SOUN - SoundHound: A Strong But Expensive AI Voice Play

2024-07-01 18:03:53 ET

Summary

• SoundHound AI focuses on the enterprise market with its conversational AI platform.
• The company is seeing strong revenue growth, but is also generating high losses.
• SoundHound AI has guided for positive adjusted EBITDA in FY 2025.
• Shares are not cheap, however, as they trade at 12.5X forward revenues.

Many companies operating in the artificial intelligence realm have seen their valuations surge in 2024 as investors fully jumped on the AI bandwagon. One company that has seen its valuation soar is SoundHound AI, Inc. ( SOUN ) which offers companies a voice AI platform so that their customers can engage with their brands. The AI start-up has seen a significant increase in revenues in the first fiscal quarter, as well as in the last three years, but SoundHound AI is still not profitable, loses a ton of money each quarter, and trades at a high valuation. Although SoundHound AI's valuation has come under pressure lately, I only see the AI voice company as a hold!...

For further details see: