SoundHound AI (SOUN), an artificial intelligence (AI) company known for its voice-based solutions, has experienced an extraordinary year in 2024. As of the latest data, its stock has surged by an impressive 272%, making it one of the most talked-about tech stocks this year. While this remarkable rally has captured the attention of investors, many are left wondering if SoundHound AI’s stock can maintain this momentum in 2025, or if it has already reached its peak. Let’s delve into the key factors driving SoundHound AI’s success and what investors can expect in the coming year.
SoundHound AI’s Rapid Growth and Market Expansion
SoundHound AI offers a range of voice-based AI solutions, including automatic speech recognition, natural language understanding, and text-to-speech technologies. The company has already established a solid customer base across diverse sectors like automotive, smart devices, restaurant chains, and the Internet of Things (IoT). Notable clients include global giants such as Hyundai, Stellantis, Honda, and Kia, who have integrated SoundHound’s AI technology into their vehicles. Moreover, Qualcomm and Motorola are incorporating SoundHound’s solutions into smartphones, while restaurants are leveraging its services for online ordering and customer support.
As of the first three quarters of 2024, SoundHound has seen a 74% year-over-year revenue growth, bringing in $50 million. With a full-year revenue projection of $82 million to $85 million, the company is on track for an 82% top-line growth—a significant jump from last year’s 47% growth. More impressively, SoundHound is aiming to become profitable on an adjusted EBITDA basis by 2025, signaling its commitment to long-term sustainability.
Strategic Expansion with the Amelia Acquisition
SoundHound AI has also strategically expanded its presence in the growing customer service sector. The company recently acquired Amelia, an enterprise AI software provider, for $80 million. This acquisition is expected to significantly enhance SoundHound’s capabilities in voice-based customer support solutions across multiple industries, including financial services, healthcare, insurance, and retail.