Investors in Soundhound AI (NASDAQ:SOUN) struck gold late last week, as its share price surged by 20% on Friday. The putative catalyst was the strong earnings results from another major player in the voice AI sandbox.
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Indeed, Twilio delivered a strong double beat on Thursday evening, and it also reported that its voice revenue grew by 20%. That seemed to bode well for SOUN, which is slated to report its own earnings this coming Thursday, May 7th.
That’s not to say that SoundHound had been having a quiet few weeks before this latest news broke. It had previously announced some major contracts, including the rollout of its voice AI tools across more than 2,600 Casey’s store locations.
It’s not the revenues that have been SoundHound’s soft spot, however, but rather its profitability. The company’s sales have been jumping, as demonstrated by its Q4 revenue of $55.1 million (up 59% year-over-year) and full-year 2025 revenue of $169 million (nearly double the 2024 figure).
And yet, the company remains unprofitable, as demonstrated by its non‑GAAP net loss of $7.3 million in Q4 2025.
Top investor Anders Bylund is embracing the SOUN bull case, seeing the Twilio report as a strong signal to jump on board.
“Strong demand for Twilio’s voice services suggests a huge and healthy market for other voice AI solutions, including SoundHound AI’s platforms,” states the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.
Bylund certainly appreciates the company’s lack of profits. However, he’s not letting that temper his enthusiasm, pointing to SoundHound’s “massive backlog” of contracts. He’s also encouraged by the doubling of its top-line numbers in 2025.
Nor is Bylund scared off by SOUN’s “lofty” 23x price-to-sales ratio, though he also acknowledges this is significantly more expensive than Twilio’s price-to-sales multiple of ~5x.
Perhaps more importantly, Bylund is eagerly anticipating SOUN’s upcoming earnings release, predicting that it will reflect improvements all-around and further support the bull case.
“(The) report should reveal another round of fresh contracts, another surge of revenue growth, and another step toward profitable operations in the long run,” concludes Bylund. (To watch Bylund’s track record, click here)
Wall Street is also feeling groovy when it comes to SoundHound. With 5 Buys and 1 Hold, SOUN enjoys a Strong Buy consensus rating. Its 12-month average price target of $14.00 points to an upside approaching 50% in the year to come. (See SOUN stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.