SoundHound AI Inc - Class A
Q3 2023 Earnings
Did SOUN Beat Earnings? Q3 2023 Results
SoundHound AI delivered a solid Q3 2023, matching Wall Street's loss estimate of $0.09 per share while posting revenue of $13.27 million, ahead of the $12.78 million consensus by 3.82% and up 18.6% year over year. The primary engine behind the revenue outperformance was rapid expansion in the company's restaurant AI business, where new enterprise partnerships with Jersey Mike's and Krispy Kreme, combined with a broad integration with restaurant platform Olo, meaningfully widened SoundHound's commercial reach. Operating losses continued to narrow, with adjusted EBITDA improving to negative $7.31 million from negative $16.91 million a year ago, reflecting the company's improving cost discipline as it scales. Cumulative bookings backlog grew to $341.72 million, up from $302.19 million in the prior-year period, pointing to a strengthening pipeline of contracted future revenue. Looking ahead, management guided Q4 2023 revenue to a range of $16 million to $20 million and reiterated expectations to reach adjusted EBITDA profitability by quarter's end, a target the sequential revenue trajectory appears to support.
- 52% sequential revenue growth and 19% year-over-year growth
- Expanding automotive partnerships with Stellantis/DS Automobiles and Togg
- Enterprise restaurant customer adoption including Jersey Mike's and Krispy Kreme
- 46% improvement in operating loss year over year
- 57% improvement in adjusted EBITDA year over year
“Our third quarter was another milestone for revenue, and at the same time marked a significant ramping up of our business. SoundHound Chat AI became the first ever voice assistant with generative AI capabilities to go live in European vehicles, and well-known restaurant brands are embracing our voice technology to alleviate pressure and delight consumers. Our combination of software engineering and generative AI is unique in the industry, resulting in increased interest and exciting growth opportunities.”
SoundHound AI CEO, on the earnings call
Forward Guidance & Outlook
SoundHound expects Q4 2023 revenue to be in a range of $16 million to $20 million. The company also continues to expect to be adjusted EBITDA positive in the fourth quarter of 2023.
SOUN YoY Financials
Figures from SEC filings and company reports. Not investment advice.