SoundHound and Veritone: Two Voice AI Stocks Under Investor Scrutiny
The artificial intelligence (AI) sector is rapidly growing, prompting investors to focus on companies like SoundHound AI Inc. (SOUN) and Veritone Inc. (VERI). Both operate in voice AI, but they appeal to different segments of the market. With the rise of multimodal AI and speech-driven automation, these firms could capitalize on the increasing demand for voice technologies in industries such as automotive, media, and customer service.
This analysis compares the fundamentals of SoundHound and Veritone to identify which stock is currently the better investment.
The Case for SoundHound Stock
SoundHound AI is gaining momentum in voice AI with significant revenue growth. In Q1 2025, revenue surged 151% year-over-year to $29.1 million, a record quarter for the company. This growth is attributed to new partnerships and acquisitions, expanding its presence in various industries, including fast-food ordering and automotive voice assistants.
The recent acquisition of SYNQ3 (a restaurant voice ordering provider), Allset (an online ordering platform), and Amelia (an AI dialogue firm) has broadened SoundHound’s scale and customer base. The acquisition of Amelia alone is projected to add $45 million in recurring revenue, prompting the company to forecast over $150 million in total revenue for 2025, nearly double that of 2024.
SoundHound’s diversified client base, with no single customer accounting for over 10% of Q1 2025 revenues, highlights its potential for growth as voice AI adoption expands. Financially, SoundHound is on solid ground, holding $246 million in cash and no debt as of Q1 2025, providing ample resources for growth and development.
However, challenges remain. The company is currently unprofitable, reporting an adjusted loss of 6 cents per share in Q1, with an adjusted EBITDA loss of $22.2 million, up from $15.4 million. Competition from major players like Amazon, Alphabet, and Apple adds pressure, although SoundHound aims to maintain independence as a platform.
The Case for Veritone Stock
Unlike SoundHound, Veritone is a smaller, value-oriented player focusing on AI solutions beyond just voice technology. The company’s offerings include Veritone Voice and the aiWARE platform, covering media analytics, advertising, and more. Following a significant divestiture of its media services division for up to $104 million, Veritone is concentrating on its software products.
In Q1 2025, Veritone reported $22.5 million in revenue, a 7% decline year-over-year, now entirely derived from its AI software segment. However, it boasts a stable SaaS customer base with an Annual Recurring Revenue (ARR) of $58.7 million from 3,156 software customers, of which 81% are subscription-based. This provides a foundation for predictable revenue, with gross margins around 61.1% GAAP.
Veritone is strategically focusing on vertical-specific AI solutions and expanding its product lines. A key growth initiative is the Veritone Data Refinery, which has garnered early traction. The company is also making inroads in the public sector, securing contracts such as with a California Sheriff’s Office.
Despite these opportunities, Veritone faces challenges including weak recent performance. The core revenue drop was attributed to reduced AI software usage among large customers, including Amazon. Furthermore, the company’s reliance on a limited number of significant clients creates risk. Veritone is also grappling with a heavy debt load of approximately $90 million in convertible notes and over $28 million in term loans, compounded by a cash balance of only $16 million as of March 2025.
SOUN & VERI Stocks’ Performances
Both SoundHound and Veritone have experienced declines in stock value this year, with SoundHound down 43.9% and Veritone 47.6%. However, SoundHound has shown signs of recovery, gaining 17.5% over the past month, while Veritone experienced a further drop of 15.7% during the same period. This rebound for SoundHound indicates improving sentiment among investors as they assess its growth potential.
Image Source: Zacks Investment
SoundHound and Veritone Stocks: Valuation and Growth Outlook
Valuation of SOUN & VERI Stocks
SoundHound’s stock price surged 836% in 2024, resulting in a forward 12-month price-to-sales (P/S) ratio of 24.56X. This high multiple reflects market optimism, despite the company’s ongoing losses. SoundHound anticipates doubling its revenues in 2025, projecting between $157 million and $177 million, which could support its current valuation.
In contrast, Veritone (VERI) is trading at a significantly lower P/S ratio of 0.68X. The company currently holds a Value Score of D.
Image Source: Zacks Investment Research
Earnings Estimates Trend & Growth Rate for SOUN and VERI Stocks
Analysts have shown little enthusiasm towards SoundHound’s earnings potential over the last 60 days. Conversely, bearish sentiment is growing for Veritone, with the Zacks Consensus Estimate for the company’s 2025 loss per share widening recently.
The projected growth rates differ starkly: Veritone’s revenues are expected to decline by 0.7% to $106.3 million in 2025, while SoundHound forecasts a revenue increase of 92.2% to $162.8 million. This discrepancy raises investor caution regarding Veritone’s stock.
For SOUN Stock
Image Source: Zacks Investment Research
For VERI Stock
Image Source: Zacks Investment Research
Conclusion
Both SoundHound and Veritone carry a Zacks Rank of #3 (Hold). However, SoundHound presents a more promising growth trajectory. Despite year-to-date declines for both stocks, SoundHound has shown recent recovery, whereas Veritone continues to struggle. SoundHound is expanding rapidly, backed by a strong balance sheet with no debt. While its stock remains expensive and is subject to volatility, the company’s increasing partnerships and execution in AI voice technology give it an edge.
Veritone, on the other hand, is currently in a rebuilding phase. It faces challenges such as smaller scale and debt, hindering its growth efforts post-strategic reset. Its focus on enterprise and government AI solutions holds potential, but declining revenues and persistent losses suggest a long road to profitability.
Upon evaluating both companies, SoundHound appears to offer better upside potential currently.
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