Latest news with #voice technology
Yahoo
05-08-2025
- 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
Finextra
29-07-2025
- Business
- Finextra
How voice technology and emotional AI shape the future of financial services: By Konstantin Rabin
Financial services are undergoing a transformation as voice technology and emotional AI become more deeply integrated into digital banking and payments. These innovations are not just about convenience—they are fundamentally changing how institutions interact with customers, streamline operations, and create more human-centric experiences. As fintech continues to evolve, understanding these technologies is essential for staying ahead in a competitive landscape. How digital banking experiences become more human Voice technology is rapidly moving from novelty to necessity in financial services. Virtual assistants and voice-enabled banking apps are making it easier for customers to check balances, transfer funds, and even receive financial advice—all through natural language. This shift is about more than just hands-free convenience; it's about meeting customers where they are and how they prefer to communicate. Emotional AI takes this a step further by interpreting the tone, sentiment, and context behind a user's voice, allowing banks to respond with empathy and personalization. For example, if a customer sounds frustrated, an AI-powered system can adapt its responses to offer reassurance or escalate to a human agent. This kind of nuanced interaction helps build trust and loyalty, especially as digital channels become the primary touchpoint for many customers. For a comprehensive understanding of how fintech innovations are shaping the financial sector, refer to the federal reserve's overview of fintech innovations. How cross-industry inspiration fuels innovation The financial sector is not innovating in isolation. Many of the most compelling advances in voice and engagement technology have roots in other industries, particularly gaming and entertainment. Interactive environments in these sectors have long leveraged voice recognition and emotional analytics to create immersive, responsive experiences. For instance, platforms catalogued in the List of Online Slot Sites have adopted sophisticated voice interactivity and engagement tools to enhance user experience and retention. Financial institutions are taking note, adapting similar technologies to create seamless, intuitive customer journeys. By learning from these pioneers, banks and fintechs can avoid common pitfalls and accelerate the deployment of user-centric solutions. The result is a digital banking environment that feels less transactional and more conversational, fostering deeper relationships and greater customer satisfaction. How to balance innovation with security and compliance As voice technology and emotional AI become more prevalent, financial institutions must also navigate a complex web of regulatory and security considerations. Voice data is highly sensitive, and ensuring its protection is paramount. Institutions are investing in advanced encryption, multi-factor authentication, and continuous monitoring to safeguard customer information. Meanwhile, compliance with evolving regulations remains a moving target, especially as global standards for AI and data privacy continue to develop. Staying informed is crucial for industry leaders seeking to implement these technologies responsibly. The challenge lies in balancing the drive for innovation with the need for robust risk management and transparency. Those who succeed will not only enhance customer engagement but also set new benchmarks for trust and reliability in digital finance. What the future holds for smarter financial interactions The convergence of voice technology and emotional AI marks a pivotal moment for financial services. As these tools mature, they promise to make digital banking more accessible, intuitive, and emotionally intelligent. The lessons drawn from other industries underscore the value of cross-sector collaboration and creative thinking. Ultimately, the institutions that prioritize both innovation and security will be best positioned to deliver meaningful, lasting value to their customers. As the sector continues to evolve, ongoing dialogue and knowledge sharing will be key to harnessing the full potential of these transformative technologies.
Globe and Mail
20-07-2025
- Business
- Globe and Mail
This Magnificent Artificial Intelligence (AI) Stock Is Down 50%. Buy the Dip, or Run for the Hills?
Key Points SoundHound shares have dropped more than 50% from their highs. The company is working to combine its AI voice technology with AI agents. If the company can become a leader in the agentic AI space, it could have huge upside. 10 stocks we like better than SoundHound AI › SoundHound AI (NASDAQ: SOUN) exploded onto investors' radars when Nvidia disclosed a stake last year. The stock took off as enthusiasm soared, but has cooled off since. Shares are now down more than 50% from their highs. The question is whether that drop is a red flag or a buying opportunity. Looking to combine voice and agentic AI SoundHound started out as an artificial intelligence (AI) voice company whose platform goes beyond traditional speech recognition. Its "speech-to-meaning" and "deep meaning understanding" technology are designed to not just convert words into text, but to interpret what someone actually wants in real time before they are even finished speaking. SoundHound has established a strong foothold in the automobile and restaurant industries. Major automakers, such as Hyundai and Stellantis, use its platform to power voice assistants in their vehicles, while fast-food chains are embedding its technology into drive-thrus, phone orders, and kiosks. The company is seeing strong traction in these industries, but that's part of the story. The other part is what came with the company's $80 million acquisition of Amelia in 2024. Amelia specialized in virtual agents for industries like healthcare, insurance, and financial services. These are consumer-facing industries where compliance, transactional complexity, and industry-specific jargon make voice integration more difficult. SoundHound bought Amelia not only to gain customers in these verticals, but to also gain access to its technology. In essence, it allowed the company to combine its advanced speech recognition technology with Amelia's conversational intelligence. Amelia also gave SoundHound an important missing piece to go beyond voice and enter the world of agentic AI. SoundHound isn't looking to be just an AI voice company anymore, it's positioning itself as an autonomous voice agent technology company. Its launch of its Amelia 7.0 platform is a big step forward in this vision. The platform is designed to act like a digital employee that can understand intent, reason, interact with humans naturally, and then autonomously complete tasks. While chatbots may struggle with interruptions or someone rephrasing something, Amelia 7.0's voice first technology helps it excels in these areas. Amelia can also be integrated with enterprise systems, such as enterprise resource planning (ERP) platforms, customer relationship management (CRM) platforms, help desks, banking systems, and medical and insurance platforms. It can also carry out very industry specific tasks. For example, within healthcare, it can help a patient who calls a medical practice find the right specialist, schedule an appointment, get prior authorization, and take their insurance information. Meanwhile, for financial services, it would be able to handle tasks such as balance transfers, transaction disputes, or even make complex stock and options trades. That type of voice AI platform can be real cost saver for companies, so it has a huge opportunity in front of it. However, it also has real work to do. All about execution While SoundHound just posted 151% revenue growth in Q1, it's still not profitable and its gross margin has come under pressure. The Amelia deal brought over some lower-margin legacy contracts, and amortization costs from the acquisition are also weighing on reported results. Last quarter, generally accepted accounting principles (GAAP) gross margin dropped to 36.5%, although adjusted gross margin was higher at 50.8%. SoundHound is aiming to get gross margin back above 70% over time. It last hit that level in the fourth quarter of 2023, before the Amelia deal closed. Management has been clear that improving its margin profile is a key focus, and as low-margin contracts expire and get renegotiated, those numbers should improve. The path from here is all about execution. SoundHound has an intriguing technology and a differentiated product. However, it faces competition from bigger companies that have more resources and large installed user bases. The pullback in the stock has more to do with sentiment and valuation than it does with its growth outlook. The stock has never been cheap, and it likely won't be anytime soon. But that's the case with most companies with huge future opportunities. If SoundHound succeeds in becoming a premier agentic AI company, the drop in share price will look like a gift. However, if it stumbles on execution or gets outflanked by a bigger player, it won't matter how strong its tech is. The simple fact also is that the best technology doesn't always win. Sony is a company that knows this very well. Its superior Betamax technology lost to VHS in the early days of VCRs. However, the company learned its lesson when DVDs came around, with its Blu-ray technology being the winner over HD DVD, despite arguably being the lesser technology. Time will tell who comes out on top with AI agents. Is SoundHound stock a buy? SoundHound is at the intersection of voice AI and AI agents, which has the potential to be an absolutely huge market. Meanwhile, with a market cap of less than $5 billion, the stock has a lot of runway if it can become one of the major players in this market. Overall, an investment in SoundHound stock is a high-upside bet on a potentially big trend. For long-term investors who can handle volatility, buying this dip could be a great opportunity. Just remember, though, this is still a high risk-reward stock. 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. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% 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 15, 2025
Yahoo
14-07-2025
- Business
- Yahoo
Meta strengthens portfolio with PlayAI acquisition
Facebook-parent Meta Platforms has reportedly acquired PlayAI, a startup specialising in AI-powered voice technology. The PlayAI team is scheduled to integrate into Meta week commencing 13 July 2025, Bloomberg reported citing an internal memo. They will report to Johan Schalkwyk, who joined Meta from another voice AI startup Sesame AI. Financial details of the acquisition were not divulged. However, a Meta spokesperson confirmed the deal to the publication without providing further details. PlayAI's AI Agent platform is designed to create conversational agents capable of understanding and responding to user inputs in a natural manner. The platform combines advanced language models with high-quality text-to-speech technology to facilitate human-like interactions. According to the internal memo, PlayAI's expertise in natural voice creation aligns well with Meta's objectives in AI Characters, Meta AI, Wearables, and audio content creation. The acquisition is also aligned with Meta's broader strategy to prioritise AI. The company is investing significantly in infrastructure, including chips and data centres, and is actively recruiting talent to develop AI models and features. Recently, Meta CEO Mark Zuckerberg, announced a restructuring of the company's AI division. The new unit, called Meta Superintelligence Labs led by former Scale AI CEO Alexandr Wang, will work to accelerate the development of artificial general intelligence and enhance Meta's revenue through AI applications, image-to-video advertising, and smart glasses. Meta also invested around €3bn ($3.5bn) earlier in July 2025 to acquire a nearly 3% stake in EssilorLuxottica, the eyewear manufacturer known for the Ray-Ban brand. The investment strengthened the ongoing collaboration between Meta and EssilorLuxottica on AI-enabled smart glasses. "Meta strengthens portfolio with PlayAI acquisition" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
12-07-2025
- Business
- Yahoo
Meta acquires voice AI startup PlayAI, continuing to add talent
(Bloomberg) — Meta Platforms Inc (META). has completed a deal to acquire PlayAI, a small artificial intelligence startup focused on voice technology. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Why Did Cars Get So Hard to See Out Of? Can Americans Just Stop Building New Highways? How German Cities Are Rethinking Women's Safety — With Taxis Denver City Hall Takes a Page From NASA The 'entire PlayAI team' is set to join Meta next week, according to an internal memo that was reviewed by Bloomberg. The PlayAI group will report to Johan Schalkwyk, who recently joined Meta from a separate voice AI startup called Sesame AI Inc. Bloomberg News previously reported that the companies were discussing the acquisition. Meta has made AI the company's top priority this year, investing heavily in infrastructure such as chips and data centers, as well as recruiting top talent to build AI models and features. Chief Executive Officer Mark Zuckerberg recently announced a major restructuring of the company's AI division, putting former Scale AI CEO Alexandr Wang in charge of the new group, which is named Meta Superintelligence Labs. Financial terms of the purchase weren't disclosed. A Meta spokesperson confirmed the acquisition, but declined further comment. The PlayAI team's 'work in creating natural voices, along with a platform for easy voice creation, is a great match for our work and road map, across AI Characters, Meta AI, Wearables and audio content creation,' according to the memo. Trump's Cuts Are Making Federal Data Disappear Will Trade War Make South India the Next Manufacturing Hub? 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Soccer Players Are Being Seriously Overworked Trade War? No Problem—If You Run a Trade School ©2025 Bloomberg L.P.
