Companies /Technology
SoundHound AI Inc - Class A
NASDAQ: SOUN Software - Application
$5.72
▼ $0.16 (−2.72%) today
Markets closed · 11:50pm ET

SoundHound AI (SOUN) Q3 2024 Earnings

Reported Nov 12, 2024, 4:25pm ET · SEC source
$-0.04
Beat +42.86%
EPS · est. $-0.07
$25.1M
Beat +9.01%
Revenue · est. $23.0M
+212.4%
Beating market
SOUN vs S&P since report
1 quarter
Consecutive EPS beats

How Did SOUN Stock React to Q3 2024 Earnings?

% change · around the report
−14%−7%0+7%Nov 12Nov 13report 4:25pm ETearnings+0.0%−14.4%
−14%−7%0+7%Nov 12Nov 13earnings+0.0%−14.4%
SOUN −14.4%S&P 500 +0.0%
−14%−7%0+7%Nov 12Nov 13report 4:25pm ETearnings−0.2%−14.4%
−14%−7%0+7%Nov 12Nov 13earnings−0.2%−14.4%
SOUN −14.4%NASDAQ −0.2%
−14%−7%0+7%Nov 11Nov 20report 4:25pm ETearnings−1.1%−12.0%
−14%−7%0+7%Nov 11Nov 20earnings−1.1%−12.0%
SOUN −12.0%S&P 500 −1.1%
−14%−7%0+7%Nov 11Nov 20report 4:25pm ETearnings−1.9%−12.0%
−14%−7%0+7%Nov 11Nov 20earnings−1.9%−12.0%
SOUN −12.0%NASDAQ −1.9%
−17.06%
Day of report
+5.74%
Next session
+2.71%
One week
+214.04%
30 days

S&P 500 over the same 30 days: +1.61%.

Did SOUN Beat Earnings? Q3 2024 Results

Yes. SoundHound AI reported Q3 2024 earnings of $-0.04 a share on Nov 12, 2024, beating the $-0.07 consensus estimate by 42.9%. Revenue was $25.1M against a $23.0M estimate.

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

“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.”

SoundHound AI CEO, on the earnings call

What Was SoundHound AI's Outlook in Q3 2024?

SoundHound raised its full-year 2024 revenue outlook to $82–$85 million and provided a full-year 2025 revenue outlook of $155–$175 million, reflecting the company's broader target markets and increased confidence in medium to long-term growth opportunities following the Amelia acquisition and expansion into new verticals.

SOUN YoY Financials

Q3 2024 vs Q3 2023 · SEC filings Q3 2023 Q3 2024
$-20,000,000$0$20.0M$13.3M$25.1MRevenue$9.7M$12.2MGross Profit$-23,562,994$-21,751,000Net Income
$-20,000,000$0$20.0MRevenueGross ProfitNet Income
SOUN income statement, Q3 2024 versus Q3 2023
Metric Q3 2024 Q3 2023 Year over year
Revenue $25.1M $13.3M +89.1%
Gross Profit $12.2M $9.7M +26.0%
Net Income −$21.8M −$23.6M −7.7%

Figures from SEC filings and company reports. Not investment advice.