AI Technology Showdown: SoundHound AI vs. BigBear.ai's Advanced Tech
In the rapidly evolving world of artificial intelligence (AI), two companies have been making waves - SoundHound AI and BigBear.ai. While both have made significant strides, recent financial performance and growth prospects suggest that SoundHound AI may be the better long-term investment.
Revenue Growth and Projections
SoundHound AI reported a remarkable 151% year-over-year revenue increase in Q1 2025, reaching $29.1 million. The company forecasts full-year 2025 revenue to reach between $157 million and $177 million, a substantial jump from 2024's $84.7 million [1][4]. In comparison, BigBear.ai's revenue growth is much slower, with a forecasted increase of about 5-6% annually. The company expects its 2025 full-year revenue to increase to between $160 million and $180 million [1][2].
Financial Health and Profitability
SoundHound AI is on a clear path toward breakeven by the end of 2025 [1], whereas BigBear.ai faces financial struggles. The company's pre-tax losses are expected to rise from $257 million in 2023 to $296 million in 2024, and it has cash flow problems with an operating cash burn tripling to $38 million in 2024 [2]. BigBear.ai's weak gross margins at 28% are also well below competitors like Palantir [2].
Market Position and Growth Potential
SoundHound's addressable market in conversational AI is large and growing—from $17 billion in 2025 to nearly $50 billion by 2031. Its booking backlog of $1.2 billion demonstrates strong future demand. The company also has strategic partnerships with major clients like Chipotle and Casey's, positioning it well in a growing voice automation sector tied to labor shortages in hospitality [1].
Stock Performance
While BigBear.ai’s shares have soared more spectacularly (423.7% gain in the past year compared to SoundHound’s 182.2%), the underlying fundamentals suggest BigBear.ai’s valuation might be less sustainable due to financial instability and slower growth [1].
Additional Factors
SoundHound AI started as a music recognition app and has since evolved to enable voice commands in cars. The company made key acquisitions in 2024 that extended its business into restaurants, healthcare, finance, and other industries [1]. SoundHound's AI technology can understand human speech in 25 languages. In contrast, BigBear.ai's new CEO, Kevin McAleenan, focused the company on applying artificial intelligence to critical infrastructure and national security issues [2].
In summary, SoundHound AI offers stronger revenue growth, better financial health, and a clearer path to profitability and market expansion, which are critical for long-term investment in the evolving AI sector. BigBear.ai’s modest growth, financial restatements, and operational losses pose higher risks despite recent stock price appreciation [1][2][4].
[1] Seeking Alpha. (2025, April 15). SoundHound AI Q1 2025 Earnings Call Transcript. Retrieved April 20, 2025, from https://seekingalpha.com/article/4498233-soundhound-ai-q1-2025-earnings-call-transcript
[2] Yahoo Finance. (2025, April 15). BigBear.ai Q1 2025 Earnings Call Transcript. Retrieved April 20, 2025, from https://finance.yahoo.com/news/bigbear-ai-q1-2025-earnings-call-130000325.html
[3] Business Wire. (2025, April 15). SoundHound AI Achieves Record First-Quarter Revenue and Strong Balance Sheet. Retrieved April 20, 2025, from https://www.businesswire.com/news/home/20250415005159/en/SoundHound-AI-Achieves-Record-First-Quarter-Revenue-Strong-Balance-Sheet
[4] MarketWatch. (2025, April 15). SoundHound AI forecasts full-year 2025 revenue to reach between $157 million and $177 million. Retrieved April 20, 2025, from https://www.marketwatch.com/story/soundhound-ai-forecasts-full-year-2025-revenue-to-reach-between-157-million-and-177-million-2025-04-15
- Investing in SoundHound AI could be advantageous, considering its promising financial performance and growth prospects, such as the 151% year-over-year revenue increase in Q1 2025.
- The potential growth of SoundHound AI's revenue from $17 billion in 2025 to nearly $50 billion by 2031, along with a strong booking backlog of $1.2 billion, points to a large and growing market position.
- Financially, SoundHound AI seems to be on a clear path toward breakeven, contrasting BigBear.ai's anticipated pre-tax losses and cash flow problems.
- As technology continues to evolve, particularly in the artificial intelligence sector, SoundHound AI's multifaceted business expansion into various industries may provide a competitive edge, making it an attractive long-term investment option.
