SOUN (SoundHound AI) is insanely overvalued
Company has a $1.74B market cap on only ~$54M of annualized revenue…an insane ~32x revenue multiple.
On top of that last quarter EBITDA margin is -158%…down 37% from same quarter last year.
Now if SOUN was some sort of revolutionary category defining company…maybe I could get on board. But it’s just mostly a customer service/customer experience tool…not even particularly differentiated at that. Plenty of competition in the AI sound and voice recognition space.
Now granted it’s growing much faster than your typical public SaaS company at ~54% YoY…but that’s easy when revenue is only around $50M. No way that growth rate is sustainable for this business.
The 8-12x revenue multiple range is where SOUN market cap should be right now…I have a feeling we’ll see it there sometime not too far off in the future.
Source: https://publicsaascompanies.com Source: https://publicsaascompanies.com/saas-multiples/
Company has a $1.74B market cap on only ~$54M of annualized revenue…an insane ~32x revenue multiple.
On top of that last quarter EBITDA margin is -158%…down 37% from same quarter last year.
Now if SOUN was some sort of revolutionary category defining company…maybe I could get on board. But it’s just mostly a customer service/customer experience tool…not even particularly differentiated at that. Plenty of competition in the AI sound and voice recognition space.
Now granted it’s growing much faster than your typical public SaaS company at ~54% YoY…but that’s easy when revenue is only around $50M. No way that growth rate is sustainable for this business.
The 8-12x revenue multiple range is where SOUN market cap should be right now…I have a feeling we’ll see it there sometime not too far off in the future.
Source: https://publicsaascompanies.com Source: https://publicsaascompanies.com/saas-multiples/