From Nasdaq: 2025-05-15 09:46:00

SoundHound AI Inc. (SOUN) stock price surged by 20.7% post reporting Q1 2025 earnings, outperforming the sector and industry. Revenue grew by 151% YoY to $29.1 million, falling short of analyst expectations. Adjusted loss was 6 cents per share, beating estimates. EBITDA loss widened to $22.2 million due to continued investments.

SoundHound reaffirmed 2025 revenue guidance of $157-$177 million, showing strong demand. Margins declined, indicating operational challenges. Diversified customer base and Polaris AI model enhanced market reach. Collaborations with NVIDIA, Perplexity, Lucid, LG, and Tencent bolstered ecosystem. Acquisitions of SYNQ3, Amelia, and Allset contributed significantly.

Zacks maintains a Hold rating on SOUN due to mixed profitability signals despite strong revenue outlook. Valuation remains stretched with a forward P/S ratio of 25.66, suggesting overvaluation. SoundHound’s growth potential in voice AI solutions and strategic partnerships with tech giants drive optimism. Operational challenges and margin pressure remain key concerns.



Read more at Nasdaq: SoundHound is Up 21% Since Q1 Earnings: Should You Buy the SOUN Stock?