The growing demand for SoundHound's AI voice solutions could result in more upside. Shares of SoundHound AI (SOUN 0.60%) have crushed the broad market in the past year with stunning gains of almost 170%, despite witnessing a lot of volatility. Investors have been buying this small-cap company hand over fist to take advantage of the growing demand for voice-based artificial intelligence (AI) solutions. But SoundHound stock really took off earlier this year after Nvidia revealed a small stake in the company, ...

Its acquisition of Amelia could be a game changer. SoundHound AI (SOUN -3.29%) shares were strong last week after the company announced robust secondquarter revenue growth and an important deal. A transformative acquisition While SoundHound reported strong Q2 results, the news was overshadowed by the acquisition the company announced ahead of its earnings release. It will acquire enterprise artificial intelligence (AI) software company Amelia for $80 million in cash and equity, as well as the assumption of ...

SoundHound (NASDAQ: SOUN) stock is a perfect example of the fact that there is more than one way to utilize the ongoing artificial intelligence (AI) rally, as the company provides generative AI soundovers for various businesses. SOUN stock surged almost 20% after it announced on August 8 an $80 million acquisition of Amelia enterprise, enabling it to diversify its base of customers and expand its reach across multiple industries, with most notable examples of central banks and Fortune 500 companies. In its ...

Core Insights - The company has acquired another artificial intelligence company, indicating a strategic focus on expanding its capabilities in the AI sector [1] Company Updates - Recent updates regarding SoundHound AI (SOUN) have been highlighted, showcasing the company's ongoing developments and initiatives in the AI industry [1]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and internal controls [Condensed Consolidated Financial Statements](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The company's financial position significantly strengthened by June 30, 2024, driven by equity financing and debt repayment, though Q2 2024 saw a wider net loss due to a one-time debt extinguishment charge [Financial Statements Overview](index=6&type=section&id=Financial%20Statements%20Overview) This section provides a concise overview of the company's key financial performance and position through summarized balance sheet, income statement, and cash flow data Key Balance Sheet Data (as of June 30, 2024 vs. Dec 31, 2023) | Metric | June 30, 2024 (Unaudited) | December 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $200.2 million | $95.3 million | | **Total Assets** | $266.7 million | $151.1 million | | **Long-term debt** | $0 | $84.3 million | | **Total Liabilities** | $42.7 million | $123.0 million | | **Total Stockholders' Equity** | $223.9 million | $28.2 million | Key Income Statement Data (Q2 & YTD 2024 vs 2023) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $13.5 million | $8.8 million | $25.1 million | $15.5 million | | **Gross Profit** | $8.5 million | $6.9 million | $15.4 million | $11.7 million | | **Gross Margin** | 63% | 79% | 61% | 75% | | **Loss from Operations** | $(22.0) million | $(16.5) million | $(50.5) million | $(41.7) million | | **Net Loss** | $(37.3) million | $(23.3) million | $(70.3) million | $(50.7) million | | **Net Loss per Share** | $(0.11) | $(0.11) | $(0.23) | $(0.25) | Key Cash Flow Data (Six Months Ended June 30) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(40.4) million | $(34.2) million | | **Net cash used in investing activities** | $(4.8) million | $(0.3) million | | **Net cash provided by financing activities** | $137.0 million | $154.6 million | [Business Combinations](index=15&type=section&id=Note%203.%20Business%20Combinations) This section details the company's recent business combinations, including the acquisition of SYNQ3 and an immaterial acquisition, outlining their financial impact - On January 3, 2024, the company acquired SYNQ3, a voice AI provider for the restaurant industry, for a preliminary purchase price of **$15.7 million**, consisting of cash and stock, expected to expand customer service solutions and market reach[43](index=43&type=chunk)[44](index=44&type=chunk) - The SYNQ3 acquisition contributed **$6.1 million in revenue** and a net loss of **$3.1 million** for the period from January 3, 2024, to June 30, 2024[54](index=54&type=chunk) - The company completed an immaterial acquisition on June 14, 2024, which resulted in a preliminary gain on bargain purchase of **$1.2 million** due to the seller's financial distress[57](index=57&type=chunk) - The SYNQ3 acquisition added **$6.0 million in goodwill** and **$12.7 million in identifiable intangible assets**, including developed technology, customer relationships, and tradename[50](index=50&type=chunk)[53](index=53&type=chunk) [Revenue Analysis](index=19&type=section&id=Note%204.%20Revenue%20Recognition) This section analyzes the company's revenue performance, detailing breakdowns by service type and geographic region, and highlighting customer concentration Revenue by Service Type (Three Months Ended June 30) | Service Type | Q2 2024 | Q2 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Product royalties** | $9.7 million | $8.2 million | +$1.5 million | +19% | | **Service subscriptions** | $3.6 million | $0.4 million | +$3.2 million | +789% | | **Monetization** | $0.1 million | $0.2 million | -$0.1 million | -38% | | **Total** | **$13.5 million** | **$8.8 million** | **+$4.7 million** | **+54%** | - The significant **789% increase** in Service subscriptions revenue was primarily driven by the contribution from the newly acquired SYNQ3[207](index=207&type=chunk) Revenue by Geographic Region (Three Months Ended June 30) | Region | Q2 2024 | Q2 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Americas** | $3.8 million | $0.7 million | +$3.1 million | +446% | | **Asia** | $4.7 million | $3.4 million | +$1.3 million | +40% | | **EMEA** | $4.9 million | $4.7 million | +$0.2 million | +5% | | **Total** | **$13.5 million** | **$8.8 million** | **+$4.7 million** | **+54%** | - For the three months ended June 30, 2024, two customers (Customer A and C) accounted for **27%** and **35%** of total revenue, respectively, indicating significant customer concentration[34](index=34&type=chunk) [Debt and Financing](index=28&type=section&id=Note%209.%20Note%20Payable) This section outlines the company's debt management and financing activities, including the full repayment of its term loan and proceeds from equity offerings - On June 7, 2024, the company prepaid its entire outstanding Term Loan of **$100.0 million**, paying a total of **$105.6 million**, which resulted in a loss on debt extinguishment of **$15.6 million**[102](index=102&type=chunk)[221](index=221&type=chunk) - As of June 30, 2024, the company has **no long-term debt outstanding**, compared to **$84.3 million** at the end of 2023[10](index=10&type=chunk)[102](index=102&type=chunk) - The company fully utilized its **$150 million** Sales Agreement (ATM offering) by March 31, 2024, raising net proceeds of **$133.8 million**[120](index=120&type=chunk)[252](index=252&type=chunk) - A new **$150 million** Equity Distribution Agreement (ATM offering) was initiated on April 9, 2024, under which the company had raised **$100.4 million** in gross proceeds by June 30, 2024[121](index=121&type=chunk)[122](index=122&type=chunk) [Subsequent Events](index=43&type=section&id=Note%2019.%20Subsequent%20Events) This section discloses significant events occurring after the reporting period, including further equity sales and a major acquisition - In July 2024, the company sold the remaining **$49.6 million** of shares available under its Equity Distribution Agreement, fully utilizing the program[156](index=156&type=chunk) - On August 6, 2024, the company acquired Amelia Holdings, Inc., a conversational AI platform, for approximately **$80.0 million** in cash and stock, plus potential performance-based earnouts, also assuming and largely retiring Amelia's debt[157](index=157&type=chunk) [Management's Discussion and Analysis (MD&A)](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 revenue growth to the SYNQ3 acquisition and increased royalties, with gross margin declining due to SYNQ3's integration, while liquidity significantly improved via ATM equity offerings, enabling debt repayment and strategic acquisitions [Business Overview and Strategy](index=44&type=section&id=Company%20Overview) This section provides an overview of SoundHound's core business as a conversational intelligence leader, its revenue model, and strategic growth initiatives - SoundHound is a global leader in conversational intelligence, offering independent Voice AI solutions for automotive, TV, IoT, and customer service industries[161](index=161&type=chunk) - The company's business model is built on three pillars: Product Royalties, Service Subscriptions, and a Monetization ecosystem, with Product Royalties currently contributing the majority of revenue, but subscription and monetization expected to grow[172](index=172&type=chunk)[176](index=176&type=chunk) - A key strategy is the 'monetization flywheel': as more products integrate the platform, more services will join, creating a cycle of increased usage and revenue sharing that encourages further adoption[176](index=176&type=chunk) [Results of Operations Analysis](index=50&type=section&id=Results%20of%20Operations) This section analyzes the company's operational performance, detailing changes in revenue, gross margin, and key operating expenses for the period - Q2 2024 revenue increased by **$4.7 million (54%)** YoY, driven by a **$3.2 million** increase in service subscription revenue from the SYNQ3 acquisition and a **$1.5 million** increase in product royalties[205](index=205&type=chunk)[207](index=207&type=chunk) - Gross margin decreased to **63%** in Q2 2024 from **79%** in Q2 2023, primarily due to the integration of SYNQ3's lower-margin business and amortization of acquired intangibles[209](index=209&type=chunk) - Research & Development expenses increased by **$4.0 million (34%)** in Q2 YoY, due to higher personnel costs (**$3.0 million**) and cloud computing services (**$1.4 million**)[211](index=211&type=chunk) - General & Administrative expenses increased by **$3.1 million (48%)** in Q2 YoY, mainly from a **$2.5 million** rise in legal and professional fees, including **$0.5 million** in SYNQ3 acquisition costs[213](index=213&type=chunk) - A loss on debt extinguishment of **$15.6 million** was recognized in Q2 2024 from the early repayment of the Term Loan, significantly impacting the net loss for the quarter[196](index=196&type=chunk)[221](index=221&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's liquidity position, identifying primary cash sources and their utilization for operations, acquisitions, and debt repayment - The company's unrestricted cash and cash equivalents stood at **$200.2 million** as of June 30, 2024, with management confident in funding operations for at least the next twelve months[231](index=231&type=chunk) - Principal sources of liquidity are cash reserves and proceeds from the sale of common stock via at-the-market (ATM) offerings[232](index=232&type=chunk)[233](index=233&type=chunk) - During the six months ended June 30, 2024, net cash provided by financing activities was **$137.0 million**, primarily from stock sales, which was used for operations, acquisitions, and the repayment of **$105.5 million** in debt[261](index=261&type=chunk)[263](index=263&type=chunk) [Critical Accounting Policies](index=63&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Management%20Estimates) This section identifies critical accounting policies, particularly those related to business combinations, goodwill, and intangible assets, requiring significant management estimates - The company has identified new critical accounting policies related to Business Combinations, Contingent Consideration, Goodwill, and Intangible Assets due to recent acquisition activity[268](index=268&type=chunk)[269](index=269&type=chunk)[272](index=272&type=chunk) - Accounting for business combinations requires significant management estimates for the fair value of assets acquired, liabilities assumed, and any contingent consideration, which are subject to refinement during a measurement period of up to one year[269](index=269&type=chunk)[270](index=270&type=chunk) [Market Risk Disclosures](index=64&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure remains largely unchanged, with interest rate risk eliminated due to debt repayment and foreign exchange risk deemed immaterial - As of June 30, 2024, the company had no outstanding borrowings, thus eliminating its exposure to interest rate risk from variable-rate debt[276](index=276&type=chunk) - The company is subject to foreign exchange risk, but does not believe a 10% change in the U.S. dollar's value would have a material effect on operating results[277](index=277&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of June 30, 2024, due to previously identified material weaknesses in internal control over financial reporting, for which a remediation plan is actively underway - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of June 30, 2024[280](index=280&type=chunk) - The ineffectiveness is due to material weaknesses previously identified in the 2023 Form 10-K, relating to control environment, risk assessment, complex financing transactions, segregation of duties, and IT general controls[282](index=282&type=chunk) - A remediation plan is in progress, involving third-party risk assessments, implementation of automated tools for segregation of duties, and development of new policies and procedures[283](index=283&type=chunk)[284](index=284&type=chunk)[285](index=285&type=chunk) [PART II. OTHER INFORMATION](index=67&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, and insider trading plans [Other Information Overview](index=67&type=section&id=Item%201.%20Legal%20Proceedings) The company faces a legal proceeding from the SYNQ3 acquisition, has no material changes to previously disclosed risk factors, and saw two directors adopt or modify Rule 10b5-1 trading plans during the quarter - The company is involved in a legal proceeding inherited from the SYNQ3 acquisition concerning a landlord dispute, leading to a recorded liability of **$1.9 million** as of June 30, 2024, after an appellate court reversed a prior judgment in SYNQ3's favor[84](index=84&type=chunk)[288](index=288&type=chunk) - During Q2 2024, Chief Product Officer James M. Hom and Director Eric Ball adopted or modified Rule 10b5-1 trading plans for the future sale of company stock[290](index=290&type=chunk)[291](index=291&type=chunk) - There have been no material changes from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[289](index=289&type=chunk)

Vertigo3d SoundHound AI, Inc. (NASDAQ:SOUN) has risen again, but not as high as the recent AI hype highs. The AI voice company has a promising fiture, but the business just doesn't ever scale fast enough in the dynamic Al market. My investment thesis is Neutral on the stock around $5 with another deal likely to boost revenues, but not help with the key organic growth. finviz Fri AUG 09 2024 12:40 PM ET SOUN DAILY -0.20 (3.93%) 11.00 Aug 9 0 5.10 SMA 2 10.00 SMA 50 SMA 200 9.00 8.00 7.00 6.00 5.01 4.00 3.00 ...

SoundHound AI Inc SOUN shares tanked in early trading on Friday, despite the company reporting upbeat second-quarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways. Cantor Fitzgerald On SoundHound AI Analyst Brett Knoblauch upgraded the rating from Neutral to Overweight, while raising the price target from $5 to $7. SoundHound AI reported "solid" results for the second quarter, with revenue of $13.5 million coming in slightly higher than expected, Knoblauch s ...

SoundHound AI (NASDAQ:SOUN) announced yesterday morning that it had acquired another conversational artificial intelligence (AI) company, Amelia, for $80 million. SOUN stock soared on that news. Also importantly, SoundHound reported higher-than-expected second-quarter revenue yesterday after the market closed. However, SOUN stock is falling 3.5% in early trading after rallying 21% yesterday. Five Things to Know About Amelia Soundhound co-founder and CEO Keyvan Mohajer said yesterday that Amelia specializes ...

SoundHound AI (NASDAQ:SOUN) has emerged as a significant player in the artificial intelligence (AI) sector. Shares of the frontrunner in voice AI have surged more than 100% year-to-date (YTD). This impressive performance starkly contrasts with the Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ), which has declined nearly 1% over the same period. However, the rapid appreciation of the SOUN stock price raises concerns about the sustainability of the move. The AI sector is currently facing increa ...

Key Takeaways SoundHound AI shares surged 21% on Thursday after the provider of voice generative AI announced that it had acquired enterprise AI software firm Amelia for $80 million. Shares then dropped 5% in extended trading after SoundHound reported its quarterly results. The price trades within a descending triangle, a chart pattern that signals a potential continuation of the uptrend in SoundHound shares. Key upside price levels to watch include $5.75, $8.60, and $15, while crucial downside areas to mon ...