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Could Buying SoundHound AI Stock Today Set You Up for Life?
SOUNSoundHound AI(SOUN) The Motley Fool·2025-01-22 10:47

Company Overview - Soundhound AI's share price surged 836% in 2023, though it has since pulled back more than 40% from its peak, with a market cap around 5billion[2]−Thecompanywasfoundedin2005withamissiontoenablepeopleto"talktotechnologyjustastheydotoeachother"[2]−SoundhoundAI′svoiceAItechnologyisutilizedacrossmultipleindustries,includingautomotive,hospitality,andrestaurants[2]−Thecompanyboastsaprestigiouscustomerbase,includingHyundai,Kia,Stellantisbrands,Applebee′s,ChipotleMexicanGrill,FiveGuys,andJerseyMike′s[3]−SoundhoundAIholds155patentsandhas115patentspending,coveringareassuchasmachinelearning,naturallanguageunderstanding,andspeechrecognition[4]FinancialPerformance−SoundhoundAI′srevenuehasgrownatacompoundannualgrowthrateof515 billion [2] - The company was founded in 2005 with a mission to enable people to "talk to technology just as they do to each other" [2] - Soundhound AI's voice AI technology is utilized across multiple industries, including automotive, hospitality, and restaurants [2] - The company boasts a prestigious customer base, including Hyundai, Kia, Stellantis brands, Applebee's, Chipotle Mexican Grill, Five Guys, and Jersey Mike's [3] - Soundhound AI holds 155 patents and has 115 patents pending, covering areas such as machine learning, natural language understanding, and speech recognition [4] Financial Performance - Soundhound AI's revenue has grown at a compound annual growth rate of 51% since 2020 [5] - In Q3 2024, the company's revenue increased 89% year-over-year to 25.1 million [5] - The company posted a net loss of nearly 21.8millioninQ32024butexpectstoachievepositiveadjustedEBITDAbytheendoftheyear[10]MarketOpportunity−SoundhoundAIestimatesitstotaladdressablemarkettobeatleast21.8 million in Q3 2024 but expects to achieve positive adjusted EBITDA by the end of the year [10] Market Opportunity - Soundhound AI estimates its total addressable market to be at least 140 billion, with potential growth to $160 billion by 2026 according to Juniper Research [7] - The proliferation of IoT devices, estimated at 75.4 billion globally in 2024, presents a significant opportunity for Soundhound's voice AI technology [8] Competitive Landscape - Soundhound AI faces competition from deep-pocketed rivals such as Apple, Google parent Alphabet, Microsoft, and OpenAI [9] - The company has diversified its customer base, with six sectors each contributing 5% to 25% of revenue, and the largest customer accounting for only 12% of total revenue [6]