Fubotv earnings beat by $0.10, revenue topped estimates
On Monday, H.C. Wainwright analyst Scott Buck adjusted the price target on SoundHound AI Inc. (NASDAQ:SOUN) to $18.00, down from the previous $26.00, while maintaining a Buy rating on the company’s stock. Currently trading at $8.98, the stock sits within the broader analyst target range of $8-$26. According to InvestingPro data, the stock has shown significant price volatility, with a 76% return over the past year. This change follows the release of SoundHound AI’s first-quarter results for 2025, which were disclosed after the market closed on Sunday. The company reported revenues of $29.1 million, slightly missing the $30.2 million estimate set by H.C. Wainwright and the consensus of $30.4 million expected on the Street.
Despite the minor shortfall in revenue, SoundHound AI confirmed its revenue guidance for the full year 2025, which is anticipated to ease some concerns among investors amidst growing macroeconomic uncertainties. InvestingPro analysis shows impressive revenue growth prospects, with forecasts pointing to a 95% increase for FY2025. The company has already demonstrated strong momentum, doubling its revenue in the last twelve months to $102.23 million. Buck noted that the company’s ability to drive efficiencies and cost savings for its small and medium business customers could potentially turn macro headwinds into a business accelerant.
The earnings call provided several positive highlights, including announcements of new customers in various sectors, indicating a diversification in SoundHound AI’s business. The company’s reach in the restaurant sector has notably grown, with over 13,000 locations now using its services. Based on an estimated revenue of $200 per month per location, this would equate to an annual recurring revenue of $31.2 million. Buck anticipates that both the number of locations and the average monthly revenue per location could increase substantially through the rest of 2025 as the company adds more services.
With $246.0 million in available cash on the balance sheet, SoundHound AI is in a strong position to pursue mergers and acquisitions opportunistically. InvestingPro data confirms the company’s solid liquidity position, with a healthy current ratio of 4.92 and liquid assets exceeding short-term obligations. Notably, SoundHound holds more cash than debt on its balance sheet, providing financial flexibility for strategic initiatives. While H.C. Wainwright remains optimistic about the company’s prospects for organic growth in 2025, the firm has moderated its full-year revenue estimate in light of the heightened macro uncertainty, leading to the revised price target of $18. The Buy rating reflects the firm’s continued confidence in SoundHound AI’s growth trajectory. For deeper insights into SoundHound’s valuation and growth potential, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which includes detailed analysis of the company’s financial health and growth prospects.
In other recent news, SoundHound AI Inc. reported its first-quarter 2025 earnings, showing a narrower-than-expected loss per share, with an EPS of -$0.06 compared to the forecasted -$0.09. Despite this, the company experienced a revenue shortfall, bringing in $29.1 million against an expected $31.37 million, marking a 151% year-over-year increase. SoundHound AI’s guidance for 2025 suggests revenue between $157 million and $177 million, with the first half expected to contribute around 40% of the annual figure. Cantor Fitzgerald maintained a Neutral rating on SoundHound AI, setting a price target of $8.50, and noted the company’s lower-than-expected first-quarter revenue due to a deferred contract. The firm also anticipates potential impacts from tariffs on SoundHound’s Pillar One segment, which is tied to the automotive industry. Meanwhile, the company’s Pillar Two Subscription revenue guidance remains unchanged at $167 million for 2025, with projected growth driven by sales force expansion and Amelia partnerships. SoundHound AI’s Restaurant business is also showing sequential growth, expected to account for about 15% of total sales, with ongoing opportunities identified for the second half of the year.
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