SoundHound Accelerates AI Growth Through Interactions Acquisition

SoundHound AI, Inc. SOUN, a global leader in conversational intelligence, has announced the acquisition of Interactions, a company recognized for its expertise in AI-driven customer engagement and workflow management. The deal brings together SoundHound’s advanced Agentic AI platform with Interactions’ proven virtual assistant technology, which will accelerate SOUN’s penetration into large-scale enterprise markets.

The acquisition of Interactions is expected to significantly enhance SoundHound’s overall capabilities while expanding its enterprise reach. The merger expands SoundHound’s client portfolio with a diverse mix of powerhouse brands. These include global consumer companies, major technology device manufacturers, leading insurance providers, automakers and other Fortune 100 businesses spanning multiple industries. This expanded client base positions SoundHound for stronger market penetration and creates new opportunities for long-term growth and innovation.

SoundHound’s Enterprise AI Momentum

As evidenced by its acquisition of Interactions, SoundHound has been gaining traction in the AI industry. The company continues to expand across industries, including financial services, healthcare and retail. Interactions brings more than two decades of innovation, customer accumulation and deep enterprise integration experience, which will assist in reshaping the future of customer service.

The combined platform positions SoundHound to deliver a full suite of omnichannel Agentic AI solutions, supported by complementary technology that offers a clear route to automation for clients who have previously depended on human-in-the-loop or agent-only systems. Beyond its technological advantages, the acquisition presents multiple opportunities for revenue growth, including product, geographic and channel expansion, as well as significant opportunities for cross-selling and upselling within its existing enterprise client base.

Share Price Performance of SoundHound

SOUN’s stock has surged 198.1% in the past year, outperforming the Zacks Computers - IT Services industry’s 10.3% decline. The major factors aiding the company’s growth are successful acquisition integrations that drive cost savings and margin gains, expanding enterprise AI adoption supported by strong customer renewals and partnerships, record implementation speeds with rising traction for the Amelia 7 platform and rapid restaurant vertical expansion now surpassing 14,000 active locations.

Momentum is also reflected in the company’s operating performance. SOUN enters this new phase with a solid financial footing — over $270 million in cash and no debt. Following this acquisition, the company achieved its best-ever quarter, processing around 3 billion AI queries and tripling revenues year over year. It is anticipated that the Interactions acquisition will boost profitability and strengthen its position as a leader in AI technology.

SOUN’s Zacks Rank & Key Picks

Currently, SoundHound carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Computer and Technology sector are TaskUs TASK, EPAM Systems EPAM and Draganfly DPRO.

TaskUs presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 13%, on average. TaskUs' stock has jumped 4.8% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for TaskUs’ 2025 sales and earnings per share (EPS) indicates growth of 15.4% and 11.6%, respectively, from the year-ago period’s levels.

EPAM Systems carries a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 7.8%, on average. EPAM Systems' stock has risen 18.8% year to date.

The Zacks Consensus Estimate for EPAM Systems’ 2025 sales and EPS indicates growth of 14.3% and 1.9%, respectively, from the prior-year levels.

Draganfly has a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 2.5%, on average. Draganfly stock has gained 36.2% year to date.

The Zacks Consensus Estimate for Draganfly’s 2025 sales and EPS indicates growth of 20.1% and 52.7%, respectively, from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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