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SoundHound AI, Inc Class A (SOUN)
NASDAQ:SOUN
Top Page
SoundHound AI, Inc Class A
(NASDAQ:SOUN)
55Neutral
Positive Factors
Market Demand
Sales momentum across multiple verticals including restaurants, automotive, healthcare, financial services, government, and energy.
Price Target
The $26.00 price target represents approximately 85.0% upside from recent trading levels.
Revenue Growth
Increased revenue guidance suggests confidence in organic growth story.
Negative Factors
Gross Margin
Gross margin of 48.6% was down sequentially from 63.0%, and down from 72.9% a year ago due to lower margin businesses associated with recent M&A.
Stock Performance
SOUN shares have come under pressure, down 29% year to date versus a 2.2% decline in the Russell 2000 Index.
SoundHound AI, Inc Class A (SOUN) vs. S&P 500 (SPY)
Market Cap
$3.66B
Dividend YieldN/A
Average Volume (3M)22.58M
Price to Earnings (P/E)―
Beta (1Y)2.87
Revenue Growth84.62%
EPS Growth-152.92%
CountryUS
Employees842
SectorTechnology
Sector Strength66
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.31
Shares Outstanding368,055,800
10 Day Avg. Volume22,194,093
30 Day Avg. Volume22,581,112
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.98
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit175.14
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.90Price Target Upside62.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
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 operates within the technology sector, focusing primarily on developing advanced voice recognition and natural language understanding solutions. SoundHound AI's core products include voice AI platforms that enable businesses to integrate sophisticated voice interfaces into their products and services, enhancing user interaction through voice commands and conversational experiences.
How the Company Makes MoneySoundHound AI, Inc. generates revenue through licensing its voice AI technology to a variety of sectors, including automotive, consumer electronics, and enterprise software. The company's revenue model primarily relies on charging licensing fees to businesses that integrate its voice recognition and conversational AI solutions into their products. Additionally, SoundHound AI may earn revenue through subscription services for ongoing access to its platforms and by providing custom development services for businesses requiring tailored voice and AI solutions. Strategic partnerships with major technology companies and automotive manufacturers also contribute significantly to its earnings, allowing it to expand its market reach and application areas.
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 Financial Statement Overview
Summary
SoundHound AI, Inc exhibits strong revenue growth, a positive sign for future potential, but faces ongoing profitability and cash flow challenges. Significant debt levels and historical negative equity raise concerns about financial stability, despite recent improvements. The company must address operational inefficiencies to achieve profitability and ensure long-term sustainability.Income Statement
SoundHound AI, Inc has shown significant revenue growth over the years, moving from $7.68 million in 2019 to $84.69 million in 2024, indicating strong top-line growth. Despite this, the company consistently shows negative net income, with a net loss of $351.1 million in 2024, highlighting profitability challenges. This is reflected in negative EBIT and EBITDA margins, which have widened over time, suggesting ongoing operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reveals a high leverage position, with a debt-to-equity ratio indicating substantial liabilities compared to equity, though this improved in 2024 with equity turning positive. The equity ratio improved significantly in the latest year, suggesting better financial stability. Despite these improvements, the company has historically struggled with negative equity, posing a risk to financial health.30
Negative
Cash Flow
Cash flow analysis reveals persistent negative free cash flow, indicating cash burn and reliance on external financing, as evidenced by significant financing cash flows in recent years. The operating cash flow remains negative, and the free cash flow to net income ratio remains unfavorable. Despite improvements in operating cash flow in 2024, liquidity remains a concern.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 84.69M | 45.87M | 31.13M | 21.20M | 13.02M | Gross Profit |
| 41.38M | 34.57M | 21.53M | 14.61M | 7.15M | EBIT |
| -341.35M | -68.61M | -105.41M | -65.33M | -66.00M | EBITDA |
| -329.09M | -65.14M | -102.89M | -61.65M | -65.36M | Net Income Common Stockholders |
| -350.68M | -88.94M | -115.37M | -79.54M | -74.41M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 198.24M | 95.26M | 9.24M | 21.63M | 43.69M | Total Assets |
| 553.95M | 151.12M | 38.25M | 49.20M | 63.64M | Total Debt |
| 4.35M | 90.16M | 44.25M | 73.32M | 16.64M | Net Debt |
| -193.89M | -5.10M | 35.01M | 51.69M | -27.05M | Total Liabilities |
| 371.30M | 122.95M | 73.48M | 392.44M | 339.99M | Stockholders Equity |
| 182.65M | 28.17M | -35.23M | -343.24M | -276.35M |
| Cash Flow | Free Cash Flow | |||
| -109.52M | -68.66M | -95.35M | -66.81M | -48.47M | Operating Cash Flow |
| -108.88M | -68.27M | -94.02M | -66.18M | -46.30M | Investing Cash Flow |
| -12.37M | -392.00K | -1.33M | -636.00K | 11.45M | Financing Cash Flow |
| 210.91M | 168.24M | 82.00M | 44.65M | 53.45M |
SoundHound AI, Inc Class A Technical Analysis
Positive
9.17
Price Trends
9.03
Positive
12.42
Negative
9.17
Positive
Market Momentum
0.12
Negative
57.66
Neutral
50.79
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 9.17 is above the 20-day moving average (MA) of 8.80, above the 50-day MA of 9.03, and above the 200-day MA of 9.17, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 50.79 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 51 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $453.18M | ― | -46.57% | ― | -2.39% | -2959.91% | |
66 Neutral | $937.70M | 438.53 | 4.15% | ― | 30.64% | ― | |
64 Neutral | $4.58B | ― | -966.61% | ― | 32.71% | -131.68% | |
60 Neutral | $10.83B | 10.47 | -6.71% | 2.99% | 7.73% | -12.97% | |
55 Neutral | $3.66B | ― | -332.68% | ― | 84.62% | -152.92% | |
52 Neutral | $151.29M | ― | -27.44% | ― | 16.03% | 30.99% | |
49 Neutral | $173.28M | ― | -22.66% | ― | -25.43% | -135.09% |
* Technology Sector Average
Performance Comparison
SOUN
SoundHound AI, Inc Class A
9.74
4.99
105.05%
GRND
Grindr
24.45
13.86
130.88%
FRGE
Forge Global Holdings
13.60
-12.65
-48.19%
SMRT
SmartRent
0.88
-1.51
-63.18%
DSP
Viant Technology
14.39
5.62
64.08%
BMBL
Bumble
5.56
-5.89
-51.44%
SoundHound AI, Inc Class A Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -5.85%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong revenue growth and successful strategic initiatives, particularly in voice AI and enterprise partnerships. However, challenges in the automotive sector and increased operating expenses have created some headwinds. Overall, the company is optimistic about future growth opportunities.Q1-2025 Updates
Positive Updates
Record Revenue Growth
SoundHound reported over $29 million in revenue for Q1 2025, representing a 151% year-over-year increase, showcasing significant growth and strong financial performance.
Expansion of Polaris Model
The Polaris multimodal, multilingual foundation model has been integrated into the majority of SYNQ3's locations, leading to a 30% increase in locations and demonstrating successful product deployment and synergy realization.
Voice AI Advancements
SoundHound's voice AI technology has improved latency, sentence accuracy, and word error rate, outperforming competitors and enhancing the company's competitive edge in the market.
Strategic Acquisitions and Synergies
The acquisitions of SYNQ3, Allset, and Amelia have shown strong integration and growth, with Allset expanding the voice commerce ecosystem and Amelia launching a new agentic AI platform.
Growing Enterprise Partnerships
SoundHound has secured new deals and expansions with major companies across diverse sectors including automotive, healthcare, retail, and financial services, demonstrating broad market appeal and customer trust.
Negative Updates
Automotive Sector Challenges
SoundHound experienced pressure in auto units due to complex geopolitical dynamics, impacting revenue despite optimism about future opportunities in the sector.
Gross Margin Pressure
GAAP gross margin decreased to 37% year-over-year due to the impact of product mix and recent acquisitions, although non-GAAP gross margin was 51%.
Increased Operating Expenses
Operating expenses, including R&D and sales and marketing, increased significantly year-over-year, driven by acquisitions and investments in growth and innovation.
Company Guidance
During the SoundHound First Quarter 2025 Earnings Conference Call, the company reported a significant revenue increase of over 151% year-over-year, reaching $29.1 million. Key performance metrics highlighted include improved average latency per query, which is up to four times better, and sentence accuracy in noisy environments being around twice as good. The word error rate is reported to be 35% better, with nearly 30 languages in a mature state. The company has expanded its presence in the restaurant industry, with voice AI ordering solutions nearing 13,000 locations and handling approximately 10 million interactions per quarter. SoundHound's gross margin on a non-GAAP basis was 51%, and they reaffirmed their 2025 revenue guidance of $157 to $177 million. The company aims to achieve adjusted EBITDA profitability by the end of 2025, despite a current adjusted EBITDA loss of $22.2 million for Q1. The call also noted successful integrations and expansions with recent acquisitions like SYNQ3 and Amelia, contributing to the company's growth and strategic initiatives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.