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SoundHound AI Q3 revenue beats estimates

By Reuters News


Overview

  • Voice AI platform's Q3 revenue rose 48% yr/yr, beating analyst expectations

  • Adjusted EBITDA loss for Q3 widened and missed analyst estimates

  • Company closed LivePerson acquisition and guides to adjusted EBITDA profitability in 2H 2027


Outlook

  • SoundHound sees 2026 revenue at $250 mln-$260 mln, 2027 revenue at $350 mln-$400 mln

  • Company expects to reach sustained adjusted EBITDA positive in second half of 2027

  • Company expects $120 mln annualized cost synergies


Result Drivers

  • LIVEPERSON INTEGRATION - Co said integration of LivePerson is underway, with focus on cost and revenue synergies

  • BUSINESS MODEL SHIFT - Co said it is moving from upfront license deals to hosted structures and exiting non-core business lines to stabilize revenue


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$62.4 mln

$61.71 mln (5 Analysts)

Q3 Loss Per Share

$0.10

Q3 Net Loss

$46.4 mln

Q3 Adjusted EBITDA

Miss

-$20.7 mln

-$19.55 mln (6 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the it services & consulting peer group is "buy"

  • Wall Street's median 12-month price target for SoundHound AI, Inc. is $13.50, about 212.5% above its November 4 closing price of $4.32


Reuters Recommended Reads

  • Nov 2 - Palantir Q3 revenue jumps 96%, beats analyst expectations

  • Nov 4 - Amplitude Q3 revenue beats analyst estimates on increased AI solutions demand

  • Nov 4 - Rapid7 Q3 revenue, adjusted EPS beat expectations


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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