Great News for SoundHound AI Stock Investors March 2024

SoundHound AI Stock

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SoundHound AI, Inc. is a renowned company developing, owning and commercializing voice, sound and natural language artificial intelligence technologies and related activities. The company was founded on September 2, 2005, in Santa Clara, CA. Today, we will discuss it in detail in this article. Let’s dive into the article to get the necessary information.

What does Soundhound AI Do?

If you want to identify songs by playing a few seconds of audio or just humming a tune, a SoundHound app is OK. The famous company uses the HoundFi developer platform to develop its voice-recognition services. But the thing to note is that it is not connected with big tech giants like Microsoft, Alphabet’s Google and Apple.

But the good news is that through its Houndify platform, SoundHound has already developed in-car voice recognition tools for automakers Hyundai and Stellantis, smart TV controls for Vizio, and drive-thru ordering tools for White Castle and Church’s Chicken. The company expects the demand for these generative AI technologies to continue to grow in the global market.

Soundhound AI Growing Level:

According to official information by SoundHound AI, it expects to grow its revenue from $13 million in 2020 at a 96% compound annual growth rate to $98 million in 2023. The company also expected its gross margin to increase to 77% from 55%.

But the reality looks different, with SoundHound’s revenue reaching just $46 million in 2023 and its gross margin expanding to 75%. Fundamentally, the impressive growth has disappointed investors by missing the long-term targets.

Soundhound expects its revenue to grow from $63 million to $77 million in 2024 and exceed $100 million in 2025. It has targeted growth at a CAGR of at least 47% over the next two years. Let’s see what happens, but hopefully, there will be good results.SoundHound AI

Can Soundhound AI make $50,000 or $1 million by 2030?

The stock fell 19% following the fourth quarter earnings report by Soundhound AI. Its revenue also grew 80% year over year to $17.1 million. However, according to analysts, $0.6 million still needs to be paid. The company narrowed its net loss to $18.0 million from $30.9 million.

SoundHound also reportedly missed its target of being profitable on an adjusted EBITDA basis in the fourth quarter after interest, taxes, depreciation, and amortization. These factors have weighed down the company’s stock, but it has risen 170% since Nvidia acquired 0.7% of its shares in mid-February. Can Soundhound AI make $50,000 or $1 million by 2030? Let’s see what happens; nothing can be said for sure.

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