What does SoundHound AI do?
SoundHound AI serves the nascent conversational intelligence market, an industry that is gaining prominence thanks to the growing adoption of voice-enabled AI solutions. Grand View Research estimates that the global conversational intelligence market could clock annual growth of almost 24% through the end of the decade. The firm points out that this market was worth $7.6 billion last year, and the projected growth suggests that it could generate almost $42 billion in revenue in 2030.
SoundHound AI is looking to capitalize on this market with its Voice AI platform, which allows companies to develop and deploy multiple AI-enabled voice features such as automatic speech recognition, natural language understanding, text-to-speech, and custom wake commands. The company provides custom AI-powered voice solutions to multiple industries such as automotive, restaurants, contact centers, banking, retail, and others.
The good part is that SoundHound AI has built an impressive customer base, which includes the likes of Stellantis, Hyundai, Qualcomm, Honda, Square, Snap, and others. What's more, SoundHound estimates that its total addressable market could be as big as $160 billion by 2026 thanks to the multiple industries that it serves.
The good part is that SoundHound is already benefiting from this massive market opportunity, as its recent results indicate.
The company is clocking solid financial growth
SoundHound AI has generated almost $29 million in revenue in the first nine months of 2023. It has guided for $18 million in revenue in the current quarter at the midpoint of its guidance range, which would put its annual revenue at $47 million.
While that's a small number in the context of Wall Street, it is worth noting that SoundHound's guidance points toward a 51% year-over-year increase in revenue. That's higher than the 47% revenue growth the company clocked in 2022. Even better, analysts are expecting SoundHound AI to sustain its healthy revenue growth over the next two years.
