SoundHound AI (NASDAQ:SOUN) Announces Quarterly Earnings Results, Misses Estimates By $0.58 EPS

SoundHound AI (NASDAQ:SOUN) issued its earnings results on Thursday. The company reported ($0.69) earnings per share for the quarter, missing the consensus estimate of ($0.11) by ($0.58), Zacks reports. The firm had revenue of $34.54 million during the quarter, compared to analyst estimates of $33.70 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. SoundHound AI updated its FY 2025 guidance to EPS.

SoundHound AI Stock Performance

NASDAQ SOUN traded up $1.48 during trading hours on Friday, hitting $10.69. The company had a trading volume of 62,396,510 shares, compared to its average volume of 55,857,141. The business has a fifty day simple moving average of $15.41 and a 200-day simple moving average of $9.84. The firm has a market cap of $4.20 billion, a P/E ratio of -29.64 and a beta of 2.56. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13. SoundHound AI has a fifty-two week low of $3.50 and a fifty-two week high of $24.98.

Analyst Ratings Changes

A number of analysts have recently commented on SOUN shares. Barclays reiterated a “neutral” rating and set a $7.00 target price on shares of SoundHound AI in a research report on Wednesday, November 13th. DA Davidson boosted their price target on shares of SoundHound AI from $9.50 to $13.00 and gave the stock a “buy” rating in a research note on Friday. Cantor Fitzgerald raised SoundHound AI to a “hold” rating in a report on Monday. LADENBURG THALM/SH SH reissued a “neutral” rating and set a $7.00 price target on shares of SoundHound AI in a research note on Wednesday, November 13th. Finally, HC Wainwright reissued a “buy” rating and issued a $26.00 price objective on shares of SoundHound AI in a research note on Monday, January 13th. Four equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $12.86.

Insider Buying and Selling

In related news, CEO Keyvan Mohajer sold 465,394 shares of the company’s stock in a transaction on Monday, December 9th. The stock was sold at an average price of $15.04, for a total transaction of $6,999,525.76. Following the transaction, the chief executive officer now directly owns 2,299,148 shares of the company’s stock, valued at approximately $34,579,185.92. The trade was a 16.83 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Nitesh Sharan sold 57,761 shares of the stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $20.30, for a total transaction of $1,172,548.30. Following the completion of the sale, the chief financial officer now owns 1,502,650 shares of the company’s stock, valued at approximately $30,503,795. The trade was a 3.70 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 2,722,918 shares of company stock valued at $44,935,943 over the last 90 days. 12.28% of the stock is currently owned by company insiders.

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.