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1 Genius AI Stock That Could Be a Great Buy for July
The Motley Fool· 2025-07-09 09:15
Core Viewpoint - SoundHound AI is identified as a promising investment opportunity in the AI sector, particularly due to its rapid growth and innovative technology in speech recognition [1][2]. Company Overview - SoundHound AI specializes in integrating speech recognition with AI models, aiming to enhance human-like interactions in digital environments [2][4]. - The company has seen significant growth since going public, with a year-over-year growth rate of 151% in Q1 and a projected 97% growth for the full year [6]. Technology and Market Adoption - SoundHound AI's technology is being rapidly adopted across various industries, including healthcare and finance, beyond its initial deployments in restaurant drive-thrus and vehicle digital assistants [5][4]. - The company's speech recognition model is noted for its accuracy, outperforming human counterparts in many scenarios, which can lead to cost savings for businesses [4]. Financial Performance and Valuation - SoundHound AI's stock is currently trading at a premium valuation of 40 times sales, which is considered high but not unexpected given its growth potential [10][12]. - The company has a substantial revenue backlog of $1.2 billion expected by the end of 2024, compared to an estimated total revenue of $85 million for 2024, indicating strong future growth prospects [13]. Investment Outlook - If SoundHound AI can maintain its growth trajectory, its stock valuation could significantly improve, potentially leading to substantial upside for investors [12][14]. - The current stock price reflects only a bit over a year's worth of growth, suggesting that there is considerable room for appreciation if the company meets its growth targets [13].
SoundHound AI Vs. BigBear.ai: Which Stock Is the Better Buy?
ZACKS· 2025-07-07 20:00
Core Insights - Shares of SoundHound AI, Inc. (SOUN) and BigBear.ai Holdings, Inc. (BBAI) have seen significant increases of 182.2% and 423.7% respectively over the past year, driven by the rapid growth of artificial intelligence (AI) [1] Group 1: SoundHound AI - SoundHound AI reported first-quarter revenues of $29.1 million, reflecting a 151% year-over-year increase [2] - The company anticipates revenues of $157 million to $177 million for 2025, up from $84.7 million last year [2] - SoundHound AI has a booking backlog of $1.2 billion for 2024, indicating strong long-term revenue growth potential [2] - The total addressable market (TAM) for SoundHound AI is estimated at $140 billion, suggesting further expansion opportunities [2] - Demand for SoundHound AI's voice solutions is increasing due to their efficiency and automation benefits [3] - The conversational AI market is projected to grow from $17.05 billion in 2025 to $49.80 billion by 2031, providing opportunities for customer acquisition [3] - Rising customer demand for quick service and labor shortages are driving restaurants to adopt voice automation, benefiting SoundHound AI [4] - The company counts Casey's General Stores, Inc. and Chipotle Mexican Grill, Inc. among its clients [4] - If trade tensions ease, SoundHound AI's overseas costs, particularly in China, will decrease, positively impacting its bottom line [4] Group 2: BigBear.ai - BigBear.ai reported first-quarter revenues of $34.8 million, a 5% year-over-year increase [5] - The company expects full-year revenues to increase to between $160 million and $180 million [5] - BigBear.ai's AI shipbuilding software supports U.S. Navy submarine construction, and its facial recognition technology is utilized in airport security [5] - Leadership changes occurred in 2025, with Kevin McAleenan becoming CEO, which may help secure government contracts due to his prior role as U.S. Homeland Security Secretary [6] - BigBear.ai's backlog rose 30% year-over-year to $385 million in the first quarter, driven by new government contracts [10] Group 3: Comparative Analysis - Both SoundHound AI and BigBear.ai are currently unprofitable, with losses of $188 million and $62 million in the past 12 months and first quarter respectively [7] - SoundHound AI's first-quarter revenue growth significantly outpaces that of BigBear.ai [8] - SoundHound AI has a robust balance sheet with negligible debt, total assets of $587.5 million, and $245.8 million in cash, exceeding total liabilities of $190.5 million [8] - In contrast, BigBear.ai has total liabilities of $198.5 million, including $100.6 million in long-term debt [8] - BigBear.ai's weak sales growth and balance sheet hinder profitability, while SoundHound AI's strong sales and healthy balance sheet suggest potential profitability by the end of 2025 [9] - BigBear.ai's reliance on federal contracts makes it vulnerable to budget cuts, while SoundHound AI is less exposed to such risks, making it a more favorable investment choice [9]
SoundHound's Vertical AI Penetration Scales Up: Can It Drive Returns?
ZACKS· 2025-07-07 14:15
Core Insights - SoundHound AI, Inc. (SOUN) is experiencing significant enterprise adoption of its AI platform, with notable improvements in key performance indicators (KPIs) during Q1 2025, indicating strong scalability and operational relevance across various sectors [1][9] Group 1: Performance Metrics - In Q1 2025, ticket volumes increased by 5 times quarter over quarter, average resolution time decreased by nearly 50 times, and automation rates improved by approximately 50% [1][9] - The voice AI engine processed over 2 billion queries in Q1, with active restaurant deployments surpassing 13,000 locations, handling around 10 million customer interactions each quarter in that segment [2] Group 2: Product Development - The enterprise momentum is largely driven by Amelia 7.0, SoundHound's newly launched agentic AI platform, which autonomously performs multi-step business workflows and integrates with existing enterprise systems [3] - Early adoption of Amelia 7.0 spans multiple verticals, including telecom, financial services, healthcare, and hospitality, leading to expanded deployments and contract renewals [3] Group 3: Client Relationships - SoundHound has strengthened relationships with major clients, including a British multinational telecom firm, global insurers, and one of the largest hospitality chains [4] - In Q1, three healthcare firms renewed and expanded contracts, while four financial institutions increased their deployments of SoundHound's employee-facing AI solutions [4] Group 4: Market Positioning - With diversified vertical exposure and a growing base of multimodal AI use cases, SoundHound is positioning itself as a scalable enterprise AI infrastructure provider [5] Group 5: Competitive Landscape - C3.ai, Inc. reported a 419% year-over-year increase in partner-supported bookings, indicating a strong partner-led strategy for scaling enterprise AI [6] - BigBear.ai Holdings, Inc. focuses on AI deployments in national security and critical infrastructure, with a backlog of $385 million, but faces execution constraints due to government procurement cycles [7] Group 6: Valuation and Estimates - SoundHound shares have increased by 54.5% over the past three months, outperforming the industry growth of 23% [8] - The company trades at a forward price-to-sales ratio of 23.76X, which is significantly above the industry average of 19.75X [10] - The Zacks Consensus Estimate for SoundHound's EPS indicates a year-over-year increase of 84.6% for 2025 and 64.1% for 2026, with estimates remaining unchanged over the past 30 days [12]
Should You Buy This AI Stock That Soared 800% Last Year and Has a $140 Billion Total Addressable Market?
The Motley Fool· 2025-07-06 07:45
Group 1: AI Market Overview - Last year saw significant gains in AI stocks, leading major benchmarks, although momentum temporarily halted due to tariff concerns [1] - Optimism has returned among investors regarding trade talks potentially resulting in lower tariffs, which has renewed interest in growth sectors, including AI [1] Group 2: SoundHound AI Company Profile - SoundHound AI has over 190 granted patents and specializes in voice AI, particularly its speech-to-meaning technology, which enhances speed and quality [4] - The company has diversified its customer base beyond the automobile industry, serving sectors like healthcare, retail, and travel, with no single customer accounting for more than 10% of revenue, reducing risk [5] Group 3: Financial Performance - SoundHound's revenue increased by 151% to approximately $29 million in the recent quarter, indicating strong growth potential given its total addressable market of over $140 billion [6] - The company generates revenue through royalties, subscriptions, and additional product usage, providing multiple revenue streams [6] Group 4: Competitive Landscape - Despite its expertise, SoundHound faces competition from larger players like Amazon and Microsoft, which could impact its market share [7] - The company's growth has accelerated in recent quarters, with revenue growth rates increasing from 89% to 101% and higher in the latest period [8] Group 5: Investment Considerations - For cautious investors, established companies like Amazon or Microsoft may be preferable due to their proven earnings and stock performance [9] - Aggressive investors may find SoundHound an attractive buy due to its recent stock dip, accelerating revenue, and a healthy financial position with no debt and $246 million in cash [10]
SoundHound AI Stock: A Voice Tech Giant in the Making?
The Motley Fool· 2025-07-05 23:00
Core Insights - SoundHound AI (NASDAQ: SOUN) has achieved a remarkable 151% sales growth and has transitioned to profitability, indicating strong operational performance [1] - The stock is currently trading at a significant discount, suggesting potential undervaluation in the market [1] - The company has made strategic acquisitions, including Amelia, which enhances its capabilities in the voice commerce niche, positioning it as a key player in the AI sector for 2025 [1] Company Performance - Sales growth of 151% highlights the company's robust revenue generation capabilities [1] - Transitioning to profitability marks a critical milestone for the company, reflecting improved financial health [1] Market Position - The current stock price reflects a steep discount, indicating that the market may not fully recognize the company's growth potential [1] - The focus on voice commerce and strategic acquisitions positions SoundHound AI as a potentially overlooked investment opportunity in the AI market [1]
Down Over 50%, Should You Buy the Dip on SoundHound AI Stock?
The Motley Fool· 2025-07-05 22:04
Core Viewpoint - SoundHound AI experienced a significant stock increase of 836% in 2024, but has since declined by 55% from its peak in early 2025 due to Nvidia selling its stake in the company [1][4]. Company Overview - SoundHound AI specializes in voice-assistant technology for various industries, including automotive and restaurants, and is recognized as a first-mover in this space with two decades of experience [5][11]. - The company reported a remarkable revenue growth of 85% for the full year of 2024 and an impressive 151% year-over-year growth in Q1 2025 [5][10]. Market Opportunity - Management estimates a total addressable market of $140 billion, indicating that SoundHound currently captures less than 1% of this market [6][11]. - The rapid growth rate and substantial market potential suggest a long runway for future expansion, which is appealing to investors [8]. Financial Position - Although SoundHound is not yet profitable, it has a trailing 12-month net loss of $188 million, with $246 million in cash and no debt, positioning the company well for future profitability [10]. Competitive Landscape - SoundHound claims a competitive advantage as a "white-label" provider, allowing clients to maintain their branding, unlike larger competitors [11]. - However, increased competition from tech giants and advancements in generative AI may challenge SoundHound's market position [12][13]. Investment Considerations - While the business is performing well, the path to capturing its estimated $140 billion market opportunity will face significant competition [15]. - Investors are advised to remain cautious and consider the evolving competitive landscape before making investment decisions [16].
SoundHound AI Stock Has Plummeted by 53%. This Move by Nvidia Is a Key Reason Why.
The Motley Fool· 2025-07-04 08:57
Core Insights - SoundHound AI specializes in conversational AI software, attracting major brands and investment from Nvidia [1][2] - Nvidia's divestment from SoundHound AI led to a significant drop in the latter's stock value, losing 53% from its peak [3] - SoundHound AI's revenue is growing rapidly, with a 151% increase year-over-year in Q1 2025, but it faces cash burn issues [9][11] Company Overview - SoundHound AI's software is designed for hands-free use, making it suitable for various industries, including quick-service restaurants and automotive [5][6][7] - Major clients include Chipotle, Krispy Kreme, Hyundai, Honda, and Kia, utilizing SoundHound's technology for customer service and in-car features [6][7] Financial Performance - The company reported $29.1 million in revenue for Q1 2025, projecting $167 million for the full year, a 97% increase from 2024 [9][10] - Despite revenue growth, SoundHound reported a non-GAAP loss of $22.3 million in Q1 2025, raising concerns about its financial sustainability [11][12] Market Position and Valuation - SoundHound's stock trades at a high price-to-sales ratio of 39.3, significantly above Nvidia's ratio of 26.1, raising questions about its valuation [13][15] - Nvidia's decision to sell its stake in SoundHound may reflect concerns over the latter's high valuation and ongoing losses [3][16]
Soundhound AI: SOUN Stock To $20?
Forbes· 2025-07-03 12:50
Core Insights - SoundHound AI experienced a remarkable stock price increase in 2024, rising from $2 to $24, a twelvefold surge, although it has since retracted by approximately 55% from its peak [2] - The company has demonstrated significant revenue growth, with a three-year average growth rate of 69% and revenues doubling from $51 million to $102 million in the past year [3] - Management projects 2025 revenues between $157 million and $177 million, indicating nearly 100% year-over-year growth, reflecting strong demand for voice AI solutions [4] Financial Performance - SoundHound's latest quarterly revenues surged by 151.2% year-over-year to $29 million, up from $12 million [3] - The company is currently priced at $11 with a price-to-sales (P/S) ratio of 40x based on trailing twelve-month revenue [11] - If revenues triple from $85 million in 2024 to an estimated $250 million in 2027, the P/S multiple could decline to 16x, suggesting a potential stock price increase to about $20 [11] Growth Drivers - The automotive industry represents SoundHound's largest growth opportunity, with partnerships established with major manufacturers like Mercedes-Benz and Hyundai [6] - In 2025, SoundHound expanded its automotive presence by deploying its Chat AI to additional Stellantis brands and launched "Brand Personalities" for personalized voice assistants [7] - Research indicates a potential annual opportunity of $35 billion for automakers through in-car voice commerce, positioning SoundHound to capture significant market share [8] Strategic Partnerships - SoundHound's collaboration with NVIDIA focuses on edge solutions to enhance Voice Generative AI experiences in vehicles, improving user satisfaction [9] - The acquisition of Amelia in August 2024 has diversified SoundHound's enterprise presence, contributing to immediate revenue and access to established customer service contracts [10] Future Outlook - Sustained revenue growth of 25% or more is expected in the coming years following the doubling of revenues this year [13] - The company aims to convert revenue growth into improved profitability metrics and capture significant market shares in both automotive and restaurant voice AI markets [13]
Will SoundHound AI Be a $100 Stock 10 Years From Now?
The Motley Fool· 2025-07-02 09:15
Core Viewpoint - SoundHound AI is positioned as a leading player in the audio recognition AI market, with significant growth potential and a strong revenue trajectory, making it an attractive investment opportunity [1][4][10]. Group 1: Market Opportunity - SoundHound AI focuses on audio recognition software, targeting various applications such as drive-thru restaurants, automotive digital assistants, and healthcare [6][5]. - The company’s technology is reported to outperform existing voice-powered AI models like Siri and Alexa, which have faced numerous challenges [4][5]. Group 2: Revenue Growth - SoundHound AI achieved a remarkable 151% revenue growth rate in Q1 and is projected to maintain a 97% growth rate for the full year [6]. - The current revenue level is approximately $100 million, with a target to reach around $1 billion over the next decade, necessitating a compound annual growth rate (CAGR) of 26% [9][10]. Group 3: Valuation and Investment Potential - The stock currently trades at around $10, with the potential to rise to $100, representing a tenfold return if growth targets are met [2][10]. - SoundHound AI's valuation at 36 times sales is elevated compared to the typical software stock range of 10 to 20 times sales, justified by its exceptional growth rate [6][8]. Group 4: Competitive Landscape - The company faces competition from leading AI firms that may introduce rival products, which poses a risk to its market position [10]. - Despite the competitive landscape, SoundHound AI has established a strong and growing customer base, indicating a solid foundation for future growth [10].
Can SoundHound AI Stock Bounce Back After Falling 46% This Year?
The Motley Fool· 2025-07-02 08:25
Voice-focused artificial intelligence (AI) stock SoundHound AI (SOUN -2.33%) has crashed close to 46% this year. While it has still more than doubled in value from where it was a year ago, the excitement around this once-hot AI stock has cooled off significantly.SoundHound AI is growing at a fast rate and it still has loads of potential in AI, especially as businesses look to add efficiency and automate their operations through its smart ordering and dynamic drive-thrus. With a market cap of around $4 billi ...