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SoundHound (SOUN) Aids Restaurant Portfolio With Acquisitions

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SoundHound AI’s (SOUN - Free Report) shares have surged 88.7% year to date compared with the Zacks Computer and Technology sector’s rise of 24.1%.

The upside has been primarily driven by acquisitions and strong performance across SOUN’s key sectors, particularly in AI customer service solutions and automotive voice assistant technologies.

SOUN’s acquisition of SYNQ3 bolstered its presence in the restaurant sector, contributing positively to the revenue mix and customer base expansion. The acquisition of SYNQ3 added approximately $3 million to SoundHound’s revenue in the first quarter of 2024. In the reported quarter, the company’s revenues jumped 73% year-over-year to $11.6 million.

Further expanding its portfolio through inorganic ways, SOUN recently announced the acquisition of key assets from Allset, an online ordering platform that connects restaurants with local customers.

 

The acquisition marks a significant expansion for SoundHound, enhancing its capabilities in voice AI through the integration of Allset’s team and expertise.

The acquisition will enable SoundHound to bolster its position in the voice commerce ecosystem, enabling seamless, voice-enabled food and drink ordering across a wide array of devices, including cars, TVs and smart devices.

SoundHound AI Leverages Voice AI to Boost Prospect

The latest acquisition underscores SoundHound’s commitment to transform the restaurant landscape with advanced voice-enabled solutions.

SOUN’s prospects in the conversational AI space are expected to be bright, as reflected in its expanding clientele. Clients like Olo (OLO - Free Report) and Oracle (ORCL - Free Report) leverage SOUN’s voice AI solutions to enhance their offerings in the restaurant landscape further.

SoundHound AI partnered with Olo to bring its voice AI technology to approximately 77,000 restaurant locations, enabling high-speed, accurate order processing and enhancing the guest experience.

SOUN announced the integration of its Smart Ordering voice AI technology with Oracle MICROS Symphony point-of-sale (POS) for restaurants, enhancing order efficiency and customer experience in the hospitality industry.   

Further expanding its footprint in the automotive sector, SoundHound collaborated with NVIDIA (NVDA - Free Report) .

In March, SoundHound AI partnered with NVIDIA to introduce an in-vehicle voice assistant powered by a large language model on the NVIDIA Drive platform. This will offer real-time and generative AI capabilities for seamless responses without cloud connectivity, transforming driver experiences.

Conclusion

The Zacks Rank #3 (Hold) company’s strategic acquisitions, robust portfolio and strong partner base are expected to boost its top-line growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for second-quarter 2024 is pegged at $13.61 million, indicating year-over-year growth of 55.54%. The consensus mark for loss is pegged at 9 cents per share, unchanged in the past 30 days.

For 2024, revenues are expected to be between $65 million and $77 million. The Zacks Consensus Estimate for 2024 is pegged at $71.31 million, indicating year-over-year growth of 55.45%.

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