SoundHound AI Inc. (NASDAQ: SOUN) set out an ambitious two-year revenue trajectory during its first quarter 2026 earnings call, guiding investors toward a 2027 revenue range of $350 million to $400 million, which would represent more than a doubling of the company’s current trailing twelve-month revenue of $184 million.
The company reported record Q1 2026 revenue of $44.2 million, a 52% year-on-year increase that reflected accelerating demand for its voice AI and conversational intelligence products across automotive, restaurant, retail, and enterprise markets.
Management reaffirmed its full-year 2026 revenue guidance of $225 million to $260 million, a range that implies continued strong sequential growth through the remainder of the year and establishes the baseline from which the 2027 target is expected to be reached.
The 2027 revenue projection of $350 million to $400 million is explicitly tied to SoundHound’s announced acquisition of LivePerson, a conversational AI and digital messaging platform with a large existing enterprise customer base that management expects to contribute at least $100 million in growable revenue to the combined business.
The acquisition, which is expected to close in the second half of 2026 subject to regulatory approvals, would combine SoundHound’s strengths in voice AI and agentic AI with LivePerson’s digital messaging infrastructure and its long-tenured customer relationships across enterprise and Fortune 100 accounts.
The combined company would reach clients across 25 of the Fortune 100, creating what SoundHound describes as one of the most comprehensive enterprise customer footprints in the conversational AI sector.
Management identified a $500 million revenue opportunity from the existing customer base alone, framing the higher end of that potential as an upside scenario to the baseline guidance rather than a near-term commitment.
The 2027 target of $350 million to $400 million, if achieved at the top of the range, would imply a valuation of approximately 9.5 times forward sales based on current stock levels, a multiple that would represent a significant compression from where SOUN trades today on a trailing basis, making the revenue execution path central to the investment case.
DA Davidson maintained its Buy rating on SOUN following the results but reduced its price target to $12, a move that reflected the uncertainty around LivePerson integration execution and the stock’s year-to-date decline even as the operating numbers moved in the right direction.
SOUN is down meaningfully year to date despite the 52% revenue growth, a divergence that reflects broader investor caution around small-cap AI names with elevated revenue multiples and still-negative operating margins, as well as specific concerns about dilution risk from the acquisition.
The key variables for investors to monitor heading into the second half of 2026 are whether the LivePerson deal closes on schedule, whether SoundHound hits the top half of its 2026 guidance range, and whether enterprise bookings in automotive and restaurant verticals continue to accelerate as the company’s embedded voice AI products reach wider deployment.
