SoundHound AI

SoundHound AI (SOUN) Q2 2024 Earnings

Reported Aug 8, 2024 at 4:13 PM ET · SEC Source

Q2 24 EPS

$-0.04

BEAT +55.56%

Est. $-0.09

Q2 24 Revenue

$13.5M

BEAT +2.92%

Est. $13.1M

vs S&P Since Q2 24

-9.1%

TRAILING MARKET

SOUN +32.0% vs S&P +41.1%

Market Reaction

Did SOUN Beat Earnings? Q2 2024 Results

SoundHound AI delivered a stronger-than-expected second quarter, posting a non-GAAP loss of $0.04 per share against a consensus estimate of $0.09, a 55.56% beat, while revenue of $13.46 million topped estimates by 2.92% and grew 53.8% year-over-year.… Read more SoundHound AI delivered a stronger-than-expected second quarter, posting a non-GAAP loss of $0.04 per share against a consensus estimate of $0.09, a 55.56% beat, while revenue of $13.46 million topped estimates by 2.92% and grew 53.8% year-over-year. The results were shaped in large part by the company's acquisition of Amelia, an enterprise conversational AI platform that expands SoundHound's footprint into finance, insurance, and healthcare, adding nearly 200 marquee customers including top global banks and Fortune 500 organizations. The deal also drove meaningful balance sheet restructuring, with SoundHound prepaying $100 million in debt during the quarter, bringing long-term debt to zero and eliminating more than $55 million in projected interest and fees. The cumulative subscriptions and bookings backlog reached $723 million, roughly doubling year-over-year, reinforcing the company's revenue visibility. Management raised its full-year 2024 revenue outlook to exceed $80 million and set a 2025 target above $150 million, reflecting the accelerated scale the Amelia combination is expected to provide.

Key Takeaways

  • 54% year-over-year revenue growth driven by customer momentum across key industries
  • Annual query run rate of over 5 billion, up approximately 90% year-over-year
  • Cumulative subscriptions and bookings backlog reached $723 million, roughly doubled year-over-year
  • Expansion of automotive partnerships with six Stellantis brands now in production
24/7 Wall St

SOUN YoY Financials

Q2 2024 vs Q2 2023, source: SEC Filings

“This has been a milestone quarter, with strong customer momentum across all of our key industries – including several new global brands. And today we announced a significant acquisition that will expand SoundHound's reach across multiple new enterprise verticals. We believe the demand for voice and conversational AI is increasing and are committed to strengthening our leadership position in this growing market.”

— Keyvan Mohajer, Q2 2024 Earnings Press Release