SoundHound AI

SoundHound AI (SOUN) Q3 2024 Earnings

Reported Nov 12, 2024 at 4:25 PM ET · SEC Source

Q3 24 EPS

$-0.04

BEAT +42.86%

Est. $-0.07

Q3 24 Revenue

$25.1M

BEAT +9.01%

Est. $23.0M

vs S&P Since Q3 24

-32.1%

TRAILING MARKET

SOUN -6.2% vs S&P +25.9%

Market Reaction

Did SOUN Beat Earnings? Q3 2024 Results

SoundHound AI delivered a notably strong third quarter, beating on both the top and bottom lines as its Amelia acquisition reshaped the business at pace. Revenue came in at $25.09 million for Q3 2024, up 89.1% year-over-year and ahead of the $23.02 m… Read more SoundHound AI delivered a notably strong third quarter, beating on both the top and bottom lines as its Amelia acquisition reshaped the business at pace. Revenue came in at $25.09 million for Q3 2024, up 89.1% year-over-year and ahead of the $23.02 million consensus by 9.01%, while the loss per share of $0.04 was meaningfully better than the $0.07 analysts had expected, a 42.86% positive surprise. The Amelia deal, which brought an enterprise conversational AI platform into the fold along with $182.58 million in intangible assets, was the single largest driver of the quarter's transformation, diversifying revenue across automotive, restaurants, financial services, healthcare, and insurance verticals and reducing reliance on any one customer from 72% to just 12% of revenue. Operating losses widened due to acquisition costs and elevated R&D investment, and the company separately launched an at-the-market equity program to support ongoing growth. Management raised full-year 2024 revenue guidance to $82 to $85 million and projected $155 to $175 million for 2025, signaling strong confidence in the post-acquisition growth trajectory.

Key Takeaways

  • 89% year-over-year revenue growth driven by diversification across automotive, restaurants, financial services, healthcare and insurance sectors
  • Significantly improved customer concentration — largest customer now 12% of revenue vs 72% prior year
  • Completion of Amelia acquisition expanding into financial services, insurance, and healthcare verticals
  • Signed seven of the top 20 QSR brands globally
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SOUN YoY Financials

Q3 2024 vs Q3 2023, source: SEC Filings

“This is SoundHound's largest quarter on record as the company takes its first steps into important new verticals. Our increased scale, combined with incredible market enthusiasm for conversational AI, is allowing us to execute on the company's vision.”

— Keyvan Mohajer, Q3 2024 Earnings Press Release