Latest news with #SoundHound AI
Yahoo
2 days ago
- Business
- Yahoo
SoundHound AI Stock Jumps 25% on Strong Results, Raised Guidance
Key Takeaways SoundHound AI set a sales record as all of its businesses grew. The artificial intelligence voice software maker also reported a lower-than-expected loss. SoundHound AI raised its full-year revenue AI (SOUN) shares took off, soaring 25% in morning trading, when the maker of artificial intelligence voice software reported record sales and boosted its outlook as it added more customers, especially in China. The company reported second-quarter revenue that skyrocketed 217% to $42.68 million, about $10 million more than analysts from Visible Alpha anticipated. Its per share loss of $0.03 was less than a year ago, and also beat estimates. Co-founder and CEO Keyvan Mohajer said it was SoundHound AI's 'strongest ever quarter,' and that several of its previous strategic moves 'delivered high-impact results with growth across every business unit.' Among the gains, the Automotive business scored what the company called a 'significant new win in China for our voice assistant to be integrated in a major OEM with vehicles spanning China and worldwide, including the development of multiple new languages.' SoundHound AI raised its full-year revenue guidance to a range of $160 million to $178 million, compared to its earlier forecast of $157 million to $177 million. Despite today's advance, shares of SoundHound AI have lost about a third of their value in 2025. Read the original article on Investopedia
Yahoo
5 days ago
- Business
- Yahoo
Can SoundHound's Q2 Results Send the Stock Soaring on August 7?
SoundHound AI (SOUN) will announce its second-quarter financial results after the close this Thursday, Aug. 7. While the company is seeing significant demand for its artificial intelligence (AI)-powered voice technology offerings, the stock has underperformed the broader market. SOUN stock has fallen more than 46% year-to-date, a stark contrast to the S&P 500 Index's ($SPX) 7.5% gain over the same period. While the company's stock has had a rough ride so far this year, the underlying business remains solid. The year began on a strong note for SoundHound. In the first quarter of 2025, the company reported $29.1 million in revenue, up 151% from the same quarter last year. That growth even outpaced the solid 101% year-over-year gain it posted in the fourth quarter of 2024. More News from Barchart Options Traders Expected Palantir Stock's Tamest Earnings Reaction in a Year. Did They Get It Right? Dear Nvidia Stock Fans, Mark Your Calendars for August 27 Tesla Gains on Elon Musk's New Pay Package. Is TSLA Stock a Buy? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. This acceleration in its top-line growth rate shows high demand for its voice AI technology across various industries. As more industries look to integrate conversational AI into their customer experiences, SoundHound's technology is finding wider adoption, helping to broaden its customer base and strengthening its position as a leader in the voice AI space. SoundHound: Poised for Strong Growth in Q2 and Beyond SoundHound is entering the second quarter with solid momentum, showing signs of robust growth despite ongoing macroeconomic challenges. The company's generative AI, Agentic, and voice commerce platforms are gaining meaningful traction in the market, driving both customer adoption and revenue expansion. One solid indicators of future growth is SoundHound's bookings, which grew sequentially and posted high double-digit growth compared to the same period last year. Its cloud-based offerings are also seeing strong adoption, with active cloud users growing by over 50%, reflecting the rising demand for its voice-enabled technologies. Additionally, the company's presence in the restaurant sector continues to expand rapidly. By the end of Q1, approximately 13,000 restaurant locations were actively using SoundHound's AI voice ordering solutions. Importantly, SoundHound's revenue base is becoming increasingly diversified. No single customer accounted for more than 10% of total revenue during the most recent quarter, which is a significant improvement from previous years. This broader revenue distribution reduces risk and reflects the company's expanding reach across various sectors. Growth in SoundHound's customer service solutions has been robust, especially as it scales its offerings across more enterprise clients and restaurant locations. While average selling prices (ASPs) in the automotive segment are rising thanks to deeper integration of its generative AI capabilities, overall auto unit volumes remain under pressure due to broader geopolitical uncertainty in the industry. That said, SoundHound is building a solid pipeline of new OEM partnerships, which should provide a foundation for future growth as conditions stabilize. Strategic acquisitions are likely to bolster SoundHound's growth. Its recent acquisitions of SYNQ3, Amelia, and Allset are likely to add new capabilities that enhance its platform and open the door for significant cross-sell and upsell opportunities. Management expects these synergies to boost operational efficiency and drive accelerated growth through the remainder of 2025. To support its expansion, SoundHound is ramping up efforts to increase brand awareness and stimulate demand. Early signs are encouraging, with a stronger sales pipeline and improved deal conversion rates indicating that these initiatives are beginning to pay off. Looking ahead, management remains focused on strengthening the company's financial foundation. Efforts to streamline costs are ongoing, and the team is targeting adjusted EBITDA profitability by the end of 2025. This milestone could further solidify investor confidence in SoundHound's long-term growth story. The Bottom Line on SoundHound SoundHound's upcoming Q2 earnings report could serve as a key inflection point for the stock. Despite its underperformance in the market so far this year, the company's strong revenue growth, expanding customer base, and strategic acquisitions paint a promising picture for the quarters ahead. With increasing adoption of its AI voice technologies across multiple sectors and a focus on profitability, SoundHound appears well-positioned for long-term growth. Wall Street analysts remain cautiously optimistic heading into the Aug. 7 report. But if SoundHound delivers another strong quarter and keeps up its momentum, investor confidence could grow, potentially giving the stock a much-needed boost. On the date of publication, Sneha Nahata did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-08-2025
- Business
- Yahoo
Can a $10,000 Investment in SoundHound AI Turn Into $1 Million?
Key Points SoundHound AI's audio recognition platform provides impressive results. SoundHound AI is growing incredibly quickly. 10 stocks we like better than SoundHound AI › SoundHound AI (NASDAQ: SOUN) is one of the most popular pure-play artificial intelligence (AI) investment options available today. Most companies in the AI race have other businesses that hinder them from growing solely from AI, but not SoundHound AI. SoundHound AI has put up incredible growth figures over the past few quarters, and is expected to do so for the rest of the year. But can it turn $10,000 into $1 million? Let's find out. SoundHound AI's platform is seeing huge demand SoundHound AI does exactly what it sounds like: It integrates audio with AI. It's primarily doing this with AI agents that are better at recognizing audio inputs than any other platform out there. AI platforms that are triggered by audio inputs are nothing new (think Siri or Alexa), but their execution hasn't changed since these products were launched a decade ago. SoundHound AI's platform is far superior to those products. It has been used in areas like car digital assistants, restaurant drive-thrus, and automating customer service platforms in the healthcare and financial industries. The uses are nearly limitless, as anywhere where humans currently interact with each other in a fairly regular pattern is a potential target for SoundHound AI's automation. The demand for SoundHound's product has been incredible, with revenue rising 151% in its last quarter to $29 million and projected to increase about 97% to $167 million for 2025. Those are strong growth figures. They back up the claim that SoundHound AI may be able to deliver returns strong enough to transform $10,000 into $1 million, but it's going to need more than just 2025 growth to accomplish that. At the end of 2024, management said that its revenue backlog was nearly $1.2 billion. While this revenue will be recognized over several years, it's still a massive increase from today's totals, and combined with new business wins, it will provide excellent growth. But will it be enough? SoundHound would need to become a software giant to achieve these returns For SoundHound AI to turn $10,000 into $1 million, the stock needs to rise 100-fold. That means SoundHound would have to rise from its current $4.3 billion market cap to $430 billion. There aren't many stocks in that valuation range, so SoundHound AI would have to dominate its industry. But if its technology can deliver automation across the customer service industry, it could provide unparalleled value to its clients, leading to massive sales growth. Still, SoundHound AI has one hurdle it must overcome: Valuation. SoundHound AI's stock isn't cheap, trading at 39 times sales. That's expensive, considering that most software companies trade between 10 and 20 times sales. Then again, most software companies aren't doubling their revenue year over year. If we place SoundHound AI on the high end of that valuation range (20 times sales) with a $430 billion valuation, that means it must produce $21.5 billion in annual revenue to deliver 100 times returns. That would place SoundHound at a similar revenue level to Adobe (NASDAQ: ADBE), another software giant. Is this possible? Absolutely. Is it probable? Likely not. SoundHound AI needs to keep up its rapid growth to achieve these kinds of returns, and only time will tell if that's feasible or not. Still, even if it doesn't deliver 100x returns, it may be a successful stock, which could make it a great buy today. There's still a significant risk associated with SoundHound's stock, but if investors maintain a small position size, this risk can be mitigated in a well-diversified portfolio. Should you invest $1,000 in SoundHound AI right now? Before you buy stock in SoundHound AI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SoundHound AI wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Keithen Drury has positions in Adobe. The Motley Fool has positions in and recommends Adobe. The Motley Fool has a disclosure policy. Can a $10,000 Investment in SoundHound AI Turn Into $1 Million? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
