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

SoundHound AI (NASDAQ:SOUN) released its quarterly earnings data on Tuesday. The company reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.01, Briefing.com reports. The business had revenue of $25.10 million during the quarter, compared to analyst estimates of $23.02 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 73.21%. SoundHound AI’s revenue was up 88.7% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.09) EPS. SoundHound AI updated its FY 2025 guidance to EPS and its FY 2024 guidance to EPS.

SoundHound AI Price Performance

Shares of NASDAQ:SOUN opened at $6.63 on Friday. SoundHound AI has a one year low of $1.62 and a one year high of $10.25. The firm has a market capitalization of $2.38 billion, a price-to-earnings ratio of -18.42 and a beta of 2.71. The company’s fifty day moving average price is $5.26 and its 200-day moving average price is $4.94.

Analysts Set New Price Targets

Several brokerages have recently weighed in on SOUN. LADENBURG THALM/SH SH reiterated a “neutral” rating and issued a $7.00 price target on shares of SoundHound AI in a research report on Wednesday. DA Davidson restated a “buy” rating and issued a $9.50 target price on shares of SoundHound AI in a research note on Monday, September 30th. Wedbush reiterated an “outperform” rating and set a $9.00 price target on shares of SoundHound AI in a research report on Thursday, September 26th. Northland Securities boosted their price objective on shares of SoundHound AI from $5.50 to $6.00 and gave the company a “market perform” rating in a research note on Friday, August 9th. Finally, Barclays reaffirmed a “neutral” rating and set a $7.00 target price on shares of SoundHound AI in a report on Wednesday. Three equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $7.64.

Insider Buying and Selling

In other news, CFO Nitesh Sharan sold 39,728 shares of the company’s stock in a transaction on Friday, September 20th. The shares were sold at an average price of $4.88, for a total value of $193,872.64. Following the completion of the sale, the chief financial officer now owns 1,560,411 shares of the company’s stock, valued at approximately $7,614,805.68. This represents a 2.48 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Lawrence Marcus sold 50,000 shares of the business’s stock in a transaction on Tuesday, August 20th. The stock was sold at an average price of $5.02, for a total transaction of $251,000.00. Following the completion of the sale, the director now directly owns 74,038 shares of the company’s stock, valued at $371,670.76. This represents a 40.31 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 327,275 shares of company stock worth $1,606,644. Corporate insiders own 12.28% of the company’s stock.

About SoundHound AI

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.