SANTA CLARA, Calif. - SoundHound AI , Inc. (NASDAQ: NASDAQ:SOUN), a company specializing in voice AI technology, has announced the expansion of its SoundHound Chat AI voice assistant, which features integrated ChatGPT, to Peugeot (OTC:PUGOY), Opel, and Vauxhall vehicle brands.
The rollout has commenced across 11 European markets, with plans to extend to 17 markets by the end of July 2024. The integration of this technology follows the March 2024 launch in Stellantis™ DS Automobiles, marking the first full production use of a voice assistant with generative AI technology in the automotive sector.
The SoundHound Chat AI voice assistant aims to enhance the driving experience by providing interactive knowledge discovery, real-time data, and in-vehicle controls. This service will be included in new vehicles from July 2024 and will be available for certain existing models via over-the-air updates.
Drivers and passengers will be able to use voice commands for various functions such as navigation, phone calls, and accessing up-to-date information like weather forecasts and sports scores. The ChatGPT integration allows for a more natural voice interaction, enabling users to ask a range of questions and receive informative responses, thus offering both convenience and entertainment during travel.
The company's data indicates a significant increase in the use of its voice AI technology, with a sixfold rise in usage and a 50% increase in interaction frequency as reported by DS Automobiles. Additionally, there has been a notable decrease in unfulfilled requests and a fivefold increase in the consumer loyalty-based Net Promoter Score, suggesting a growing consumer demand for advanced AI-powered voice assistants in vehicles.
Michael Zagorsek, COO of SoundHound AI, commented on the collaboration with Stellantis (NYSE:STLA), expressing pride in delivering voice AI technology that aligns with the market's demand for a next-generation consumer experience.
This development represents another step in SoundHound AI's mission to revolutionize voice assistants within the automotive industry, as the company continues to enhance the driver experience with its conversational intelligence solutions. The information for this article is based on a press release statement from SoundHound AI, Inc.
"In other recent news, SoundHound AI reported a robust growth in its recent earnings call, with a 73% surge in Q1 revenue and earnings surpassing $11 million. The company also announced the conversion of all its series A preferred stock into class A common stock, following the fulfillment of specific performance conditions. Moreover, SoundHound AI prepaid its $100 million debt, significantly enhancing its financial position.
The company's recent developments also include the formation of partnerships with NVIDIA (NASDAQ:NVDA) and Perplexity AI aimed at enhancing its voice assistant capabilities. Despite reporting an operating loss and a net loss for the quarter, SoundHound AI has raised its full-year revenue guidance.
SoundHound AI's financial health is further evidenced by a backlog of $682 million, indicating commitment from customers and long-term contracts. The company aims to achieve adjusted EBITDA profitability by 2025 and has raised the lower end of their full-year revenue guidance to $65 million to $77 million. These recent developments underline SoundHound AI's commitment to financial stability and growth."
InvestingPro Insights
As SoundHound AI, Inc. (NASDAQ: SOUN) forges ahead with its integration of advanced voice AI technology in European automotive brands, the company's financial and market data paint a mixed picture of its current standing. With a market capitalization of $1.36 billion, SoundHound is asserting its presence in the voice AI market. The company's recent initiatives have sparked a significant 120.8% surge in its stock price over the last six months, reflecting investor optimism about its growth prospects and technological advancements.
According to InvestingPro Tips, analysts are bullish on SoundHound's sales growth for the current year, which is supported by a substantial revenue growth of 51.31% in the last twelve months as of Q1 2024. This aligns with the company's reported increased usage of its voice AI technology in vehicles.
Still, it is noteworthy that the company is currently not profitable, with an adjusted P/E ratio of -14.57, and analysts do not expect it to turn a profit this year. Despite this, SoundHound holds more cash than debt, indicating a solid financial position that could support its continued growth and expansion efforts.
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