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Oppenheimer Initiates SoundHound AI Coverage With Perform Rating

The note balances optimism on product strength with caution over execution and a rich sales multiple.

Overview

  • Analyst Brian Schwartz began coverage on September 11 with a Perform rating for SoundHound AI.
  • Oppenheimer says the company could be a durable growth compounder based on its conversational AI platform and referenceable customers.
  • The report highlights a technology advantage, a compelling value proposition, and a strong backlog-to-revenue ratio, with leadership in speech-to-meaning and data sciences.
  • The firm warns that newer competitive threats and slower penetration of target verticals may fall short of expectations reflected in a 26x 2026 EV/revenue multiple.
  • Context from recent results includes Q2 revenue tripling year over year, monthly queries topping 1 billion, and expansion via the Polaris model and the Amelia acquisition.