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SoundHound AI, Inc Class A (SOUN)
:SOUN
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SoundHound AI, Inc Class A
(NASDAQ:SOUN)
Rating:56Neutral
Price Target:
$17.00
▲(9.04% Upside)
Positive Factors
Business Expansion
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
Execution Risks
The setup for the second half of 2025 presents concerns that deals may get pushed into 2026, impacting near-term execution.
Financial Challenges
Despite strong revenue growth, Adjusted EBITDA remains negative, indicating ongoing financial challenges that need to be addressed.
SoundHound AI, Inc Class A (SOUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.36B
Dividend YieldN/A
Average Volume (3M)52.13M
Price to Earnings (P/E)―
Beta (1Y)3.05
Revenue Growth136.97%
EPS Growth-56.72%
CountryUS
Employees842
SectorTechnology
Sector Strength89
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.19
Shares Outstanding375,150,880
10 Day Avg. Volume68,069,086
30 Day Avg. Volume52,126,559
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 Cap0.64
Enterprise Value/Revenue31.10
Enterprise Value/Gross Profit76.76
Enterprise Value/Ebitda-20.46
Forecast
1Y Price Target
$15.29Price Target Upside-1.92% Downside
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: 45.29%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong positive outlook with record revenue growth and successful integration of acquisitions, leading to significant expansion in key business segments. However, this was tempered by a decrease in gross margin and a significant GAAP net loss, largely due to acquisition-related expenses.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
SoundHound reported its strongest quarter ever with $42.7 million in revenue, reflecting a 217% increase year-over-year.
Successful Acquisition Integration
Acquisitions significantly contributed to growth with improved sales attainment levels from 40% to over 100% and increased net revenue retention from less than 90% to over 120%.
AI Query Processing Milestone
The company processed over 1 billion queries per month on its platform, showing significant operational capacity.
Expansion in Restaurant and Automotive Segments
The restaurant business scaled rapidly, now exceeding 14,000 locations, while automotive saw a major new win in China.
Launch of Agentic AI Platform Amelia 7
The new AI platform is quickly gaining traction, migrating 15 large enterprise customers to the new platform.
Introduction of Voice Commerce
SoundHound's Voice Commerce is gaining momentum with advanced stage pilots and POCs involving major OEMs and well-known merchants.
Negative Updates
Decreased GAAP Gross Margin
The GAAP gross margin was 39%, down year-over-year due to the impact of business and product mix from recent acquisitions.
Significant GAAP Net Loss
The company reported a GAAP net loss of $74.7 million, impacted by a $31 million loss related to the change in fair value of contingent liabilities.
Increased Operating Expenses
R&D, Sales and Marketing, and G&A expenses increased significantly year-over-year due to acquisitions.
Company Guidance
In the second quarter of 2025, SoundHound reported its strongest quarter ever with a revenue of $42.7 million, marking a 217% year-over-year increase. The company highlighted significant growth across all key business areas, including automotive, AI-driven customer service for enterprises, and AI and automation for restaurants. Notably, SoundHound processed over 3 billion queries in the quarter, doubling the volume from the previous year. The company's acquisitions have been successfully integrated, leading to a net revenue retention increase to over 120%, and the number of active locations using SoundHound's Voice AI ordering solutions surpassed 14,000. SoundHound's innovative Polaris model and recent rollout of the Voice Commerce ecosystem are seen as major future growth drivers. The company has revised its 2025 revenue forecast to $160 million to $178 million, and anticipates achieving adjusted EBITDA profitability by the end of 2025.SoundHound AI, Inc Class A Financial Statement Overview
Summary
SoundHound AI, Inc. is experiencing consistent revenue growth, which is promising for future prospects. However, the company faces significant profitability challenges, as evidenced by negative profit margins and cash flows. Despite a solid equity base, the reliance on external financing is a concern. Improving profitability and cash generation is crucial.Income Statement
The company has shown consistent revenue growth, with a TTM revenue increase of 20.67% compared to the previous year. However, the company is struggling with negative profit margins, including a net profit margin of -184.33% and an EBIT margin of -184.93% for the TTM period. This reflects ongoing profitability challenges.60
Neutral
Balance Sheet
The company's balance sheet shows a reasonable equity position with an equity ratio of 67.56%, providing some stability. However, the debt-to-equity ratio is low at 0.01, indicating limited leverage, which could be a double-edged sword in terms of growth potential. Return on equity is negative, reflecting poor profitability.52
Neutral
Cash Flow
Operating cash flow is negative at -$106.12 million, indicating cash outflows from operations. Free cash flow is also negative, but financing activities have provided substantial inflows. The operating cash flow to net income ratio is 0.56, suggesting some efficiency in converting net income to cash, albeit negative.58
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 | -199.76M | -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
15.59
Price Trends
11.36
Positive
10.32
Positive
11.28
Positive
Market Momentum
1.26
Negative
67.66
Neutral
87.27
Negative
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 15.59 is above the 20-day moving average (MA) of 12.45, above the 50-day MA of 11.36, and above the 200-day MA of 11.28, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 67.66 is Neutral, neither overbought nor oversold. The STOCH value of 87.27 is Negative, 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $598.04M | 282.74 | 5.20% | ― | 30.92% | ― | |
62 Neutral | $287.40M | ― | -28.14% | ― | 14.78% | 21.87% | |
61 Neutral | $36.32B | 7.30 | -7.27% | 1.96% | 7.76% | -6.42% | |
58 Neutral | $248.25M | ― | -25.48% | ― | -28.45% | -224.48% | |
56 Neutral | $6.36B | ― | -77.38% | ― | 136.97% | -56.72% | |
50 Neutral | $3.13B | ― | -76.08% | ― | 28.35% | 24.57% | |
50 Neutral | $654.23M | ― | -75.71% | ― | -5.06% | -2318.18% |
* Technology Sector Average
Performance Comparison
SOUN
SoundHound AI, Inc Class A
15.59
10.64
214.95%
GRND
Grindr
16.57
4.47
36.94%
FRGE
Forge Global Holdings
21.13
0.43
2.08%
SMRT
SmartRent
1.32
-0.35
-20.96%
DSP
Viant Technology
9.50
-1.22
-11.38%
BMBL
Bumble
6.29
-0.15
-2.33%
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.
The most recent analyst rating on (SOUN) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on SoundHound AI, Inc Class A stock, see the SOUN Stock Forecast page.
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.