News Flash: Analysts Just Made A Substantial Upgrade To Their SoundHound AI, Inc. (NASDAQ:SOUN) Forecasts

SoundHound AI, Inc. (NASDAQ:SOUN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from SoundHound AI's seven analysts is for revenues of US$83m in 2024, which would reflect a major 49% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$70m in 2024. It looks like there's been a clear increase in optimism around SoundHound AI, given the decent improvement in revenue forecasts.

Check out our latest analysis for SoundHound AI

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that SoundHound AI's rate of growth is expected to accelerate meaningfully, with the forecast 122% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 40% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that SoundHound AI is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for SoundHound AI this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at SoundHound AI.

Looking for more information? We have analyst estimates for SoundHound AI going out to 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.