Voice AI technology company SoundHound AI (NASDAQ: SOUN) will be reporting earnings this Thursday afternoon. Here’s what investors should know.
SoundHound AI beat analysts’ revenue expectations by 31.2% last quarter, reporting revenues of $42.68 million, up 217% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
Is SoundHound AI a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting SoundHound AI’s revenue to grow 63.1% year on year to $40.93 million, slowing from the 89.1% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.03 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SoundHound AI has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 8.8% on average.
Looking at SoundHound AI’s peers in the automation software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Pegasystems delivered year-on-year revenue growth of 17.3%, beating analysts’ expectations by 8.5%, and Microsoft reported revenues up 18.4%, topping estimates by 2.9%. Pegasystems traded up 15% following the results while Microsoft was down 3.1%.
Read our full analysis of Pegasystems’s results here and Microsoft’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the automation software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. SoundHound AI is down 17.8% during the same time and is heading into earnings with an average analyst price target of $16.56 (compared to the current share price of $15).
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