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

SoundHound AI (NASDAQ:SOUN) issued its quarterly earnings results on Thursday. The company reported ($0.03) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.01, FiscalAI reports. The firm had revenue of $42.05 million for the quarter, compared to analyst estimates of $40.48 million. SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. SoundHound AI’s quarterly revenue was up 67.6% compared to the same quarter last year. During the same period last year, the company posted ($0.04) EPS. SoundHound AI updated its FY 2025 guidance to EPS.

SoundHound AI Stock Performance

Shares of NASDAQ SOUN traded down $1.49 during midday trading on Thursday, reaching $14.23. 44,078,529 shares of the stock were exchanged, compared to its average volume of 40,852,456. The company has a 50 day simple moving average of $16.64 and a 200 day simple moving average of $12.90. The stock has a market capitalization of $5.80 billion, a P/E ratio of -22.59 and a beta of 2.60. SoundHound AI has a twelve month low of $5.86 and a twelve month high of $24.98.

Analyst Ratings Changes

SOUN has been the topic of a number of research reports. DA Davidson raised their target price on shares of SoundHound AI from $15.00 to $17.00 and gave the stock a “buy” rating in a research note on Wednesday, September 10th. Wall Street Zen lowered shares of SoundHound AI from a “hold” rating to a “sell” rating in a research note on Saturday, August 9th. LADENBURG THALM/SH SH raised shares of SoundHound AI from a “neutral” rating to a “buy” rating and raised their target price for the stock from $9.00 to $16.00 in a research note on Monday, August 11th. Piper Sandler reissued a “neutral” rating and issued a $12.00 target price on shares of SoundHound AI in a research note on Monday, July 14th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a research note on Tuesday, October 14th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, SoundHound AI has an average rating of “Moderate Buy” and an average target price of $15.50.

Insider Buying and Selling at SoundHound AI

In other news, CTO Timothy Stonehocker sold 70,524 shares of the firm’s stock in a transaction that occurred on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total transaction of $1,410,480.00. Following the completion of the sale, the chief technology officer owned 606,525 shares in the company, valued at $12,130,500. This trade represents a 10.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Michael Zagorsek sold 69,837 shares of the firm’s stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total transaction of $1,117,392.00. Following the sale, the chief operating officer owned 1,860,790 shares of the company’s stock, valued at $29,772,640. This represents a 3.62% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 785,917 shares of company stock worth $13,955,610. Insiders own 9.17% of the company’s stock.

Institutional Trading of SoundHound AI

Institutional investors have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC increased its holdings in SoundHound AI by 5.1% in the 2nd quarter. NewEdge Advisors LLC now owns 43,136 shares of the company’s stock valued at $463,000 after purchasing an additional 2,106 shares during the last quarter. Two Sigma Securities LLC acquired a new stake in SoundHound AI in the 2nd quarter valued at approximately $388,000. Tidal Investments LLC increased its holdings in SoundHound AI by 6.5% in the 2nd quarter. Tidal Investments LLC now owns 29,902 shares of the company’s stock valued at $321,000 after purchasing an additional 1,818 shares during the last quarter. IHT Wealth Management LLC increased its holdings in SoundHound AI by 6.6% in the 2nd quarter. IHT Wealth Management LLC now owns 26,226 shares of the company’s stock valued at $281,000 after purchasing an additional 1,619 shares during the last quarter. Finally, XTX Topco Ltd acquired a new stake in SoundHound AI in the 2nd quarter valued at approximately $197,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.