SoundHound AI Impresses with Subscription Backlog Surge: Analysts See Positive Outlook Despite Top-Line Miss
Portfolio Pulse from Shivani Kumaresan
SoundHound AI Inc (NASDAQ:SOUN) received positive outlooks from Wedbush and Cantor Fitzgerald analysts despite a slight top-line miss in Q4 results. Wedbush raised its price target from $5 to $9, highlighting a 100% Y/Y increase in FY23 subscription and bookings backlog to $661.0 million, driven by product royalties and automotive segment strength. The company's FY24 revenue guidance aligns with expectations, and its acquisition of SYNQ3 Restaurant Solutions positions it as the largest U.S. voice AI provider for restaurants. Cantor Fitzgerald raised its price target from $3.60 to $5.80, noting the redefined backlog metric and the potential for continued growth above 40%. However, SOUN shares dropped 13.8% to $6.4.
March 01, 2024 | 6:26 pm
News sentiment analysis
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NEUTRAL IMPACT
NVIDIA Corp's past investment in SoundHound AI is acknowledged as a positive, but no new investments have been made since 2017.
NVIDIA's historical investment in SoundHound AI is recognized as beneficial, yet the lack of recent investments suggests a neutral short-term impact on NVIDIA's stock. The relationship is acknowledged but does not directly influence current performance or stock price.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
SoundHound AI Inc received positive analyst ratings and raised price targets despite a Q4 top-line miss. The company's strong subscription backlog and strategic acquisition position it for growth.
The positive outlook from analysts and raised price targets indicate confidence in SoundHound AI's growth trajectory, despite the recent drop in share price. The significant increase in subscription backlog and strategic acquisitions are key factors supporting this view.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100