SoundHound AI SOUN incurred a fourth-quarter 2024 loss of 69 cents per share, wider than the year-ago quarter’s loss of 6 cents. The figure missed the Zacks Consensus Estimate by 527.27%.

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Revenues surged 101.5% year over year to $34.5 million, beating the Zacks Consensus Estimate by 3.14%. This growth was driven by major customer wins, expanded partnerships and advancements in generative AI. Strong adoption in quick-service restaurants, in-vehicle voice commerce and strategic acquisitions fueled this growth.

SOUN stock jumped 6.3% to $9.79 in the pre-market trading on Friday, driven by its raised 2025 guidance and strong revenue growth, signaling investor confidence in its expanding AI-driven business.

SOUN’s Operating Details

In fourth-quarter 2024, operating expenses were $291.6 million, higher than the year-ago quarter’s $29.5 million. The increase was primarily due to higher research and development, and general and administrative expenses, with acquisitions also playing a key role.

In the reported quarter, general and administrative expenses were $16.4 million (47.6% of the total revenues), skyrocketing 115.1% year over year.

In fourth-quarter 2024, research and development expenses were $20.4 million (59% of the total revenues), surging 60.4% year over year.

In the reported quarter, sales and marketing expenses were $9.6 million (27.7% of the total revenues), soaring 114.1% year over year.

The adjusted EBITDA loss widened to $16.8 million in the fourth quarter from $3.6 million in the year-ago quarter due to strategic acquisitions and growth investments across the business.

In the fourth quarter of 2024, the operating loss widened to $257.1 million from $12.4 million in the year-ago quarter.

SoundHound’s Q4 Business Highlights

In the fourth quarter of 2024, SOUN unveiled the first in-vehicle voice commerce platform at CES 2025, enabling voice-controlled food ordering. The event also highlighted key partnerships with NVIDIA, Perplexity, Lucid Motors, LG and top restaurant brands, showcasing its leadership in voice AI innovation.

SoundHound secured its largest deal of the fourth quarter in the energy sector, partnering with one of the largest electric utilities in the United States. This expansion strengthens its diverse customer portfolio and marks a significant entry into a new industry.

SOUN recently announced a partnership with Rekor, a leader in roadway intelligence technology, to develop a first-of-its-kind audio-visual AI, enabling hands-free voice control for emergency vehicle technology.

SoundHound is leading the Agentic AI revolution, leveraging its proven platform and strong market position to deliver next-generation capabilities that shape the future of AI functionality for its customers.

SOUN’s Balance Sheet

As of Dec. 31, 2024, cash and cash equivalents were $198.2 million compared with $135.6 million as of Sept. 30, 2024.

In the fourth quarter, the company fully repaid the remaining outstanding debt from the acquisition, closing 2024 with a debt-free balance sheet.

SoundHound Raises FY25 Guidance

The company forecasts 2025 revenue between $157 million and $177 million, indicating year-over-year growth of 97%.

SOUN’s Zacks Rank & Stocks to Consider

SoundHound currently carries a Zacks Rank #3 (Hold).

Okta OKTA, CrowdStrike CRWD and Marvell Technology MRVL are some better-ranked stocks in the broader sector.

Okta flaunts a Zacks Rank #1 (Strong Buy) at present, and CrowdStrike and Marvell Technology (MRVL) carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
 
Okta shares have gained 13.2% year to date. OKTA is set to report fourth-quarter fiscal 2025 results on March 03.

CrowdStrike’s shares have gained 11.6% year to date. CRWD is scheduled to release fourth-quarter fiscal 2025 results on March 04.

Marvell Technology’s shares have declined 20% year to date. MRVL is set to report third-quarter fiscal 2025 results on March 05.

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