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SoundHound AI Reports Record Fourth Quarter Revenue, Up 101%, Exceeding $34.5 Million; Raises Full Year Outlook

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SoundHound AI Reports Record Fourth Quarter Revenue, Up 101%, Exceeding $34.5 Million; Raises Full Year Outlook
News

News

SoundHound AI Reports Record Fourth Quarter Revenue, Up 101%, Exceeding $34.5 Million; Raises Full Year Outlook

2025-02-28 05:08 Last Updated At:05:21

SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb 27, 2025--

SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice artificial intelligence, today reported its financial results for the fourth quarter and full year 2024.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250227063191/en/

“We had a breakthrough year, expanding our leadership position in voice and conversational AI through major customer wins, expanded partnerships, groundbreaking generative AI innovation, and strategic acquisitions,”said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI.“As we move into the era of Agentic AI, we are uniquely positioned to capitalize on this evolving category. Together with our existing broad portfolio of voice-enabled AI solutions we can deliver even greater commercial impact.”

Fourth Quarter and Full Year Financial Highlights

“We exited 2024 in a position of strength, and with accelerating momentum," said Nitesh Sharan, CFO of SoundHound AI. ”Our foundation runs deep, with a rapidly growing and diversified customer base and a highly capable team executing with tenacity to capture the tremendous opportunities in front of us.”

Business Highlights

Customer Momentum

Other Notable Highlights

Events and Awards

Fourth Quarter 2024 Financial Measures1

Full Year 2024 Financial Measures1

Liquidity and Cash Flows

The company’s total cash and cash equivalents was $198 million at December 31, 2024. The company had no outstanding debt as of December 31, 2024.

Condensed Cash Flow Statement

Year Ended

Business Outlook

SoundHound raises its full year 2025 revenue outlook to be in a range of $157 to $177 million.

Additional Information

For more information please see the company’s SEC filings which can be obtained on the company’s website at investors.soundhound.com. The financial statements for the company’s fiscal year ended December 31, 2024 will be posted on the website, and will be included as an attachment to the company’s current report on Form 8-K filed concurrently with the dissemination of this press release. The financial data presented in this press release should be considered preliminary and unaudited until the company files its Annual Report on Form 10-K.

Conference Call and Webcast

Keyvan Mohajer, Co-Founder and CEO, and Nitesh Sharan, CFO will host a live audio conference call and webcast today at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time. The live webcast and a replay will be accessible at investors.soundhound.com.

About SoundHound AI

SoundHound (Nasdaq: SOUN), a global leader in conversational intelligence, offers voice and conversational AI solutions that let businesses offer incredible experiences to their customers. Built on proprietary technology, SoundHound’s voice AI delivers best-in-class speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants via groundbreaking AI-driven products like Smart Answering, Smart Ordering, Dynamic Drive-Thru, and Amelia AI Agents. Along with SoundHound Chat AI, a powerful voice assistant with integrated Generative AI, SoundHound powers millions of products and services, and processes billions of interactions each year for world class businesses. www.soundhound.com

Forward Looking Statements

This press release contains forward-looking statements, which are not historical facts, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. These forward-looking statements include, but are not limited to, statements concerning our expected financial performance, our ability to implement our business strategy and anticipated business and operations, and guidance for financial results for 2025. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. Our actual results may differ materially from those expressed or implied by these forward-looking statements as a result of risks and uncertainties impacting SoundHound’s business including, our ability to successfully launch and commercialize new products and services and derive significant revenue, our market opportunity and our ability to acquire new customers and retain existing customers, unexpected costs, charges or expenses resulting from our 2024 acquisitions, the ability of our 2024 acquisitions to be accretive on the company's financial results, and those other factors described in our risk factors set forth in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Measures of Financial Performance

To supplement the company’s financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, non-GAAP net loss and non-GAAP earnings per share.

The company believes that providing this non-GAAP information in addition to the GAAP financial information allows investors to view the financial results in the way the company views its operating results. The company also believes that providing this information allows investors to not only better understand the company's financial performance, but also, better evaluate the information used by management to evaluate and measure such performance.

As such, the company believes that disclosing non-GAAP financial measures to the readers of its financial statements provides the reader with useful supplemental information that allows for greater transparency in the review of the company’s financial and operational performance.

The company defines its non-GAAP measures by excluding certain items:

The company arrives at non-GAAP gross profit and non-GAAP gross margin by excluding (i) amortization of intangibles (including acquired intangible assets) and (ii) stock-based compensation.

The company arrives at adjusted EBITDA by excluding (i) total other interest, net (included other interest and expense), (ii) loss on early extinguishment of debt, (iii) income taxes/(benefits), (iv) depreciation and amortization expense (including acquired intangible assets), (v) stock-based compensation, (vi) restructuring expense, (vii) change in fair value of contingent acquisition liabilities, and (viii) acquisition-related expenses.

The company arrives at non-GAAP net loss and non-GAAP net loss per share by excluding (i) depreciation and amortization expense (including acquired intangible assets), (ii) stock-based compensation, (iii) restructuring expense, (iv) loss on early extinguishment of debt, (v) change in fair value of contingent acquisition liabilities, (vi) gain on bargain purchase, (vii) acquisition-related expenses, and (viii) income tax effects related to acquisitions.

Reconciliations of GAAP to these adjusted non-GAAP financial measures are included in the tables below. When analyzing the company's operating results, investors should not consider non-GAAP measures as substitutes for the comparable financial measures prepared in accordance with GAAP.

To the extent that the company presents any forward-looking non-GAAP financial measures, the company does not present a quantitative reconciliation of such measures to the most directly comparable GAAP financial measure (or otherwise present such forward-looking GAAP measures) because it is impractical to do so.

Fourth Quarter Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and GAAP Gross Margin to Non-GAAP Gross Margin

Fourth Quarter Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA

Fourth Quarter Reconciliation of GAAP Net Loss to Non-GAAP Net Loss and Non-GAAP Net Loss Per Share

Full Year Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and GAAP Gross Margin to Non-GAAP Gross Margin

Full Year Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA

Full Year Reconciliation of GAAP Net Loss to Non-GAAP Net Loss and Non-GAAP Net Loss Per Share

 

SoundHound AI Reports Record Fourth Quarter Revenue, Up 101%, Exceeding $34.5 Million; Raises Full Year Outlook (Graphic: Business Wire)

SoundHound AI Reports Record Fourth Quarter Revenue, Up 101%, Exceeding $34.5 Million; Raises Full Year Outlook (Graphic: Business Wire)

For a state that’s home to Hollywood, there isn’t much star power in California’s gubernatorial race. It’s a somewhat different story in Los Angeles, where a reality television personality is running for mayor as the city prepares to host the Olympics.

More primaries are being held on Tuesday as well. Democrats are banking on a rare chance to regain ground in Iowa, a rural state that has repeatedly eluded them in recent years. Republicans, meanwhile, are grappling with a New Jersey congressman whose unexplained absence could put their already slim majority at risk.

— California: Voters are weighing in on who should lead the nation’s most populous state, where there is no clear leader among candidates vying to advance in the race to succeed Democratic Gov. Gavin Newsom. Plus, U.S. House races are on the ballot, along with the Los Angeles mayor’s race.

— New Mexico: Contests in the state include primaries for congressional seats, a U.S. Senate seat and a long list of statewide offices, but the governor’s race is the main attraction. Former Interior Secretary Deb Haaland is running for the Democratic nomination, which could put her on a historic path for Native American leaders.

— New Jersey: One of this year’s most closely watched House midterms will take place in the battleground district represented by Rep. Tom Kean Jr., who has drawn public scrutiny and concern after missing more than 100 House votes due to an undisclosed medical issue. Voters are deciding which Democrat will run against him in November.

— Read more about races in Iowa, Montana and South Dakota.

Here's the latest:

Republican Spencer Pratt is dismissing Nithya Raman’s campaign as “weak” and effectively over. The only real race, he says, is between him and Democratic incumbent Karen Bass.

Raman, a former Bass ally and progressive city council member, is challenging the mayor from the left.

In a social media video posted Monday, Pratt says Raman hasn’t gotten anything done during her six years in city leadership. He calls a vote for Raman a waste.

“At this point, it’s me and Karen,” Pratt says.

President Donald Trump on Tuesday urged his followers to vote for Hilton, a former Fox News TV host and British political adviser.

“He will work with me and the Federal Government, the money will flow because I have confidence in him (but not any of the others!), and we will MAKE CALIFORNIA GREAT AGAIN!” Trump wrote on Truth Social.

Meanwhile, Vice President J.D. Vance called Hilton a “good guy” and encouraged Californians to vote for him.

“California is such a beautiful state--it just needs better political leadership!” Vance wrote on X.

Nithya Raman was once an ally to Bass, but she filed to challenge her as mayor just hours before the filing deadline. Raman described the city as “at a breaking point.”

She has promised to speed up housing construction, bring back entertainment industry jobs and improve services in a city known for dirty streets and buckled pavement.

Raman hasn’t drawn as much national chatter as Pratt, a former reality television star whose supporters have tried to boost his candidacy with AI-generated videos.

Last week, Raman took a shot at that tactic with her own video showing her flanked by supporters. “No AI was used in the making of this video,” it said.

The nation’s most populous state is dominated by Democrats, but some are unsure of who to vote for.

“I’m kind of pinching my nose and voting this go-around rather than being excited,” said Colin Culver, a 21-year-old San Diego resident who ultimately voted for Tom Steyer.

It’s been a chaotic campaign, particularly when former Rep. Eric Swalwell dropped out of the race after being accused of sexual assault.

Paul Mitchell, a Democratic strategist tracking ballot returns, said some voters “are holding onto the ballot because they have seen this kind of topsy-turvy governor’s race,” and “they’re waiting to make sure they’re making the right choice.”

Two Democrats are seeking their party’s nomination to replace Gov. Michelle Lujan Grisham, a term-limited Democrat who will leave office at the end of 2026. Sam Bregman, an Albuquerque-based district attorney, is campaigning on his law enforcement record and promises to stand up to the Trump administration.

Former congresswoman and U.S. Interior Secretary Deb Haaland has emphasized her ancestral roots in the state and experience working in the nation’s capital.

Haaland leads Bregman in fundraising by a wide margin, but the primary has become increasingly combative. Bregman’s campaign has seized on the fact that Haaland has declined multiple opportunities to debate him. Meanwhile Haaland’s campaign has cast Bregman as out of touch with everyday New Mexicans, highlighting his personal wealth.

By any measure, Bass’ first term has been challenging. The worst wildfire in city history began while she was traveling with a presidential delegation in Ghana. Homelessness continues to be a challenge.

“I haven’ always got it right,” Bass says.

But now she wants a second term, which would allow her to keep leading the city of 4 million people as it hosts the Olympics in 2028.

Bass is facing challenges from the left and the right. Progressive city council member Nithya Raman and Republican reality television personality Spencer Pratt are among the 14 names on the ballot.

With so many candidates, no one is likely to get a majority of the vote on Tuesday, meaning the election would be settled by a November runoff between the top two.

One of the most closely watched House races in this year’s midterms is unfolding in the New Jersey district represented by Rep. Tom Kean Jr., who’s been absent from votes for nearly three months.

Kean is running unopposed in the Republican primary, where he’s has Trump’s support. But his absence because of an undisclosed personal medical issue has generated outsized interest in the contest.

Kean is seeking a third term.

Republican Rep. Tom Kean Jr. is running unopposed in the primary for New Jersey’s 7th congressional district on Tuesday. But he’s facing growing scrutiny for an unexplained medical absence that has stretched for more than three months, causing him to miss more than 100 votes in Congress.

Trump weighed in on social media late Monday, saying Kean was “working tirelessly” to support the MAGA agenda.

Though Kean isn’t facing any GOP competition today, he’s seeking reelection this fall in one of the few genuinely competitive congressional districts left on the map. Several Democrats vying to take him on in the general election have made his absence — and the lack of clarity surrounding it — a central part of their message.

Every two years, the attention of the nation’s political class is riveted on a Democratic-leaning congressional district in California’s Central Valley. Republican Rep. David Valadao has been able to fend off repeated Democratic challengers, except in 2018, when he barely lost. But he ran again two years later and reclaimed the seat.

Democrats redrew the district to make it even tougher for Valadao. They recruited a moderate who represents the area in the state capital, Assemblywoman Jasmeet Bains, to run against him. But she’s had to battle a more liberal rival, political science professor and school board member Randy Villegas. The primary will determine Valadao’s next opponent.

That means all candidates are on the same ballot, regardless of their party affiliation. California has used that system for more than a decade.

It’s occasionally resulted in two candidates from the same party competing against each other in a general election. That happened most notably in U.S. Senate races in 2016 and 2018, when two Democrats faced off.

In the governor’s race, though, one Republican and one Democrat have always advanced to November. Democrats had feared a lockout this year given their large field of candidates. But those worries have diminished in the race’s closing weeks.

A Democrat has held the governor’s office since 2011, when Jerry Brown took over from Republican Arnold Schwarzenegger.

Democrats have also had a firm grip on the state Legislature.

Republicans Steve Hilton and Chad Bianco say that means Democrats are to blame for the state’s expensive gas and housing, its homelessness crisis and a slew of other problems. Both have pledged to reduce regulations and taxes.

Hilton has President Donald Trump’s backing. That could help him in the primary but hurt him in the general election in the heavily Democratic state.

Holding on to Iowa is a big part of the GOP’s plan to keep its U.S. Senate majority.

A super PAC affiliated with Senate Republicans has pledged $29 million to help ensure the seat stays in GOP hands.

That means all candidates are on the same ballot, regardless of their party affiliation. California has used that system for more than a decade.

It has occasionally resulted in two candidates from the same party competing against each other in a general election. That happened most notably in U.S. Senate races in 2016 and 2018, when two Democrats faced off.

In the governor’s race, though, one Republican and one Democrat have always advanced to November. Democrats had feared a lockout this year, given their large field of candidates. But those worries have diminished in the race’s closing weeks.

The candidates are U.S. Rep. Randy Feenstra, state Rep. Eddie Andrews, businessman and former conservative political director Zach Lahn, former state Rep. Brad Sherman and former director of the state Department of Administrative Services Adam Steen.

If no candidate earns at least 35% of Republican primary voters, the nominee would be selected at a contested state party convention.

Trump endorsed Feenstra on Friday, saying on social media that “Randy is MAGA all the way!”

The generational fighting that has been ripping through the Democratic Party continues in California’s primaries.

In the Los Angeles-area’s 32nd District, 42-year-old lawyer Jake Levine is challenging Brad Sherman, 71, a 15-term member of the House of Representatives.

And in the 7th District near Sacramento, 40-year-old city councilwoman Mai Vang is challenging Doris Matsui, 81, who has held the seat since her husband, a congressman himself for decades, died in 2005.

Tom Steyer, the former hedge fund manager turned climate activist, spent nearly $200 million of his money on advertising alone.

The billionaire’s ad campaign was the most expensive in the country by far this election cycle. The data comes from advertising tracker AdImpact.

Steyer’s rivals in the governor’s race and his critics have accused him of trying to buy the election.

But he’s defended his spending, saying he is fighting against powerful corporate interests that are driving up the price of living in the state. Pacific Gas & Electric, a major California utility, is among the corporations and business interests funding anti-Steyer ads.

“I’m only working for the people of California,” Steyer said last week.

They are former mayor of fast-growing Rio Rancho Gregg Hull, cannabis business owner Duke Rodriguez and public relations professional Doug Turner.

While Hull and Turner have not aligned their campaigns with the MAGA movement, Rodriguez was recently served a cease-and-desist letter from a law firm representing Trump for “deceptive use” of the president’s image in campaign materials. That contest's winner faces an uphill battle to win in a state where a Republican has not been elected to statewide office in 10 years.

A sign directs voters to a polling place for the New Jersey primary election in Cherry Hill township, N.J., Tuesday, June 2, 2026. (AP Photo/Matt Rourke)

A sign directs voters to a polling place for the New Jersey primary election in Cherry Hill township, N.J., Tuesday, June 2, 2026. (AP Photo/Matt Rourke)

A person walks from a polling place for the New Jersey primary election in Oaklyn, N.J., Tuesday, June 2, 2026. (AP Photo/Matt Rourke)

A person walks from a polling place for the New Jersey primary election in Oaklyn, N.J., Tuesday, June 2, 2026. (AP Photo/Matt Rourke)

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