BUZZ-SoundHound AI rises after Q4 rev beat-and-raise

Reuters
02-28
BUZZ-SoundHound AI rises after Q4 rev beat-and-raise

** Shares of SoundHound AI SOUN.O up 3.3% to $9.51 ahead of the bell after qtrly rev topped analysts' expectations and it boosted 2025 rev outlook

** Santa Clara, California-based co late Thurs reported Q4 rev of $34.5 mln, double last year's figure, citing strong momentum in voice-enabled Agentic AI

** Analysts expected rev of $33.8 mln, according to LSEG data

** Co raised 2025 rev outlook to $157-$177 mln, up from prior forecast of $155-$175 mln

** DA Davidson reiterated 'buy' rating and hiked PT from $9.50 to $13

** Demand remains elevated as SOUN expands its business with leading players across industries including financial, healthcare, energy and others, DA Davidson said in note

** 6 of 7 brokerages rate SOUN "strong buy" or "buy", 1 rates "hold"; median PT of $13 up from $9 a month ago - LSEG

** Through Thurs, stock down ~54%. AI-related names have been pressured since Chinese startup DeepSeek rolled out a free AI model a month ago

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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