SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice
artificial intelligence, today reported its financial results for
the three months ended June 30, 2022.
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the full release here:
https://www.businesswire.com/news/home/20220811005284/en/
SoundHound AI Inc. Announces Second
Quarter Financial Results 2022 (Graphic: Business Wire)
“We are delighted to have kicked off our first quarter as a
publicly listed company with strong business momentum. We have seen
significant growth in bookings, user queries, customers, and new
product launches,” said Keyvan Mohajer, Co-Founder and CEO of
SoundHound. “We believe conversational voice AI is the next major
disruption in computing. Our technological breakthroughs put us
right at the forefront of this massive opportunity to voice enable
billions of devices and services, and create a new monetization
ecosystem.”
Second Quarter Business Highlights
- Cumulative bookings backlog increased 207% year-over-year,
marking the third straight quarter of triple-digit growth
- Monthly queries increased 3x since the start of 2021 and more
than doubled year over year
- Reported revenues were $6.2 million, up 43%
quarter-over-quarter, down year-over-year, although up 56% when
excluding prior year one-time revenue impact derived from a
customer upon the conclusion of a professional services
contract
- Announced several new and expanded relationships including
Square, Hyundai, Stellantis and LG
- Launched first-of-its-kind voice ordering solution SoundHound
for Restaurants with strong initial demand
- Commenced trading on NASDAQ on April 28th
“Despite broader macroeconomic volatility, our Q2 results
demonstrate our accelerating growth,” said Nitesh Sharan, CFO of
SoundHound. “We are driving targeted investments in sales,
marketing and technology, disrupting legacy providers while
concurrently scaling new opportunities. The combination of our
unique ecosystem strategy and superior technology is category
defining.”
Second Quarter 2022 Financial Highlights
Three Months Ended
(thousands)
June 30, 2022
March 31 2022
June 30, 2021
Cumulative bookings backlog1
$
283,431
$
229,827
$
92,305
Revenues
$
6,152
$
4,290
$
8,2792
Operating expenses:
Cost of revenues
$
2,488
$
1,773
$
1,628
Sales and marketing
4,370
2,581
1,008
Research and development
18,862
16,650
14,023
General and administrative
9,362
4,003
4,119
Total operating expenses
$
35,082
$
25,007
$
20,778
Operating profit (loss)
$
(28,930
)
$
(20,717
)
$
(12,499
)
Net profit (loss)
$
(30,668
)
$
(25,103
)
$
(14,651
)
Net earnings (loss) per share
(0.19
)
(0.29
)
(0.22
)
Adjusted EBITDA3
$
(20,015
)
$
(17,037
)
$
(9,770
)
1)
Cumulative bookings backlog is cumulative
new bookings minus revenue associated with the booking in the
current period.
2)
Reported revenues in the second quarter
2021 were impacted by a one-time recognition of $4.3 million in
revenue as a result of the conclusion of a professional services
contract during the three months ended June 30, 2021.
3)
Please see table below for a
reconciliation from GAAP to non-GAAP.
Second Quarter 2022 Summary Cash Flows
(thousands)
Six Months Ended
June 30, 2022
June 30, 2021
Cash flows:
Net cash used in operating activities
$
(46,767
)
$
(32,625
)
Net cash used in investing activities
(982
)
(111
)
Net cash provided by financing
activities
90,167
35,254
Net change in cash and cash
equivalents
$
42,418
$
2,518
The Company’s cash and cash equivalents was $65 million at June
30, 2022 quarter-end.
Business Outlook
SoundHound reaffirms its full year 2022 revenue guidance of
between $27 million to $33 million, with revenue momentum
accelerating through the second half of the year principally due to
seasonality and the expected benefits from sales and marketing
investments.
Additional Information
On April 26, SoundHound Inc. successfully completed its
previously announced business combination with Archimedes Tech SPAC
Partners Co. The resulting company, SoundHound AI, Inc., began
trading on Nasdaq Global Market under the ticker symbol “SOUN” on
April 28, 2022.
SoundHound expects to file its Form 10-Q for the quarterly
period ended June 30, 2022, by August 15, 2022. For more
information please see the company’s SEC filings which can be
obtained on our website at investors.soundhound.com or sec.gov.
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 2:30 p.m.
Pacific Time/5:30 p.m. Eastern Time. To register, please visit
SoundHound’s Investor Relations website at
investors.soundhound.com. Following the call, a replay will be
available on the same website.
About SoundHound
SoundHound, a leading innovator of conversational intelligence,
offers an independent voice AI platform that enables businesses
across industries to deliver best-in-class conversational
experiences to their customers. Built on proprietary
Speech-to-Meaning® and Deep Meaning Understanding® technologies,
SoundHound’s advanced voice AI platform provides exceptional speed
and accuracy and enables humans to interact with products and
services like they interact with each other—by speaking naturally.
SoundHound is trusted by companies around the globe, including
Hyundai, Mercedes-Benz, Pandora, Deutsche Telekom, Snap, VIZIO,
KIA, and Stellantis. 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. Our actual results,
performance or achievements may differ materially from those
expressed or implied by these forward-looking statements. 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. 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. Actual results may differ materially
from those indicated by these forward-looking statements as a
result of risks and uncertainties impacting SoundHound’s business
including, current uncertainties associated with the COVID-19
pandemic, our inability to predict or measure supply chain
disruptions resulting from the COVID-19 pandemic and other causes,
the potential future revenue associated with our AI platform
products and services; our rate of growth; our ability to predict
direct and indirect customer demand for our existing and future
products and to secure adequate manufacturing capacity; our ability
to hire, retain and motivate employees; the effects of competition,
including price competition within our industry segment;
technological, regulatory and legal developments that uniquely or
disproportionately impact our industry segment; developments in the
economy and financial markets and other risks described in the
Prospectus filed April 8, 2022 and detailed from time to time in
SoundHound’s filings with the Securities and Exchange
Commission.
Non-GAAP Measures of Financial Performance
To supplement our financial statements, which are presented on
the basis of U.S. generally accepted accounting principles (GAAP),
the following non-GAAP measure of financial performance is included
in this release: adjusted EBITDA. A reconciliation of GAAP to this
adjusted non-GAAP financial measure is included 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.
Reconciliation of GAAP Net Profit (Loss) to Non-GAAP Adjusted
EBITDA
(thousands)
Three Months Ended
June 30, 2022
March 31 2022
June 30, 2021
GAAP net profit (loss)
$
(30,668
)
$
(25,103
)
$
(14,651
)
Adjustments:
Interest and other expense1
$
(1,349
)
$
(4,034
)
$
(2,110
)
Income taxes
(389
)
(352
)
(43
)
Depreciation and Amortization
(1,052
)
(1,216
)
(1,382
)
Stock-based compensation
$
7,863
$
2,464
$
1,346
Adjusted EBITDA
$
(20,015
)
$
(17,037
)
$
(9,770
)
1)
Includes other income/(expense) of $0.2,
$(1.1) and $0.2 million, respectively
Contacts
SoundHound
Scott Smith 408-724-1498 IR@SoundHound.com
Fiona McEvoy 415-610-6590 PR@SoundHound.com
SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
and per share data)
June 30, 2022
December 31, 2021
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
65,010
$
21,626
Restricted cash equivalents
—
460
Accounts receivable, net of allowances of
$109 as of June 30, 2022 and December 31, 2021
1,015
2,060
Prepaid expenses
4,685
1,276
Debt issuance cost
122
1,132
Other current assets
927
917
Total current assets
71,759
27,471
Restricted cash equivalents,
non-current
230
736
Right-of-use assets
9,535
10,291
Property and equipment, net
4,868
6,155
Deferred tax asset
2,169
2,169
Debt issuance cost
235
—
Deferred offering costs
—
1,264
Other assets
1,007
1,117
Total assets
$
89,803
$
49,203
LIABILITIES, REDEEMABLE
CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY
(DEFICIT)
Current liabilities:
Accounts payable
$
5,348
$
3,760
Accrued liabilities
5,939
7,298
Operating lease liabilities
3,299
3,281
Financing lease liabilities
361
1,301
Income tax liability
2,829
2,737
Deferred revenue
6,174
6,042
Convertible note
—
29,868
Derivative liability
—
3,488
Notes payable
16,930
29,964
Total current liabilities
40,880
87,739
Operating lease liabilities, net of
current portion
7,124
8,611
Financing lease liabilities, net of
current portion
214
292
Deferred revenue, net of current
portion
9,465
14,959
Notes payable, net of current portion
26,126
—
Other liabilities
1,338
1,336
Total liabilities
85,147
112,937
Commitments and contingencies (Note 7)
Legacy SoundHound redeemable convertible
preferred stock; $0.0001 par value; 0 and 146,218,514 shares
authorized; 0 and 106,949,326 shares issued and outstanding,
liquidation preference of $0 and $284,826 as of June 30, 2022 and
December 31, 2021, respectively
—
279,503
Stockholders’ equity (deficit):
Legacy SoundHound common stock, $0.0001
par value; 250,030,433 shares authorized; 0 and 68,230,806 shares
issued and outstanding as of June 30, 2022 and December 31, 2021,
respectively
—
1
Class A Common Stock, $0.0001 par value;
455,000,000 shares authorized; 156,121,466 and 0 shares issued and
outstanding as of June 30, 2022 and December 31, 2021,
respectively
16
—
Class B Common Stock, $0.0001 par value;
44,000,000 shares authorized; 40,396,600 and 0 shares issued and
outstanding as of June 30, 2022 and December 31, 2021,
respectively
4
—
Additional paid-in capital
447,136
43,491
Accumulated deficit
(442,500
)
(386,729
)
Total stockholders’ equity (deficit)
4,656
(343,237
)
Total liabilities, redeemable convertible
preferred stock, and stockholders’ equity (deficit)
$
89,803
$
49,203
The accompanying notes are an integral part of
these condensed consolidated financial statements.
SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Revenues
$
6,152
$
8,279
$
10,442
$
12,018
Operating expenses:
Cost of revenues
2,488
1,628
4,261
3,221
Sales and marketing
4,370
1,008
6,951
2,084
Research and development
18,862
14,023
35,512
28,466
General and administrative
9,362
4,119
13,365
7,365
Total operating expenses
35,082
20,778
60,089
41,136
Loss from operations
(28,930
)
(12,499
)
(49,647
)
(29,118
)
Other expense, net:
Interest expense
(1,572
)
(2,294
)
(4,549
)
(3,042
)
Other income (expense), net
223
184
(834
)
(1,542
)
Total other expense, net
(1,349
)
(2,110
)
(5,383
)
(4,584
)
Loss before provision for income taxes
(30,279
)
(14,609
)
(55,030
)
(33,702
)
Provision for income taxes
389
43
741
210
Net loss
(30,668
)
(14,652
)
(55,771
)
(33,912
)
Other comprehensive gain:
Unrealized holding gain on
available-for-sale securities, net of tax
—
1
—
1
Comprehensive loss
$
(30,668
)
$
(14,651
)
$
(55,771
)
$
(33,911
)
Net loss per share:
Basic and diluted
$
(0.19
)
$
(0.22
)
$
(0.48
)
$
(0.51
)
Weighted-average common shares
outstanding:
Basic and diluted
161,976,429
67,357,878
116,031,777
66,666,508
The accompanying notes are an integral part of
these condensed consolidated financial statements.
SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended June
30
2022
2021
Cash flows from operating activities:
Net loss
$
(55,771
)
$
(33,912
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
2,269
2,836
Stock-based compensation
10,327
2,734
Change in fair value of derivative and
warrant liability
606
1,314
Amortization of debt issuance cost
2,185
1,399
Non-cash lease amortization
1,545
1,790
Changes in operating assets and
liabilities:
Accounts receivable
1,045
(2,323
)
Prepaid expenses
(3,409
)
266
Other current assets
(10
)
(373
)
Operating lease liabilities
(2,258
)
(2,096
)
Other assets
110
(26
)
Accounts payable
1,846
(107
)
Accrued liabilities
108
1,468
Deferred revenue
(5,362
)
(4,845
)
Other liabilities
2
(750
)
Net cash used in operating activities
(46,767
)
(32,625
)
Cash flows from investing activities:
Purchases of property and equipment
(982
)
(111
)
Net cash used in investing activities
(982
)
(111
)
Cash flows from financing activities:
Proceeds from issuance of convertible
notes, net of issuance cost
—
5,044
Proceeds from note payable, net of
issuance cost
—
29,833
Proceeds from the issuance of common stock
upon exercise of options
2,904
1,672
Proceeds from Business Combination, net of
transaction costs paid
91,695
—
Payments on notes payable
(3,416
)
—
Payments on finance leases
(1,016
)
(1,295
)
Net cash provided by financing
activities
90,167
35,254
Net increase in cash, cash equivalents,
and restricted cash equivalents
42,418
2,518
Cash, cash equivalents, and restricted
cash equivalents, beginning of period
22,822
44,982
Cash, cash equivalents, and restricted
cash equivalents, end of period
$
65,240
$
47,500
Reconciliation to amounts on the condensed
consolidated balance sheets:
Cash and cash equivalents
$
65,010
$
46,210
Current portion of restricted cash
equivalents
—
230
Non-current portion of restricted cash
equivalents
230
1,060
Total cash, cash equivalents, and
restricted cash equivalents shown in the condensed consolidated
statements of cash flows
$
65,240
$
47,500
Supplemental disclosures of cash flow
information:
Cash paid for:
Interest
$
1,140
$
149
Income taxes
$
33
$
18
Noncash investing and financing
activities
Operating lease liabilities and
right-of-use assets through adoption of ASC 842
$
—
$
11,428
Conversion of convertible note into common
stock pursuant to Business Combination
$
20,239
$
—
Unpaid deferred offering costs associated
with the Business Combination
$
1,006
$
—
Conversion of redeemable convertible
preferred stock to common stock pursuant to Business
Combination
$
279,503
$
—
Debt discount through issuance of common
stock warrants
$
—
$
3,842
Operating lease liabilities arising from
obtaining right-of-use assets
$
650
$
—
Property and equipment acquired under
finance leases or debt
$
—
$
650
The accompanying notes are an integral part of
these condensed consolidated financial statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220811005284/en/
SoundHound
Scott Smith 408-724-1498 IR@SoundHound.com
Fiona McEvoy 415-610-6590 PR@SoundHound.com
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