SoundHound AI (NASDAQ:SOUN) Issues Earnings Results

SoundHound AI (NASDAQ:SOUN) issued its earnings results on Thursday. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01), FiscalAI reports. The business had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative return on equity of 41.46% and a negative net margin of 91.84%.The company’s revenue for the quarter was up 51.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.06) earnings per share.

Here are the key takeaways from SoundHound AI’s conference call:

• Q1 revenue was $44.2 million, up 52% year‑over‑year, with SoundHound’s automotive and IoT AI business up ~88% excluding acquisitions, driven by a growing enterprise pipeline.
• SoundHound signed a definitive agreement to acquire LivePerson (expected H2 close), expanding enterprise reach across 30+ countries and positioning the combined business to target roughly $500 million from the existing customer base (with at least ~$100M attributable from LivePerson in 2027).
• Introduced OASYS, an orchestrated agent system powered by SoundHound’s Polaris speech model that builds omni‑channel AI agents in minutes, aims to cut operational costs, enable faster migrations, and reduce runtime reliance on third‑party frontier models.
• Profitability remains pressured: adjusted EBITDA loss was -$26.7M and GAAP net loss was $25M (including a ~$39M non‑cash contingent liability); S&M and G&A rose materially due to acquisitions though the company has $216M cash and expects cost synergies and time‑boxed model investments to improve margins.

SoundHound AI Stock Down 7.8%

SOUN stock traded down $0.75 during midday trading on Friday, hitting $8.88. The company’s stock had a trading volume of 49,054,322 shares, compared to its average volume of 33,216,310. The stock’s 50-day moving average price is $7.57 and its 200 day moving average price is $10.18. SoundHound AI has a 1 year low of $5.83 and a 1 year high of $22.17. The stock has a market cap of $3.75 billion, a price-to-earnings ratio of -18.89 and a beta of 2.58.

SoundHound AI News Summary

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: SoundHound posted record Q1 revenue of $44.2 million, up about 52% year over year, and exceeded revenue expectations, showing continued momentum in its voice AI business. SoundHound AI Reports Record Q1 Revenue of $44.2 Million, Up 52%
• Positive Sentiment: The company launched OASYS, a self-learning AI agent platform, which could expand SoundHound’s product offering and support longer-term growth. SoundHound AI (SOUN) Launches OASYS Self-Learning AI Agent Platform
• Positive Sentiment: SoundHound outlined 2027 revenue expectations of at least $350 million to $400 million after the planned LivePerson acquisition, suggesting management sees meaningful future scale. SoundHound outlines 2027 revenue of at minimum $350M-$400M following planned LivePerson acquisition
• Neutral Sentiment: Analysts remain broadly constructive, with at least one recent upgrade to strong-buy and commentary that the stock could have meaningful upside if execution improves. Wall Street Bulls Look Optimistic About SoundHound AI (SOUN): Should You Buy?
• Negative Sentiment: Despite the revenue beat, SoundHound missed earnings estimates and cited higher acquisition-related costs and vendor true-ups, which pressured margins and weighed on investor sentiment. SOUN Q1 Earnings Miss on Higher Costs, Revenue Beat, Stock Down
• Negative Sentiment: Investors also appear concerned that the planned LivePerson deal and broader acquisition strategy could continue to pressure earnings even as revenue grows. SoundHound’s stock falls as acquisitions weigh on earnings results

Insiders Place Their Bets

In other SoundHound AI news, SVP Majid Emami sold 31,019 shares of the business’s stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the transaction, the senior vice president owned 501,826 shares of the company’s stock, valued at approximately $3,407,398.54. The trade was a 5.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Nitesh Sharan sold 44,027 shares of the business’s stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $298,943.33. Following the completion of the transaction, the chief financial officer directly owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. This represents a 2.58% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 307,973 shares of company stock valued at $2,091,110. 8.84% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Danske Bank A S purchased a new position in SoundHound AI in the third quarter worth $26,000. Northwestern Mutual Wealth Management Co. boosted its position in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after purchasing an additional 1,060 shares during the last quarter. Parallel Advisors LLC boosted its position in SoundHound AI by 42.8% in the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after purchasing an additional 960 shares during the last quarter. Advisors Asset Management Inc. boosted its position in SoundHound AI by 58.2% in the fourth quarter. Advisors Asset Management Inc. now owns 7,012 shares of the company’s stock worth $70,000 after purchasing an additional 2,579 shares during the last quarter. Finally, PNC Financial Services Group Inc. boosted its position in SoundHound AI by 20.4% in the fourth quarter. PNC Financial Services Group Inc. now owns 8,583 shares of the company’s stock worth $86,000 after purchasing an additional 1,456 shares during the last quarter. Hedge funds and other institutional investors own 19.28% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Wednesday. Piper Sandler reiterated a “neutral” rating and issued a $9.00 target price (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. DA Davidson reiterated a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a report on Wednesday, April 22nd. HC Wainwright lowered their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Finally, Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $14.93.

About SoundHound AI

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.