TLDR:
- SoundHound AI upgraded to Overweight by Cantor Fitzgerald
- Acquisition of Amelia expected to double revenue in 2025
According to Cantor Fitzgerald, SoundHound AI has been upgraded to Overweight from Neutral following a “transformative acquisition” of Amelia, an enterprise artificial intelligence software company. This acquisition is projected to nearly double SoundHound’s revenue in 2025, with the company’s 2024 revenue expected to surpass $80 million. The article highlights the financial impact of the acquisition, including the addition of $45 million in recurring AI software revenue from Amelia.
Key Elements of the Article:
SoundHound AI made a significant acquisition of Amelia, an enterprise AI software company, that is expected to boost its revenue substantially in 2025. The company’s 2024 financial results exceeded estimates, with revenue projected to exceed $150 million in 2025 due to the acquisition. Cantor Fitzgerald analyst Brett Knoblauch remarked that this acquisition could be transformative for SoundHound, providing exposure to new markets such as financial services and healthcare.
The acquisition of Amelia was valued at $10 million in cash, $70 million in stock, and a commitment to pay down $70 million of Amelia’s debt. This move was seen as strategic, with the potential to drive growth for SoundHound in key sectors. Additionally, SoundHound announced partnerships and deals with major clients in the food ordering and voice AI space, indicating a strong momentum in its business development efforts.
While Seeking Alpha analysts currently rate SoundHound as a Hold, Wall Street analysts have assigned a Buy rating to the company. It is worth noting that SoundHound has a Hold rating from Seeking Alpha’s Quant system, which often outperforms the market. Overall, the article emphasizes the positive impact of the acquisition of Amelia on SoundHound’s growth trajectory and market positioning.