SoundHound AI (NASDAQ:SOUN) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Beat estimates: SoundHound AI reported EPS of ($0.03), beating consensus by $0.01, and revenue of $42.05 million, which was above expectations and up 67.6% year‑over‑year.
• Shares slid to $14.23 on heavy volume after the print; insiders including CEO Keyvan Mohajer sold stock (785,917 shares sold in the last 90 days), while the market cap is about $5.8 billion and the consensus price target is $15.50.
• Despite strong top‑line growth, the company remains unprofitable with a negative ROE (-73.13%), a negative net margin (-171.81%), and a negative P/E ratio (‑22.59).

SoundHound AI (NASDAQ:SOUN - Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.03) earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.01, FiscalAI reports. SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The firm had revenue of $42.05 million during the quarter, compared to analysts' expectations of $40.48 million. During the same quarter in the previous year, the business earned ($0.04) earnings per share. The company's revenue was up 67.6% on a year-over-year basis. SoundHound AI updated its FY 2025 guidance to EPS.

SoundHound AI Stock Performance

Shares of SoundHound AI stock traded down $1.49 during trading hours on Thursday, hitting $14.23. The company's stock had a trading volume of 44,078,529 shares, compared to its average volume of 40,852,456. The business has a 50 day moving average price of $16.64 and a two-hundred day moving average price of $12.90. SoundHound AI has a 12-month low of $5.86 and a 12-month high of $24.98. The company has a market cap of $5.80 billion, a PE ratio of -22.59 and a beta of 2.60.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. Piper Sandler reaffirmed a "neutral" rating and issued a $12.00 price objective on shares of SoundHound AI in a report on Monday, July 14th. Wedbush reaffirmed an "outperform" rating and issued a $16.00 price objective on shares of SoundHound AI in a report on Thursday, September 11th. Northland Capmk raised SoundHound AI from a "hold" rating to a "strong-buy" rating in a report on Friday, August 8th. Northland Securities raised SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price objective for the company in a report on Friday, August 8th. Finally, Oppenheimer assumed coverage on SoundHound AI in a report on Thursday, September 11th. They issued a "market perform" rating for the company. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $15.50.

Insider Buying and Selling

In other SoundHound AI news, CEO Keyvan Mohajer sold 118,654 shares of the company's stock in a transaction on Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total transaction of $2,373,080.00. Following the completion of the sale, the chief executive officer owned 2,342,613 shares in the company, valued at $46,852,260. This represents a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Majid Emami sold 41,167 shares of the stock in a transaction on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total value of $823,340.00. Following the sale, the vice president owned 608,186 shares of the company's stock, valued at approximately $12,163,720. This represents a 6.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 785,917 shares of company stock valued at $13,955,610 in the last ninety days. Company insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Hedge funds have recently made changes to their positions in the company. Captrust Financial Advisors increased its position in shares of SoundHound AI by 62.3% in the 2nd quarter. Captrust Financial Advisors now owns 91,131 shares of the company's stock valued at $978,000 after acquiring an additional 34,991 shares during the period. MML Investors Services LLC grew its position in shares of SoundHound AI by 398.2% during the 2nd quarter. MML Investors Services LLC now owns 102,069 shares of the company's stock valued at $1,095,000 after acquiring an additional 81,581 shares during the period. Royal Bank of Canada grew its position in shares of SoundHound AI by 71.3% during the 1st quarter. Royal Bank of Canada now owns 160,299 shares of the company's stock valued at $1,301,000 after acquiring an additional 66,714 shares during the period. The Manufacturers Life Insurance Company grew its position in shares of SoundHound AI by 4.6% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 204,676 shares of the company's stock valued at $2,196,000 after acquiring an additional 8,970 shares during the period. Finally, Canada Pension Plan Investment Board purchased a new position in SoundHound AI in the 2nd quarter valued at about $5,312,000. 19.28% of the stock is owned by institutional investors and hedge funds.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.

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