Core Insights - SoundHound AI's stock experienced a notable increase, gaining 6.9% by market close and peaking at 12.2% earlier in the day, amidst a positive performance from the S&P 500 and Nasdaq Composite [1] Market Penetration - SoundHound is making significant progress in various sectors, particularly in the automotive industry, where it has replaced competitors like Nuance/Cerence and now serves over 20 automotive brands, including a key integration with OpenAI in Stellantis vehicles [2] - In the food industry, SoundHound collaborates with 7 of the top 20 quick-service restaurants and sees potential in sectors like healthcare and financial services for future growth [3] Financial Position - The company holds $200 million in cash, has no debt, and anticipates achieving positive EBITDA by year-end, indicating a strong financial position for a technology leader [4] Competitive Landscape - SoundHound operates in a highly competitive environment with the risk of new entrants and evolving product offerings from large tech companies. Despite management outlining a path to profitability, unforeseen challenges may arise [5] - Notably, Nvidia recently divested its entire stake in SoundHound, adding to the uncertainties surrounding the company [5]

Many of the biggest companies in the world right now attained their gargantuan size due to their exposure to AI. From the developers of AI applications to the suppliers of critical AI components, nearly every company related to artificial intelligence saw its valuation soar in 2024.So far this year, however, many of those valuations have taken a price cut. If you've been looking to add massive growth potential to your portfolio by investing in AI stocks, now looks like your best chance in months.This tiny A ...

Financial Performance - The consolidated revenues for the year ended December 31, 2024, were $84.7 million[434] - For the year ended December 31, 2024, revenues increased to $84.693 million, up 84.5% from $45.873 million in 2023[458] - The net loss for 2024 was $350.681 million, compared to a net loss of $88.937 million in 2023, reflecting a substantial increase in losses[458] - The company reported a net loss of $(88,937) thousand for the year ended December 31, 2023[462] - The net loss for SoundHound AI, Inc. was $350.681 million for the reporting period[466] - The net loss for the year ended December 31, 2024 was $(374.469) million, significantly higher than the $(158.339) million loss in 2023[594] Assets and Liabilities - Total assets increased to $553.953 million in 2024, up from $151.122 million in 2023, showcasing significant growth in the company's asset base[455] - The company’s total liabilities increased to $371.300 million in 2024 from $122.954 million in 2023, indicating a rise in financial obligations[455] - As of December 31, 2024, total stockholders' equity was reported at $182.653 million, with an accumulated deficit of $943.060 million[465] - The company had an accumulated deficit of $943.1 million as of December 31, 2024[482] Cash Flow and Liquidity - Cash and cash equivalents rose to $198.240 million as of December 31, 2024, compared to $95.260 million in 2023, indicating improved liquidity[455] - Total cash, cash equivalents, and restricted cash equivalents at the end of 2024 were $198.9 million, up from $109.0 million in 2023[471] - The company incurred net cash used in operating activities of $108.9 million in 2024, compared to $68.3 million in 2023[469] - The company had net cash provided by financing activities of $210.9 million in 2024, compared to $168.2 million in 2023[469] Acquisitions - The Company completed the acquisition of Amelia Holdings, Inc. for total consideration of $98.6 million, with $98.9 million of developed technology and $68.6 million of customer relationships recorded as intangible assets[439] - The company completed the acquisition of Synq3, Inc. on January 3, 2024, and Amelia Holdings, Inc. on August 6, 2024, in cash and stock transactions[481] - The Company acquired SYNQ3 for a total purchase consideration of $15.8 million, which included $3.9 million in cash and 5,755,910 shares of Class A Common Stock[562] - The total purchase price for the acquisition was $98.608 million, which included cash paid of $8.420 million and contingent earnout consideration of $66.269 million[586] Stock and Equity - The weighted-average common shares outstanding increased to 338,462,574 in 2024 from 229,264,904 in 2023, indicating dilution due to increased share issuance[458] - The total shares outstanding as of December 31, 2023, was 216,943,349[462] - The total number of common stock shares issued after the Business Combination was 196,503,710, including 11,300,000 shares from the PIPE Investment[560] - The Company has authorized the issuance of 500,000,000 shares of capital stock, including 455,000,000 shares of Class A Common Stock and 44,000,000 shares of Class B Common Stock[550] Research and Development - Research and development expenses for 2024 were $70.555 million, up from $51.439 million in 2023, reflecting the company's commitment to innovation[458] - The Company aims to enhance its Generative AI Foundation Model and expand the platforms for its voice AI technology[13] - The Company is focused on launching new product offerings and expanding its information and technology capabilities[14] Risks and Challenges - The Company faces risks related to the integration of recent acquisitions and the effectiveness of internal controls over financial reporting, which were found to have material weaknesses[425] - The Company is exposed to market risks primarily due to fluctuations in foreign currency exchange rates[416] - The Company expects to continue incurring substantial losses in the foreseeable future, primarily funded through equity or debt financings[482] Revenue Recognition and Accounting - The Company has identified significant judgment in revenue recognition processes, impacting financial reporting[434] - The Company recognizes revenue under ASC 606 when a customer obtains control of promised goods or services, reflecting the consideration expected to be received[512] - The Company estimates expected credit losses based on historical experience and relevant information, adjusting the allowance for credit losses through earnings[494] Stock-Based Compensation - Stock-based compensation expenses amounted to $33.145 million[466] - The company reported stock-based compensation of $33.1 million in 2024, compared to $27.9 million in 2023[469] - The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options, requiring subjective assumptions such as expected term and price volatility[523] Audit and Compliance - The company has been audited by PricewaterhouseCoopers LLP since 2023, ensuring compliance with U.S. federal securities laws[442] - The Company has not declared or paid dividends to date and does not anticipate declaring dividends, resulting in an expected dividend yield of zero[525]

NEW YORK, March 10, 2025 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of SoundHound AI, Inc. (NASDAQ: SOUN, SOUNW) resulting from allegations that SoundHound may have issued materially misleading business information to the investing public. SO WHAT: If you purchased SoundHound securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingen ...

Core Viewpoint - SoundHound AI predicts its revenue will double in the next fiscal year, indicating significant growth potential and attracting investor interest [1][3]. Company Growth - SoundHound AI's revenue rose 101% to $34.5 million in Q4, projecting 2024 revenue at $84.7 million and 2025 sales between $157 million and $177 million [3]. - The company's revenue backlog is nearly $1.2 billion, up 75% year over year, suggesting sustained growth as new contracts are signed [4]. Financial Position - SoundHound is not currently profitable but aims to achieve adjusted profitability by the end of 2025, supported by $200 million in cash and no debt [5]. - The stock is currently valued at 41.2 times sales, which is considered expensive but justifiable given the projected revenue growth [7]. Market Dynamics - The stock's valuation has decreased recently but remains high, indicating potential volatility due to the company's rapid growth and premium valuation [6][8]. - The company is expected to maintain rapid growth beyond 2026, making it a long-term investment opportunity [9].

Company Overview - SoundHound AI has experienced significant stock volatility, rising sharply after Nvidia's investment but dropping 51% in 2025 due to Nvidia's divestment and high valuation [1][2][3] - DigitalOcean, with a market cap of $3.7 billion, is positioned to potentially surpass SoundHound's market cap due to its attractive valuation and strong growth in cloud-based AI services [5][11] Financial Performance - DigitalOcean's revenue for Q4 2024 increased by 13% year over year to $205 million, with earnings rising 11% to $0.49 per share [7] - DigitalOcean's average revenue per user (ARPU) grew 14% year over year in Q4, an acceleration from the previous year's 6% growth [8] Market Position and Growth Potential - DigitalOcean is currently trading at 5 times sales and 22 times forward earnings, making it a more attractive investment compared to SoundHound's 41 times sales [6][3] - DigitalOcean has launched the DigitalOcean GenAI Platform, which is in public beta and has already seen over 1,000 AI agents created, indicating strong demand for its AI services [9][10] Future Projections - DigitalOcean has guided for $880 million in revenue for 2025, a 13% increase from the previous year, with potential for higher growth due to demand for cloud-based AI services [11] - If DigitalOcean trades at 7.5 times sales, its market cap could reach $6.6 billion, surpassing SoundHound's market cap, which may struggle to grow due to its high valuation [12]

Core Viewpoint - Kirby McInerney LLP is investigating potential claims against SoundHound AI, Inc. regarding possible violations of federal securities laws and unlawful business practices [1]. Group 1: Investigation Details - The investigation focuses on whether SoundHound and/or its officers have engaged in unlawful business practices [1]. - The law firm is reaching out to individuals who purchased or acquired SoundHound securities for information related to the investigation [4]. Group 2: Financial Reporting Issues - On March 4, 2025, SoundHound filed a Notification of Late Filing with the SEC, indicating it would not file its 10-K annual report for the fiscal year ended December 31, 2024, on time [3]. - The company cited the complexity of accounting for prior acquisitions as a reason for the delay and identified material weaknesses in its internal control over financial reporting [3]. - SoundHound expects to file its Form 10-K by March 18, 2025, within the fifteen-day period allowed under Rule 12b-25 [3]. - Following this announcement, SoundHound's share price fell by $0.60, closing at $9.72 on March 4, 2025, down from $10.32 on March 3, 2025 [3].

After a strong 2024 for SoundHound AI (SOUN -5.91%), it's been a rough start to 2025. However, the stock rallied from its recent lows following a strong fourth-quarter earnings report. Shares have nearly doubled over the past year, as of this writing, but they're down 50% year to date.SoundHound popped up on investors' radar after chip giant Nvidia revealed an investment in the artificial intelligence (AI) company in Feb. 2024. However, the stock has tumbled the past few weeks following the news that Nvidia ...

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of SoundHound AI, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Legal Action and Investor Rights - Investors who purchased SoundHound securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees, as the Rosen Law Firm is preparing to seek recovery of investor losses [2]. - To participate in the class action, investors can submit their information through the provided link or contact the firm directly [2]. Group 2: Company Financial Reporting Issues - On March 4, 2025, SoundHound filed a Notification of Late Filing with the SEC, indicating it would not be able to file its 10-K annual report for the fiscal year ended December 31, 2024, on time due to complexities in accounting for prior acquisitions [3]. - The Notification also revealed that SoundHound identified material weaknesses in its internal control over financial reporting, which persist as of December 31, 2024, and the company expects to file its Form 10-K by March 18, 2025 [3]. - Following this announcement, SoundHound's shares experienced a decline of 5.8% on March 4, 2025 [3]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements in recovering significant amounts for investors [4]. - The firm has been recognized for its performance in securities class action settlements, including a notable settlement against a Chinese company and ranking highly in the number of settlements since 2013 [4].

Core Viewpoint - SoundHound AI experienced a significant stock price increase following the release of its fourth-quarter 2024 results, driven by better-than-expected financial performance and optimistic guidance for 2025 [1][2]. Financial Performance - SoundHound's 2024 revenue rose by 85% to nearly $85 million, surpassing the upper end of its initial guidance [3]. - The company anticipates its 2025 revenue to nearly double, with guidance set between $157 million and $177 million, an increase from the previous range of $155 million to $175 million [3]. Market Demand and Expansion - The growing demand for conversational AI solutions across various sectors supports SoundHound's revenue growth, with recent customer wins in automotive and restaurant industries, and expansion into healthcare, retail, telecom, energy, and government [4]. - The company is also focusing on launching agentic AI tools, which allow AI agents to operate autonomously, potentially tapping into a market projected to grow nearly 40 times over the next decade, reaching close to $200 billion in annual revenue by 2034 [5][6]. Backlog and Future Growth - SoundHound ended 2024 with a cumulative subscriptions and bookings backlog of $1.2 billion, a 75% increase from the previous year, indicating strong future revenue potential [6]. - The company expects this backlog to grow further due to new contracts and significant cross-sell and upsell opportunities [6]. Stock Performance and Analyst Expectations - Analysts predict a 30% increase in SoundHound's stock price over the next year, with a 12-month median price target of $13.50, despite the stock trading at a high valuation of 43 times sales [8]. - The strong subscriptions and bookings backlog exceeds both the 2025 revenue forecast and analysts' expectations for 2026, suggesting continued positive performance [9].