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SoundHound AI, Inc Class A (SOUN)
NASDAQ:SOUN
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SoundHound AI, Inc Class A
(NASDAQ:SOUN)
Rating:54Neutral
Price Target:
$15.00
▲(5.19% Upside)
Positive Factors
Financial Stability
The company is well capitalized with a cash balance of $230.0M and no debt.
Market Penetration
The company's penetration in the automotive sector is growing, with major brands adopting SoundHound AI's Chat AI, presenting revenue opportunities and establishing tech leadership.
Revenue Growth
SoundHound AI's revenue significantly surpassed forecasts, driven by successful large deals in automotive and restaurants, indicating strong business momentum.
Negative Factors
Deal Execution
The setup for the second half of 2025 presents concerns that deals may get pushed into 2026, impacting near-term execution.
Financial Performance
Despite strong revenue growth, Adjusted EBITDA remains negative, indicating ongoing financial challenges that need to be addressed.
Market Competition
Competitors have more awareness, creating a challenge for SoundHound in driving profitability while needing to invest in sales and marketing.
SoundHound AI, Inc Class A (SOUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.81B
Dividend YieldN/A
Average Volume (3M)56.94M
Price to Earnings (P/E)―
Beta (1Y)3.13
Revenue Growth136.97%
EPS Growth-56.72%
CountryUS
Employees842
SectorTechnology
Sector Strength82
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.19
Shares Outstanding375,150,880
10 Day Avg. Volume69,889,267
30 Day Avg. Volume56,935,183
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue31.10
Enterprise Value/Gross Profit76.76
Enterprise Value/Ebitda-20.54
Forecast
1Y Price Target
$15.00Price Target Upside5.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
SoundHound AI, Inc Class A Business Overview & Revenue Model
Company DescriptionSoundHound AI, Inc Class A (SOUN) is a leading innovator in voice-enabled AI and conversational intelligence technologies. The company specializes in developing advanced voice recognition, natural language understanding, and speech-to-meaning capabilities. SoundHound AI operates primarily in the technology and artificial intelligence sectors, delivering solutions that enable businesses to integrate sophisticated voice interactions into their products and services.
How the Company Makes MoneySoundHound AI, Inc generates revenue through licensing its voice AI technology to enterprises across various industries, including automotive, consumer electronics, and telecommunications. The company offers customizable voice solutions that allow clients to enhance their user interfaces with voice-enabled functionalities. Additionally, SoundHound AI has established strategic partnerships with major corporations to expand its technology's reach and application. Revenue streams include licensing fees, subscription models for its software-as-a-service (SaaS) products, and potentially revenue sharing models with partners who integrate its voice technology into their products.
SoundHound AI, Inc Class A Key Performance Indicators (KPIs)
Any
Revenue by Service Type
Breaks down revenue by different service offerings, indicating which services drive growth and where the company might expand or face competition.
Breaks down revenue by different service offerings, indicating which services drive growth and where the company might expand or face competition.
Data provided by:
Main Street Data
Main Street DataSoundHound AI, Inc Class A Earnings Call Summary
Earnings Call Date:Jun 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
SoundHound reported a record-breaking quarter in terms of revenue and growth, with successful integration of acquisitions and expansion across multiple verticals. The company highlighted significant advancements in its AI models and development of its Voice Commerce ecosystem. However, these achievements were tempered by declines in gross margin, a significant GAAP net loss, and increased operating expenses.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
SoundHound reported its strongest quarter ever with $43 million in revenue, a 217% increase year-over-year.
Successful Acquisition Integration
SoundHound successfully integrated acquisitions, leading to improved growth trajectories, better renewal rates, and significant cost savings.
Expansion Across Verticals
SoundHound saw strong growth across multiple verticals including automotive, restaurants, and enterprise AI, with significant new customer wins in each sector.
Polaris Foundation Model Success
The Polaris model has exceeded its peers in accuracy by over 35% and in latency by 4x, leading to increased customer renewals and expansions.
Voice Commerce Ecosystem Development
SoundHound's Voice Commerce initiative is advancing rapidly, creating pilots and partnerships with major automotive brands and merchants.
Negative Updates
Gross Margin Decline
GAAP gross margin decreased to 39% year-over-year due to product mix from recent acquisitions, though non-GAAP gross margin was 58%.
Significant GAAP Net Loss
SoundHound reported a GAAP net loss of $74.7 million, impacted by a $31 million loss related to change in fair value of contingent liabilities.
High Operating Expenses
R&D, sales and marketing, and G&A expenses saw significant increases, primarily driven by acquisitions and related headcount costs.
Company Guidance
During the SoundHound Second Quarter 2025 Earnings Call, significant financial and operational metrics were discussed, highlighting a robust performance. The company reported its strongest quarter to date, with $43 million in revenue, marking a 217% increase year-over-year. SoundHound processed over 1 billion queries per month, showcasing its platform's high demand and scalability. The call emphasized the successful integration of acquisitions, noting an improved net revenue retention rate of over 120% from less than 90% pre-acquisition. The expansion within automotive, restaurant, and enterprise AI sectors was notable, with automotive business securing a new OEM customer in China and the restaurant business reaching over 14,000 locations. The company revealed a strong balance sheet with $230 million in cash and no debt, and it increased its 2025 revenue guidance to a range of $160 million to $178 million. SoundHound anticipates achieving adjusted EBITDA profitability by the end of 2025.SoundHound AI, Inc Class A Financial Statement Overview
Summary
SoundHound AI, Inc Class A is experiencing strong revenue growth, but profitability remains a significant challenge. The balance sheet reflects low leverage but also highlights past financial instability with negative equity. Cash flow management shows some improvement, but the company needs to address its operational losses to achieve financial stability.Income Statement
SoundHound AI, Inc Class A has shown significant revenue growth, particularly in the TTM period with a 28.58% increase. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins across all periods. The gross profit margin has decreased over time, suggesting rising costs or pricing pressures.45
Neutral
Balance Sheet
The balance sheet shows a low debt-to-equity ratio in the TTM period, indicating limited leverage. However, the company has experienced negative equity in previous years, which poses a risk. Return on equity is negative, reflecting ongoing losses and challenges in generating returns for shareholders.40
Negative
Cash Flow
The cash flow statement indicates improvement in free cash flow growth in the TTM period, but operating cash flow remains negative. The free cash flow to net income ratio is slightly above 1, suggesting that the company is managing its cash flow better relative to its net losses.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 131.45M | 84.69M | 45.87M | 31.13M | 21.20M | 13.02M |
| Gross Profit | 53.26M | 41.38M | 34.57M | 21.53M | 14.61M | 7.15M |
| EBITDA | -199.04M | -329.09M | -62.63M | -99.70M | -61.65M | -65.36M |
| Net Income | -225.14M | -350.68M | -88.94M | -116.71M | -79.54M | -74.41M |
Balance Sheet | ||||||
| Total Assets | 579.49M | 553.95M | 151.12M | 38.25M | 49.20M | 63.64M |
| Cash, Cash Equivalents and Short-Term Investments | 230.34M | 198.24M | 95.26M | 9.24M | 21.63M | 43.69M |
| Total Debt | 4.39M | 4.35M | 90.16M | 44.25M | 73.32M | 16.64M |
| Total Liabilities | 219.74M | 371.30M | 122.95M | 74.55M | 392.44M | 339.99M |
| Stockholders Equity | 359.76M | 182.65M | 28.17M | -35.23M | -343.24M | -276.35M |
Cash Flow | ||||||
| Free Cash Flow | -131.91M | -109.52M | -68.66M | -95.35M | -66.81M | -48.47M |
| Operating Cash Flow | -131.09M | -108.88M | -68.27M | -94.02M | -66.18M | -46.30M |
| Investing Cash Flow | -7.94M | -12.37M | -392.00K | -1.33M | -636.00K | 11.45M |
| Financing Cash Flow | 150.48M | 210.91M | 168.24M | 82.00M | 44.65M | 53.45M |
SoundHound AI, Inc Class A Technical Analysis
Positive
14.26
Price Trends
12.28
Positive
10.95
Positive
11.75
Positive
Market Momentum
0.27
Positive
59.13
Neutral
73.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOUN, the sentiment is Positive. The current price of 14.26 is above the 20-day moving average (MA) of 13.74, above the 50-day MA of 12.28, and above the 200-day MA of 11.75, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 59.13 is Neutral, neither overbought nor oversold. The STOCH value of 73.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOUN.
SoundHound AI, Inc Class A Risk Analysis
SoundHound AI, Inc Class A disclosed 53 risk factors in its most recent earnings report. SoundHound AI, Inc Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SoundHound AI, Inc Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $35.55B | 8.91 | -10.55% | 1.87% | 8.47% | -8.26% | |
59 Neutral | $648.40M | 306.55 | 5.20% | ― | 30.92% | ― | |
58 Neutral | $235.58M | ― | -28.14% | ― | 14.78% | 21.87% | |
58 Neutral | $274.58M | ― | -25.48% | ― | -28.45% | -224.48% | |
54 Neutral | $5.81B | ― | -77.38% | ― | 136.97% | -56.72% | |
52 Neutral | $696.87M | ― | -75.71% | ― | -5.06% | -2318.18% | |
50 Neutral | $2.94B | ― | -76.08% | ― | 28.35% | 24.57% |
* Technology Sector Average
Performance Comparison
SOUN
SoundHound AI, Inc Class A
14.26
9.64
208.66%
GRND
Grindr
15.30
3.47
29.33%
FRGE
Forge Global Holdings
17.32
-2.18
-11.18%
SMRT
SmartRent
1.46
-0.16
-9.88%
DSP
Viant Technology
10.30
0.37
3.73%
BMBL
Bumble
6.70
0.10
1.52%
SoundHound AI, Inc Class A Corporate Events
Shareholder MeetingsRegulatory Filings and Compliance
SoundHound AI Approves Key Amendments at Annual Meeting
Neutral
May 30, 2025
On May 23, 2025, SoundHound AI, Inc. held its Annual Meeting of Stockholders where several key decisions were made. The stockholders re-elected directors, ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor, and approved multiple amendments to the company’s Certificate of Incorporation, including an increase in authorized Class A shares and provisions for officer exculpation. These changes were formalized with the filing of a Certificate of Amendment on May 29, 2025.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.