SoundHound AI(US:SOUN)2025-05-08 22:02Financial Data and Key Metrics Changes - Q1 revenue was $29.1 million, representing a 151% year-over-year increase [28][33] - GAAP gross margin was 37%, down year-over-year, while non-GAAP gross margin was 51% [34] - Non-GAAP net loss was $22.3 million, with a non-GAAP net loss per share of 6 cents [39] Business Line Data and Key Metrics Changes - The number of active restaurants using Voice AI ordering solutions is nearing 13,000 locations, handling approximately 10 million interactions per quarter [30] - The company activated more than 1,000 new live restaurant locations in a single quarter, a tenfold increase compared to the previous year [29] - The automotive business is expected to grow, with a strong pipeline of new OEMs and a focus on voice commerce solutions [34][47] Market Data and Key Metrics Changes - The company is seeing balanced contributions across various industries, including automotive, restaurants, financial services, healthcare, and hospitality [46] - The automotive sector, which previously comprised 80% of the business mix, is now a low double-digit percentage, indicating diversification [49] Company Strategy and Development Direction - The company is focused on expanding its voice commerce ecosystem, leveraging existing restaurant and OEM networks to unlock new revenue opportunities [22][24] - The introduction of the AgenTic AI platform is expected to accelerate deployment and enhance customer value across various industries [52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of AI momentum and business traction despite macroeconomic volatility [41][94] - The company reaffirmed its 2025 revenue guidance of $157 to $177 million, with expectations for sequential improvement in adjusted EBITDA [40][42] Other Important Information - The company has no debt and ended the quarter with $246 million in cash and equivalents [39] - Significant investments in R&D and sales and marketing were made, reflecting a commitment to growth and innovation [35][36] Q&A Session Summary Question: Contribution from different verticals - Management noted a balanced contribution across industries, with optimism about growth in automotive and restaurant sectors [46][47] Question: Maturity of AgenTic technology - Management clarified that while AgenTic is a newer concept, the company has been developing related technologies for over ten years, providing a competitive advantage [57][58] Question: Impact of economic conditions on restaurant business - Management indicated that both good and challenging economic conditions drive interest in their technology for efficiency and revenue generation [66] Question: Changes in competitive landscape - Management acknowledged increased competition but emphasized their technological maturity and established customer base as key differentiators [68] Question: Gross margin modeling for the year - Management stated that gross margin is expected to improve as the business mix shifts and automation is implemented [72][73] Question: Retention rates within Amelia - Management reported ongoing improvements in retention rates post-acquisition, with a focus on customer success and expanding use cases [78][80] Question: M&A environment and outlook - Management confirmed that no M&A is needed to achieve current outlook but remains open to strategic opportunities [84][89] Question: Economic macro environment as a revenue catalyst - Management believes that the generational shift in technology will continue to drive demand for their solutions, regardless of economic conditions [94][96]