SoundHound AI Reports a 101% Increase in Fourth Quarter Revenue

The global leader in voice artificial intelligence, SoundHound AI, Inc. (Nasdaq: SOUN), released its financial results for the quarter and the entire year 2024 today.

Keyvan Mohajer, CEO and co-founder of SoundHound A stated, “We had a breakthrough year, expanding our leadership position in voice and conversational AI through major customer wins, expanded partnerships, groundbreaking generative AI innovation, and strategic acquisitions.” We are in a fortunate position to benefit from this developing category as we enter the era of agentic AI. Combined with our current wide range of voice-enabled AI technologies, we can have an even more significant business effect.

Fourth Quarter and Full Year Financial Highlights:

• Revenue for the fourth quarter was $34.5 million, a 101% increase over the previous year.
• The fourth quarter’s GAAP and non-GAAP gross margins were 39.9% and 52.1%, respectively.
• Adjusted EBITDA for the fourth quarter was $16.8 million.
• Revenue for the entire year was $84.7 million, up 85% over the previous year.
• The year’s GAAP and non-GAAP gross margins were 48.9% and 58.5%, respectively.
• Adjusted EBITDA for the entire year was $61.9 million.
• The fair value of SoundHound’s contingent liabilities increased due to the year-end stock price increase, significantly affecting the company’s GAAP net loss and EPS for the fourth quarter and the entire year. The variation is non-cash and non-operating based on mark-to-market fair value accounting rules. There is no effect on the comparable non-GAAP figures. Consequently, GAAP EPS for the fourth quarter was $0.69, while non-GAAP EPS for the fourth quarter was $0.05.

Business Highlights:

• In restaurants: We continue to grow across well-known restaurant brands, including Torchy’s Tacos, Church’s Texas Chicken, Peet’s Coffee, Burger King UK, and Whataburger, among others, and we work with more than 30% of the top 20 quick-service restaurant (QSR) brands.
• New partners in the healthcare industry include Englewood Health, Wellstar Health System, and Duke Health. Among the clients are MUSC Health, Aveanna Healthcare, and Allina Health.
• SoundHound Chat AI Automotive is used in the automotive industry to expand adoption among top EV manufacturers, including Lucid Motors and Togg. It was first introduced in Lancia cars in Europe and has expanded to six more active Stellantis brands.
• Expanding AI solutions for multi-location retail brands in various industries, including trash management, home services, automobile maintenance, fitness, and apparel. My Gym, many Planet Fitness franchise organizations, and Torrid are among the clients.
• SoundHound keeps branching out into new markets in the energy sector, and we just added one of the biggest power utilities in the US to our diverse clientele.
• In the government sector, SoundHound has a contract with the City of Coral Springs and is expanding its conversational AI capabilities with federal government organizations, including General Dynamics Information Technology and a part of the US military.
• Telecom: Scaling with a sizeable European broadcaster and telecoms provider in five countries and expanding in South America with Telefónica after a recent multi-year extension.
• In the financial services industry, clients include regional banks and credit unions, such as American Heritage Credit Union, Nordic Bank, Sterling Bank, and Truly Credit Union, in addition to BNP Paribas. Additionally, 70% of the top ten international financial institutions are partners of SoundHound.
• In the insurance sector, we are growing our industry footprint with clients like Transamerica and scaling with Apivia Courtage in collaboration with EXL. By 2024, we want to have automated over 100,000 calls.
• For businesses like AeroMexico and Resorts World Las Vegas, who recently showcased our participation at CES 2025 on their digital display on The Strip, we are improving the travel and hospitality industry’s consumer experiences.

Other Notable Highlights:

• Leading the way in the Agentic AI revolution, SoundHound uses its established platform and dominant market position to provide its clients with next-generation agentic capabilities, an unavoidable advancement in AI functionality.
• At CES 2025, the first-ever in-car speech commerce platform was unveiled, allowing for easy voice-activated food ordering while on the road.
• Developed the first-of-its-kind audio-visual AI with Rekor, enabling hands-free voice control for emergency vehicle technology.
• Prominent phone ordering system handled hundreds of millions of dollars worth of restaurant orders and over 100 million consumer contacts.
• According to a study, seventy-seven percent of regular drivers are likely to employ voice-generating AI capabilities in their vehicles if they are accessible.

Events and Awards:

• Collaborations with NVIDIA, Perplexity, Lucid Motors, LG, and several restaurant partners were showcased successfully at CES 2025.
• SoundHound’s cutting-edge technology won several accolades:
  • Frost RadarTM 2024 Leader in Enterprise Conversational AI in Healthcare 2024 XCelent Advanced Technology 2024 Award Best Use of AI in the Automation & Self-Service Awards 2024 “Overall Connected Solution of the Year” at the AutoTech Breakthrough Awards 2025 Automotive News PACE Awards Finalist
• The company’s voice assistant, which uses generative AI on the edge with NVIDIA Drive AGXTM, and its newly launched voice commerce ecosystem will be shown at NVIDIA GTC 2025.

Fourth Quarter 2024 Financial Measures:

Cash Flows:

As of December 31, 2024, the corporation has $198 million in cash and cash equivalents. As of December 31, 2024, the corporation had no outstanding debt.

The company’s SEC filings, which are available on its website at investors.soundhound.com, include further details. In addition to being made available on the Internet, the company’s current report on Form 8-K, which was filed concurrently with the distribution of this news release, will include the financial statements for the year that concluded on December 31, 2024. Until the firm files its Annual Report on Form 10-K, the financial information provided in this press release should be regarded as unaudited. SoundHound increases its income projection for 2025 to between $157 and $177 million.

About SoundHound AI:

Voice and conversational AI solutions from SoundHound (Nasdaq: SOUN), a global pioneer in conversational intelligence, enable companies to provide their clients with amazing experiences. SoundHound’s voice AI, which is based on proprietary technology, produces innovative AI-driven products like Smart Answering, Smart Ordering, Dynamic Drive-Thru, and Amelia AI Agents that give product developers and service providers in retail, financial services, healthcare, automotive, smart devices, and restaurants best-in-class speed and accuracy in multiple languages. In addition to SoundHound Chat AI, a potent voice assistant with built-in generative AI, SoundHound supports billions of interactions annually for top-tier companies and powers millions of goods and services. www.soundhound.com.

Forward-Looking Statements:

According to Sections 27A of the Act of 1933, as amended, and Section 21E of the Act of 1934, this news release includes statements that are not historical facts. Words like “may,” “could,” “expect,” “seek,” “anticipate,” “believe,” “will,” “would,” and variations of these terms or similar expressions, or their negative, can occasionally be used to identify forward-looking statements. These forward-looking statements cover, among other things, our projected financial performance, our capacity to carry out our business plan, our expected business and operations, and our financial results forecast for 2025. 

Such forward-looking statements are always predicated on estimates and assumptions that are intrinsically unpredictable, even if we and our management believe them to be reasonable. Readers are thus advised not to rely too heavily on these predictions.

The risks and uncertainties affecting SoundHound’s business, such as our ability to successfully launch and commercialize new products and services and generate significant revenue, our market opportunity, and our ability to acquire new customers and retain existing customers, charges or expenses resulting from our 2024 acquisitions, the ability of our 2024 acquisitions to be accretive on the company’s financial results, and those other factors described in our risk factors outlined in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, could cause our actual results to differ materially from those expressed by these forward-looking statements. Except as applicable law, it requires no intention of updating or changing any forward-looking statements in light of new information, future events, or other circumstances.

Non-GAAP Measures of Financial Performance:

The following non-GAAP measures of financial performance are given in this release to support the company’s financial statements, which the U.S. prepares (GAAP): non-GAAP net loss, non-GAAP gross profit, non-GAAP gross margin, and non-GAAP profits per share.

The business feels that publishing this non-GAAP data alongside GAAP financial data allows investors to see the financial outcomes as the company performs its operations. Additionally, the business thinks that by making this information available, investors can better assess the data management used to evaluate and gauge the company’s financial performance.

Therefore, the business feels that revealing non-GAAP financial metrics to readers of its financial statements gives them access to helpful extra data that makes it more transparent to analyze the company’s financial and operational performance.

The corporation subtracts (i) amortization of intangibles (including acquired intangible assets) and (ii) stock-based compensation to arrive at non-GAAP gross profit and non-GAAP gross margin. Total other interest, net (including other interest and expense), loss on early debt extinguishment, income taxes, and benefits, depreciation and amortization expense (including acquired intangible assets), stock-based compensation, restructuring expense, change in fair value of contingent acquisition liabilities, and acquisition-related expenses are all subtracted from (i) to arrive at adjusted EBITDA.

Depreciation and amortization expense (including acquired intangible assets), stock-based compensation, restructuring expense, loss on early extinguishment of debt, change in fair value of contingent acquisition liabilities, gain on bargain purchase, acquisition-related costs, and income tax effects related to acquisitions are all excluded from the company’s calculations of non-GAAP net loss and non-GAAP net loss per share.

The tables that follow provide GAAP reconciliations to these modified non-GAAP financial metrics. Investors should not substitute non-GAAP financial metrics for equivalent financial measures calculated by GAAP when evaluating the company’s operational operations.

Because it is impractical, the company does not present a quantitative reconciliation of any forward-looking non-GAAP financial measures it may have to the most directly comparable GAAP financial measure, nor does it otherwise present such forward-looking GAAP measures.