SoundHound AI, a global leader in conversational intelligence, has reported significant financial and business developments in its latest quarterly report. The company experienced a substantial 89% increase in revenues, reaching $25.1 million for the quarter ended September 30, 2024, compared to $13.3 million in the same period the previous year. This growth was driven by a remarkable 3776% increase in service subscription revenue, primarily in the Americas, due to the contributions from recent acquisitions of Amelia and SYNQ3. However, product royalties revenue in Asia saw a 53% decrease due to prior minimum guarantee licensing revenue recognized. The company's cost of revenues also rose by 259%, resulting in a gross margin decrease from 73% to 49%. SoundHound AI's operating expenses saw a significant rise, with general and administrative expenses increasing...Show More

SoundHound AI, a global leader in conversational intelligence, has reported significant financial and business developments in its latest quarterly report. The company experienced a substantial 89% increase in revenues, reaching $25.1 million for the quarter ended September 30, 2024, compared to $13.3 million in the same period the previous year. This growth was driven by a remarkable 3776% increase in service subscription revenue, primarily in the Americas, due to the contributions from recent acquisitions of Amelia and SYNQ3. However, product royalties revenue in Asia saw a 53% decrease due to prior minimum guarantee licensing revenue recognized. The company's cost of revenues also rose by 259%, resulting in a gross margin decrease from 73% to 49%. SoundHound AI's operating expenses saw a significant rise, with general and administrative expenses increasing by 146% due to legal and professional fees, particularly related to the Amelia Acquisition. The company also reported a net loss of $21.8 million for the quarter, an 8% increase from the previous year. SoundHound AI's business development has been marked by strategic acquisitions, including Amelia, a conversational AI software company, and SYNQ3, a provider of voice AI solutions to the restaurant industry. These acquisitions are expected to strengthen SoundHound's position in voice and conversational AI and expand its market reach into new industries. Looking ahead, SoundHound AI plans to continue investing in technology and expects to fund future operations through a combination of operating activities and cash balances. The company has also entered into an Execute Equity Distribution Agreement, potentially offering up to $120 million of Class A Common Stock, and has completed an at-the-market equity program raising $150 million.