SoundHound AI Stock Sinks 8% as Revenue Misses Wall Street’s Estimate. Is SOUN Stock a Buy?

• The revenues of the first quarter increased by 151 % year on an annual basis, and the Wall Street forecast was lost by 162 %.

• The amending loss per share was 0.06 dollars, on the goal with an estimated consensus of the analyst.

• The administration again confirmed the revenue, which was previously issued in 2025, from 157 million dollars to 177 million dollars, and is expected to achieve EBITDA, the positive rate by the end of the year.

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Soundhound ai (Nasdak: Sun) The shares decreased by 7.8 % on Friday, after the AI’s AI’s AI’s provider of the conversation was released for its report in the first quarter of 2025 in the afternoon. The decrease is largely due to a quarter revenues that are less than Wall Street’s expectations. The final result was in a line with the estimation of the analyst’s consensus.

Investors should focus on the modified numbers, which exclude the elements for one time. Q1 2025 The principles of accounting principles generally include only (non -cash) accounting. Data source: Soundhound AI. GAAP = Acceptable Principles of Accounting in general.

During the past year, the acquisitions have helped the growth of revenues throughout the year, although we do not know any degree. In other words, we do not know the rate of growth of organic revenues. On the positive side, these acquisitions enabled the company to better diversify its customer base on both individual and industry. No one customer represented more than 10 % of revenues in the quarter.

Investors should focus on the modified numbers, which exclude the elements for one time. Wall Street was looking for a modified loss of $ 0.06 per share on revenues of $ 30.4 million, so SoundHound made the bottom expectations but lost the upper line.

Soundhound used $ 19.2 million in cash to run it, a little better than the operating cash flow of $ 21.9 million in the previous period. The free cash flow was $ 19.3 million, compared to $ 25.7 million in negative dollars in the last period. The company ended the quarter with the cash and monetary increase of $ 246 million, not long -term debts. At the current cash burning price, Soundhound funds will last about 12.7 quarter, or a little more than three years.

Keyvan Mohajer’s statement of profit:

Soundhound continues to extend its arrival and create new possibilities for AI applications in the real world. The AI ​​AGENT Complete AI Complete Ai Agency Complete and Confludic Agency platform provides customers in all industries. At the same time, our bold growth initiatives pay profits, and we realize great opportunities for sale and fluctuations after our acquisitions.

In the profit call, the CFO NITSH ShaRan confirmed the former guidance of the company as follows:

• For 2025, revenues are expected to range between $ 157 million to $ 177 million. This would equate the annual growth of 85 % to 90 %. The annual growth will be assisted to a large extent through the acquisitions that were conducted last year, especially the $ 80 million acquisition.

• By the end of 2025, the company expects an EBITDA positive modification (pre -interest, taxes, depreciation and firefighting).

Soundhound AI – the company – deserves to see a simple reason that the AI’s AI is preparing to be huge. However, Soundhound AI-Arrow-has been greatly imposed by the financial press and on social media over the past year, in my opinion. However, the company’s mistake is not that the price of its share may be advanced because of all this noise.

Certainly, the company has potential – a lot. But I maintain healthy doubts about its ability to be a long -term winner of the Voice Technology space that works in Amnesty International. (Contrary to unhealthy doubts, health doubts are said to be the basis for critical thinking and includes survival open.) In fact, you are still open, especially because they are relatively early roles in the conversation space.

Before I communicate with my fears, a noticeable positive is that the money of Soundhound will last about 12.7 quarter, or a little more than three years, at the current cash burning rate.

What are my main interests?

The first relates to the company that grows through a large number of acquisitions. Growth strategies that rely heavily on acquisitions are a good challenge, including integrating corporate cultures often.

Moreover – this is the main reason that I do not like these growth strategies – it can block the lack of strong growth in organic (internal) revenues with its basic products and technology. Investors cannot simply measure the performance of such a company accurately unless its organic growth rates (except for growth except for the contributions made by the major acquisitions during the past year).

The second main issue involves profitability – or more accurately, its absence. It was granted, not customary for public technology companies to determine the growth of revenues to achieve profitability. But the lack of progress towards profitability is just a single concern. My other concern is how I played things for profitability.

The company was initially directed to the positive modified Ebitda (before interest, taxes, depreciation and extinguishing) in the fourth quarter of 2023. When this teacher was not hit, it is guided by the positive EBITDA for 2025.

Currently, the guidance includes EBITDA’s positive average by the end of the year (which is likely in the fourth quarter). One of the questions that come to mind is whether the current profitability expectations are now possible now due to the $ 80 million acquisition of April in August 2024.

Finally, the competition in AI applications for conversation has become really difficult, as players include in the end of cars, in particular, large technology companies that have a lot of money. The competition promises to heat more. Whether Soundhound has sufficient competitive advantages to increase revenues on a large scale and The generation of solid profits remains to be seen.

Along with large technology, investors must see Serenis (Nasdaq: Crnc) In the AI ​​space sound. In October 2019, this company was launched by Nuance Communications (which has been obtained since then by Microsoft). Cream was implementation problems, but with the prominent CEO (former Intel CEO Brian Karzanic)) It is installed in the past fall, the company’s performance can improve.

Again, I am still open around Soundhound AI, as well as investors.

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Beth Makina has no position in any of the mentioned shares. Motley Fool has Intel and Microsoft positions. The Motley Fool Cream and recommends the following options: Long of January 2026 $ 395 calls on Microsoft, shortening in January 2026 $ 405 calls on Microsoft, and shorten $ 30 on Intel. Motley Fool has a disclosure policy.

Soundhound Ai Stock drowns 8 % as the revenue lacks Wall Street. Is it an arrow of purchase? It was originally published by Motley Fool