SoundHound AI, Inc. (SOUN) came out with a quarterly loss of $0.11 per share versus the Zacks Consensus Estimate of a loss of $0.09. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -22.22%. A quarter ago, it was expected that this company would post a loss of $0.09 per share when it actually produced a loss of $0.07, delivering a surprise of 22.22%. Over the last four quarters, the company has s ...

Financial Data and Key Metrics Changes - Q2 revenue increased by 54% year-over-year, reaching $13.5 million, marking the fourth consecutive quarter exceeding $10 million in revenue [22][26] - Cumulative subscriptions and bookings backlog roughly doubled year-over-year to $723 million, with an average duration of slightly less than seven years [23] - Gross margins were 63%, down year-over-year, primarily due to the acquisition impacts, but would have been 67% when adjusted for non-cash amortization [27] Business Line Data and Key Metrics Changes - In pillar one, the automotive segment saw significant growth, with cars in production in almost 20 markets and a notable increase in demand for SoundHound Chat AI [9][10] - Pillar two, focused on customer service, won business from three sizeable quick-service restaurants (QSRs), now totaling five of the top 15 QSRs based on locations [13][14] - The acquisition of Amelia is expected to significantly expand the customer service pillar and enhance the company's offerings across various industries [4][20] Market Data and Key Metrics Changes - The enterprise spending on generative AI is projected to grow 15-fold over the next three years to nearly $250 billion, indicating a massive market opportunity [5] - The annual run rate of queries exceeded 5 billion, reflecting strong engagement with the technology [7] Company Strategy and Development Direction - The acquisition of Amelia is seen as a strategic move to accelerate the company's mission of voice-enabling the world with conversational intelligence [4][20] - The company aims to expand its penetration in conversational AI across new verticals and deepen its presence in existing markets [5][6] - The focus remains on creating a voice commerce ecosystem, leveraging acquisitions to enhance product offerings and customer experiences [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, expecting 2024 revenue to exceed $80 million and 2025 revenue to exceed $150 million [33] - The integration of Amelia is anticipated to take time but is expected to be accretive to earnings in the second half of 2025 [33][34] - Management highlighted the importance of maintaining a strong financial profile to capitalize on growth opportunities in a rapidly evolving market [31][32] Other Important Information - The company reported a net loss of $37.3 million for the quarter, leading to a GAAP net loss per share of $0.11 [31] - Cash position at quarter-end was $201 million with no outstanding debt, indicating a strong financial position [31] Q&A Session Summary Question: How will the acquisition of Amelia change the company's strategy? - The acquisition strengthens the strategy by providing scale in customer service and allowing expansion into new industries beyond restaurants [36][37] Question: What impact will the acquisition have on margins and cash flow? - The acquisition is expected to enhance margins over time, with a long-term goal of achieving 70%+ gross margins and 30%+ EBIT margins [39][40] Question: How have conversations with prospective customers changed recently? - There is a noticeable shift where customers are now more willing to pay for generative AI solutions, indicating increased demand [44][45] Question: What are the core technologies of Amelia? - Amelia has a productized customer service platform that supports omnichannel interactions, which can be enhanced with SoundHound's technology [51] Question: How does the company plan to manage integration and hiring post-acquisition? - The company is in a good position with measured hiring and plans to leverage synergies from the acquisition to meet growing demand [54]

SOUNDHOUND AI, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) June 30, | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------------|---------------------| | | 2024 | (Unaudited) | December 31, \n2023 | | ASSETS | | | | | | | | | | Current assets: | | | ...

The artificial intelligence rally is very hype-driven. However, this innovative software company could help change things. Let's be honest. After the stunning launch of OpenAI's ChatGPT in late 2022, the generative artificial intelligence (AI) industry has been more hype than substance. While hardware makers like Nvidia or Advanced Micro Devices have made tons of money selling the chips needed to run and train these complex algorithms, there have been conspicuously fewer profits on the consumer-facing softw ...

SoundHound AI (SOUN) is scheduled to report its second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for revenues is currently pegged at $13.01 million, suggesting growth of 48.69% from the year-ago quarter's reported figure. The consensus mark for loss is pegged at 9 cents per share, unchanged over the past 30 days. SOUN reported a loss of 10 cents per share in the year-ago quarter. SOUN's earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing once and was in ...

OceanProd/iStock via Getty Images SoundHound AI (NASDAQ:SOUN) is an interesting stock. Here on Seeking Alpha, there's a huge variance in analyst opinion on the name, which makes sense given the company's strong performance and astronomical valuation. On the one hand, it's an exciting company in a transformative industry. On the other hand, the multiple (for some) is simply too expensive to consider. While there are a lot of factors in play when it comes to a potential allocation, the investment case for SOU ...

Let's compare Nvidia's current AI dominance with SoundHound AI's growth potential. Which stock is the better buy right now? Artificial intelligence (AI) hardware giant Nvidia (NVDA -2.26%) doesn't have much in common with voice control software specialist SoundHound AI (SOUN -4.13%). Nvidia is one of the largest and most profitable businesses in the world right now, while SoundHound AI is just getting its feet wet in the world of big business. The Goliath-and-David relationship is almost comical. I mean, Nv ...

Shares of SoundHound AI, Inc. (SOUN) have gained 29.5% over the past four weeks to close the last trading session at $5.09, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $7.17 indicates a potential upside of 40.9%. The mean estimate comprises six short-term price targets with a standard deviation of $1.81. While the lowest estimate of $5 indicates a 1.8% decline from the curre ...

SoundHound AI (SOUN) shares have jumped 27.3% in the past month, outperforming the Zacks Computer & Technology sector's decline of 6.4% and the Zacks Computers – IT Services' growth of 5.2%. SoundHound AI is benefiting from a strong portfolio, a strong partner base and an expanding clientele. SOUN offers conversational intelligence through independent Voice AI solutions in 25 languages in both cloud-enabled and hardware-embedded devices. Its prospects benefit from a massive addressable market worth more tha ...

An impressive client list and a partnership with Nvidia may be insufficient to save this stock. Despite those successes, SoundHound faces ongoing losses and significant difficulties on the financial side of the business. Given the severity of those challenges, investors and analysts appear to have taken an overly bullish stance on the SaaS stock. The company's $1.6 billion market cap makes SoundHound AI a small-cap stock. However, despite its size, companies as varied as Qualcomm, Stellantis, and Netflix ha ...