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To own SoundHound AI, you have to believe its conversational AI can become widely embedded in real-world transactions, not just infotainment, while the company works toward sustainable profitability. The OpenTable and Parkopedia integrations support the near term catalyst of deeper in-car usage, but they do not remove the key risk that heavy R&D and sales spending, combined with lumpy enterprise deals, could keep earnings and cash flows volatile.
The December launch of in-car restaurant reservations with OpenTable stands out here, because it extends SoundHound AI’s reach directly into everyday consumer spending moments. For investors watching revenue guidance and margin trends, this kind of transaction-focused integration could be important when assessing how the company’s large investments in product and go-to-market might eventually translate into more predictable, higher quality revenue.
However, while partnerships in cars and restaurants may increase usage, investors should also be aware that rising operating costs and lumpy enterprise deals could still...
Read the full narrative on SoundHound AI (it's free!)
SoundHound AI's narrative projects $308.5 million revenue and $40.4 million earnings by 2028. This requires 32.9% yearly revenue growth and a $265.8 million earnings increase from -$225.4 million today.
Uncover how SoundHound AI's forecasts yield a $16.94 fair value, a 60% upside to its current price.
Fifteen members of the Simply Wall St Community currently see fair value for SoundHound AI between US$3.41 and US$28.58, reflecting very different expectations. Against that wide range of views, the ongoing risk that large, irregular enterprise contracts can create volatile revenue and earnings is a key factor that could influence how the business performs relative to these estimates.
Explore 15 other fair value estimates on SoundHound AI - why the stock might be worth over 2x more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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