SoundHound AI SOUN expands its footprint in the voice artificial intelligence (AI) domain with its recent acquisition of SYNQ3 Restaurant Solutions.
The $25-million acquisition, with $4-million additional consideration based on future revenue targets, is poised to boost SoundHound's leadership in shaping the future of voice-enabled interactions within the restaurant landscape.
SYNQ3 Restaurant Solutions boosts SoundHound's market reach, spanning over 10,000 signed locations and driving the implementation of advanced generative AI capabilities.
SYNQ3's addition to SoundHound's portfolio brings in large, diverse brands spanning various segments of the restaurant industry, thereby expanding SoundHound's customer base to more than 25 national and multinational chains.
SoundHound AI, Inc. Price and Consensus
SoundHound AI, Inc. price-consensus-chart | SoundHound AI, Inc. Quote
SoundHound AI Leverages Voice AI to Boost Prospects
SoundHound AI rides on a solid product portfolio to drive innovation in the restaurant and hospitality industry with its voice AI solutions, making significant strides in transforming the way businesses operate and engage with customers.
SOUN's AI restaurant solutions have gained widespread traction, with notable customer adoption, including Bai Mai Thai, Bubbakoos Burritos, Chicken Shack, CoreLife Eatery, Dog Haus, Happy Endings Hospitality, Sam & Louie's, Tonyburgers, Zeeks Pizza and many other establishments.
SoundHound AI is making strides in enterprise restaurants, partnering with industry giants like Jersey Mike's and Krispy Kreme to integrate voice AI ordering solutions, revolutionizing in-store operations with automation.
SoundHound AI also recently introduced Employee Assist, a voice-enabled technology providing seamless support for restaurant staff, enhancing accessibility to critical information without the need for manuals, which is particularly beneficial amid labor shortages.
The company’s partnership with OLO OLO in the third quarter of 2023 marks a significant advancement in the delivery of its innovative solutions to a broader spectrum of the restaurant industry.
OLO's collaboration with SoundHound integrates advanced solutions across 77,000 locations, enhancing accessibility and fostering digital transformation for improved restaurant operations and customer experiences.
SOUN’s prospects in the conversational AI space are expected to be bright, as reflected in its strong global customer base. Clients like Snap SNAP and Netflix NFLX leverage their voice AI solutions to enhance their product portfolio.
SOUN allows SNAP to automatically generate captions for videos recorded on Snapchat, letting users add text overlays that match their voice and enhance their stories.
Netflix benefits from SoundHound AI’s technology as it provides voice control and search capabilities for Netflix’s streaming service on devices such as set-top boxes and smart TVs.
The robust portfolio is expected to boost SOUN’s top-line growth. In third-quarter 2023, revenues increased 18.6% year over year to $13.3 million. The year-over-year upside can be attributed to portfolio strength that combines software engineering and generative AI. This has helped SoundHound attract new customers.
SOUN’s shares have returned 22% in the past month compared with the Zacks Computer and Technology sector’s rise of 8%.
For fourth-quarter 2023, this Zacks Rank #3 (Hold) expects revenues between $16 million and $20 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for fourth-quarter 2023 is pegged at $17.9 million, indicating a year-over-year surge of 88.45%.
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