BRN Discussion Ongoing

[Bravo]

This is a fantastic read if you're like me and you believe that there's a very good chance we're in (or soon will be) with SoundHound. It states here; "The demand for Voice AI is skyrocketing as businesses race to develop cutting-edge products. By 2028, it is expected that 90% of all new automobiles will include voice assistants, and by 2025, there will be 75 billion connected devices in use around the world. Even more importantly for SOUN, a study by Pindrop Security, Inc. found that 94% of large companies plan to use Voice AI within the next two years. This shows how seriously most businesses take the idea of a voice user interface."

Don't forget, the artificial intelligence experts at BrainChip helped to make the Vision EQXX voice control 5-10 times more efficient than conventional voice control systems. How many other companies will be salivating at the chance to adopt such cutting-edge, best-in-class technology?

Oh, I also thought the section on the forecast was interesting as the author is expecting SoundHound to be 5x more than the current share price from 23 onwards due to the demand for voice AI.

SoundHound AI: Expect To Be A Meaningful Winner In The AI Industry​

Oct. 13, 2022 6:38 AM ETSoundHound AI, Inc. (SOUN)CRNC1 Comment2 Likes

Summary​

• SoundHound AI is addressing an industry with significant revenue opportunities.
• SOUN proprietary innovations have a strong value proposition.
• The sound AI industry has a high barrier to success.

DKosig/E+ via Getty Images

Overview​

SoundHound AI (NASDAQ:SOUN) is currently extremely undervalued. I believe there is huge potential for SOUN to be a meaningful winner in the industry it operates in, and the market will realize its value when it shows success in hitting guidance and winning more customers. Using management’s guidance, SOUN should generate $1.1 billion in revenue in FY26 and $471 million in adj. EBITDA, and at 10x adj. EBITDA in FY25 would yield investors a >5x return on their investments.

Business description​

SOUN is a conversational intelligence pioneer, offering an independent Voice AI platform that enables businesses to provide conversational experiences to their customers. SOUN gives its customers access to Houndify®, an open-access platform that lets developers use SOUN's Voice AI technology and a library of more than 100 content domains (SOUN S-1).

Significant addressable market​

I think Voice AI has huge potential for widespread adoption, and the time seems to be right for SOUN as the world moves toward more automated products (vehicles, smart home systems, etc.).


To take advantage of the growing market for Voice AI, businesses in a wide variety of sectors are turning to third-party service providers with disruptive technology offerings for assistance in developing their own unique voice assistants. The demand for Voice AI is skyrocketing as businesses race to develop cutting-edge products. By 2028, it is expected that 90% of all new automobiles will include voice assistants, and by 2025, there will be 75 billion connected devices in use around the world. Even more importantly for SOUN, a study by Pindrop Security, Inc. found that 94% of large companies plan to use Voice AI within the next two years. This shows how seriously most businesses take the idea of a voice user interface.
Branded, individualized voice assistants help companies enhance customer experiences across the board. According to a recent Opus Research study, business leaders agree that voice assistants improve their customer service, which has meaningful value-add.
I believe the estimated 75 billion IoT devices in use by 2025 are likely to be too small to accommodate a keyboard or touch screen (compare the original Nokia to today's iPhone), but they can certainly accommodate a small, cheap microphone. Businesses can give their customers greater internet access by incorporating Voice AI into their products via a microphone. AI with a human voice could make these inanimate objects interactive and intelligent. Experts' forecasts show that this is a big market, with the total market for Voice AI transactions reaching over $160 billion by 2026 as demand rises across a wide range of industries.
The use of voice AI is rapidly expanding across a wide range of industries, and all of these represent huge revenue opportunities for SOUN.

SOUN Nov 2021 presentation

Proprietary innovations have strong value proposition​

SOUN's success in the Voice AI market is largely due to its technological breakthroughs. These include Speech-to-Meaning, Deep Meaning Understanding, and Collective AI, which are the three most important innovations.
The term "Speech-to-Meaning" is used to describe SOUN's simultaneous and real-time translation of spoken words into their meanings. The standard practice has always been to first transcribe speech and then interpret it based on the written word. This approach may take longer or result in less precise results. The two processes are separated in time, making the total duration longer, and the additional processing time of the second process may be perceptible to the user. If an error occurs during the first stage of speech-to-text conversion, the erroneous text is then passed on to the second stage, and the process continues until the error is eliminated. SOUN's technology recognizes speech and understands language at the same time when a user talks to it, which makes it faster to respond and more accurate.
SOUN's approach to language understanding, Deep Meaning Understanding, enables its Voice AI platform to understand highly complex conversations. A complex search like this would take many minutes on a website with complex forms, but it can be completed in a matter of seconds using SOUN's technology, which I believe is unique and extremely useful, especially for users that require large scale deployment.
Collective AI, SOUN's third breakthrough, is an architecture that boosts the platform's understanding potential exponentially from linear inputs. Most other platforms only add new, isolated skills or domains that don't work together. Their understanding will expand at a linear rate, which is less scalable than other methods. The Collective AI architecture allows the various AI domains in SOUN to communicate with one another and gain knowledge from one another. As more developers work on a platform, its ability to understand can grow at a geometric rate.

Strong base of global customers that improve SOUN’s creditability​

The truth is that it is difficult to judge the efficacy of an AI vendor's offering; therefore, having a roster of notable clients (like Mercedes-Benz and Hyundai) and millions of users lends credibility to the vendor. Small and large companies alike from the automotive, IoT, app, restaurant, and other sectors are among SOUN's clientele. Many of SOUN's international clients, who serve customers in a wide range of sectors and locales, have found success in deploying SOUN products in a variety of settings and with a wide range of objectives.
Millions of people have access to SOUN's technology because of the company's deep AI partnerships with market leaders. By the end of 2021, the company's monthly query volume had surpassed 100 million, and the total number of queries had surpassed 1 billion. In addition, 2022's first-half traffic levels were higher than 2021's at the same time levels. Over a billion people are currently using SOUN products, as reported by SOUN's strategic partners.

SOUN Nov 2021 presentation

SOUN Nov 2021 presentation

High barriers to success​

The fact that Voice AI has a high barrier to success and that there aren't many companies offering complete solution platforms is one of the key reasons I like SOUN's. Firstly, it takes a long time and a lot of money to develop all the parts of Voice AI. Afterwards, more effort and money are needed to make the solutions marketable, fully formed, and competitive. Lastly, a sizable sum is needed to localize the solution in various languages and regions around the world.

Forecast​

Based on my investment thesis, I expect SOUN to be a meaningful winner in the automotive AI space, which should translate to meaningful profits in the future. My thesis ultimately lies in the fact that AI will be a game changer, and with that premise in mind, I believe SOUN is able to hit management guidance in FY26.
In my model, I expect SOUN to start growing at very high rates from 2023 onwards, reaching $1.1 billion in revenue and $471 million adj. EBITDA in FY26. The tricky part here is what valuation multiple to use since there are very few comparable in the market. That said, it is better to be conservative, hence I used Cerence (CRNC) and Nuance Communication historical multiples as a benchmark and assumed that SOUN trades at 10x EBITDA in FY26. Note that SOUN should continue to grow at very high rates so it can trade at a higher multiple. Based on the above assumptions and an NTM EBITDA of 10x, I came up with an intrinsic value of $21.56. This is 5x more than the current share price of $5.60. (This sounds high, but it was trading as high as $16 just a few months back).

Author's estimates

Red Flags​

Extremely competitive market​

While I did say that there are significant challenges to becoming successful in this field, that doesn't mean breaking in is impossible. Numerous businesses either already have or have plans to launch products that compete in the growing field of voice-activated artificial intelligence. Customers, both current and potential, may opt to work with SOUN's rivals who offer superior products by creating competing products or forming strategic alliances with them.

Revenues are concentrated on large automobiles OEMs​

In the future, SOUN's customers, particularly those in the automotive industry, may put pressure on the company to lower its prices, given that they have huge buying power.

Sensitive to interest rates environment​

Because there are no meaningful profits in the near term, the majority of SOUN's value is in the future (FY26). As a result, the current share price is extremely sensitive to changes in interest rates; investors should expect high volatility in the near future until SOUN shows meaningful success in meeting guidance.

Conclusion​

SOUN is extremely undervalued at its current share price as of the date of this writing. I believe SOUN is a leading player in this industry due to its technology innovations and adoption by millions of users. This is a very big industry with a lot of revenue opportunity for SOUN if it can continue executing well and acquire more customers. I don't think SOUN’s current market value shows what it's really worth, mostly because it is not generating meaningful profits today and investors seem to favour cash flow positive businesses. This looks like a good time to buy if you think SOUN can meet its guidance for FY26.

SoundHound AI: Expect To Be A Meaningful Winner In The AI Industry (NASDAQ:SOUN)

SoundHound AI is addressing an industry with significant revenue opportunities. Click here to know why SOUN looks like a good time to Buy.

seekingalpha.com

 

[HopalongPetrovski]

Maybe just create a new thread.

You know, break glass when required.

BRN - General Discourse, Disagreements, Feuds and Sundry Minor Spats

No. Keep it going on here. I'm bored.

Apparently........
"Cats don't resolve their issues through fighting, and the fighting usually just gets worse. Interrupt aggression with a loud clap of your hands or spray from a water gun. Neuter the cats. Intact males are particularly prone to aggressive behavior. Separate their resources."

 

[Fact Finder]

This is a fantastic read if you're like me and you believe that there's a very good chance we're in (or soon will be) with SoundHound. It states here; "The demand for Voice AI is skyrocketing as businesses race to develop cutting-edge products. By 2028, it is expected that 90% of all new automobiles will include voice assistants, and by 2025, there will be 75 billion connected devices in use around the world. Even more importantly for SOUN, a study by Pindrop Security, Inc. found that 94% of large companies plan to use Voice AI within the next two years. This shows how seriously most businesses take the idea of a voice user interface."

Don't forget, the artificial intelligence experts at BrainChip helped to make the Vision EQXX voice control 5-10 times more efficient than conventional voice control systems. How many other companies will be salivating at the chance to adopt such cutting-edge, best-in-class technology?

Oh, I also thought the section on the forecast was interesting as the author is expecting SoundHound to be 5x more than the current share price from 23 onwards due to the demand for voice AI.

SoundHound AI: Expect To Be A Meaningful Winner In The AI Industry​

Oct. 13, 2022 6:38 AM ETSoundHound AI, Inc. (SOUN)CRNC1 Comment2 Likes

Summary​

• SoundHound AI is addressing an industry with significant revenue opportunities.
• SOUN proprietary innovations have a strong value proposition.
• The sound AI industry has a high barrier to success.

DKosig/E+ via Getty Images

Overview​

SoundHound AI (NASDAQ:SOUN) is currently extremely undervalued. I believe there is huge potential for SOUN to be a meaningful winner in the industry it operates in, and the market will realize its value when it shows success in hitting guidance and winning more customers. Using management’s guidance, SOUN should generate $1.1 billion in revenue in FY26 and $471 million in adj. EBITDA, and at 10x adj. EBITDA in FY25 would yield investors a >5x return on their investments.

Business description​

SOUN is a conversational intelligence pioneer, offering an independent Voice AI platform that enables businesses to provide conversational experiences to their customers. SOUN gives its customers access to Houndify®, an open-access platform that lets developers use SOUN's Voice AI technology and a library of more than 100 content domains (SOUN S-1).

Significant addressable market​

I think Voice AI has huge potential for widespread adoption, and the time seems to be right for SOUN as the world moves toward more automated products (vehicles, smart home systems, etc.).


To take advantage of the growing market for Voice AI, businesses in a wide variety of sectors are turning to third-party service providers with disruptive technology offerings for assistance in developing their own unique voice assistants. The demand for Voice AI is skyrocketing as businesses race to develop cutting-edge products. By 2028, it is expected that 90% of all new automobiles will include voice assistants, and by 2025, there will be 75 billion connected devices in use around the world. Even more importantly for SOUN, a study by Pindrop Security, Inc. found that 94% of large companies plan to use Voice AI within the next two years. This shows how seriously most businesses take the idea of a voice user interface.
Branded, individualized voice assistants help companies enhance customer experiences across the board. According to a recent Opus Research study, business leaders agree that voice assistants improve their customer service, which has meaningful value-add.
I believe the estimated 75 billion IoT devices in use by 2025 are likely to be too small to accommodate a keyboard or touch screen (compare the original Nokia to today's iPhone), but they can certainly accommodate a small, cheap microphone. Businesses can give their customers greater internet access by incorporating Voice AI into their products via a microphone. AI with a human voice could make these inanimate objects interactive and intelligent. Experts' forecasts show that this is a big market, with the total market for Voice AI transactions reaching over $160 billion by 2026 as demand rises across a wide range of industries.
The use of voice AI is rapidly expanding across a wide range of industries, and all of these represent huge revenue opportunities for SOUN.

SOUN Nov 2021 presentation

Proprietary innovations have strong value proposition​

SOUN's success in the Voice AI market is largely due to its technological breakthroughs. These include Speech-to-Meaning, Deep Meaning Understanding, and Collective AI, which are the three most important innovations.
The term "Speech-to-Meaning" is used to describe SOUN's simultaneous and real-time translation of spoken words into their meanings. The standard practice has always been to first transcribe speech and then interpret it based on the written word. This approach may take longer or result in less precise results. The two processes are separated in time, making the total duration longer, and the additional processing time of the second process may be perceptible to the user. If an error occurs during the first stage of speech-to-text conversion, the erroneous text is then passed on to the second stage, and the process continues until the error is eliminated. SOUN's technology recognizes speech and understands language at the same time when a user talks to it, which makes it faster to respond and more accurate.
SOUN's approach to language understanding, Deep Meaning Understanding, enables its Voice AI platform to understand highly complex conversations. A complex search like this would take many minutes on a website with complex forms, but it can be completed in a matter of seconds using SOUN's technology, which I believe is unique and extremely useful, especially for users that require large scale deployment.
Collective AI, SOUN's third breakthrough, is an architecture that boosts the platform's understanding potential exponentially from linear inputs. Most other platforms only add new, isolated skills or domains that don't work together. Their understanding will expand at a linear rate, which is less scalable than other methods. The Collective AI architecture allows the various AI domains in SOUN to communicate with one another and gain knowledge from one another. As more developers work on a platform, its ability to understand can grow at a geometric rate.

Strong base of global customers that improve SOUN’s creditability​

The truth is that it is difficult to judge the efficacy of an AI vendor's offering; therefore, having a roster of notable clients (like Mercedes-Benz and Hyundai) and millions of users lends credibility to the vendor. Small and large companies alike from the automotive, IoT, app, restaurant, and other sectors are among SOUN's clientele. Many of SOUN's international clients, who serve customers in a wide range of sectors and locales, have found success in deploying SOUN products in a variety of settings and with a wide range of objectives.
Millions of people have access to SOUN's technology because of the company's deep AI partnerships with market leaders. By the end of 2021, the company's monthly query volume had surpassed 100 million, and the total number of queries had surpassed 1 billion. In addition, 2022's first-half traffic levels were higher than 2021's at the same time levels. Over a billion people are currently using SOUN products, as reported by SOUN's strategic partners.

SOUN Nov 2021 presentation

SOUN Nov 2021 presentation

High barriers to success​

The fact that Voice AI has a high barrier to success and that there aren't many companies offering complete solution platforms is one of the key reasons I like SOUN's. Firstly, it takes a long time and a lot of money to develop all the parts of Voice AI. Afterwards, more effort and money are needed to make the solutions marketable, fully formed, and competitive. Lastly, a sizable sum is needed to localize the solution in various languages and regions around the world.

Forecast​

Based on my investment thesis, I expect SOUN to be a meaningful winner in the automotive AI space, which should translate to meaningful profits in the future. My thesis ultimately lies in the fact that AI will be a game changer, and with that premise in mind, I believe SOUN is able to hit management guidance in FY26.
In my model, I expect SOUN to start growing at very high rates from 2023 onwards, reaching $1.1 billion in revenue and $471 million adj. EBITDA in FY26. The tricky part here is what valuation multiple to use since there are very few comparable in the market. That said, it is better to be conservative, hence I used Cerence (CRNC) and Nuance Communication historical multiples as a benchmark and assumed that SOUN trades at 10x EBITDA in FY26. Note that SOUN should continue to grow at very high rates so it can trade at a higher multiple. Based on the above assumptions and an NTM EBITDA of 10x, I came up with an intrinsic value of $21.56. This is 5x more than the current share price of $5.60. (This sounds high, but it was trading as high as $16 just a few months back).

Author's estimates

Red Flags​

Extremely competitive market​

While I did say that there are significant challenges to becoming successful in this field, that doesn't mean breaking in is impossible. Numerous businesses either already have or have plans to launch products that compete in the growing field of voice-activated artificial intelligence. Customers, both current and potential, may opt to work with SOUN's rivals who offer superior products by creating competing products or forming strategic alliances with them.

Revenues are concentrated on large automobiles OEMs​

In the future, SOUN's customers, particularly those in the automotive industry, may put pressure on the company to lower its prices, given that they have huge buying power.

Sensitive to interest rates environment​

Because there are no meaningful profits in the near term, the majority of SOUN's value is in the future (FY26). As a result, the current share price is extremely sensitive to changes in interest rates; investors should expect high volatility in the near future until SOUN shows meaningful success in meeting guidance.

Conclusion​

SOUN is extremely undervalued at its current share price as of the date of this writing. I believe SOUN is a leading player in this industry due to its technology innovations and adoption by millions of users. This is a very big industry with a lot of revenue opportunity for SOUN if it can continue executing well and acquire more customers. I don't think SOUN’s current market value shows what it's really worth, mostly because it is not generating meaningful profits today and investors seem to favour cash flow positive businesses. This looks like a good time to buy if you think SOUN can meet its guidance for FY26.

SoundHound AI: Expect To Be A Meaningful Winner In The AI Industry (NASDAQ:SOUN)

SoundHound AI is addressing an industry with significant revenue opportunities. Click here to know why SOUN looks like a good time to Buy.

seekingalpha.com

Hi @Bravo

Nice find generously shared.

As I have decided to make my debut as a Brainchip down ramper and cynic of the first order when I saw the heading 'Red Flags" I thought fantastic I will be able to use this to great effect and absolutely destroy Brainchip so here goes:

Red Flags - (SoundHound)​

Extremely competitive market​

While I did say that there are significant challenges to becoming successful in this field, that doesn't mean breaking in is impossible. Numerous businesses either already have or have plans to launch products that compete in the growing field of voice-activated artificial intelligence. Customers, both current and potential, may opt to work with SOUN's rivals who offer superior products by creating competing products or forming strategic alliances with them.

Brainchip:
Ok. Extremely competitive market place not the best place to start my new career as Brainchip is the one, the only supplier of commercial neuromorphic IP for Edge Computing so actually does not have a true competitor in this market place.

Revenues are concentrated on large automobiles OEMs​

In the future, SOUN's customers, particularly those in the automotive industry, may put pressure on the company to lower its prices, given that they have huge buying power.

Brainchip:
Ok. This is a bit disappointing Brainchip is not restricted to one industry in fact is going to disrupt industries that have still to be thought of so moving on...

Sensitive to interest rates environment​

Because there are no meaningful profits in the near term, the majority of SOUN's value is in the future (FY26). As a result, the current share price is extremely sensitive to changes in interest rates; investors should expect high volatility in the near future until SOUN shows meaningful success in meeting guidance.

Brainchip:
Finally one I can use. Brainchip is sensitive to interest rate rises. How you might ask? Well it has 24 million US dollars in the bank and the returns that it is receiving from interest are going up. What's that Blind Freddie that's not a negative. Yes thinking about it your right. Well what about all the money it has borrowed then? Are you sure they don't have any borrowings? Ok I believe you and yes I did read the last 4C. and yes I know it has a three year cash runway if it calls up all of the outstanding $28 million from LDA Capital.

So there you have it Brainchip does not salute any of these Red Flags so just sell out anyway.

How do you think that went Freddie? Freddie come back I'm talking to you. Freddie, Freddie....☹☹☹

My opinion only DYOR
FF

AKIDA BALLISTA

 

[wilzy123]

This is a fantastic read if you're like me and you believe that there's a very good chance we're in (or soon will be) with SoundHound. It states here; "The demand for Voice AI is skyrocketing as businesses race to develop cutting-edge products. By 2028, it is expected that 90% of all new automobiles will include voice assistants, and by 2025, there will be 75 billion connected devices in use around the world. Even more importantly for SOUN, a study by Pindrop Security, Inc. found that 94% of large companies plan to use Voice AI within the next two years. This shows how seriously most businesses take the idea of a voice user interface."

Don't forget, the artificial intelligence experts at BrainChip helped to make the Vision EQXX voice control 5-10 times more efficient than conventional voice control systems. How many other companies will be salivating at the chance to adopt such cutting-edge, best-in-class technology?

Oh, I also thought the section on the forecast was interesting as the author is expecting SoundHound to be 5x more than the current share price from 23 onwards due to the demand for voice AI.

SoundHound AI: Expect To Be A Meaningful Winner In The AI Industry​

Oct. 13, 2022 6:38 AM ETSoundHound AI, Inc. (SOUN)CRNC1 Comment2 Likes

Summary​

• SoundHound AI is addressing an industry with significant revenue opportunities.
• SOUN proprietary innovations have a strong value proposition.
• The sound AI industry has a high barrier to success.

DKosig/E+ via Getty Images

Overview​

SoundHound AI (NASDAQ:SOUN) is currently extremely undervalued. I believe there is huge potential for SOUN to be a meaningful winner in the industry it operates in, and the market will realize its value when it shows success in hitting guidance and winning more customers. Using management’s guidance, SOUN should generate $1.1 billion in revenue in FY26 and $471 million in adj. EBITDA, and at 10x adj. EBITDA in FY25 would yield investors a >5x return on their investments.

Business description​

SOUN is a conversational intelligence pioneer, offering an independent Voice AI platform that enables businesses to provide conversational experiences to their customers. SOUN gives its customers access to Houndify®, an open-access platform that lets developers use SOUN's Voice AI technology and a library of more than 100 content domains (SOUN S-1).

Significant addressable market​

I think Voice AI has huge potential for widespread adoption, and the time seems to be right for SOUN as the world moves toward more automated products (vehicles, smart home systems, etc.).


To take advantage of the growing market for Voice AI, businesses in a wide variety of sectors are turning to third-party service providers with disruptive technology offerings for assistance in developing their own unique voice assistants. The demand for Voice AI is skyrocketing as businesses race to develop cutting-edge products. By 2028, it is expected that 90% of all new automobiles will include voice assistants, and by 2025, there will be 75 billion connected devices in use around the world. Even more importantly for SOUN, a study by Pindrop Security, Inc. found that 94% of large companies plan to use Voice AI within the next two years. This shows how seriously most businesses take the idea of a voice user interface.
Branded, individualized voice assistants help companies enhance customer experiences across the board. According to a recent Opus Research study, business leaders agree that voice assistants improve their customer service, which has meaningful value-add.
I believe the estimated 75 billion IoT devices in use by 2025 are likely to be too small to accommodate a keyboard or touch screen (compare the original Nokia to today's iPhone), but they can certainly accommodate a small, cheap microphone. Businesses can give their customers greater internet access by incorporating Voice AI into their products via a microphone. AI with a human voice could make these inanimate objects interactive and intelligent. Experts' forecasts show that this is a big market, with the total market for Voice AI transactions reaching over $160 billion by 2026 as demand rises across a wide range of industries.
The use of voice AI is rapidly expanding across a wide range of industries, and all of these represent huge revenue opportunities for SOUN.

SOUN Nov 2021 presentation

Proprietary innovations have strong value proposition​

SOUN's success in the Voice AI market is largely due to its technological breakthroughs. These include Speech-to-Meaning, Deep Meaning Understanding, and Collective AI, which are the three most important innovations.
The term "Speech-to-Meaning" is used to describe SOUN's simultaneous and real-time translation of spoken words into their meanings. The standard practice has always been to first transcribe speech and then interpret it based on the written word. This approach may take longer or result in less precise results. The two processes are separated in time, making the total duration longer, and the additional processing time of the second process may be perceptible to the user. If an error occurs during the first stage of speech-to-text conversion, the erroneous text is then passed on to the second stage, and the process continues until the error is eliminated. SOUN's technology recognizes speech and understands language at the same time when a user talks to it, which makes it faster to respond and more accurate.
SOUN's approach to language understanding, Deep Meaning Understanding, enables its Voice AI platform to understand highly complex conversations. A complex search like this would take many minutes on a website with complex forms, but it can be completed in a matter of seconds using SOUN's technology, which I believe is unique and extremely useful, especially for users that require large scale deployment.
Collective AI, SOUN's third breakthrough, is an architecture that boosts the platform's understanding potential exponentially from linear inputs. Most other platforms only add new, isolated skills or domains that don't work together. Their understanding will expand at a linear rate, which is less scalable than other methods. The Collective AI architecture allows the various AI domains in SOUN to communicate with one another and gain knowledge from one another. As more developers work on a platform, its ability to understand can grow at a geometric rate.

Strong base of global customers that improve SOUN’s creditability​

The truth is that it is difficult to judge the efficacy of an AI vendor's offering; therefore, having a roster of notable clients (like Mercedes-Benz and Hyundai) and millions of users lends credibility to the vendor. Small and large companies alike from the automotive, IoT, app, restaurant, and other sectors are among SOUN's clientele. Many of SOUN's international clients, who serve customers in a wide range of sectors and locales, have found success in deploying SOUN products in a variety of settings and with a wide range of objectives.
Millions of people have access to SOUN's technology because of the company's deep AI partnerships with market leaders. By the end of 2021, the company's monthly query volume had surpassed 100 million, and the total number of queries had surpassed 1 billion. In addition, 2022's first-half traffic levels were higher than 2021's at the same time levels. Over a billion people are currently using SOUN products, as reported by SOUN's strategic partners.

SOUN Nov 2021 presentation

SOUN Nov 2021 presentation

High barriers to success​

The fact that Voice AI has a high barrier to success and that there aren't many companies offering complete solution platforms is one of the key reasons I like SOUN's. Firstly, it takes a long time and a lot of money to develop all the parts of Voice AI. Afterwards, more effort and money are needed to make the solutions marketable, fully formed, and competitive. Lastly, a sizable sum is needed to localize the solution in various languages and regions around the world.

Forecast​

Based on my investment thesis, I expect SOUN to be a meaningful winner in the automotive AI space, which should translate to meaningful profits in the future. My thesis ultimately lies in the fact that AI will be a game changer, and with that premise in mind, I believe SOUN is able to hit management guidance in FY26.
In my model, I expect SOUN to start growing at very high rates from 2023 onwards, reaching $1.1 billion in revenue and $471 million adj. EBITDA in FY26. The tricky part here is what valuation multiple to use since there are very few comparable in the market. That said, it is better to be conservative, hence I used Cerence (CRNC) and Nuance Communication historical multiples as a benchmark and assumed that SOUN trades at 10x EBITDA in FY26. Note that SOUN should continue to grow at very high rates so it can trade at a higher multiple. Based on the above assumptions and an NTM EBITDA of 10x, I came up with an intrinsic value of $21.56. This is 5x more than the current share price of $5.60. (This sounds high, but it was trading as high as $16 just a few months back).

Author's estimates

Red Flags​

Extremely competitive market​

While I did say that there are significant challenges to becoming successful in this field, that doesn't mean breaking in is impossible. Numerous businesses either already have or have plans to launch products that compete in the growing field of voice-activated artificial intelligence. Customers, both current and potential, may opt to work with SOUN's rivals who offer superior products by creating competing products or forming strategic alliances with them.

Revenues are concentrated on large automobiles OEMs​

In the future, SOUN's customers, particularly those in the automotive industry, may put pressure on the company to lower its prices, given that they have huge buying power.

Sensitive to interest rates environment​

Because there are no meaningful profits in the near term, the majority of SOUN's value is in the future (FY26). As a result, the current share price is extremely sensitive to changes in interest rates; investors should expect high volatility in the near future until SOUN shows meaningful success in meeting guidance.

Conclusion​

SOUN is extremely undervalued at its current share price as of the date of this writing. I believe SOUN is a leading player in this industry due to its technology innovations and adoption by millions of users. This is a very big industry with a lot of revenue opportunity for SOUN if it can continue executing well and acquire more customers. I don't think SOUN’s current market value shows what it's really worth, mostly because it is not generating meaningful profits today and investors seem to favour cash flow positive businesses. This looks like a good time to buy if you think SOUN can meet its guidance for FY26.

SoundHound AI: Expect To Be A Meaningful Winner In The AI Industry (NASDAQ:SOUN)

SoundHound AI is addressing an industry with significant revenue opportunities. Click here to know why SOUN looks like a good time to Buy.

seekingalpha.com

What makes you think we're involved with this mob?

I know they (Soundhound) are behind 'a' version of the MBUX (as per: https://www.soundhound.com/voice-ai...system-mbux-powered-by-houndify-9ab78a6f6fa4/), but I see nothing about neuromorphic on their website or in the product offering.

Could it be that when Mercedes announced "neuromorphic computing, 5 times more intelligent that current voice AI" (in this ad below) that they were proclaiming the fact that they had landed a far superior solution? I.e. the new solution being rolled out as part of the new (currently optional) MBUX featured in the EQS and EQE.... and then inevitably (IMO) to the rest of their product line?

 

[Bravo]

What makes you think we're involved with this mob?

I know they (Soundhound) are behind 'a' version of the MBUX (as per: https://www.soundhound.com/voice-ai...system-mbux-powered-by-houndify-9ab78a6f6fa4/), but I see nothing about neuromorphic on their website or in the product offering.

Could it be that when Mercedes announced "neuromorphic computing, 5 times more intelligent that current voice AI" (in this ad below) that they were proclaiming the fact that they had landed a far superior solution? I.e. the new solution being rolled out as part of the new (currently optional) MBUX featured in the EQS and EQE.... and then inevitably (IMO) to the rest of their product line?

Hi @wilzy123, here are some links:

• #33,736
• #33,938
• #35,736
• #35,743

I'm suggesting there is a very good chance but I have no proof, so it's pure speculation on my behalf at the moment.

 

[Bravo]

No. Keep it going on here. I'm bored.

Apparently........
"Cats don't resolve their issues through fighting, and the fighting usually just gets worse. Interrupt aggression with a loud clap of your hands or spray from a water gun. Neuter the cats. Intact males are particularly prone to aggressive behavior. Separate their resources."

Woe betide anyone who comes between me and my kibbles.

 

[Diogenese]

This is a fantastic read if you're like me and you believe that there's a very good chance we're in (or soon will be) with SoundHound. It states here; "The demand for Voice AI is skyrocketing as businesses race to develop cutting-edge products. By 2028, it is expected that 90% of all new automobiles will include voice assistants, and by 2025, there will be 75 billion connected devices in use around the world. Even more importantly for SOUN, a study by Pindrop Security, Inc. found that 94% of large companies plan to use Voice AI within the next two years. This shows how seriously most businesses take the idea of a voice user interface."

Don't forget, the artificial intelligence experts at BrainChip helped to make the Vision EQXX voice control 5-10 times more efficient than conventional voice control systems. How many other companies will be salivating at the chance to adopt such cutting-edge, best-in-class technology?

Oh, I also thought the section on the forecast was interesting as the author is expecting SoundHound to be 5x more than the current share price from 23 onwards due to the demand for voice AI.

SoundHound AI: Expect To Be A Meaningful Winner In The AI Industry​

Oct. 13, 2022 6:38 AM ETSoundHound AI, Inc. (SOUN)CRNC1 Comment2 Likes

Summary​

• SoundHound AI is addressing an industry with significant revenue opportunities.
• SOUN proprietary innovations have a strong value proposition.
• The sound AI industry has a high barrier to success.

DKosig/E+ via Getty Images

Overview​

SoundHound AI (NASDAQ:SOUN) is currently extremely undervalued. I believe there is huge potential for SOUN to be a meaningful winner in the industry it operates in, and the market will realize its value when it shows success in hitting guidance and winning more customers. Using management’s guidance, SOUN should generate $1.1 billion in revenue in FY26 and $471 million in adj. EBITDA, and at 10x adj. EBITDA in FY25 would yield investors a >5x return on their investments.

Business description​

SOUN is a conversational intelligence pioneer, offering an independent Voice AI platform that enables businesses to provide conversational experiences to their customers. SOUN gives its customers access to Houndify®, an open-access platform that lets developers use SOUN's Voice AI technology and a library of more than 100 content domains (SOUN S-1).

Significant addressable market​

I think Voice AI has huge potential for widespread adoption, and the time seems to be right for SOUN as the world moves toward more automated products (vehicles, smart home systems, etc.).


To take advantage of the growing market for Voice AI, businesses in a wide variety of sectors are turning to third-party service providers with disruptive technology offerings for assistance in developing their own unique voice assistants. The demand for Voice AI is skyrocketing as businesses race to develop cutting-edge products. By 2028, it is expected that 90% of all new automobiles will include voice assistants, and by 2025, there will be 75 billion connected devices in use around the world. Even more importantly for SOUN, a study by Pindrop Security, Inc. found that 94% of large companies plan to use Voice AI within the next two years. This shows how seriously most businesses take the idea of a voice user interface.
Branded, individualized voice assistants help companies enhance customer experiences across the board. According to a recent Opus Research study, business leaders agree that voice assistants improve their customer service, which has meaningful value-add.
I believe the estimated 75 billion IoT devices in use by 2025 are likely to be too small to accommodate a keyboard or touch screen (compare the original Nokia to today's iPhone), but they can certainly accommodate a small, cheap microphone. Businesses can give their customers greater internet access by incorporating Voice AI into their products via a microphone. AI with a human voice could make these inanimate objects interactive and intelligent. Experts' forecasts show that this is a big market, with the total market for Voice AI transactions reaching over $160 billion by 2026 as demand rises across a wide range of industries.
The use of voice AI is rapidly expanding across a wide range of industries, and all of these represent huge revenue opportunities for SOUN.

SOUN Nov 2021 presentation

Proprietary innovations have strong value proposition​

SOUN's success in the Voice AI market is largely due to its technological breakthroughs. These include Speech-to-Meaning, Deep Meaning Understanding, and Collective AI, which are the three most important innovations.
The term "Speech-to-Meaning" is used to describe SOUN's simultaneous and real-time translation of spoken words into their meanings. The standard practice has always been to first transcribe speech and then interpret it based on the written word. This approach may take longer or result in less precise results. The two processes are separated in time, making the total duration longer, and the additional processing time of the second process may be perceptible to the user. If an error occurs during the first stage of speech-to-text conversion, the erroneous text is then passed on to the second stage, and the process continues until the error is eliminated. SOUN's technology recognizes speech and understands language at the same time when a user talks to it, which makes it faster to respond and more accurate.
SOUN's approach to language understanding, Deep Meaning Understanding, enables its Voice AI platform to understand highly complex conversations. A complex search like this would take many minutes on a website with complex forms, but it can be completed in a matter of seconds using SOUN's technology, which I believe is unique and extremely useful, especially for users that require large scale deployment.
Collective AI, SOUN's third breakthrough, is an architecture that boosts the platform's understanding potential exponentially from linear inputs. Most other platforms only add new, isolated skills or domains that don't work together. Their understanding will expand at a linear rate, which is less scalable than other methods. The Collective AI architecture allows the various AI domains in SOUN to communicate with one another and gain knowledge from one another. As more developers work on a platform, its ability to understand can grow at a geometric rate.

Strong base of global customers that improve SOUN’s creditability​

The truth is that it is difficult to judge the efficacy of an AI vendor's offering; therefore, having a roster of notable clients (like Mercedes-Benz and Hyundai) and millions of users lends credibility to the vendor. Small and large companies alike from the automotive, IoT, app, restaurant, and other sectors are among SOUN's clientele. Many of SOUN's international clients, who serve customers in a wide range of sectors and locales, have found success in deploying SOUN products in a variety of settings and with a wide range of objectives.
Millions of people have access to SOUN's technology because of the company's deep AI partnerships with market leaders. By the end of 2021, the company's monthly query volume had surpassed 100 million, and the total number of queries had surpassed 1 billion. In addition, 2022's first-half traffic levels were higher than 2021's at the same time levels. Over a billion people are currently using SOUN products, as reported by SOUN's strategic partners.

SOUN Nov 2021 presentation

SOUN Nov 2021 presentation

High barriers to success​

The fact that Voice AI has a high barrier to success and that there aren't many companies offering complete solution platforms is one of the key reasons I like SOUN's. Firstly, it takes a long time and a lot of money to develop all the parts of Voice AI. Afterwards, more effort and money are needed to make the solutions marketable, fully formed, and competitive. Lastly, a sizable sum is needed to localize the solution in various languages and regions around the world.

Forecast​

Based on my investment thesis, I expect SOUN to be a meaningful winner in the automotive AI space, which should translate to meaningful profits in the future. My thesis ultimately lies in the fact that AI will be a game changer, and with that premise in mind, I believe SOUN is able to hit management guidance in FY26.
In my model, I expect SOUN to start growing at very high rates from 2023 onwards, reaching $1.1 billion in revenue and $471 million adj. EBITDA in FY26. The tricky part here is what valuation multiple to use since there are very few comparable in the market. That said, it is better to be conservative, hence I used Cerence (CRNC) and Nuance Communication historical multiples as a benchmark and assumed that SOUN trades at 10x EBITDA in FY26. Note that SOUN should continue to grow at very high rates so it can trade at a higher multiple. Based on the above assumptions and an NTM EBITDA of 10x, I came up with an intrinsic value of $21.56. This is 5x more than the current share price of $5.60. (This sounds high, but it was trading as high as $16 just a few months back).

Author's estimates

Red Flags​

Extremely competitive market​

While I did say that there are significant challenges to becoming successful in this field, that doesn't mean breaking in is impossible. Numerous businesses either already have or have plans to launch products that compete in the growing field of voice-activated artificial intelligence. Customers, both current and potential, may opt to work with SOUN's rivals who offer superior products by creating competing products or forming strategic alliances with them.

Revenues are concentrated on large automobiles OEMs​

In the future, SOUN's customers, particularly those in the automotive industry, may put pressure on the company to lower its prices, given that they have huge buying power.

Sensitive to interest rates environment​

Because there are no meaningful profits in the near term, the majority of SOUN's value is in the future (FY26). As a result, the current share price is extremely sensitive to changes in interest rates; investors should expect high volatility in the near future until SOUN shows meaningful success in meeting guidance.

Conclusion​

SOUN is extremely undervalued at its current share price as of the date of this writing. I believe SOUN is a leading player in this industry due to its technology innovations and adoption by millions of users. This is a very big industry with a lot of revenue opportunity for SOUN if it can continue executing well and acquire more customers. I don't think SOUN’s current market value shows what it's really worth, mostly because it is not generating meaningful profits today and investors seem to favour cash flow positive businesses. This looks like a good time to buy if you think SOUN can meet its guidance for FY26.

SoundHound AI: Expect To Be A Meaningful Winner In The AI Industry (NASDAQ:SOUN)

SoundHound AI is addressing an industry with significant revenue opportunities. Click here to know why SOUN looks like a good time to Buy.

seekingalpha.com

Hi Bravo,

I think the most important advance of SoundHound is the use of NNs to generate speech, as distinct from Akida which uses NNs to recognize speech.

Of course, Soundhound also need to recognize speech in order to know what response to generate. SH then needs to assign an "intent" to the recognized speech input (Does it do irony/sarcasm?) in order to assign and compile an appropriate response. Thus Akida could be used in the speech recognition section of SH's apparatus.

As the second patent shows, there is room for improvement in their speech recognition. SH's main drawback is that they use software NNs (CNN) running on CPU/GPU.

SoundHound:


EP3832644A1 NEURAL SPEECH-TO-MEANING TRANSLATION

[0074] Some approaches to implementing neural speech-to-meaning recognizers are CNN-LSTM-DNN or seq-to-seq or RNN transducer model including attention.


US2021312901A1 AUTOMATIC LEARNING OF ENTITIES, WORDS, PRONUNCIATIONS, AND PARTS OF SPEECH

[0057] Speech recognition involves at least the steps of acoustic analysis and tokenization. FIG. 3 shows a diagram of an example of speech recognition. An acoustic analysis step 31 receives speech audio and performs acoustic analysis according to an acoustic model 32 . Some examples of acoustic models are hidden Markov models (HMM) and neural network acoustic models. The acoustic analysis 31 may run repeatedly on windows of speech audio data, for example at intervals around 5 to 25 milliseconds. the time windows can be selected to be frequent enough to capture transitions between even short phonemes of fast speech but not to waste processing power. The acoustic analysis 31 produces at least one phoneme sequence hypothesis. In some examples, the acoustic analysis 31 produces many phoneme sequence hypotheses and might, also, produce a score for each one. The score indicates how likely it is that the phoneme sequence hypothesis is what the speaker intended. In some examples, the system calculates scores by comparing the received speech audio to models of the expected audio patterns for each phoneme.

[0116] FIG. 15B shows a block diagram of the system-on-chip 1508 . It comprises a multicore cluster of computer processor (CPU) cores 1510 and a multicore cluster of graphics processor (GPU) cores 1520 . The processors connect through a network-on-chip 1530 to an off-chip dynamic random access memory (DRAM) interface 1540 for volatile program and data storage and a Flash interface 1550 for non-volatile storage of computer program code in a Flash RAM non-transitory computer readable medium. SoC 1508 also has a display interface 1560 for displaying a graphical user interface (GUI) and an I/O interface module 1570 for connecting to various I/O interface devices, as needed for different peripheral devices. The I/O interface enables sensors such as touch screen sensors, geolocation receivers, microphones, speakers, Bluetooth peripherals, and USB devices, such as keyboards and mice, among others. SoC 1508 also comprises a network interface 1580 to allow the processors to access the Internet through wired or wireless connections such as WiFi, 3G, 4G long-term evolution (LTE), 5G, and other wireless interface standard radios as well as Ethernet connection hardware. By executing instructions stored in RAM devices through interface 1540 or Flash devices through interface 1550 , the CPUs 1510 and GPUs 1520 perform functionality as described herein.

 

[Fullmoonfever]

Whilst never fun to see a declining SP (black line), it's positive to see overall insto ownership increasing (green bars).

Question always is whether they are being opportunistic seeing the value or whether they are part of the manipulation

 

[Diogenese]

Woe betide anyone who comes between me and my kibbles.


View attachment 21537

Poster cat for multitasking.

 

[HopalongPetrovski]

Whilst never fun to see a declining SP (black line), it's positive to see overall insto ownership increasing (green bars).

Question always is whether they are being opportunistic seeing the value or whether they are part of the manipulation

View attachment 21541

I doubt any of them got to where they are now by being "Mr Nice Guy".
Most likely they are actually dirty rotten scoundrels.

 

[mrgds]

great to see "Mr Going without Coffee" is making the best of the BRN s/p,

OHHH, and i see why the condition of his trades are CXXT, .............. "Coffee X-iting X-tra Tuff "

 

[mrgds]

great to see "Mr Going without Coffee" is making the best of the BRN s/p,

OHHH, and i see why the condition of his trades are CXXT, .............. "Coffee X-iting X-tra Tuff "

View attachment 21542

WOOHOO, ................... GREEN BABY YEAH

 

[Diogenese]

Hi Bravo,

I think the most important advance of SoundHound is the use of NNs to generate speech, as distinct from Akida which uses NNs to recognize speech.

Of course, Soundhound also need to recognize speech in order to know what response to generate. SH then needs to assign an "intent" to the recognized speech input (Does it do irony/sarcasm?) in order to assign and compile an appropriate response. Thus Akida could be used in the speech recognition section of SH's apparatus.

As the second patent shows, there is room for improvement in their speech recognition. SH's main drawback is that they use software NNs (CNN) running on CPU/GPU.

SoundHound:


EP3832644A1 NEURAL SPEECH-TO-MEANING TRANSLATION

View attachment 21538

View attachment 21539

[0074] Some approaches to implementing neural speech-to-meaning recognizers are CNN-LSTM-DNN or seq-to-seq or RNN transducer model including attention.


US2021312901A1 AUTOMATIC LEARNING OF ENTITIES, WORDS, PRONUNCIATIONS, AND PARTS OF SPEECH

View attachment 21535

[0057] Speech recognition involves at least the steps of acoustic analysis and tokenization. FIG. 3 shows a diagram of an example of speech recognition. An acoustic analysis step 31 receives speech audio and performs acoustic analysis according to an acoustic model 32 . Some examples of acoustic models are hidden Markov models (HMM) and neural network acoustic models. The acoustic analysis 31 may run repeatedly on windows of speech audio data, for example at intervals around 5 to 25 milliseconds. the time windows can be selected to be frequent enough to capture transitions between even short phonemes of fast speech but not to waste processing power. The acoustic analysis 31 produces at least one phoneme sequence hypothesis. In some examples, the acoustic analysis 31 produces many phoneme sequence hypotheses and might, also, produce a score for each one. The score indicates how likely it is that the phoneme sequence hypothesis is what the speaker intended. In some examples, the system calculates scores by comparing the received speech audio to models of the expected audio patterns for each phoneme.


View attachment 21534

[0116] FIG. 15B shows a block diagram of the system-on-chip 1508 . It comprises a multicore cluster of computer processor (CPU) cores 1510 and a multicore cluster of graphics processor (GPU) cores 1520 . The processors connect through a network-on-chip 1530 to an off-chip dynamic random access memory (DRAM) interface 1540 for volatile program and data storage and a Flash interface 1550 for non-volatile storage of computer program code in a Flash RAM non-transitory computer readable medium. SoC 1508 also has a display interface 1560 for displaying a graphical user interface (GUI) and an I/O interface module 1570 for connecting to various I/O interface devices, as needed for different peripheral devices. The I/O interface enables sensors such as touch screen sensors, geolocation receivers, microphones, speakers, Bluetooth peripherals, and USB devices, such as keyboards and mice, among others. SoC 1508 also comprises a network interface 1580 to allow the processors to access the Internet through wired or wireless connections such as WiFi, 3G, 4G long-term evolution (LTE), 5G, and other wireless interface standard radios as well as Ethernet connection hardware. By executing instructions stored in RAM devices through interface 1540 or Flash devices through interface 1550 , the CPUs 1510 and GPUs 1520 perform functionality as described herein.

While I said Akida recognizes sound and SoundHound generates sound, I wouldn't mind betting that, if PvdM turned Akida around, it could generate sound.

 

[Fact Finder]

WOOHOO, ................... GREEN BABY YEAH
View attachment 21543

Progress is a wondrous thing. Who would have thought. In my day bikes had peddles.

 

[mrgds]

Progress is a wondrous thing. Who would have thought. In my day bikes had peddles.

Its Elons process taking over the world, .................. "the best part, is no part ".............

 

[Proga]

Lawyers have stepped in to break the technology bottle neck and as a result Mercedes Benz will be autonomous at highway speeds of 130 kph in 2023:

Level 3 driving at 130 km/h: Mercedes designs next ODD for Drive Pilot | AllInfo

Behind the scenes at Mercedes-Benz, work is underway on the next expansion stage of the Level 3 system Drive Pilot, with which all driving tasks can be handed over to the car. The background is the expansion of UN regulation no. 157, which allows such systems to travel at speeds of up to 130 km/h

allinfo.space

Lawyers and accountants driving innovation in the 21st Century.

My opinion only DYOR
FF

AKIDA BALLISTA

Thanks for that mate. Another jig-saw piece went into place. Don't know if it has been covered but NVIDIA are developing the micro controller. Their DRIVE Orin™- micro controller can handle all the ADAS stuff but they're working on another called Drive Thor to combine the ADAS and infotainment on the 1 unit.

NVIDIA DRIVE In-Vehicle Computing for Autonomous Vehicles

An end-to-end platform for autonomous vehicle development.

www.nvidia.com

I'm leaning towards the bean counters

 

[mrgds]

Its Elons process taking over the world, .................. "the best part, is no part ".............

Hence why the BRN team decided to be a IP provider only.

 

[JK200SX]

Whilst never fun to see a declining SP (black line), it's positive to see overall insto ownership increasing (green bars).

Question always is whether they are being opportunistic seeing the value or whether they are part of the manipulation

View attachment 21541

Do you have a link to the graph please? The graph shows institutions holding approx 25 million shares when in fact they are sitting on about 130 million.

 

[Cardpro]

MegaChips Quarter Results

https://pdf.irpocket.com/C6875/aG1f/lbpj/UtUa.pdf

IR Releases | MegaChips Corporation

We aim at sustainable growth through profitability and growth opportunity.

www.megachips.co.jp

 

[TopCat]

View attachment 21546
MegaChips Quarter Results

https://pdf.irpocket.com/C6875/aG1f/lbpj/UtUa.pdf

IR Releases | MegaChips Corporation

We aim at sustainable growth through profitability and growth opportunity.

www.megachips.co.jp

Great find. Thanks