Latest news with #SoundHoundAI
Business Wire
4 hours ago
- Automotive
- Business Wire
In-Car Voice Commerce Could Unlock $35B Annually for Automakers, Research Highlights Strong Consumer Appetite
SANTA CLARA, Calif.--(BUSINESS WIRE)--SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice artificial intelligence, today released findings from a new study, commissioned by the company, revealing that consumers are eager to embrace in-car voice commerce. The findings point to an untapped opportunity for automakers to unlock new monetization and revenue streams, deepen customer loyalty, and enhance the in-car experience – with the technology projected to be worth $35 billion annually 1. Voice commerce integrates ordering, payments, loyalty, and navigation directly into a car's voice assistant to provide a seamless, hands-free experience powered entirely by voice. Based on projected new vehicle shipments, SoundHound estimates that in-car voice commerce represents up to a $35 billion annual opportunity for automakers. Monetization Potential According to the independent study, 73% of U.S. drivers who use or have access to voice assistants in their vehicles are willing to share value in exchange for voice commerce functionality. Specifically, 46% would pay to access the service, – 18% would pay per transaction, 29% would pay a small subscription fee – 31% are open to hearing a few ads per hour, and 29% would share personal data. This consumer openness presents automakers with multiple monetization pathways, ranging from paid premium services to ad-supported experiences and data-driven personalization – delivering a new, post-sale, revenue engine that adds to the customer experience. Revenue Impact Voice commerce will also directly influence purchasing decisions. The study found that 69% of consumers currently in the market for a new vehicle say they would prefer a car with in-car voice commerce capabilities over one without. For automakers, this adds a new layer of opportunity, differentiation, and revenue upside during the consideration phase. Loyalty Opportunity In a market where automotive brand loyalty is declining – 47% of U.S. consumers are open to switching car brands, according to Statista – voice AI can help OEMs stand out. By delivering utility beyond traditional in-vehicle controls, brands can increase loyalty. 72% of respondents said they would ask their voice assistant for product or service recommendations, positioning the assistant as trusted consumer companions and the brand as the facilitator of everyday needs. This behavior transforms the cockpit experience into a recurring brand engagement and commerce touchpoint. Top In-Car Voice Commerce Use Cases 73% of respondents were interested in using in-car voice commerce. When participants were presented with specific use cases, 76% were interested in using it for food ordering, 73% for vehicle maintenance, 71% for parking, 59% for entertainment planning, and 58% for impulse retail purchases. Example queries include: 'Find a restaurant for date night and make a reservation for 7pm.' 'What does this dashboard light mean? Book me a service appointment.' 'Order ingredients for sausage and peppers from the grocery store and navigate me to the store for pick up.' 'Find parking near the movie theater.' 'In-vehicle voice commerce is not only about convenience for drivers – it's also a strategic revenue and retention opportunity for automakers,' said Michael Zagorsek, COO at SoundHound AI. 'We are already working with innovation teams at several of the world's largest OEMs to pilot and scale this capability, bringing SoundHound's long-time vision to life.' SoundHound will delve deeper into these findings during two upcoming keynote presentations. On June 4, COO Michael Zagorsek will present the research at WardsAuto AutoTech in Detroit, followed by a keynote from Dr. Pedram Faghfouri, Head of Automotive & IoT, at Car HMI Europe on June 16. To reserve access for SoundHound's upcoming white paper examining the survey results, please visit: 1 According to Statista based on a 2021 survey, there are over 127 million voice enabled cars in the United States. Based on the company's estimate of projected subscription, transaction, data brokerage, and advertising revenue, this represents a $35 billion annual opportunity for automakers. About SoundHound AI SoundHound AI (Nasdaq: SOUN), a global leader in voice and conversational intelligence, delivers AI solutions that allow businesses to offer superior experiences to their customers. Built on proprietary technology, SoundHound's voice AI delivers best-in-class speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants. The company's various groundbreaking AI-driven products include Smart Answering, Smart Ordering, Dynamic Drive-Thru, and the Amelia Platform, which powers AI Agents for enterprise. In addition, SoundHound Chat AI, a powerful voice assistant with integrated Generative AI, and Autonomics, a category-leading operations platform that automates IT processes, have allowed SoundHound to power millions of products and services, and processes billions of interactions each year for world class businesses. About Big Village This survey was conducted from March 14-25, 2025 among 1210 regular drivers aged 21-65 in the United States, who primarily drive cars model year 2019 and newer who use voice assistant while driving or have voice assistant available. Big Village is a global marketing and media company. Driven by its diverse group of experts, Big Village provides a new way of working by bringing media, insights, and creative all under one roof. Find out more at
Yahoo
4 hours ago
- Automotive
- Yahoo
In-Car Voice Commerce Could Unlock $35B Annually for Automakers, Research Highlights Strong Consumer Appetite
In-car voice commerce presents strong opportunity for automakers to unlock new monetization opportunities, drive purchase decisions, and build long-term loyalty SANTA CLARA, Calif., June 04, 2025--(BUSINESS WIRE)--SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice artificial intelligence, today released findings from a new study, commissioned by the company, revealing that consumers are eager to embrace in-car voice commerce. The findings point to an untapped opportunity for automakers to unlock new monetization and revenue streams, deepen customer loyalty, and enhance the in-car experience – with the technology projected to be worth $35 billion annually 1. Voice commerce integrates ordering, payments, loyalty, and navigation directly into a car's voice assistant to provide a seamless, hands-free experience powered entirely by voice. Based on projected new vehicle shipments, SoundHound estimates that in-car voice commerce represents up to a $35 billion annual opportunity for automakers. Monetization Potential According to the independent study, 73% of U.S. drivers who use or have access to voice assistants in their vehicles are willing to share value in exchange for voice commerce functionality. Specifically, 46% would pay to access the service, – 18% would pay per transaction, 29% would pay a small subscription fee – 31% are open to hearing a few ads per hour, and 29% would share personal data. This consumer openness presents automakers with multiple monetization pathways, ranging from paid premium services to ad-supported experiences and data-driven personalization – delivering a new, post-sale, revenue engine that adds to the customer experience. Revenue Impact Voice commerce will also directly influence purchasing decisions. The study found that 69% of consumers currently in the market for a new vehicle say they would prefer a car with in-car voice commerce capabilities over one without. For automakers, this adds a new layer of opportunity, differentiation, and revenue upside during the consideration phase. Loyalty Opportunity In a market where automotive brand loyalty is declining – 47% of U.S. consumers are open to switching car brands, according to Statista – voice AI can help OEMs stand out. By delivering utility beyond traditional in-vehicle controls, brands can increase loyalty. 72% of respondents said they would ask their voice assistant for product or service recommendations, positioning the assistant as trusted consumer companions and the brand as the facilitator of everyday needs. This behavior transforms the cockpit experience into a recurring brand engagement and commerce touchpoint. Top In-Car Voice Commerce Use Cases 73% of respondents were interested in using in-car voice commerce. When participants were presented with specific use cases, 76% were interested in using it for food ordering, 73% for vehicle maintenance, 71% for parking, 59% for entertainment planning, and 58% for impulse retail purchases. Example queries include: "Find a restaurant for date night and make a reservation for 7pm." "What does this dashboard light mean? Book me a service appointment." "Order ingredients for sausage and peppers from the grocery store and navigate me to the store for pick up." "Find parking near the movie theater." "In-vehicle voice commerce is not only about convenience for drivers – it's also a strategic revenue and retention opportunity for automakers," said Michael Zagorsek, COO at SoundHound AI. "We are already working with innovation teams at several of the world's largest OEMs to pilot and scale this capability, bringing SoundHound's long-time vision to life." SoundHound will delve deeper into these findings during two upcoming keynote presentations. On June 4, COO Michael Zagorsek will present the research at WardsAuto AutoTech in Detroit, followed by a keynote from Dr. Pedram Faghfouri, Head of Automotive & IoT, at Car HMI Europe on June 16. To reserve access for SoundHound's upcoming white paper examining the survey results, please visit: 1 According to Statista based on a 2021 survey, there are over 127 million voice enabled cars in the United States. Based on the company's estimate of projected subscription, transaction, data brokerage, and advertising revenue, this represents a $35 billion annual opportunity for automakers. About SoundHound AI SoundHound AI (Nasdaq: SOUN), a global leader in voice and conversational intelligence, delivers AI solutions that allow businesses to offer superior experiences to their customers. Built on proprietary technology, SoundHound's voice AI delivers best-in-class speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants. The company's various groundbreaking AI-driven products include Smart Answering, Smart Ordering, Dynamic Drive-Thru, and the Amelia Platform, which powers AI Agents for enterprise. In addition, SoundHound Chat AI, a powerful voice assistant with integrated Generative AI, and Autonomics, a category-leading operations platform that automates IT processes, have allowed SoundHound to power millions of products and services, and processes billions of interactions each year for world class businesses. About Big Village This survey was conducted from March 14-25, 2025 among 1210 regular drivers aged 21-65 in the United States, who primarily drive cars model year 2019 and newer who use voice assistant while driving or have voice assistant available. Big Village is a global marketing and media company. Driven by its diverse group of experts, Big Village provides a new way of working by bringing media, insights, and creative all under one roof. Find out more at View source version on Contacts Media Contact Gianna Arantes201-815-9852PR@ Sign in to access your portfolio
Business Insider
12 hours ago
- Business
- Business Insider
SoundHound AI Stock (SOUN) Hits the High Notes, But Can It Stay in Tune?
SoundHound AI (SOUN) just reported a jaw-dropping 151% jump in quarterly revenue, helping to send the stock up roughly 8.5% in the past month, and over 100% in the past year. Yet, the company finds itself in a familiar spot for many tech-centric growth companies, caught between impressive revenue numbers and stubborn losses. The voice AI specialist has shown tremendous growth potential in an exploding market, but questions persist about when (or if) the company can turn a profit. Confident Investing Starts Here: With the voice AI market projected to reach over $30 billion within the next few years, SoundHound's positioning looks promising. But execution risks and competition from tech giants make this anything but a sure bet. I am neutral on the stock for now and prefer to hold off until a clearer path to profitability emerges. The Numbers Tell a Growth Story SoundHound's recent financial performance appears to be a dream for growth investors. The company's first quarter revenue of $29.1 million is more than double the same period last year. Furthermore, management is projecting full-year revenue between $157 million and $177 million, representing approximately 85-109% growth for 2025. Strategic acquisitions of SYNQ3 and Amelia have broadened SoundHound's capabilities while adding new customers. The company has also diversified across automotive, restaurants, and enterprise sectors, with no single customer representing more than 10% of revenue (a healthy sign). Meanwhile, the market opportunity here is genuinely massive. Voice AI technology is experiencing explosive growth, with industry projections showing the market expanding at nearly 30% annually toward $143 billion by 2033. That's not just hype. Companies across many industries are integrating voice technology into everything from drive-thru windows to car dashboards. Well-Positioned with Enterprise Clients Soundhound's platform is built from the ground up for complex, contextual conversations rather than simple command-and-response interactions. This matters in real-world business applications, where customers may have complex requests or require assistance in navigating multiple options. Rather than competing directly with Amazon's (AMZN) Alexa or Alphabet's (GOOGL) Assistant for consumer attention, the company focuses on providing enterprise solutions. It's building custom voice experiences for brands like Burger King (QSR), partnering with automakers like Hyundai (HYMTF), and creating specialized solutions that big tech companies don't typically offer. The Profitability Problem Here's where SoundHound's story gets complicated. Despite impressive revenue growth, the company is burning through cash at a concerning rate. The first quarter showed an adjusted EBITDA loss of $22.2 million, and gross margins are actually shrinking as the company invests in acquisitions and scales its operations. What's most concerning is the lack of clear guidance on when profitability might arrive. Management hasn't provided a concrete timeline for reaching breakeven, leaving investors to wonder whether the current growth is sustainable or merely a byproduct of expensive customer acquisition that won't pay off in the long term. Despite its current differentiated position in the market, the company operates in a space where it's competing with some of the world's most well-funded technology companies. Amazon, Google, and Apple (AAPL) all have voice AI capabilities and the resources to undercut smaller competitors on price or build competing features into their existing platforms. Should these large tech firms decide to target larger enterprise clients (and why wouldn't they at some point), SoundHound's premium pricing and customization advantages could evaporate quickly. For a company struggling to turn a profit, the music could come to a sudden halt. Watching for Inflection Points Market participants are on the lookout for changes in key metrics, including customer retention rates, organic revenue growth separate from acquisitions, and any concrete guidance toward profitability. The stock is highly shorted, with over 30% of shares held in short interest. Positive news among these key metrics could catalyze a further increase in shares, potentially leading to a short squeeze and creating a positive feedback loop for ongoing momentum in the share price. Is SoundHound AI a Good Stock to Buy? SoundHound's stock currently sits below most analyst price targets, which range from $12 to $18. The consensus rating is a Moderate Buy, reflecting cautious optimism tempered by concerns about execution. Piper Sandler's James Fish initiated coverage of SoundHound with an Overweight rating and set a $12 price target, highlighting the company's potential in the AI voice technology sector. He sees a potential total addressable market of $47 billion by 2027, which is still in its early stages of development. Meanwhile, H.C. Wainwright's analyst Scott Buck has lowered the price target to $18 (from $26), while maintaining a Buy rating. He anticipates revenue growth for SoundHound in the latter half of 2025. Additionally, Wedbush's Daniel Ives has downgraded his price target to $15 (from $22), citing a lower valuation multiple, but retains an Outperform rating. The Bottom Line for SoundHound AI The voice AI market opportunity is real, and SoundHound has positioned itself in an interesting niche with genuine competitive advantages. However, this isn't a stock for investors who need steady returns or can't stomach the possibility of significant losses. The company is still proving its business model, and execution risks remain high. The upcoming quarters will be critical in proving whether SoundHound can evolve from a high-potential growth story into a consistently profitable enterprise. Until that transformation takes shape, the stock remains a speculative play marked by significant volatility — one I'm choosing to stay on the sidelines for now.
Yahoo
a day ago
- Business
- Yahoo
Q1 Automation Software Earnings Review: First Prize Goes to Pegasystems (NASDAQ:PEGA)
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let's have a look at Pegasystems (NASDAQ:PEGA) and its peers. The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software. The 7 automation software stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 5.9% while next quarter's revenue guidance was in line. Luckily, automation software stocks have performed well with share prices up 10.8% on average since the latest earnings results. Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement. Pegasystems reported revenues of $475.6 million, up 44.1% year on year. This print exceeded analysts' expectations by 33.1%. Overall, it was an incredible quarter for the company with an impressive beat of analysts' billings estimates and a solid beat of analysts' EBITDA estimates. Pegasystems pulled off the biggest analyst estimates beat of the whole group. The stock is up 41% since reporting and currently trades at $97. Is now the time to buy Pegasystems? Access our full analysis of the earnings results here, it's free. Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE:PATH) makes software that helps companies automate repetitive computer tasks. UiPath reported revenues of $356.6 million, up 6.4% year on year, outperforming analysts' expectations by 7.4%. The business had a very strong quarter with an impressive beat of analysts' billings estimates and a solid beat of analysts' EBITDA estimates. The market seems unhappy with the results as the stock is down 3.6% since reporting. It currently trades at $12.49. Is now the time to buy UiPath? Access our full analysis of the earnings results here, it's free. Founded in 2005, SoundHound AI (NASDAQ:SOUN) develops independent voice artificial intelligence solutions that enable businesses across various industries to offer customized conversational experiences to consumers. SoundHound AI reported revenues of $29.13 million, up 151% year on year, falling short of analysts' expectations by 4.4%. It was a softer quarter as it posted a significant miss of analysts' EBITDA estimates. SoundHound AI delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 2.8% since the results and currently trades at $10. Read our full analysis of SoundHound AI's results here. Founded by Matt Calkins and his three friends out of an apartment in Northern Virginia, Appian (NASDAQ:APPN) sells a software platform that lets its users build applications without using much code, allowing them to create new software more quickly. Appian reported revenues of $166.4 million, up 11.1% year on year. This print surpassed analysts' expectations by 2%. Zooming out, it was a mixed quarter as it also logged a solid beat of analysts' EBITDA estimates. Appian had the weakest full-year guidance update among its peers. The stock is up 2.4% since reporting and currently trades at $31.10. Read our full, actionable report on Appian here, it's free. Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) is a software provider helping companies automate workflows across IT, HR, and customer service. ServiceNow reported revenues of $3.09 billion, up 18.6% year on year. This number met analysts' expectations. More broadly, it was a decent quarter as it also recorded an impressive beat of analysts' current remaining performance obligation estimates. The stock is up 24.4% since reporting and currently trades at $1,013. Read our full, actionable report on ServiceNow here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Globe and Mail
a day ago
- Business
- Globe and Mail
Prediction: Investors Are Unlikely to Win With SoundHound AI Stock, and Here's Why
As SoundHound AI (NASDAQ: SOUN) has developed voice-recognition technology driven by artificial intelligence (AI) that has attracted high-profile clients, more investors have taken an interest in the company. Between that technology and rapid revenue growth, it may look like a stock poised to drive outsize returns. Unfortunately, SoundHound AI continues to deal with challenges that may call its investment case into question. Unless the company can mitigate those challenges, the stock is unlikely to succeed, and here's why. Why investors are tuning into SoundHound AI stock In many respects, SoundHound AI appears to be punching far above its weight. It has developed AI-based voice recognition technology, promoting it as "next-generation AI." With that, its technology can help customers perform tasks via voice prompts. This has drawn the interest of numerous corporate clients, particularly in the automotive industry. Moreover, the company has attracted restaurants, financial services businesses, telecom companies, and others to its platform. Despite its market cap of $4.1 billion, SoundHound AI has successfully earned business while competing with much larger players. It generated $29 million in revenue in the first quarter of 2025, a 151% increase from year-ago levels. And the company turned a profit in the first quarter, a goal that might have appeared out of reach a year ago quarter. During the quarter, it earned more than $129 million, up from a $33 million loss in the first quarter of 2024. That likely helped boost the stock. After a sell-off at the beginning of the year, it turned higher following the release of the report. Consequently, shares are up by about 115% over the previous 12 months. SoundHound AI's daunting challenges However, investors are likely to find some serious concerns as they look at the stock's financials more closely. The most obvious oddity is that net income was more than four times its revenue. And that occurred at a time when operating expenses for the first quarter were $99 million, which was more than three times the company's revenue in that quarter. It also reported a change in the fair value of contingent acquisition liabilities. This amounted to a $176 million noncash benefit that turned SoundHound AI profitable for the quarter. Hence, when examining the negative free cash flow of $19 million, the "profit" is not as promising as it appears. Currently, the company has almost $246 million in liquidity. This means it can sustain the current pace of negative cash flow for approximately three more years before having to add debt or issue more shares. Furthermore, it competes with numerous companies, including tech heavyweights Alphabet, Amazon, and Microsoft. All of those companies hold cash positions that far surpass SoundHound's market cap, meaning if one of these companies wants to compete directly, it is in a strong position to take market share from SoundHound AI. Also, even though the business may look like a buyout candidate, Nvidia recently sold its SoundHound AI stock, and no other tech giant has taken a position in the company. Knowing that, the case for the stock may rely too much on hope, which does not put its shareholders in a strong position. Think twice about buying SoundHound AI stock Under current conditions, investors are unlikely to succeed with this stock as a long-term investment. Admittedly, SoundHound AI has developed some compelling voice-driven technology with AI, and that has attracted some of the world's best-known enterprises as clients. Nonetheless, its first-quarter profit came from a one-time benefit, and with operating expenses far outpacing revenue, long-term profitability appears out of reach. Moreover, the company has to compete with some of the world's largest companies, which have plenty of resources. Unless the rapid revenue growth starts to translate into a dramatically improved financial performance, investing in SoundHound AI is unlikely to pay off for investors in the long term. 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 10 best stocks 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. 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The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
