SoundHound AI reported Q2 2024 revenue of $13.5 million, up 54% year-over-year, driven by a 789% increase in service subscriptions to $3.6 million and 19% growth in product royalties to $9.7 million. The company's gross margin was 63%, down from 79% in Q2 2023, primarily due to the integration of SYNQ3 acquisition. Operating expenses rose 40% to $35.4 million, reflecting increased investments in R&D and strategic initiatives.The company completed two strategic acquisitions during the quarter - SYNQ3 for $15.7 million in January and an immaterial acquisition in June. The SYNQ3 acquisition is expected to significantly extend SoundHound's market reach to over 10,000 signed locations and accelerate deployment of generative AI capabilities to the restaurant industry. The company recognized a $1.2 million gain on bargain purchase from the June acquisition.SoundHound strengthened its financial position through successful equity offerings, raising $100.4 million through its Equity Distribution Agreement at an average price of $4.73 per share. The company ended the quarter with $200.2 million in cash and cash equivalents after repaying its $100 million Term Loan. Management expects continued growth driven by expanding voice AI adoption and strategic acquisitions.

SoundHound AI reported Q2 2024 revenue of $13.5 million, up 54% year-over-year, driven by a 789% increase in service subscriptions to $3.6 million and 19% growth in product royalties to $9.7 million. The company's gross margin was 63%, down from 79% in Q2 2023, primarily due to the integration of SYNQ3 acquisition. Operating expenses rose 40% to $35.4 million, reflecting increased investments in R&D and strategic initiatives.The company completed two strategic acquisitions during the quarter - SYNQ3 for $15.7 million in January and an immaterial acquisition in June. The SYNQ3 acquisition is expected to significantly extend SoundHound's market reach to over 10,000 signed locations and accelerate deployment of generative AI capabilities to the restaurant industry. The company recognized a $1.2 million gain on bargain purchase from the June acquisition.SoundHound strengthened its financial position through successful equity offerings, raising $100.4 million through its Equity Distribution Agreement at an average price of $4.73 per share. The company ended the quarter with $200.2 million in cash and cash equivalents after repaying its $100 million Term Loan. Management expects continued growth driven by expanding voice AI adoption and strategic acquisitions.