SoundHound AI Reports Strong Q4 Results, Raises 2025 Guidance Amid AI Voice Technology Growth

Can SoundHound AI Stock Go Parabolic After This Event? | The Motley Fool

SoundHound AI (SOUN 4.48%) was having a terrible time on the stock market so far this year, but all that changed after the company released its fourth-quarter 2024 results on Feb. 27. Shares of the company that's known for providing voice artificial intelligence (AI) solutions to enterprises surged more than 17% the day following its earnings release. The stock's terrific jump was driven by its better-than-expected numbers along with improved guidance for 2025. Let's take a closer look at SoundHound's quarterly report and check if the company's catalysts are strong enough to support a parabolic jump in its stock price. SoundHound's 2024 revenue increased by an impressive 85% to nearly $85 million, exceeding the higher end of its original guidance. The company's 2025 guidance turned out to be the icing on the cake as it is expecting its top line to nearly double at the midpoint of its $157 million to $177 million range. What's worth noting is that SoundHound's original 2025 revenue guidance was in a range of $155 million to $175 million. The fast-growing demand for the company's conversational AI solutions across multiple sectors explains why the company is confident of accelerating its revenue growth this year. SoundHound AI reported a slew of customer wins across different segments in its latest press release. The company has already built a solid customer base in the automotive and restaurant industries, and it is now expanding into more areas such as healthcare, retail, telecom, energy, and even government agencies. What's more, the company is looking to push the envelope by launching agentic AI tools in a bid to capitalize on the next hot trend in AI. Agentic AI is a technology that allows AI agents to act autonomously to solve problems, take actions, and make decisions with minimal human oversight. According to one estimate, the global agentic AI market could grow by almost 40x over the next decade, generating close to $200 billion in annual revenue by 2034. This market could open a solid growth opportunity for SoundHound. The company can make its conversational AI voice assistants more capable with agentic AI tools. Not surprisingly, SoundHound AI is already working on deploying agentic AI functions on its platform. As CEO Keyvan Mohajer remarked on the latest earnings conference call: "We have seen exciting results in the agentic AI tools we've created and are building and testing agentic use cases in every major vertical. We will bring these to commercial deployment soon, and this will be a game changer for our customers and the industry." So, it won't be surprising to see SoundHound's already solid revenue pipeline improving further. The company ended 2024 with $1.2 billion in cumulative subscriptions and bookings backlog, an increase of 75% from the prior year. SoundHound management points out that this metric is "based on contracts signed and gives a snapshot of the revenue we expect to realize over the coming several years." SoundHound adds that this metric has the potential to increase further thanks to the new contracts that it is signing along with the "significant cross-sell and upsell opportunities we're seeing, having added new SKUs and use cases across verticals." So, the outstanding growth that SoundHound is forecasting for 2025 seems sustainable in the coming years as well. A parabolic move refers to a rapid rise in the stock price in a short time, akin to the right side of a parabolic curve. SoundHound stock is no stranger to such moves, having witnessed a parabolic jump last year after it emerged that AI pioneer Nvidia had bought a small stake in the company. Of course, Nvidia's recent move to exit its SoundHound position led to a sharp decline in the latter's stock price last month. However, its latest quarterly report shows that investors now have confidence in SoundHound's prospects. Even analysts are expecting a 30% jump in SoundHound's stock price over the next year, as its 12-month median price target of $13.50 indicates. What's interesting to note here is that analysts are expecting this AI stock to fly higher even though it is trading at an expensive 43 times sales. But then, we have already seen that SoundHound can justify its expensive valuation. The company's subscriptions and bookings backlog is so strong that it easily exceeds its 2025 revenue forecast and analysts' revenue expectations for 2026. As a result, there is a good chance that SoundHound's results could continue to exceed expectations, which might help this stock make a parabolic move and head higher in the long run as well.

SoundHound AI Just Gave Investors Fantastic News. Time to Buy This Dominant Artificial Intelligence (AI) Stock?

SoundHound AI (SOUN -1.49%) was one of 2024's top-performing stocks, rising 836%. However, 2025 hasn't been so kind, as the stock has fallen 45%. But investors may have just gotten some good news that could reverse SoundHound AI's fortunes in 2025. The company recently reported fourth-quarter results, and to say they knocked it out of the park is an understatement. Is this enough of a catalyst to reverse the stock? Let's find out. SoundHound AI posted fantastic Q4 growth numbers SoundHound AI does exactly what its name sounds like: It allows AI users to prompt models with audio inputs. This is incredibly useful, as generative AI models normally require text input to start the process. This isn't always feasible, such as when you're in a drive-thru or driving a car. These are just a few places that generative AI can affect (automating drive-thru systems and acting as a digital assistant while driving), and SoundHound has already made headway in those markets. It also has a presence in other sectors, like healthcare, financial services, insurance, and travel. The sky is the limit as to what can be automated with SoundHound's tools, as any time you talk to a human over the phone could be a potential target for SoundHound's software. This massive market opportunity is why many investors were so bullish on the stock in late 2024, as the company's growth is starting to take off. In Q4, SoundHound posted revenue of $34.5 million, which was up 101% year over year. This exceeded management's guidance by about $1 million. Although they gave preliminary 2025 guidance in the third quarter, they also bumped that range up. Originally, they expected between $155 million and $175 million in 2025, but now they project between $157 million and $177 million. This strong guidance indicates revenue will about double in 2025, which is why investors are excited about the stock. One thing to note is that SoundHound isn't profitable. However, it has nearly $200 million in cash on its balance sheet with no debt and is projecting to turn an EBITDA profit by the end of the year. While this isn't true profitability, it is a key step along the way, and one that investors should know about. SoundHoundAI's stock is much cheaper than it was just two months ago But is this enough to turn around the stock? After all, the selling pressure has been incredibly high in 2025. SoundHound's stock was heavily sold off at the start of the year because of its premium valuation. It entered the year valued at just under 100 times sales, but now sits at a much more reasonable 49 times sales -- which is still a very expensive valuation. SOUN PS Ratio data by YCharts. However, if the company doubles its revenue year over year, this price could be justifiable. Looking into the future, SoundHound has an important metric known as revenue backlog. This is the current value remaining on all the contracts it has signed. While this isn't a guarantee of revenue, it gives investors an idea of how much growth could come over the next few years. When this revenue will be recognized is also impossible to know, so this figure should be seen as an indicator, not a guiding light. SoundHound's backlog in Q4 was $1.2 billion, up 75% year over year. This indicates that we will see some big growth even past 2025, so SoundHound's stock price may not be too outlandish at these levels. So, if you're looking to get into SoundHound's stock, I'd say do it in small bits. The quarterly report could be a massive catalyst for a turnaround. However, it could also be just a quick breather from the sell-off, and the stock could continue its downward spiral. Still, the business looks strong, and there are reasons to be excited about the stock. SoundHound AI should be a successful long-term investment, but there may be some short-term pain.

Is SoundHound AI a Buy? | The Motley Fool

SoundHound AI (SOUN -5.86%) delivered a blowout fourth-quarter earnings report to cap off a transformative year. The voice artificial intelligence (AI) pioneer posted a spectacular 101% year-over-year increase in revenue for the period ended Dec. 31, while the adjusted earnings-per-share (EPS) loss of $0.05 was narrower compared to the $0.08 loss Wall Street estimated. The results were strong enough for management to raise its full-year 2025 growth outlook, projecting confidence for further operating momentum. The update is welcome news for shareholders who have faced a roller coaster of volatility, as the stock is down about 45% year to date, following a monster rally in late 2024. Are shares of SoundHound AI a buy now? Here's what you need to know. Artificial intelligence remains a major stock market investing theme in 2025, with companies rapidly embracing the technology to automate workflows, improve productivity, or enhance customer experience. While much of the magic happens behind the scenes through machine learning and large language models (LLMs), SoundHound AI stands out as a leader in the emerging field of conversational AI. The company's intuitive voice-powered AI communications solutions support 25 languages and offer significant advantages over text-based interfaces. SoundHound AI has found success partnering with leading automakers integrating the company's in-vehicle assistant with generative AI capabilities as central to the infotainment and vehicle intelligence systems. The proprietary technology is also found in several consumer devices such as smart TVs and appliances. Perhaps the biggest development over the past year has been the company's momentum in agentic AI customer service and employee experience applications as a new growth driver. In this case, AI agents respond to complex inquiries, autonomously performing tasks and making decisions on behalf of users. The practical use cases cover everything from restaurant ordering and phone answering systems to potentially replacing entire call center operations. Comments by CEO Keyvan Mohajer highlighted how these new capabilities should continue to see accelerated demand that the company is well-positioned to capture. During the Q4 earnings conference call with investors, Mohajer said: Agentic AI introduces a new dimension to our platform, expanding its capabilities and impact. It is an inevitable evolution in AI functionality for our customers. This evolution comes as AI adoption moves from experimentation to necessity. Businesses are rapidly embracing AI. And as they do, SoundHound is in a position of strength. When thinking about SoundHound AI as a possible investment opportunity, the numbers speak for themselves. 2024 revenue reached $84.7 million, an increase of 85% from 2023. More impressive is the expectation for an even stronger annual growth rate this year with the company targeting 2025 revenue between $157 million and $177 million, an annual increase of 97% at the midpoint. Management is citing a cumulative subscriptions and bookings backlog of nearly $1.2 billion as a measure of customer activity based on contracts signed, offering a snapshot of the revenue it expects to realize over the coming several years. While the business is not currently profitable, management expects to achieve positive adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) by the end of this year. The sense is that SoundHound AI is still in the early stages of a significant market opportunity leveraging its disruptive voice-powered agentic AI platform. That runway helps to justify the premium valuation for shares of SoundHound AI trading at 26 times its 2025 revenue estimate. While the level is objectively pricey relative to the broader stock market and even AI leader Nvidia, at a forward P/S ratio of 15, investors will be hard-pressed to find a different stock with the level of growth SoundHound AI is presenting. There's a lot to like about SoundHound AI as a differentiated pure-play AI software company. Considering the latest update, which reaffirmed the company's potential, I believe the stock is ready to resume its upside trajectory. It likely won't be a straight line higher, but investors willing to weather some stock market volatility can find a place to buy SoundHound AI shares for a diversified portfolio.

Is SoundHound AI Stock a Buy Now? | The Motley Fool

Shares of SoundHound AI (SOUN 0.92%) have been on a wild ride over the past year. The provider of artificial intelligence (AI)-based voice tech saw its stock hit a 52-week low of $3.50 last April, but by December, shares soared to a high of $24.98. That upward trajectory made an about-face in 2025, especially after AI darling Nvidia sold its stake in the company. As a result, SoundHound stock plunged more than 45% this year through the end of February. Does its share-price fall mean now is a good time to buy SoundHound stock? Or is the decline a warning sign to stay away? To figure out if the company is a good investment for the long haul, let's examine SoundHound in more depth. SoundHound supplies a voice-activated AI platform for businesses. This technology is used to enable in-car voice commands, answer customer service calls, and accept fast-food drive-through orders. The company transformed its business in 2024 with some key acquisitions. These purchases enabled the company to diversify its revenue, expanding into industries beyond automotive, which previously accounted for 90% of its income. Now, no single vertical market contributes more than 25% of the company's total revenue. This means the company is no longer dependent on a single industry and is more resilient to economic downturn in a given sector. Its customers include automakers Stellantis and Hyundai, drug manufacturer Teva Pharmaceuticals, and tech company Fujitsu. And in the fourth quarter of 2024, SoundHound added one of the largest electric utilities in the U.S. as a customer. Thanks to the acquisitions, SoundHound generated record revenue of $34.5 million in Q4, a 101% increase over the prior year. It wrapped up 2024 with a total of $84.7 million in sales, which represented an 85% year-over-year increase. SoundHound is confident its 2024 prosperity will continue in 2025, forecasting between $157 million and $177 million in sales for this year. That's not only a significant jump up from 2024's $84.7 million, it's also a big increase from SoundHound's original estimate of $100 million introduced a year ago. This illustrates the strong business growth the company is experiencing. SoundHound's sales success didn't lead to profitability, however. The company exited 2024 with a full-year net loss of $350.7 million. This is a 294% increase compared to 2023's loss of $88.9 million due to costs associated with its acquisitions. Moreover, the purchases eroded SoundHound's gross margin as it took over less profitable businesses. The company's 2024 gross margin dropped to 48.9% from the healthy 75.4% it enjoyed in 2023. That said, SoundHound management believes the company can achieve operational efficiencies that will "drive meaningful improvement in our gross margins, ultimately driving us back to the 70%-plus levels we have historically realized," said CFO Nitesh Sharan. SoundHound is successfully expanding its business, but as its roller-coaster share price reveals, it's a volatile stock. Nvidia's sale of its SoundHound investment was interpreted by Wall Street as a bad sign and caused a sell-off. Nevertheless, Wall Street's reaction was unwarranted. SoundHound is one of Nvidia's partners in the latter's automotive technology business and will participate in Nvidia's GTC conference in March. Although SoundHound is not yet profitable, its goal to return to over 70% gross margin is an indication of its intention to trim costs, improve operational efficiency, and eventually reach profitability. The company was willing to take a short-term hit to gross margin in exchange for substantial expansion of its business. That was a smart decision by SoundHound's management, since its long-term growth potential is strengthened with the acquisitions as demonstrated by its optimistic 2025 full-year outlook. Also, the company exited 2024 with an excellent balance sheet. Its Q4 assets totaled $553.9 million with a cash pile of $198.2 million. Total Q4 liabilities were $371.3 million with no debt despite last year's acquisitions. That illustrates the company's financial prudence. As a result of its many strengths, SoundHound is a worthwhile long-term investment. Moreover, the company's recent share-price decline, combined with strong estimated 2025 sales, caused its stock's forward price-to-sales (P/S) ratio to drop to levels similar to a year ago before its share price took off. The P/S ratio measures how much investors are willing to pay for every dollar of revenue. Its drop suggests SoundHound stock is more reasonably valued as of the time of writing. This makes now a promising time to buy shares. Still, because it is a volatile stock, only investors with a high risk tolerance should consider investing in SoundHound AI.

Why SoundHound AI Stock Soared Higher Today | The Motley Fool

Shares of SoundHound AI (SOUN 15.19%) have been beaten up in the first two months of the year. The stock broke out last year, but entered today down more than 50% so far in 2025. The provider of voice artificial intelligence (AI) solutions announced a fourth-quarter adjusted loss of $0.05 per share, with sales of $34.5 million. However, the stock is soaring today, as the company beat expectations and management also raised 2025 guidance. At 11:30 a.m. ET, shares were trading slightly off the morning high, up by 15%. One reason SoundHound stock took off last year was word that AI leader Nvidia purchased shares in the fall of 2023. Investors likely wondered if that would lead to a more formal partnership between the companies. But in the latest Securities and Exchange Commission (SEC) filing of its holdings, Nvidia showed it had sold all of its SoundHound stock. That report in February triggered a sell-off in the stock. But today's earnings report has investors pouring back in. Revenue jumped 85% year over year in 2024, coming in at the high end of the company's guidance range. Management also raised revenue guidance for 2025. The midpoint of its new range -- $167 million -- implies sales will accelerate in 2025 and could double from 2024 results. SoundHound CEO Keyvan Mohajer also tried to soothe investor concerns over Nvidia's share sale. He called the stock sell-off an overreaction. In an interview with Barron's, he suggested that Nvidia's investment may have been to help create an ecosystem and an alliance, which it had already accomplished. It's promising that the company had record revenue in the fourth quarter and sees accelerating growth this year. But even with the recent decline, shares are still selling at a premium. SoundHound's forward price-to-sales (P/S) ratio stands at about 25. That's an extremely high valuation and more than takes into account next year's growth and beyond.

SoundHound AI Sank Despite Initially Posting Gains Today -- Is the Stock a Buy?

SoundHound AI (SOUN -4.62%) stock saw wild trading Monday and ended the day down 4.6% despite having been up as much as 7.8%. Meanwhile, the S&P 500 index slipped 1.8% in the session, and the Nasdaq Composite index fell 2.7%. SoundHound AI wound up posting a significant sell-off today due to risks for artificial intelligence (AI) company valuations and broader macroeconomic concerns. Reports emerged recently confirming that China was skirting U.S. export bans and still gaining access to Nvidia's most advanced AI processors by buying them from third-party sellers. Sell-offs intensified after President Trump confirmed that new tariffs on Canada and Mexico would go into effect tomorrow. Is SoundHound AI stock a buy now? There shouldn't be any doubts about it -- SoundHound is a high-risk stock. It's got some strong, early positioning in the conversational AI market, but the space is still young and likely to become home to a growing number of resource-rich competitors. Along those lines, Amazon has been showing off its next-gen conversational Alexa service and generating positive buzz. SoundHound AI also trades at a growth-dependent valuation even after its sell-offs this year. The company is priced at approximately 24.6 times this year's expected sales and isn't expected to be profitable in 2025. On the other hand, the continued valuation pullback comes on the heels of a pretty encouraging fourth-quarter report last week. Sales for the period beat expectations, and the company raised its sales target for this year to be between $157 million and $177 million -- an improvement of $2 million on both the high and low ends of the range. SoundHound AI is still a very risky stock and will continue to see high volatility in the near term, but it looks like a better buy now that it's beaten Q4 expectations and continues to see its share price fall.

Why SoundHound AI Is Falling Again Today -- Is the Stock a Buy Right Now? | The Motley Fool

SoundHound AI (SOUN -2.13%) stock is seeing another big valuation pullback in Tuesday's trading. The conversational artificial intelligence (AI) company's share price was down 5.7% as of 2 p.m. ET and had been off as much as 13.7% earlier in the session. SoundHound AI is getting hit with big sell-offs after the company revealed that it will be delaying the filing of its annual 10-K report with the Securities and Exchange Commission (SEC). The company's share price is also getting pressured by ongoing investor concerns about macroeconomic and geopolitical risk factors. SoundHound said that it was delaying the filing due to complexities involved with its acquisitions of Synq3 and Amelia last year. The delay is raising concerns that the company might have to restate its previously reported results with wider-than-expected losses. The situation is adding another source of uncertainty for the stock's outlook, and investors are selling shares in response. The stock is now down 51% across 2025's trading. Macroeconomic and geopolitical risk factors and general valuation concerns have been prompting a substantial retracement for growth stocks this year, and the Nasdaq Composite index is now down more than 5% across the stretch. SoundHound AI's delayed 10-K filing has introduced another bearish catalyst, and the highly growth-dependent stock could continue to see valuation pressures until the filing issue is resolved or the macro picture starts shifting in brighter directions. On the other hand, investors shouldn't have to wait too long for the company's annual report to be submitted -- as the company says that it will have the report in by March 18. Given the relatively short turnaround, it's possible that the issues SoundHound is looking at are relatively minor. With the conversational AI specialist coming off of a strong beat-and-raise quarterly report last week, risk-tolerant investors might want to treat the pullback as a buying occasion.

SoundHound AI stock surges 9.7% on earnings beat, strong guidance By Investing.com

SANTA CLARA, Calif. - SoundHound AI , Inc. (NASDAQ:SOUN), a leader in voice artificial intelligence, saw its shares jump 9.7% after reporting fourth quarter earnings that beat analyst expectations and providing strong guidance for 2025. The company reported Q4 adjusted earnings per share of -$0.05, surpassing the analyst estimate of -$0.09. Revenue for the quarter came in at $34.5 million, above the consensus estimate of $33.74 million and representing a 101% increase YoY. For the full year 2025, SoundHound AI raised its revenue outlook to a range of $157 million to $177 million, with the midpoint slightly above the analyst consensus of $165.3 million. "We had a breakthrough year, expanding our leadership position in voice and conversational AI through major customer wins, expanded partnerships, groundbreaking generative AI innovation, and strategic acquisitions," said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI. The company reported full year 2024 revenue of $84.7 million, an 85% increase YoY. SoundHound AI ended the year with nearly $200 million in cash and no debt. SoundHound AI highlighted its expanding customer base across various industries, including restaurants, healthcare, automotive, and financial services. The company is also positioning itself at the forefront of the emerging Agentic AI trend.

1 Artificial Intelligence Stock That Can Thrive in America's New Economy

America's shifting trade landscape is creating a new playbook for savvy investors. The Trump administration's protectionist policies have sent traditional investment strategies into a tailspin, with tariffs and anti-globalization measures transforming market dynamics almost overnight. While many investors retreat to defensive positions, a broad-based technological revolution is steadily gaining momentum beneath the surface. Artificial intelligence (AI) represents this new paradigm's ultimate defensive growth play. As companies face rising costs and supply chain complexities, AI solutions that enhance efficiency and reduce human capital requirements are becoming mission-critical rather than optional. This technological imperative transcends traditional market cycles, creating resilient investment opportunities for those willing to look beyond the headlines. SoundHound AI (SOUN 17.48%) exemplifies this emerging investment thesis. The company's voice recognition technology -- deployed across automotive, restaurant, and smart device ecosystems -- addresses critical business challenges exacerbated by today's economic pressures. Here's why this under-the-radar AI player deserves your attention right now. Record growth positions company for new economic reality SoundHound AI demonstrated remarkable growth momentum throughout 2024, positioning the company advantageously as the economic landscape begins to shift in early 2025. The company just reported fourth-quarter revenue of $34.5 million, representing 101% year-over-year growth. This impressive performance capped a breakthrough year, with full-year revenue reaching $84.7 million, up 85% from the previous year. More telling than past performance is the company's confidence in its future trajectory. SoundHound raised its revenue outlook for 2025 to between $157 million and $177 million, signaling strong demand for its AI-powered voice solutions. And with nearly $200 million in cash and zero debt, the company sports a substantial runway to execute its expansion strategy without near-term financing concerns. Diversified market penetration creates resiliency What makes SoundHound particularly resilient is its strategic diversification across multiple sectors. Unlike AI companies narrowly focused on a single industry, SoundHound has established footholds in numerous verticals that benefit from voice-enabled automation. In restaurants, SoundHound works with over 30% of the top 20 quick service restaurant brands, including Burger King UK, Church's Texas Chicken, and Whataburger. Its phone ordering technology has processed hundreds of millions in restaurant orders and surpassed 100 million customer interactions. The company is also rapidly expanding in healthcare, partnering with major systems including Duke Health and Wellstar Health System. This sector is particularly noteworthy as healthcare providers seek efficiency solutions amid staffing shortages and cost pressures. In automotive, SoundHound continues gaining traction with electric vehicle manufacturers including Lucid Motors, and has deployed its voice assistant across multiple Stellantis brands in Europe. This automotive integration places SoundHound at the convergence of two rapidly evolving markets, AI technology and next-generation transportation, magnifying its growth potential. Beyond these core verticals, SoundHound has strategically expanded into high-value sectors including retail, energy, government services, banking, and telecommunications. Each of these industries faces intensifying pressure to reduce operational costs while improving customer experience, creating fertile ground for voice AI adoption. As labor costs rise and consumer expectations for seamless AI interactions grow, SoundHound's proven deployment expertise positions it to capture significant market share across this diverse enterprise landscape. In short, this is the ground floor of an emerging trend that's likely to sweep the globe. Pioneering technology offers competitive advantage Beyond its diversified customer base, SoundHound is strategically positioned at the forefront of two emerging AI trends: agentic AI and voice commerce. These two themes are widely expected to fundamentally alter how commerce is conducted and, quite frankly, how society operates. The company recently unveiled the first-ever in-vehicle voice commerce platform, enabling seamless food ordering while driving. This innovation represents a significant advancement in merging AI, commerce, and automotive technologies, potentially creating a massive new revenue stream as voice shopping gains acceptance. SoundHound is also leading development of agentic AI capabilities, which enable AI systems to autonomously perform complex tasks on behalf of users. As CEO Keyvan Mohajer stated in the company's Q4 earnings release, "As we move into the era of agentic AI, we are uniquely positioned to capitalize on this evolving category." The big picture For investors navigating America's new economic landscape, SoundHound represents more than just another AI stock. It stands as one of the first companies to successfully deploy AI-powered software at massive scale across multiple industries simultaneously, a critical distinction in a sea of theoretical AI plays. Unlike many AI companies still developing future applications, SoundHound has already achieved what others merely promise. Its voice recognition technology processes millions of real-world customer interactions daily across restaurants, vehicles, healthcare systems, and more. This widespread deployment provides invaluable data advantages while competitors remain in proof of concept stages. The implications extend far beyond SoundHound itself. As one of the pioneers in practical AI implementation, the company offers a preview of the coming widespread disruption. Voice interfaces powered by sophisticated AI will fundamentally transform how consumers interact with businesses across entire economic sectors, significantly altering traditional customer engagement models, while simultaneously creating entirely new commerce channels. For forward-thinking investors, SoundHound represents both a compelling individual opportunity and a window into broader economic transformation. As industries from fast food to healthcare undergo AI-driven reorganization, early movers with proven deployment experience stand to capture disproportionate value. SoundHound's accelerating growth, diverse implementations, and technological leadership position it at the vanguard of this disruptive wave. Put more succinctly, SoundHound stock may be a once-in-a-lifetime investing opportunity. That may sound hyperbolic, but it's hard to overstate the opportunity inherent in this transformational technology.

Should You Buy SoundHound AI Stock Right Now in March 2025?

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

SoundHound AI: Deep Selloff Triggers Great Buying Opportunity (Rating Upgrade) (NASDAQ:SOUN)

Combined with the recent bounce from the 200-day moving averages, SOUN is rather compelling for opportunistic high growth oriented investors. SOUN Is More Attractively Valued After The Recent Selloff - Offering Opportunistic Investors With Improved Entry Points We previously covered SoundHound AI, Inc. (NASDAQ:SOUN) in November 2024, discussing how its high-growth trend and strategic acquisitions had previously I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles. Analyst's Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. 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 analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss. 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.

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

SoundHound AI, Inc. SOUN shares are moving higher on Friday after the company reported better-than-expected fourth-quarter earnings and raised its fiscal-year 2025 guidance on Thursday after the market closed. What To Know: The company reported an adjusted loss of 5 cents per share, missing analysts' estimate of a loss of 10 cents per share. In addition, it reported sales of $34.54 million, beating analysts' estimate of $33.69 million, and representing a 101% year-over-year increase. The company raised its sales guidance for fiscal-year 2025. It now sees revenue from $157.00 million to $177.00 million, versus analysts' estimate of $165.26 million. SoundHound previously expected sales from $155.00 million to $175.00 million. "We had a breakthrough year, expanding our leadership position in voice and conversational AI through major customer wins, expanded partnerships, groundbreaking generative AI innovation, and strategic acquisitions," said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI. See Also: Bitcoin's Sharp Decline Pulls Crypto Market Down; Musk Raises Alarm On FAA Workforce Gaps; Nvidia's Stock Dip Seen As Buying Opportunity - Top Headlines While The U.S. Slept SOUN Price Action: At the time of writing, SoundHound stock is trading 15.4% higher at $10.63, according to data from Benzinga Pro. Image: via Shutterstock SOUNSoundHound AI Inc$10.4913.9%OverviewMarket News and Data brought to you by Benzinga APIs

Why SoundHound Stock Is Sinking Today

Shares of SoundHound (SOUN -7.77%) are trading lower on Tuesday. The company's stock had lost 12.2% as of 11:30 a.m. ET, but had been down as much as 13.6% earlier in the day. This comes as the S&P 500 had slipped 1.8% and the Nasdaq Composite had lost 1.6%. The company, which develops artificial intelligence-powered voice solutions, delayed the filing of its annual report with the Securities and Exchange Commission (SEC), and this upset investors. SoundHound will delay its 10-K The company said in an SEC filing today that it would not be able to meet the deadline to file the required report, citing increased complexity due to its acquisitions of two companies last year. This comes just a year after the company revealed it had identified "material weaknesses in its internal control over financial reporting." The company says these continue to exist. Investors don't take kindly to missteps of this kind and the stock was hit hard on Tuesday. Strong revenue growth, but a growing loss Despite the filing delay, SoundHound reported earnings just days ago, showing strong sales growth for its Q4. The company delivered $34.5 million in revenue, up 101% year over year, and raised guidance for 2025, projecting $157 million to $177 million by year-end. Despite the top-line growth, SoundHound's net losses are getting larger. For the full year, the company's net loss was $351.1 million, 283% more than in 2023. Given the company is still in its early days, the growing losses can be forgiven in light of its major sales growth and the apparent demand for its AI solutions. SoundHound said it expects to file its 10-K no later than March 18.

Beyond The Numbers: 5 Analysts Discuss SoundHound AI Stock - SoundHound AI (NASDAQ:SOUN)

In the last three months, 5 analysts have published ratings on SoundHound AI SOUN, offering a diverse range of perspectives from bullish to bearish. Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months. Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total Ratings 3 1 1 0 0 Last 30D 1 0 0 0 0 1M Ago 0 0 0 0 0 2M Ago 1 0 1 0 0 3M Ago 1 1 0 0 0 Analysts have set 12-month price targets for SoundHound AI, revealing an average target of $19.0, a high estimate of $26.00, and a low estimate of $8.00. Observing a 59.66% increase, the current average has risen from the previous average price target of $11.90. Decoding Analyst Ratings: A Detailed Look A clear picture of SoundHound AI's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below 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 Gil Luria DA Davidson Raises Buy $13.00 $9.50 Michael Latimore Northland Capital Markets Raises Market Perform $8.00 $6.00 Scott Buck HC Wainwright & Co. Maintains Buy $26.00 $26.00 Scott Buck HC Wainwright & Co. Raises Buy $26.00 $8.00 Daniel Ives Wedbush Raises Outperform $22.00 $10.00 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: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SoundHound AI compared to the broader market. Price Targets: Analysts navigate through adjustments in price targets, providing estimates for SoundHound AI's future value. Comparing 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. 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: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence. Revenue Growth: SoundHound AI's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 89.13%. This signifies a substantial increase in the company's 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 lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -86.68%, the company may face hurdles in effective cost management. Return on Equity (ROE): SoundHound AI's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -8.37%, the company may face hurdles in achieving optimal financial returns. Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -5.68%, the company may need to address challenges in generating satisfactory returns from its assets. Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.15. Understanding the Relevance of Analyst Ratings 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. In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs. 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$10.7516.7%OverviewMarket News and Data brought to you by Benzinga APIs

SoundHound AI's CEO On AI Agents Transforming The World: 'This Is An Inevitable Evolution' - SoundHound AI (NASDAQ:SOUN)

Following SoundHound AI's SOUN earnings beat, Benzinga caught up with its founder and CEO, Keyvan Mohajer, to discuss the latest developments and plans for 2025. BZ: You have added so many brands under your umbrella. As a scientist who has worked on this technology for over two decades, how does it feel to see it in real life? Mohajer: It is incredibly rewarding to see the technology we have worked on for decades come to life across so many major brands and industries. SoundHound started 20 years ago in a Stanford dorm room. In the early days, someone told me the second reason startups fail is because they build something no one wants (the first reason is that they run out of money). SoundHound has come a long way. Today, our voice AI powers hundreds of global enterprise brands, thousands of restaurant and retail locations, and millions of vehicles and devices - but this is only the beginning. Our mission is to voice-enable the world with conversational intelligence. BZ: Can you recall the moment when you saw SoundHound's tech used in public for the first time? Mohajer: We had quite a few of those in the earlier days. But the one I want to share is when one of our internal demos went viral back in 2015. We had worked for 10 years in stealth to build it, so seeing how much people cared about it was meaningful and rewarding. It got millions of views and was the #1 post on Reddit with the title, "This is insane." It is important to note how much ahead of others we were. This was 10 years ago, before large language models (LLMs). We have continued to maintain our leadership in technology and innovation and are very proud of it. BZ: You recently unveiled its Brand Personalities feature. Could you tell us the initial feedback from the partners? Mohajer: Our customers choose us, among other things, because we give them the best technology under their brand, and we let them differentiate, innovate, and customize. Our SoundHound Chat AI Brand Personality feature takes this to a new level. It gives automakers full control over their voice assistant's personality, including response style, character, and energy, to enhance user experience and brand loyalty. Since launching in January, the response from partners and prospects has been overwhelmingly positive. BZ: You have major partnerships with automakers and quick-service restaurants. Are there any new verticals you're actively exploring, and how do you determine which industries align best with your voice AI capabilities? Mohajer: We believe every industry will need voice AI. Our business is built on two key predictions: first, that users will choose voice as their preferred method of interacting with technology, and second, that AI-powered customer service will be as necessary for every business as WiFi and electricity. SoundHound provides solutions for both, offering branded AI assistants for products and AI customer service for businesses. While we have strong partnerships in automotive and quick service restaurants, we are also expanding into retail, healthcare, financial services, and beyond. Our largest deal in Q4 2024 was in energy, marking a major step into a new industry added to our portfolio. Because of our proprietary technology, we can extend into any sector, scaling our solutions to benefit both customers and employees. I like to say that restaurants are to SoundHound what books were to Amazon -- we are just getting started. BZ: Can we expect significant product enhancements or new AI-driven capabilities in 2025? Mohajer: One of the innovations we're most excited about is our newly unveiled voice commerce ecosystem. SoundHound has pioneered this vision for years, and the concept is simple yet powerful. As mentioned, we provide AI assistants for products and AI customer service for businesses. Now, we're combining them, allowing users of products powered by our voice assistant to seamlessly transact with businesses using our AI customer service solution. At CES, we demonstrated this end-to-end experience with a driver discovering food options and placing an order through their in-vehicle voice assistant using natural speech. This ecosystem benefits everyone: it enhances convenience and safety for users, drives new leads for merchants, and creates a monetizable opportunity for SoundHound, with revenue-sharing potential for OEMs. Beyond voice commerce, we're also at the forefront of the agentic AI revolution. We believe the world is transforming from an ecosystem of APIs to an ecosystem of AI Agents. As a pure-play AI software company with deep expertise in voice and conversational AI and enterprise-grade solutions, we are uniquely positioned to lead this next wave of innovation. This is an inevitable evolution in AI functionality for our customers, adding a new dimension to our existing capabilities and impact, and we're excited to bring our solutions to market soon. BZ: Artificial Intelligence has been the leading force in this market cycle, often causing significant volatility. Recently, your stock dropped owing to Nvidia's divestment, yet the public might have overlooked that they held only a minor stake. Do you believe the irrational exuberance of AI is behind us? Mohajer: Regardless of short-term volatility, our long-term vision remains focused on delivering real-world AI solutions that drive value across industries. The AI market is evolving, moving from hype to practical adoptions, and we are seeing increasing demand for our solutions - moving from an exploration in an innovation budget to a corporate mandate. As for Nvidia, they have been a great partner, and our collaboration remains strong. We worked together at CES with a joint demo in our booth, and we're excited to showcase more of our work together at GTC next month in San Jose. Read Next: Tesla: The Only Magnificent Seven Stock In Freefall - Can It Reverse Course? Image: Shutterstock SOUNSoundHound AI Inc$10.4813.8%OverviewMarket News and Data brought to you by Benzinga APIs

SoundHound AI Stock Is Tumbling Tuesday: What's Going On? - SoundHound AI (NASDAQ:SOUN)

SoundHound AI Inc SOUN shares are falling Tuesday after the company announced it's unable to timely file its 10-K with the U.S. Securities and Exchange Commission. What Happened: SoundHound AI said in a regulatory filing early Tuesday that it requires additional time to prepare the financial statements for its annual 10-K for fiscal year ended Dec. 31, 2024, due to the complexity of accounting for recent acquisitions. The company noted that it previously identified material weaknesses in its internal control over financial reporting. SoundHound said Tuesday that the material weaknesses continue to exist as of Dec. 31, 2024. The company expects to file its Form 10-K no later than March 18. Last week, SoundHound reported better-than-expected results for the fourth quarter, turning in revenue of $34.54 million versus estimates of $33.69 million, and a loss of five cents per share versus estimates for a loss of 10 cents per share, according to Benzinga Pro. Check This Out: Sea Q4 Earnings: E-Commerce And Digital Finance Drive Double-Digit Growth, Projects Expansion In 2025 Total revenue was up 101% on a year-over-year basis and the company raised its full-year 2025 revenue outlook to a range of $157 million to $177 million, up from a prior range of $155 million to $175 million. "We had a breakthrough year, expanding our leadership position in voice and conversational AI through major customer wins, expanded partnerships, groundbreaking generative AI innovation, and strategic acquisitions," said Keyvan Mohajer, co-founder and CEO of SoundHound AI. SOUN Price Action: SoundHound AI shares jumped more than 12% following earnings last week. The stock has now given back all of its gains. SoundHound shares were down 143.5% at $8.93 at the time of publication Tuesday, according to Benzinga Pro. Photo: Shutterstock. SOUNSoundHound AI Inc$8.98-13.0%OverviewMarket News and Data brought to you by Benzinga APIs

SoundHound AI Q4 Earnings: Revenue Beat, EPS Beat, Raised Guidance Heading Into 'Era Of Agentic AI' - SoundHound AI (NASDAQ:SOUN)

SoundHound AI Inc SOUN reported fourth-quarter financial results after the market close on Thursday. Here's a rundown of the report. Q4 Earnings: SoundHound reported fourth-quarter revenue of $34.54 million, beating the consensus estimate of $33.69 million. The company reported an adjusted loss of five cents per share, beating analyst estimates for a loss of 10 cents per share, according to Benzinga Pro. Total revenue was up 101% on a year-over-year basis. The company reported an adjusted EBITDA loss of $16.8 million. SoundHound ended the quarter with $198 million in cash and cash equivalents. "We had a breakthrough year, expanding our leadership position in voice and conversational AI through major customer wins, expanded partnerships, groundbreaking generative AI innovation, and strategic acquisitions," said Keyvan Mohajer, co-founder and CEO of SoundHound AI. "As we move into the era of Agentic AI, we are uniquely positioned to capitalize on this evolving category. Together with our existing broad portfolio of voice-enabled AI solutions we can deliver even greater commercial impact." See Also: Salesforce's Shares Drop On Missed FY Guidance, Analyst Recommends Focus On Bookings Guidance: SoundHound raised its full-year 2025 revenue outlook to a range of $157 million to $177 million, up from a prior range of $155 million to $175 million. SoundHound executives 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 up 12.49% after hours, trading at $10.39 at the time of publication Thursday, according to Benzinga Pro. Photo: Shutterstock. SOUNSoundHound AI Inc$10.247.00%OverviewMarket News and Data brought to you by Benzinga APIs

SoundHound AI Says Polaris Speech Recognition Model Outperforms Google, OpenAI: Company Forays Into Energy Sector With 7-Figure Deal - Alphabet (NASDAQ:GOOG), C3.ai (NYSE:AI)

SoundHound AI Inc.'s SOUN speech recognition model "outperformed" Google and OpenAI during the fourth quarter, the company's CEO said. The company also announced a new seven-figure deal, foraying into the energy sector as it exceeded analyst expectations in the fourth quarter. What Happened: SoundHound achieved a new milestone as its multimodal and multilingual foundation model -- Polaris outperformed the models from Alphabet Inc.'s GOOG GOOGL Google along with OpenAI, which is backed by Microsoft Corp. MSFT. CEO Keyvan Mohajer, during the earnings call highlighted that Polaris was benchmarked against models in diverse, real-world conditions, including noisy environments and those requiring speed and low latency. The testing also accounted for variations in human speech, such as accents and background noise. Against Google's models, "We outperformed by north of 20% better accuracy. We also beat them on speed with four times better latency. Against OpenAI's Whisper model, we are 26% to 36% more accurate on various benchmarks, and we are able to do this on models one-tenth of the size of what OpenAI uses," added Mohajer. The CEO further said "Our largest deal in Q4 was in energy." Without disclosing many details, the management said that it was a seven-figure, multi-year deal. See Also: Airbnb Is Nearly 40% More Expensive Than Its Rivals: Here's What Key Indicators For ABNB Stock Reveal Why It Matters: SoundHound beat fourth quarter revenue estimates with $34.54 million, up 101% year-on-year. It also exceeded earnings expectations, reporting a 5 cent loss per share. The company reported an adjusted EBITDA loss of $16.8 million and ended the quarter with $198 million in cash. SoundHound boosted its 2025 revenue guidance to $157 million-$177 million, up from the previous forecast of $155 million-$175 million. "There will be a ramp in revenue through the year given the nature of our customer base, underlying seasonality, and expected large deal timing," said CFO Nitesh Sharan. He added that the firm remains "committed" to the path to profitability. "We will get there through continued scale and through surgical high ROI investments," Sharan said. Price Action: SoundHound fell 3.76% on Thursday and jumped 8.9% in after-hours, this outpaced the 2.66% fall in the Fidelity NASDAQ Composite Index ETF ONEQ, which tracks the Nasdaq Composite index. The stock remains 54.32% lower on a year-to-date basis, however, it's up 45.27% over a year. Benzinga tracks seven analysts with an average price target of $12.36 for the stock, reflecting a "hold" rating. Estimates range widely from $7 to $26. Recent ratings from Northland Capital Markets, HC Wainwright & Co., and HC Wainwright & Co. average $20, suggesting a potential 99.40% upside. Read Next: Billionaire Ray Dalio Says AI Risks 'Totalitarian Control Or Anarchy' As It Could Reshape World In Next 5 Years: Here Are AI-Linked ETFs For Investors To Consider Photo courtesy: Shutterstock AIC3.ai Inc$23.94-9.46%OverviewGOOGAlphabet Inc$170.20-2.58%GOOGLAlphabet Inc$168.38-2.52%MSFTMicrosoft Corp$392.00-1.93%ONEQFidelity Nasdaq Composite Index ETF$74.00-1.43%SOUNSoundHound AI Inc$10.034.81%Market News and Data brought to you by Benzinga APIs