SoundHound's AI Is Fueling Revenue Surge From Strong Demand In Automotive And Restaurant Sectors: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
SoundHound AI, Inc. (SOUN) sees a revenue surge from strong demand in the automotive and restaurant sectors, with Wedbush analyst Daniel Ives reiterating an Outperform rating and a price forecast of $9. The company's subscription and bookings backlog increased to $682.0 million in Q1, driven by product royalties and automotive segment strength. SoundHound has also completed the acquisition of SYNQ3 Restaurant Solutions, becoming the largest U.S. provider of voice AI for restaurants. A new partnership with NVIDIA Corporation (NVDA) was announced to deliver in-vehicle voice-enabled generative AI responses. SoundHound expects positive adjusted EBITDA in 2025 and raised its FY24 revenue outlook to $71.6 million.
May 10, 2024 | 7:02 pm
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POSITIVE IMPACT
NVIDIA's new partnership with SoundHound to deliver in-vehicle voice-enabled generative AI responses showcases its continued expansion in AI applications, potentially boosting its market position.
The partnership with SoundHound underlines NVIDIA's strategic expansion in AI applications, likely to be viewed positively by investors and have a favorable short-term impact on its stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
SoundHound's strong demand in automotive and restaurant sectors, increased bookings backlog, and strategic acquisition positions it for growth, with a positive revenue outlook and expected EBITDA profitability by 2025.
The positive analyst rating, increased bookings backlog, and strategic acquisition indicate strong growth potential and market confidence, likely leading to a positive short-term price impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100