SoundHound AI Trading Decline Despite Revenue Growth
SoundHound AI (NASDAQ: SOUN), a developer of voice recognition technology, went public via a SPAC merger nearly four years ago. Its stock opened at $8.72 but has since fallen below $8, despite a projected revenue growth rate of 60% CAGR from 2020 to 2024, and an expected 49% CAGR to $283 million from 2024 to 2027.
After its SPAC merger, SoundHound’s acquisitions, including SYNQ3 and Allset, aimed to enhance its market position, particularly in the restaurant and customer service sectors. However, its gross margins have shrunk from 69% in 2022 to a forecasted 49% in 2024, raising concerns about sustainability amid increasing competition from larger tech firms.
