NEW YORK, March 10, 2025 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of SoundHound AI, Inc. (NASDAQ: SOUN, SOUNW) resulting from allegations that SoundHound may have issued materially misleading business information to the investing public. SO WHAT: If you purchased SoundHound securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingen ...

Core Viewpoint - SoundHound AI predicts its revenue will double in the next fiscal year, indicating significant growth potential and attracting investor interest [1][3]. Company Growth - SoundHound AI's revenue rose 101% to $34.5 million in Q4, projecting 2024 revenue at $84.7 million and 2025 sales between $157 million and $177 million [3]. - The company's revenue backlog is nearly $1.2 billion, up 75% year over year, suggesting sustained growth as new contracts are signed [4]. Financial Position - SoundHound is not currently profitable but aims to achieve adjusted profitability by the end of 2025, supported by $200 million in cash and no debt [5]. - The stock is currently valued at 41.2 times sales, which is considered expensive but justifiable given the projected revenue growth [7]. Market Dynamics - The stock's valuation has decreased recently but remains high, indicating potential volatility due to the company's rapid growth and premium valuation [6][8]. - The company is expected to maintain rapid growth beyond 2026, making it a long-term investment opportunity [9].

Company Overview - SoundHound AI has experienced significant stock volatility, rising sharply after Nvidia's investment but dropping 51% in 2025 due to Nvidia's divestment and high valuation [1][2][3] - DigitalOcean, with a market cap of $3.7 billion, is positioned to potentially surpass SoundHound's market cap due to its attractive valuation and strong growth in cloud-based AI services [5][11] Financial Performance - DigitalOcean's revenue for Q4 2024 increased by 13% year over year to $205 million, with earnings rising 11% to $0.49 per share [7] - DigitalOcean's average revenue per user (ARPU) grew 14% year over year in Q4, an acceleration from the previous year's 6% growth [8] Market Position and Growth Potential - DigitalOcean is currently trading at 5 times sales and 22 times forward earnings, making it a more attractive investment compared to SoundHound's 41 times sales [6][3] - DigitalOcean has launched the DigitalOcean GenAI Platform, which is in public beta and has already seen over 1,000 AI agents created, indicating strong demand for its AI services [9][10] Future Projections - DigitalOcean has guided for $880 million in revenue for 2025, a 13% increase from the previous year, with potential for higher growth due to demand for cloud-based AI services [11] - If DigitalOcean trades at 7.5 times sales, its market cap could reach $6.6 billion, surpassing SoundHound's market cap, which may struggle to grow due to its high valuation [12]

Core Viewpoint - Kirby McInerney LLP is investigating potential claims against SoundHound AI, Inc. regarding possible violations of federal securities laws and unlawful business practices [1]. Group 1: Investigation Details - The investigation focuses on whether SoundHound and/or its officers have engaged in unlawful business practices [1]. - The law firm is reaching out to individuals who purchased or acquired SoundHound securities for information related to the investigation [4]. Group 2: Financial Reporting Issues - On March 4, 2025, SoundHound filed a Notification of Late Filing with the SEC, indicating it would not file its 10-K annual report for the fiscal year ended December 31, 2024, on time [3]. - The company cited the complexity of accounting for prior acquisitions as a reason for the delay and identified material weaknesses in its internal control over financial reporting [3]. - SoundHound expects to file its Form 10-K by March 18, 2025, within the fifteen-day period allowed under Rule 12b-25 [3]. - Following this announcement, SoundHound's share price fell by $0.60, closing at $9.72 on March 4, 2025, down from $10.32 on March 3, 2025 [3].

After a strong 2024 for SoundHound AI (SOUN -5.91%), it's been a rough start to 2025. However, the stock rallied from its recent lows following a strong fourth-quarter earnings report. Shares have nearly doubled over the past year, as of this writing, but they're down 50% year to date.SoundHound popped up on investors' radar after chip giant Nvidia revealed an investment in the artificial intelligence (AI) company in Feb. 2024. However, the stock has tumbled the past few weeks following the news that Nvidia ...

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of SoundHound AI, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Legal Action and Investor Rights - Investors who purchased SoundHound securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees, as the Rosen Law Firm is preparing to seek recovery of investor losses [2]. - To participate in the class action, investors can submit their information through the provided link or contact the firm directly [2]. Group 2: Company Financial Reporting Issues - On March 4, 2025, SoundHound filed a Notification of Late Filing with the SEC, indicating it would not be able to file its 10-K annual report for the fiscal year ended December 31, 2024, on time due to complexities in accounting for prior acquisitions [3]. - The Notification also revealed that SoundHound identified material weaknesses in its internal control over financial reporting, which persist as of December 31, 2024, and the company expects to file its Form 10-K by March 18, 2025 [3]. - Following this announcement, SoundHound's shares experienced a decline of 5.8% on March 4, 2025 [3]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements in recovering significant amounts for investors [4]. - The firm has been recognized for its performance in securities class action settlements, including a notable settlement against a Chinese company and ranking highly in the number of settlements since 2013 [4].

Core Viewpoint - SoundHound AI experienced a significant stock price increase following the release of its fourth-quarter 2024 results, driven by better-than-expected financial performance and optimistic guidance for 2025 [1][2]. Financial Performance - SoundHound's 2024 revenue rose by 85% to nearly $85 million, surpassing the upper end of its initial guidance [3]. - The company anticipates its 2025 revenue to nearly double, with guidance set between $157 million and $177 million, an increase from the previous range of $155 million to $175 million [3]. Market Demand and Expansion - The growing demand for conversational AI solutions across various sectors supports SoundHound's revenue growth, with recent customer wins in automotive and restaurant industries, and expansion into healthcare, retail, telecom, energy, and government [4]. - The company is also focusing on launching agentic AI tools, which allow AI agents to operate autonomously, potentially tapping into a market projected to grow nearly 40 times over the next decade, reaching close to $200 billion in annual revenue by 2034 [5][6]. Backlog and Future Growth - SoundHound ended 2024 with a cumulative subscriptions and bookings backlog of $1.2 billion, a 75% increase from the previous year, indicating strong future revenue potential [6]. - The company expects this backlog to grow further due to new contracts and significant cross-sell and upsell opportunities [6]. Stock Performance and Analyst Expectations - Analysts predict a 30% increase in SoundHound's stock price over the next year, with a 12-month median price target of $13.50, despite the stock trading at a high valuation of 43 times sales [8]. - The strong subscriptions and bookings backlog exceeds both the 2025 revenue forecast and analysts' expectations for 2026, suggesting continued positive performance [9].

SoundHound AI (SOUN 1.09%) was one of 2024's top-performing stocks, rising 836%. However, 2025 hasn't been so kind, as the stock has fallen 45%. But investors may have just gotten some good news that could reverse SoundHound AI's fortunes in 2025. The company recently reported fourth-quarter results, and to say they knocked it out of the park is an understatement. Is this enough of a catalyst to reverse the stock? Let's find out.SoundHound AI posted fantastic Q4 growth numbersSoundHound AI does exactly what ...

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myse ...

This pioneer in voice-powered AI may just be getting started.SoundHound AI (SOUN -5.86%) delivered a blowout fourth-quarter earnings report to cap off a transformative year. The voice artificial intelligence (AI) pioneer posted a spectacular 101% year-over-year increase in revenue for the period ended Dec. 31, while the adjusted earnings-per-share (EPS) loss of $0.05 was narrower compared to the $0.08 loss Wall Street estimated. The results were strong enough for management to raise its full-year 2025 growt ...