA is negative $22.2 million. When that milestone wasn't hit, it guided for achieving positive EBITDA for full-year 2025. Currently, guidance includes achieving positive adjusted EBITDA by the end of the year (which likely means in the fourth quarter). One question that comes to mind is whether the current profitability outlook is possible now only because of the $80 million Amelia acquisition made in August 2024. Lastly, competition in conversational AI applications is already tough, as the players in the auto end-market, in particular, include big tech companies with tons of cash. And competition promises to heat up further. Whether SoundHound has enough competitive advantages to grow revenue at scale and generate solid profits remains to be seen. Along with the big techs, investors should watch Cerence (CRNC 5.58%) in the voice AI space. In October 2019, this company spun off from Nuance Communications (which has since been acquired by Microsoft). Cerence has had execution issues, but with a high-profile CEO (former Intel CEO Brian Krzanich) installed last fall, the company's performance could improve. Again, I'm remaining open-minded about SoundHound AI, and so should investors.

SoundHound AI Shares Sink, but With Revenue Surging, Is Now the Time to Buy the Stock? | The Motley Fool

Despite reporting soaring revenue in the first quarter, SoundHound AI (SOUN 22.61%) saw its shares sink as the number came in below analyst expectations. To say SoundHound's stock has been volatile this past year is an understatement. The company has seen its share price cut 44% in 2025, but it's still up around 115% over the past year, as of this writing. With revenue surging and the stock still down, is now the time to jump in? Rapid sales growth was once again on full display in the first quarter, with revenue skyrocketing 151% to $29.1 million. The company's adjusted net loss improved slightly from $0.07 per share to $0.06 per share. Analysts were looking for a loss of $0.06 on revenue of $30.4 million, as compiled by FactSet. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) showed a loss of $22.2 million compared to $15.4 million a year ago. It had an operating cash outflow of $19.2 million in the quarter. Its gross margin continues to remain under pressure at just 36.5%, which is low for a company that generates revenue through royalties and subscriptions, as SoundHound does. When its software is installed, it gets royalty payments based on measurements like usage, unit sales, or transactions. The business' platform is also sold by subscriptions for service-based businesses. SoundHound AI is looking to get back to gross margins north of 70% in the medium term. The company last had gross margins above 70% in the fourth quarter of 2023, when they reached 77%. However, since its acquisition of Amelia AI in August of 2024 for $80 million, gross margins have come under a lot of pressure. The company bought Amelia to help get into new market verticals. Amelia is especially strong in the healthcare, financial services, and retail industries, especially in the area of customer support. This is complimentary to SoundHound's strength in the automobile and restaurant industries. The acquisition also helped fill some technology gaps, and is meant to help SoundHound become a complete commerce voice ecosystem that can handle sophisticated interactions across industries. Some of the gross margin decline is due to the amortization of intangible assets that the company took on with its Amelia acquisition. This is a noncash expense, and why its adjusted gross margin of 50.8% is much higher than its GAAP adjusted gross margins of 36.5%. However, Amelia's business also came with some lower-margin offerings that management is looking to improve as contracts roll off. In its automotive segment, SoundHound is set to take advantage of carmakers' shift away from partnering with big tech companies for their in-vehicle voice-recognition. Management said it was in active talks with several vehicle companies on this issue. It said the situation is similar with its restaurant platform, where companies are looking to move away from cumbersome legacy answering systems to artificial intelligence (AI) ordering solutions, with its product gaining momentum. The company just launched its Amelia 7.0, which will allow customers to deploy fleets of AI agents that can work with each other to perform tasks without the need for human intervention. It said it is the only agentic AI platform that combines enterprise-ready AI agents with world-class voice AI. Management maintained its full-year forecast calling for revenue between $157 million and $177 million. It's the first time the company has not increased its guidance when reporting earnings. It expects to reach adjusted EBITDA profitability by the end of 2025. SoundHound is growing revenue rapidly but still has work ahead of it. Gross margins must be returned to their prior higher levels, while it also needs to become EBITDA and cash flow positive. The company has a big potential opportunity as it looks to merge voice and agentic AI, because there are an enormous number of applications across industries for this technology. If it can emerge as a leader in this area, the upside is tremendous. SoundHound trades at a price-to-sales (P/S) multiple of 35 times the consensus analyst estimate for 2025. Given its revenue hypergrowth, that wouldn't be a completely outrageous valuation if it had typically high software gross margins. But with its adjusted gross margins in the 50% range, that makes the stock more pricey. Overall, SoundHound AI has an attractive opportunity, but its valuation and early stage nature make it a highly speculative investment at this time.

Where Will SoundHound AI Stock Be in 3 Years? | The Motley Fool

SoundHound AI (SOUN 4.71%) stock has been hammered on the market in 2025, down 44% as of this writing. Factors leading to this decline include Nvidia exiting its stake in the voice artificial intelligence (AI) solutions provider earlier this year, the broader correction in technology stocks thanks to the tariff-related turmoil, and most recently, the company's first-quarter earnings report. SoundHound released its Q1 results on May 8. Though the company reported a big increase in its revenue during the quarter and reduced its adjusted loss, it slightly missed Wall Street's top-line estimates. This led investors to press the panic button. However, it may be a good idea to start accumulating SoundHound AI stock, as the fast-growing demand for conversational AI solutions could help the company regain its mojo and head higher over the next three years. Let's look at the reasons why. The conversational AI market is currently in its early phases of growth. Grand View Research estimates that this market was worth $11 billion last year, but it is forecast to clock a compound annual growth rate (CAGR) of nearly 24% through the end of the decade. The market's growth is expected to be driven by the adoption of voice AI solutions in customer support services and consumer applications across multiple industries. What's worth noting is that SoundHound AI is growing at a faster pace than the conversational AI market. Its revenue in the first quarter of 2025 increased a whopping 151% from the year-ago period to $29.1 million. That was slightly lower than the $30.4 million consensus estimate. However, SoundHound management points out that a transition taking place by one of its customers reduced its quarterly revenue by $2 million. It now expects to recognize that revenue later in the year. So, investors shouldn't read too much into the company's revenue miss last quarter, especially considering that it has reaffirmed its full-year guidance. SoundHound's revenue could nearly double in 2025 at the midpoint of its guidance range of $157 million to $177 million, suggesting that the company is confident about outpacing the broader market's growth. Importantly, SoundHound is likely to sustain its strong revenue growth for the next couple of years as well, given the healthy growth in the company's customer base and its focus on pushing the envelope on the product development front in the voice AI market. The company is not only bringing new customers on board, but it is also seeing an expansion in the adoption of its offerings in various verticals such as restaurants, healthcare, automotive, telecom, and others. Moreover, it is tapping emerging niches such as voice commerce and AI agents within the conversational AI market. That's a smart thing to do, as according to one estimate, the voice commerce market could almost triple in size over the next five years. SoundHound says that multiple restaurants and automakers have either integrated or are testing the company's voice commerce solutions. This could open another solid growth opportunity for SoundHound as it points out that "consumers are showing a strong appetite for this new convenient modality." Meanwhile, SoundHound is also looking to cut its teeth in the fast-growing agentic AI market. It recently released a new platform that enables customers to build and deploy voice-enabled AI agents "capable of understanding, reasoning, and acting with an intimate knowledge of their enterprise across a variety of channels." SoundHound management claims that its voice AI agent platform can tackle complex customer queries without human intervention, helping clients improve the efficiency of customer service operations. This, again, should give SoundHound AI's growth a big long-term boost since the size of the voice AI agent market could grow from just $2.4 billion last year to more than $47 billion in 2034. All of this indicates that there is a strong probability of SoundHound sustaining its healthy growth levels for the next three years. SoundHound's 2025 guidance suggests that it could end the year with $167 million in revenue as the midpoint of its guidance range. That would be a potential jump of 97% from 2024 levels when its top line increased by 85%. Assuming SoundHound's growth slows down and its top line grows by 50% in both 2026 and 2027, its annual revenue could hit $375 million after three years. The stock is currently trading at an expensive 40 times sales, though that seems justified considering its accelerating growth and the fast-growing end-market that it serves. But even if SoundHound trades at half of its current sales multiple after three years, its market cap could hit $7.5 billion (based on the $375 million revenue estimated above). That represents a potential upside of 70% over the next three years from its current market cap. However, don't be surprised to see SoundHound growing at a faster pace than that since its growth is unlikely to slow down, and its top line could be much larger than what's projected in this article, considering its potential revenue pipeline. That may result in a stronger upside, as the market could continue rewarding it with a premium valuation in the long run, which is why growth investors can consider accumulating this AI stock following its big slide in 2025.

SoundHound AI Non-GAAP EPS of -$0.06 in-line, revenue of $29.13M misses by $1.25M (NASDAQ:SOUN)

SoundHound AI press release (NASDAQ:SOUN): Q1 Non-GAAP EPS of -$0.06 in-line. Revenue of $29.13M (+151.3% Y/Y) misses by $1.25M. Business Outlook SoundHound reaffirms its full year 2025 revenue outlook to be in a range of $157 - $177 million Shares +2.37%. More on SoundHound AI From Growth Darling To A Cautionary Stock: Reasons To Sell SoundHound AI Now SoundHound AI: Another Steep Plunge - Why The Bottom Could Be Near SoundHound AI: R&D Disadvantage Against Giants Makes Tech Edge Unsustainable SoundHound AI Q1 2025 Earnings Preview SA analyst upgrades: GOOG, AMD, DIS, NOC, CSCO, NFLX, TSM, ASML

SoundHound AI: A Breakout Move Higher Is In The Making (NASDAQ:SOUN)

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