SoundHound vs. Veritone: Which AI Voice Stock Is the Better Buy Now?

Core Viewpoint - The artificial intelligence sector, particularly voice AI technologies, is attracting investor attention, with SoundHound AI Inc. and Veritone Inc. being notable players in this space [1][3][7] Group 1: SoundHound AI Inc. (SOUN) - SoundHound AI has reported a significant revenue increase of 151% year-over-year, reaching $29.1 million in Q1 2025, driven by partnerships and acquisitions [3][4] - Recent acquisitions, including SYNQ3 and Amelia, are expected to add $45 million in recurring revenue in 2025, with a forecast of over $150 million in total revenue for the year [4][5] - The company has a strong financial position with $246 million in cash and no debt, providing a solid foundation for growth and R&D [5] - Despite its growth, SoundHound remains unprofitable, posting an adjusted loss of $0.06 per share in Q1 2025, and faces competition from major players like Amazon and Apple [6] Group 2: Veritone Inc. (VERI) - Veritone is undergoing a turnaround, focusing on enterprise AI software, with a revenue of $22.5 million in Q1 2025, down 7% year-over-year [7][8] - The divestiture of its media services division provided $59.1 million in cash and allowed Veritone to concentrate on its software products, resulting in a stable SaaS customer base with an ARR of $58.7 million [8][9] - Veritone's gross margin was approximately 61.1% GAAP in Q1 2025, indicating potential profitability if scale is achieved [9] - The company is focusing on vertical-specific AI solutions and has seen a 22% increase in new bookings year-over-year, suggesting a path toward recovery [10] Group 3: Stock Performance and Valuation - Both SoundHound and Veritone have experienced significant stock declines year-to-date, with SoundHound down 43.9% and Veritone down 47.6% [12] - SoundHound's stock trades at a forward price-to-sales ratio of 24.56X, reflecting market optimism for future growth, while Veritone trades at 0.68X [14][15] - Analysts expect SoundHound's revenue to double in 2025, while Veritone's revenue is projected to decline by 0.7% [16][17] Group 4: Conclusion - SoundHound appears to have better upside potential due to its strong revenue growth, solid balance sheet, and expanding partnerships [22][24] - Veritone, while focusing on enterprise and government AI solutions, faces challenges with declining revenue and high debt, indicating a longer path to recovery [23][24]