May 09, 2024 - Nvidia-Backed $SoundHound AI (SOUN.US)$ surged 15.58% to $5.490 in post-market trading on Thursday. SoundHound AI today reported its financial results for the first quarter 2024.

First Quarter Financial Highlights

• Reported revenue was $11.6 million, beats analysts’ expectations of $10.1 million. It shows an increase of 73% year-over-year

• GAAP gross margin was 60%; non-GAAP gross margin was 66%

• GAAP earnings per share was a loss of ($0.12); non-GAAP earnings per share was a loss of ($0.07) , which beats analysts’ consensus estimate of -$0.09 per share.

• GAAP net loss was ($33.0) million; non-GAAP net loss was ($19.9) million

• Adjusted EBITDA was ($15.4) million

First Quarter Business Highlights

Customer Service

• The company closed the acquisition of SYNQ3 in the quarter. The combination creates the largest voice AI provider for restaurants with over 10,000 active locations.

• Dynamic Interaction, SoundHound’s next generation drive thru AI interface, is now live with a top global QSR brand.

• Agreements have also been executed with a number of other large QSR brands, including Church’s Chicken.

• Applebee’s has expanded its use of voice AI ordering across multiple franchisees resulting in an additional 500 live locations.

• Another major QSR with over 2,000 locations uses SoundHound’s AI for drive thru and continues to expand this to more locations as they add drive-thru capabilities.

• SoundHound’s Smart Answering has extended the company’s customer service offering beyond restaurants, with new multi-location customers including a major Planet Fitness franchisee.

Automotive+

• SoundHound partnered with NVIDIA to deliver in-vehicle voice-enabled generative AI responses that don’t require connectivity, with large language models running on NVIDIA DRIVE.

• SoundHound Chat AI, the world’s first voice assistant with integrated generative AI continues to ramp with Stellantis. In addition to Opel, Peugeot, Vauxhall and DS Automobiles, announcements were made by Alfa Romeo, and Lancia.

• Stellantis’s DS Automobiles became the first vehicle on the road in Japan with voice-enabled generative AI, via SoundHound Chat AI.

• Signed a multi-year agreement to license our software with a large broadcaster and telecommunications company that provides television, internet, fixed line and mobile telephone services to consumers and businesses in Austria, Germany, Ireland, Italy and the UK.

• Later this summer another prominent US-based EV maker will go live into production with SoundHound voice assistants across its full fleet of market-leading vehicles.

• A new deal with a leading Asian electric car manufacturer to embed SoundHound’s software into its expanding lineup of affordable luxury cars.

Other partnerships

• SoundHound partnered with Perplexity to bring cutting-edge online LLMs to SoundHound Chat AI. This will expand the type and complexity of the questions the assistant is able to answer across phones, cars, and IoT devices.

• The company joined ARM’s partner program where it anticipates being able to showcase new advancements of its leading voice AI platform.

Business Outlook

SoundHound updates full year 2024 revenue outlook to be in a range of $65 to $77 million.

Management Comments

“We were pleased to start the year with a robust top line performance, in our strongest Q1 ever,” said Nitesh Sharan, CFO of SoundHound AI. “Our business momentum continues to accelerate with a growing pipeline across all businesses.”

Source: SEC, Tipranks