SoundHound AI Revenue Soars 127% to $114 Million, Stock Price Expected to Double in Five Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Significant Revenue Growth: In the first nine months of fiscal 2025, SoundHound AI's revenue surged 127% year-over-year to $114 million, and while not yet profitable, management anticipates near-break-even adjusted EBITDA profitability by 2026, indicating strong market demand and business potential.
- Robust Contract Backlog: SoundHound reported a contractual backlog of nearly $1.2 billion at the end of fiscal 2024, highlighting the company's revenue visibility for the coming years, particularly through a large IoT and robotics agreement with a Chinese player to integrate its Chat AI solutions into tens of millions of smart devices over the next two to three years.
- Clear Technological Advantage: SoundHound differentiates itself with its proprietary multimodal, multilingual Polaris speech foundation model, which has reduced latency and costs while enhancing accuracy, and enterprise adoption is accelerating, with voice commerce expected to transition from pilot programs to full production by 2026, further driving revenue growth.
- Optimistic Market Outlook: Management has indicated an annual organic revenue growth rate exceeding 50%, and assuming fiscal 2025 revenue of $172.5 million, projected fiscal 2030 revenue could reach nearly $1.3 billion, with a price-to-sales multiple of 7.4x, suggesting the company's market cap could reach $9.6 billion by 2030, nearly 2.1 times its current $4.6 billion market cap.
SOUN
$10.666+Infinity%1D
Analyst Views on SOUN
Wall Street analysts forecast SOUN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SOUN is 17.20 USD with a low forecast of 13.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 10.900
Low
13.00
Averages
17.20
High
26.00
Current: 10.900
Low
13.00
Averages
17.20
High
26.00
About SOUN
SoundHound AI, Inc. is engaged in conversational intelligence, offering voice and conversational artificial intelligence (AI) solutions that let businesses offer experiences to their customers. Through its proprietary technology, its voice AI delivers speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants via AI-driven products, such as Smart Answering, Smart Ordering, Dynamic Drive Thru, and Amelia AI Agents. Along with SoundHound Chat AI, a voice assistant with integrated Generative AI, it powers various products and services, and processes billions of interactions each year for businesses. Its developer platform, Houndify, is an open-access platform that allows developers to leverage its Voice AI technology and a library of over 100 content domains, including commonly used domains for points of interest, weather, flight status, sports and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
