In the new wave of AI trends, based on hot symbols, find AI stocks with more reasonable valuations.

SoundHound AI: Stock price has increased tenfold in the past year.

Introduction to SoundHound AI: A leader in the field of conversational intelligence globally.

SoundHound AI, Inc. (Wind code: SOUN.O) is a global leader in Voice Technology, founded in 2005 and headquartered in Silicon Valley, USA. The company provides independent Voice AI solutions to help businesses deliver high-quality conversational experiences to customers. SoundHound AI, based on proprietary technology, provides industry-leading speed and accuracy in multiple languages and is widely used in mobile phones, Autos, Television, Restaurants, Internet of Things, and the customer service industry. It has a wholly-owned subsidiary in China, "Peking SoundHound Software Development Co., Ltd.".

What is the specific business composition of SoundHound AI?

In SoundHound AI's latest performance report, the revenue for the first nine months of 2024 is $50.15 million, a year-on-year increase of 75%.

Let's take a look at what the revenue composition by business line includes:

• Hosted services revenue of $34.98 million, accounting for 70% of total revenue, with a year-on-year growth of 174% (this is definitely the rapid growth business for SoundHound AI, the overall performance of the company is entirely supported by this business line, including the revenue generated by the two AI companies SYNQ3 and Amelia acquired in 2024. This business line charges based on usage or fixed subscription fees; moreover, the revenue growth of this business line in the last three months, specifically Q3, was 312%, showing a super acceleration state).

• Licensing revenue of $9.13 million, accounting for 18% of total revenue, with a year-on-year growth of 5%.

• Professional services revenue of $5.75 million, accounting for 11% of total revenue, with a year-on-year decline of 16%.

• Monetization revenue of $0.3 million, accounting for 1% of total revenue, with a year-on-year decline of 35%.

Revenue distribution by region: USA, South Korea, France, Germany, and Other; among them, the domestic revenue in the USA accounted for the largest share at 42% and had the fastest growth rate, with a year-on-year growth of 822% (the revenue growth in Q3 increased more than tenfold, with a growth rate of 1601%). The revenue contribution from South Korea, France, and Germany is decreasing, while the contribution from Other countries increased by 96% year-on-year.

The company expects revenue to grow by 79%-85% in 2024, mainly driven by the surge in demand for its Houndify voice recognition service, which has been widely adopted by Hyundai, Walmart, and fast-food companies.

What advantages does SoundHound AI's technology have compared to the market?

The core technologies of SoundHound AI include: Speech-to-Meaning, Deep Meaning Understanding, Collective AI, Dynamic Interaction, and SoundHound Chat AI. Typical AI Voice Technology involves two steps: ASR (Automatic Speech Recognition) and NLP (Natural Language Processing); whereas SoundHound's Speech-to-Meaning technology combines the two, allowing direct understanding from speech, processing both verbal expression and interpretation of meaning simultaneously, achieving faster, more efficient, and more accurate results.

SoundHound AI performs excellently in technology and market performance, with its stock price being popular and driven. However, it is worth noting that the management admits the company also faces challenges of not yet being profitable and needing continuous investment.

Similar symbols to SoundHound AI include: BaiRong Cloud and Iflytek Co.,ltd.

Similar to SoundHound AI, BaiRong Cloud and Iflytek Co.,ltd. both provide intelligent voice products. In comparison, Iflytek Co.,ltd.'s model is more similar to SoundHound AI, charging fees for voice lines, showing revenue growth but no profit; while BaiRong Cloud, in addition to covering intelligent voice business, also possesses underlying MaaS data analysis capabilities. Its charging method provides more security for Institutions, specifically through the technical service fee take rate after facilitating Trade for Institutions, and the company has achieved profitability for many years.

Bairong Cloud: A one-stop service leader in AI Technology.

What is the specific business composition of BaiRong Cloud?

The latest performance report of Bairong Cloud for the first half of 2024 shows that the company achieved revenue of 1.321 billion yuan and a profit of 0.197 billion yuan, with specific businesses including:

• MaaS (Model as a Service): Utilizing decision-based AI, through analyzing user risks, needs, and qualifications, digitalizes the "Know Your Customer" (KYC) and "Know Your Product" (KYP) processes for commercial institutions. This business line accounts for about 1/3 of the company's revenue and is the core business line, accumulating a large number of C-end user tags (1 billion+) and models (2000+).

• BaaS (Business as a Service): Analyzing users with decision-based AI, automatically stratifying and clustering users, and using generative AI-based intelligent robots to engage in interactive communication with users, assisting institutions in completing commercial transactions. This business line accounts for about 2/3 of the company's revenue, directly competing with SoundHound, and serves as the company's second growth curve.

What advantages does Bairong Cloud's technology have compared to the market?

Bairong Cloud's core technologies are decision-based AI and generative AI. The company focuses on deeply cultivating vertical fields, with its decision-based AI supporting the MaaS business achieving an average daily call volume of 0.3 billion times and a cloud platform stability of 99.999%. The BaaS business supported by generative AI has a daily AI voice call capacity of 70 million people, and the AI voice is similar to a human, capable of responding within 200 milliseconds, with vertical model responses being more precise and efficient, significantly aiding institutions in reducing operational and marketing costs. The company currently serves over 7,000 institutional clients.

Bairong Cloud performs exceptionally in business modeling, technology, and industry clients. In contrast to SoundHound and other AI companies that are still incurring losses, Bairong Cloud has been profitable since 2020, positioning itself as a vertical industry unicorn. Its current valuation is less than 2 times PS, with a market cap close to its cash reserves, making it worthy of attention.