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

SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice artificial intelligence, reported record-breaking financial results for the fourth quarter of 2023, with revenue surging 101% year-over-year to $34.5 million. The company also raised its full-year outlook, reflecting its strong performance and growth prospects.



Key financial highlights from the fourth quarter include:

* Revenue of $34.5 million, up 101% year-over-year
* Gross margin of 77%, an increase of 6 percentage points year-over-year
* Earnings per share (EPS) of a net loss of ($0.07), compared to ($0.15) in the prior year, improved by 53%
* Adjusted EBITDA (non-GAAP) of ($3.7) million, compared to ($18.8) million in the prior year, improved by 80%

SoundHound AI's impressive growth can be attributed to several factors, including:

1. Expansion into new verticals: The company expanded its customer base and entered new verticals such as financial services, healthcare, insurance, retail, telecom, hospitality, and travel. This diversification helped SoundHound AI tap into new revenue streams and reduce its dependence on the automotive sector, which previously accounted for over 90% of its revenue.
2. Increased customer concentration: SoundHound AI significantly improved its customer concentration, with only 12% of revenue attributed to its largest customer, compared to 72% in the prior year. This indicates a broader mix of customers and a more stable revenue base.
3. Growth in AI restaurant solutions: SoundHound AI signed contracts with seven of the top 20 quick-service restaurant brands globally and expanded its AI restaurant solutions. This growth contributed to the company's overall revenue increase.
4. Acquisition of Amelia: The acquisition of Amelia, an enterprise conversational AI leader, allowed SoundHound AI to expand into new verticals such as finance, insurance, and healthcare, further driving revenue growth.



SoundHound AI's strong performance has positioned the company well for continued growth in the long term. The company estimates a total addressable market of at least $140 billion, which could grow even larger over the next few years. Juniper Research projects the market for voice AI will top $160 billion by 2026.

In conclusion, SoundHound AI's record-breaking fourth quarter revenue and raised full-year outlook reflect the company's strong performance and growth prospects. The company's expansion into new verticals, increased customer concentration, and growth in AI restaurant solutions have all contributed to its impressive growth. As the company continues to innovate and adapt to market demands, it is well-positioned to maintain its high growth trajectory and capitalize on the growing demand for conversational AI solutions across various industries.