SoundHound AI on the Rise: Artificial Intelligence for the Future

SoundHound AI is making impressive strides in the market thanks to its innovative conversational artificial intelligence (AI) platform. The company's technology enables services such as voice-controlled ordering at Chipotle or voice commands in vehicles from Stellantis. Meanwhile, more than 200 companies are now relying on SoundHound's technology, causing the company's stock price to soar – it recorded an increase of over 500% in the past year. This rapid development raises questions about whether purchasing SoundHound stock is currently worthwhile. A look at the figures shows why investors are so enthusiastic: third-quarter revenue grew by 89% to $25.1 million. Management forecasts revenue of $165 million for 2025 at the midpoint, almost doubling from the estimated revenue of $83.5 million for 2024. Another positive is the increased customer diversity. The dependence on major clients has significantly decreased: today, they only account for 12% of the revenue. Additionally, the revenues are now more evenly distributed across the automotive industry, gastronomy, financial services, healthcare, and insurance sectors. Despite these impressive growth and diversification strategies, SoundHound remains unprofitable for now. In the third quarter, an adjusted net loss of $0.04 per share was recorded, an improvement from the loss of $0.06 per share in the previous year's quarter. Experts expect SoundHound to continue reporting losses until 2024, with an expected reduction in the loss per share to $0.17 by 2025.