Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________to________ Commission File No. 001-40193 SOUNDHOUND AI, INC. (Exact name of registrant as specified in its charter) Delaware 86-1286799 ( ...

Financial Performance - Total revenues for Q1 2023 were $6,707,000, representing a 56.5% increase from $4,290,000 in Q1 2022[17] - The net loss for Q1 2023 was $26,369,000, compared to a net loss of $25,103,000 in Q1 2022, indicating a slight increase in losses year-over-year[17] - The company reported a basic and diluted net loss per share of $0.13 for Q1 2023, an improvement from a loss of $0.36 per share in Q1 2022[17] - The company reported a net loss of $26.4 million for the three months ended March 31, 2023, compared to a net loss of $25.1 million for the same period in 2022[22] - For the three months ended March 31, 2023, the company reported a loss before income taxes of $26,040,000, compared to a loss of $24,751,000 in the same period of 2022, reflecting an increase in losses of approximately 5.2%[150] Cash and Liquidity - Cash and cash equivalents rose significantly to $46,331,000 as of March 31, 2023, compared to $9,245,000 at the end of 2022, reflecting improved liquidity[15] - Total cash and cash equivalents as of March 31, 2023, amounted to $46.3 million, a significant increase from $9.2 million at the end of the same period in 2022[22] - The company generated net cash provided by financing activities of $51.6 million during the three months ended March 31, 2023, compared to $2.0 million in the same period of the previous year[22] - Operating cash flows showed a net cash used of $14.5 million for the three months ended March 31, 2023, slightly improved from $15.0 million in the prior year[22] Operating Expenses - Operating expenses increased to $31,745,000 in Q1 2023, up from $25,007,000 in Q1 2022, primarily driven by higher sales and marketing costs[17] - Research and development expenses were $14,184,000 in Q1 2023, a decrease from $16,650,000 in Q1 2022, reflecting a strategic focus on cost management[17] - The company incurred stock-based compensation expenses of $8.2 million in Q1 2023, up from $2.5 million in Q1 2022[22] - Total operating expenses increased by $6.738 million, or 27%, to $31.745 million, reflecting higher sales and marketing and restructuring costs[208] Shareholder Equity and Capital Structure - The weighted-average common shares outstanding increased to 205,082,328 in Q1 2023, compared to 69,604,188 in Q1 2022, indicating significant dilution due to new share issuances[17] - The company issued 10,948,552 Class A common shares under the ELOC program, raising approximately $28,360,000 in additional capital[20] - The Company issued 835,011 shares of Series A Convertible Preferred Stock for approximately $25.0 million on January 20, 2023[66] - A total of 12,767,950 shares of Class A Common Stock were redeemed at a value of $10.00 per share, amounting to $127.7 million[75] Assets and Liabilities - Total assets increased to $72,803,000 as of March 31, 2023, up from $38,251,000 at the end of 2022, indicating strong growth in the company's asset base[15] - Total liabilities decreased to $70,421,000 as of March 31, 2023, down from $73,476,000 at the end of 2022, showing a reduction in overall debt[15] - The accumulated deficit as of March 31, 2023, reached $528.5 million, indicating ongoing financial challenges[29] Business Operations and Market Presence - The company has developed proprietary technologies on its voice AI platform, including Speech-to-Meaning and Deep Meaning Understanding, to enhance its product offerings[24] - SoundHound's technology is live with major companies including Hyundai, Mercedes-Benz, and Oracle, indicating a strong market presence[168] - The Voice AI market is projected to grow to $160 billion per year by 2026, presenting a significant opportunity for SoundHound[170] - The company has over 120 patents granted and 140 patents pending, reinforcing its competitive advantage in the Voice AI space[170] Future Outlook and Strategic Plans - The company expects to continue incurring substantial losses primarily due to research and development activities in the foreseeable future[29] - The company plans to seek additional funding through debt or equity financing arrangements to support its operations[30] - The company announced a restructuring plan in January 2023, which included a workforce reduction of approximately 40%, equating to 180 positions globally, aimed at reducing operating costs and improving cash flows[130][131] - The company expects interest expenses to increase substantially starting in Q2 2023 due to the Term Loan entered into on April 14, 2023[202] Revenue Breakdown - Hosted services revenue increased to $4.745 million in Q1 2023 from $3.344 million in Q1 2022, representing a 41.9% growth[96] - Professional services revenue rose to $1.643 million in Q1 2023, compared to $0.567 million in Q1 2022, marking a 189.4% increase[96] - Product royalties revenue grew to $6.176 million in Q1 2023 from $3.709 million in Q1 2022, reflecting a 66.5% increase[97] - SoundHound's revenue model consists of three pillars: Product Royalties, Service Subscriptions, and Monetization, with the majority of revenue currently coming from Product Royalties[182][185] Customer and Market Dynamics - For the three months ended March 31, 2023, four customers represented 77% of total revenue, up from 59% for the same period in 2022[46] - The customer retention rate as of December 31, 2022, was greater than 80%, indicating strong ongoing relationships with clients[187] - Revenue growth was particularly strong in Germany (162% increase) and Korea (138% increase), reflecting successful market expansion strategies[210]

SoundHound AI, Inc. (NASDAQ:SOUN) Q1 2023 Earnings Conference Call May 11, 2023 5:30 PM ET Company Participants Scott Smith - Head, IR Keyvan Mohajer - CEO Nitesh Sharan - CFO Conference Call Participants Mike Latimore - Northland Capital Markets Brett Knoblauch - Cantor Fitzgerald Operator Good day, and welcome to the SoundHound Q1 2023 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator In ...

Financial Performance - Total revenues for the year ended December 31, 2022, were $31,129,000, representing a 47% increase from $21,197,000 in 2021[340] - The net loss for 2022 was $115,373,000, compared to a net loss of $79,540,000 in 2021, indicating a worsening financial performance[340] - The company reported a basic and diluted net loss per share of $0.73 for 2022, compared to $1.18 for 2021[340] - The net loss for the year ended December 31, 2022, was $115,373,000, compared to a net loss of $79,540,000 in 2021, representing an increase of approximately 45%[347] - For the year ended December 31, 2022, the company reported a net loss of $115.4 million and an accumulated deficit of $502.1 million[355] - The company has incurred recurring losses since inception and expects to continue incurring substantial losses primarily due to research and development activities[355] - The company recorded a net loss of $115.4 million for the year ended December 31, 2022, compared to a net loss of $79.5 million in 2021, reflecting an increase of 45% year-over-year[512] Cash Flow and Liquidity - Cash and cash equivalents decreased to $9,245,000 as of December 31, 2022, down from $21,626,000 in 2021[339] - Cash used in operating activities for 2022 was $94,019,000, up from $66,177,000 in 2021, indicating a significant increase in cash outflow[347] - Total cash, cash equivalents, and restricted cash equivalents at the end of 2022 were $9,475,000, down from $22,822,000 at the end of 2021, reflecting a decrease of about 58%[347] - As of December 31, 2022, total cash and cash equivalents on hand were $9.2 million, which the company expects to fund operations for at least the next twelve months[356] Operating Expenses - Operating expenses increased to $136,536,000 in 2022, up from $86,524,000 in 2021, with significant increases in sales and marketing expenses by 381% to $20,367,000[340] - Research and development expenses rose to $76,392,000 in 2022, an increase of 29% from $59,178,000 in 2021, reflecting ongoing investment in new technologies[340] - Stock-based compensation expenses rose to $28,792,000 in 2022, compared to $6,322,000 in 2021, marking an increase of over 357%[347] - Total stock-based compensation expense for the year ended December 31, 2022, was $28.8 million, significantly up from $6.3 million in 2021, representing a 358% increase[507] Assets and Liabilities - The total assets of the company decreased to $38,251,000 in 2022 from $49,203,000 in 2021, indicating a decline in overall financial health[339] - Total current liabilities decreased significantly to $37,496,000 in 2022 from $87,739,000 in 2021, primarily due to the reduction in notes payable[339] - The company recorded a liability of $1.1 million for potential sales tax exposure as of December 31, 2022[446] - The total debt balance as of December 31, 2022, was $34.967 million, including current and non-current portions of the SVB March 2021 Note and SCI June 2021 Note[475] Revenue Recognition - The Company recognizes revenue under ASC 606 when a customer obtains control of promised goods or services[384] - Monetization revenues are primarily derived from advertising payments associated with ad impressions on the SoundHound application, recognized at a point in time[428] - Licensing revenue is recognized when control is transferred to the customer, based on royalty models with minimum guarantees and per unit pricing[429] - Revenue from hosted services increased to $17.743 million in 2022, up 39% from $12.764 million in 2021[432] - Product royalties revenue rose to $28.447 million in 2022, a 55% increase from $18.356 million in 2021[433] Business Strategy and Future Outlook - The company has emphasized the importance of launching new product offerings and expanding technology capabilities as part of its business strategy[12] - Future growth initiatives are expected to impact financial performance, although specific projections were not provided[12] - The company may seek additional funding through debt or equity financing arrangements to continue financing its operations[356] Tax and Deferred Tax Assets - The company reported an effective income tax expense rate of (2.6)% for the year ended December 31, 2022, compared to (0.6)% in 2021[517] - The total provision for income taxes for the year ended December 31, 2022, was $2.9 million, up from $0.5 million in 2021[517] - The company has provided a valuation allowance on deferred tax assets, increasing by $25.5 million for the year ended December 31, 2022[517] - As of December 31, 2022, the company had net operating loss carryforwards of approximately $344.6 million for federal purposes and $106.9 million for state purposes[520] Business Combination and Capital Structure - The Business Combination was completed on April 26, 2022, resulting in the issuance of 500,000,000 shares of capital stock, including 455,000,000 shares of Class A Common Stock and 44,000,000 shares of Class B Common Stock[409] - The net proceeds from the Business Combination and PIPE Investment totaled $90.7 million after accounting for transaction costs of $27.7 million[416] - The total number of shares of common stock issued immediately after the Business Combination was 196,503,710[417] - The Company is authorized to issue 500,000,000 shares of capital stock post-Business Combination, including 455,000,000 shares of Class A Common Stock[490]

SoundHound AI, Inc. (NASDAQ:SOUN) Q4 2022 Results Conference Call March 7, 2023 5:30 PM ET Company Participants Scott Smith - Head, Investor Relations Keyvan Mohajer - Chief Executive Officer Nitesh Sharan - Chief Financial Officer Conference Call Participants Mike Latimore - Northland Brett Knoblauch - Cantor Fitzgerald Operator Good day, and welcome to the SoundHound Q4 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be ...

As filed with the United States Securities and Exchange Commission on February 14, 2023. Registration No. 333-267501 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ AMENDMENT NO. 4 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ____________________ SOUNDHOUND AI, INC. (Exact name of registrant as specified in its charter) ____________________ | Delaware | 7372 | 86-1286799 | | --- | --- | --- | | (State or other jurisdiction of | (Primary Sta ...

As filed with the United States Securities and Exchange Commission on February 10, 2023. Registration No. 333-267501 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ AMENDMENT NO. 3 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ____________________ SOUNDHOUND AI, INC. (Exact name of registrant as specified in its charter) ____________________ | Delaware | 7372 | 86-1286799 | | --- | --- | --- | | (State or other jurisdiction of | (Primary Sta ...

SoundHound AI, Inc. (NASDAQ:SOUN) Q3 2022 Earnings Conference Call November 10, 2022 5:30 PM ET Company Participants Scott Smith – Head-Investor Relations Keyvan Mohajer – Chief Executive Officer Nitesh Sharan – Chief Financial Officer Conference Call Participants Mike Latimore – Northland Capital Markets Brett Knoblauch – Cantor Fitzgerald Operator Good day, and thank you for standing by. Welcome to the SoundHound AI Third Quarter Earnings Conference Call. At this time, all participants are in a listen-onl ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________to________ Commission File No. 001-40193 SOUNDHOUND AI, INC. (Exact name of registrant as specified in its charter) Delaware 86-1286799 (State or other jur ...

SoundHound AI, Inc. (NASDAQ:SOUN) Q2 2022 Earnings Conference Call August 11, 2022 5:30 PM ET Company Participants Scott Smith - Head-Investor Relations Keyvan Mohajer - Chief Executive Officer Nitesh Sharan - Chief Financial Officer Conference Call Participants Mike Latimore - Northland Capital Markets Brett Knoblauch - Cantor Fitzgerald John Katsingris - Wedbush Securities Operator Good afternoon, and welcome to SoundHound's Second Quarter 2022 Earnings Conference Call. After the speakers' presentation, t ...