ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.
Voice AI technology company SoundHound AI (NASDAQ: SOUN) will be reporting results this Thursday after the bell. Here’s what you need to know.
SoundHound AI beat analysts’ revenue expectations last quarter, reporting revenues of $42.05 million, up 67.6% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ billings estimates.
This quarter, the market is expecting SoundHound AI’s revenue to grow 55.9% year on year, slowing from the 101% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SoundHound AI has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at SoundHound AI’s peers in the automation software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Microsoft delivered year-on-year revenue growth of 16.7%, beating analysts’ expectations by 1.2%, and ServiceNow reported revenues up 20.7%, topping estimates by 1%. Microsoft traded down 10% following the results while ServiceNow was also down 9.9%.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. Investors in automation software stocks have been spared in this environment as share prices are down 20.2% on average over the last month. SoundHound AI is down 14.3% during the same time and is heading into earnings with an average analyst price target of $16.31 (compared to the current share price of $8.42).