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- **Record Growth**: Q3 revenue up 68% YoY to $42 million, with 2025 guidance raised to $165-$180 million.
- **Strategic Acquisitions**: Interactions acquisition adds workflow orchestration to Amelia 7, while China IoT deal drives $100M+ expansion.
- **AI Innovation**: Polaris models deliver 35-40% better accuracy than competitors, enabling 3x faster deployment and 3x lower error rates.
- **Voice Commerce Breakthrough**: Live transactions achieved with 4 OEMs, with 2026 production launches planned.
- **Profitability Path**: 2026 outlook includes near-breakeven EBITDA with $20M annual cost synergies from acquisitions.

**【CEO Summary Section】**
- Q3 2025 revenue reached $42 million, up 68% year-over-year, driven by enterprise AI adoption across financial services, healthcare, automotive, and restaurants.
- Acquired Interactions, a customer service automation leader, to expand workflow orchestration capabilities and integrate with Amelia 7's agentic AI platform.
- Signed a $100 million+ IoT deal with a Chinese robotics company for AI-enabled smart devices in India, marking a major expansion into China.
- Launched Amelia 7.3 with improved conversational latency and introduced Voice Insights for brands needing precursor automation.
- Voice Commerce POCs with 4 OEMs and merchants achieved live transactions, with plans for 2026 production launches.

**【CFO Financial Commentary】**
- Full-year 2025 revenue guidance raised to $165-$180 million, with Q4 expected to be adjusted EBITDA profitable at the high end.
- GAAP gross margin improved to 43%, non-GAAP to 59%, driven by cost savings from migrating to Polaris and reducing third-party dependencies.
- R&D expenses rose 17% to $22.8 million, supporting Polaris model innovation and Agentic AI advancements.
- Sales & marketing costs increased 96% to $16.4 million due to channel expansion and direct sales growth.
- Balance sheet remains strong with $269 million in cash, no debt, and plans to reinvest in high-growth AI opportunities.

**【Q&A Highlights】**
- **Chinese Robotics Deal**: 10 million+ devices to be deployed in India over 2-3 years, with potential humanoid robotics applications.
- **Amelia 7 Adoption**: 75% of customers expected to migrate by mid-2026, with 15 early adopters seeing 10x containment rate improvements.
- **Voice Commerce**: 4 OEMs in advanced POCs, targeting 2026 production launches with a major QSR and parking provider.
- **Competitive Edge**: Polaris models outperform big tech in accuracy (35-40% better) and latency, with 3x lower error rates than legacy vendors.
- **Pricing Dynamics**: Outcome-based contracts in healthcare and restaurants allow for ASP expansion as AI delivers measurable ROI.

SoundHound AI, Inc. (SOUN) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

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Loss on Disposal of Assets

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Net Interest Expense

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Net Income

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Preferred Stock Dividends

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SOUN

SOUN fundamentals

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