Shares of SoundHound AI (SOUN) slipped in after-hours trading after the voice AI software company reported earnings for its first quarter of Fiscal Year 2025. Earnings per share came in at -$0.06, which beat analysts’ consensus estimate of -$0.09 per share. In addition, sales increased by 151% year-over-year, with revenue hitting $29.1 million. However, this missed analysts’ expectations of $30.4 million.
Business Updates
During the quarter, SoundHound made solid progress across many industries with its AI solutions. Indeed, the company launched Amelia 7.0, which is a new Agentic AI platform that helps businesses use advanced voice agents capable of reasoning and performing complex tasks. In voice commerce, SoundHound integrated its solution with dozens of restaurant brands and began pilots with several automakers.
When it comes to the automotive industry, SoundHound partnered with Tencent Intelligent Mobility to add conversational AI to global car brands and demonstrated its voice assistant at Nvidia’s (NVDA) GTC 2025 event. In healthcare, it renewed or expanded deals with hospitals and medical companies. It also started pilots in the retail sector with fitness chains and home service franchises.
Other areas also showed growth. SoundHound renewed deals with two large Tokyo-based tech companies, while renewing deals with global banks and signing a major European insurer. Finally, through its channel partners, SoundHound added customers in agriculture, tax preparation, travel, and expanded partnerships with large IT companies.
SoundHound Updates Guidance
Looking forward, management has provided the following updated guidance for 2025:
- FY25 revenue between $157 million and $177 million, versus estimates of $166 million
As you can see, guidance was only slightly better than expected, with the midpoint figure of $167 million barely surpassing consensus estimates. This, combined with the firm’s disappointing revenue results, led to the after-hours fall.
Is SOUN Stock a Good Investment?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SOUN stock based on three Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SOUN price target of $14.90 per share implies 53.5% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
