SoundHound AI(US:SOUN)2025-11-06 23:00Financial Data and Key Metrics Changes - Q3 revenue reached $42 million, representing a 68% year-over-year increase [25][30] - Year-to-date revenue for 2025 is $114 million, up 127% compared to the previous year [4] - GAAP gross margin was 43%, while non-GAAP gross margin was 59% [31][32] - GAAP net loss was $109.3 million, with a non-GAAP net loss of $13 million [34] Business Line Data and Key Metrics Changes - All three business pillars grew in double digits, with significant contributions from IoT, enterprise, and restaurant sectors [30][31] - The automotive sector faced pressure due to global tariffs and industry softness, but there are signs of improvement [31] - The company has diversified its industry mix, with no single customer contributing more than 10% of revenue [31] Market Data and Key Metrics Changes - Strong adoption in the IoT and robotics market, including a significant deal with a large Chinese company for AI-enabled smart devices [11] - Continued penetration in the automotive market, with new partnerships and deployments [12][14] - Expansion in financial services, energy, retail, and healthcare sectors, with multiple new contracts signed [12][15][16] Company Strategy and Development Direction - The company is focusing on enterprise AI and agentic AI solutions, leveraging its long history of innovation [18][19] - The acquisition of Interactions aims to enhance workflow orchestration capabilities and expand market reach [10][18] - The company is preparing for the launch of Voice Commerce in 2026, integrating voice AI with various services [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of enterprise AI and the company's ability to capitalize on market opportunities [24][36] - The company expects to achieve revenue between $165 million and $180 million for the full year 2025 [36] - Anticipated acquisition cost synergies of approximately $20 million on an annual run-rate basis will be realized more fully in 2026 [37] Other Important Information - The company celebrated its 20th anniversary, highlighting its long-term focus and strategic execution [4] - The company is actively investing in innovation and expanding its product capabilities to maintain technological leadership [32][36] Q&A Session Summary Question: About the eight-figure Chinese robotics deal - The deal involves a robotics company, not a humanoid robot, with a commitment of double-digit millions over the next two to three years [38][39] Question: Impact of the Interactions acquisition - The acquisition is expected to enhance capabilities in automotive, technology services, retail, financial services, and healthcare [40][41] Question: Percentage of revenue from term license versus SaaS within Amelia - The majority of revenue is recurring, with a shift towards outcome-based contracts [42][44] Question: Number of customers committed to upgrading to Amelia 7 - The company expects about 75% of customers to migrate to Amelia 7 by mid-next year [45] Question: Update on the competitive environment - The company feels confident in its competitive position, leveraging its own technology against competitors who rely on third-party models [56][57]