TLDR
- SoundHound AI reported 100% year-over-year revenue growth in Q4, with sales of $34.5 million
- Company raised its 2025 revenue guidance to $157-$177 million
- Full-year 2024 revenue reached $84.7 million, up 85% from 2023
- CEO addressed concerns over Nvidia’s divestment, calling the resulting 45% stock drop an overreaction
- Analysts maintain a “Moderate Buy” rating with an average price target of $15.80 (46% upside potential)
SoundHound AI, a leading provider of voice AI solutions, saw its stock jump 17.5% following the release of its fourth-quarter financial results. The company reported better-than-expected sales and raised its guidance for 2025.
The voice AI company posted Q4 revenue of $34.5 million, representing a 100% increase compared to the same period last year. This exceeded analyst expectations by 1%.
SoundHound reported an adjusted loss of $0.05 per share for the quarter. The company’s GAAP gross margin for Q4 stood at 39.9%.
For the full year 2024, SoundHound’s revenue surged to $84.7 million. This marked an 85% increase from 2023 figures.
The company maintained a GAAP gross margin of 48.9% for the entire year. However, SoundHound posted an adjusted EBITDA loss of $61.9 million for 2024.
SoundHound’s net loss widened to $351.1 million for the full year. This represents a 283% increase in losses compared to 2023.
The loss per share deteriorated to $1.04, compared to a $0.40 loss in the previous year. This figure missed analyst estimates by 176%.
Despite these losses, SoundHound’s management remains optimistic about future growth. The company raised its 2025 revenue outlook to between $157 million and $177 million.
CEO Keyvan Mohajer addressed investor concerns regarding Nvidia’s recent divestment from SoundHound. He suggested that the resulting sell-off, which pushed the stock down over 45%, was an overreaction.
SoundHound specializes in conversational intelligence technology. Their proprietary voice AI solutions allow businesses to deliver high-speed, accurate conversational experiences in multiple languages.
The company processes billions of interactions annually for prominent businesses worldwide. Their technology serves various industries including automotive, TV, and Internet of Things (IoT) devices.
SoundHound has been expanding its presence in new sectors. These include finance, healthcare, and energy, according to analyst Gil Luria from DA Davidson.
The company’s acquisition of Amelia has reportedly increased SoundHound’s total addressable market. This acquisition has also brought diversity to their portfolio.
Luria maintains a Buy rating on SoundHound shares. He recently increased his price target to $13 from $9.50.
Overall, SoundHound AI is rated a “Moderate Buy” based on recommendations from five analysts. The average price target for SOUN stock is $15.80, representing a potential upside of 46.03% from current levels.
Looking ahead, revenue is forecast to grow at an average rate of 43% per year during the next two years. This growth projection outpaces the 12% average forecast for the U.S. software industry.
The company’s stock closed at $10.82 following the earnings announcement. This represents a 17.81% increase from the previous trading day.
Despite the widening losses, investors appear focused on SoundHound’s strong revenue growth and positive forward guidance. The market’s reaction suggests confidence in the company’s long-term business prospects.
Oliver Dale
Editor-in-Chief of CoinCentral and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact Oliver@coincentral.com
