SoundHound AI (NASDAQ: SOUN) went public on April 28, 2022, with shares initially priced at $8.72 and peaking at $14.98 within a week. However, the stock now trades for under $5, as the company has missed financial forecasts, incurred significant losses, and faced pressures from rising interest rates.
Despite surpassing its revenue estimates in 2022, SoundHound’s growth slowed in 2023, attributed to macroeconomic challenges that limited software spending. Projected revenue growth for 2024 is between 42% and 68%, with analysts estimating an increase to $70.5 million. SoundHound’s enterprise value is currently $1.6 billion, reflecting a relatively high valuation at 22 times this year’s sales.
As of the first quarter, the company had $226 million in cash and a manageable debt-to-equity ratio of 0.8. SoundHound continues to pursue partnerships and product development, including advancements in restaurant-focused services and vehicle integrations.
