SoundHound AI Inc. (NASDAQ: SOUN) has emerged as a powerhouse in the AI sector, outpacing the broader market with a remarkable year-to-date gain of 263%, leaving the S&P 500’s 25.8% growth far behind.This impressive rally is fueled by the rising demand for its flagship solutions, SoundHound Chat AI and SoundHound Voice AI for customer service, which help businesses enhance customer engagement and streamline operations.As of the latest trading, SoundHound’s stock stands at $7.56, with a 33% increase in just ...

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SoundHound AI NASDAQ: SOUN will advance by triple digits in 2025 because it is the leading play on conversational AI. The company is well-positioned in a world where AI is rapidly advancing and AI-enabled services are expected to dominate, providing a suite of services and apps that connect brands of all varieties with people meaningfully.  SoundHound’s 2024 results takeaways are that this company is gaining traction with more than 200 brands using its products, including companies like Hyundai OTCMKTS: HYM ...

Financial Data and Key Metrics - Q3 revenue increased by 89% year-over-year, reaching $25.1 million, marking the first time the company exceeded $25 million in a quarter [7][39] - Annualized run rate of over 6 billion queries, up over 100% year-over-year, excluding the impact of recent acquisitions [7] - Gross margin for Q3 was 49%, down year-over-year due to the impact of recent acquisitions, but non-GAAP gross margin was 60% [45][46] - Operating loss for Q3 was $33.8 million, with a net loss of $21.8 million and GAAP net loss per share of $0.06 [50][51] - Adjusted EBITDA loss was $15.9 million in Q3, driven by strategic acquisitions and growth investments [51] - Cash and equivalents as of September 30th were $136 million, with $39 million of debt outstanding [52] Business Line Data and Key Metrics - The company's AI agent customer service offerings now span multiple industries, including financial services, healthcare, and automotive, with significant growth in enterprise customer brands [10][12] - Automotive portfolio continues to grow, with strong traction in the EV space, including a new deal with an EV OEM in the Middle East and partnerships with Stellantis [14] - Restaurant business has expanded, with seven of the top 20 quick service restaurants (QSRs) as customers, and the company has surpassed 100 million AI-powered inbound customer calls [29][44] - The company's AI agent offerings now represent more than half of its business and are growing rapidly, with significant wins in telecom, healthcare, insurance, banking, retail, and government sectors [21][22][37] Market Data and Key Metrics - The company has expanded its presence in the Chinese market through partnerships with DayinTec and a major Chinese multinational technology company, focusing on the automotive industry [16] - Growth in the Indian market includes a new deal with VE Commercial trucks and expanded partnerships with Kia, adding Hindi language capabilities and planning to roll out more languages like Bangla and Punjabi [17] - The company has a strong presence in North America, with an estimated total addressable market (TAM) of over 30 million businesses for its SMB-focused smart answering solution [23] Company Strategy and Industry Competition - The company is focused on voice AI as the next major interface for human-technology interaction, leveraging generative AI and large language models (LLMs) to drive growth [39][40] - SoundHound is building a competitive moat through its proprietary technology, including the Polaris foundation model, which is now powering approximately one-third of all AI interactions for restaurant customers [34][35] - The company is expanding its ecosystem through partnerships with major technology and hardware providers, such as NVIDIA, Deloitte, and Oracle, to enhance its offerings and scale faster [19][31][32] Management Commentary on Operating Environment and Future Outlook - Management highlighted the acceleration of AI adoption across industries, with AI becoming a mandate rather than an exploration within innovation budgets [11] - The company expects 2024 revenue to be in the range of $82 million to $85 million, with 2025 revenue projected to be between $155 million and $175 million, driven by growth in automotive, AI agent, and restaurant businesses [53] - The company aims to achieve adjusted EBITDA profitability by the end of 2025, focusing on cost synergies and rationalizing its portfolio to capitalize on meaningful investment opportunities [54] Other Important Information - The company will have a prominent presence at CES 2025, showcasing automotive technologies and AI solutions, including voice generative AI for in-car experiences and a voice commerce ecosystem [31][32][33] - The Polaris foundation model, which leverages billions of real conversations and over a million hours of audio, is now in production and is expected to power all customer experiences in the future [34][35] Q&A Session Summary Question: Amelia Acquisition Integration and Business Retention - The company is still in the process of integrating the Amelia acquisition, with plans to retain high-margin, deep-integration components like AIOps and voice enablement, while potentially discontinuing lower-margin services like escalation support [58][59][60][61][62][63][64][65][66] Question: Technology Benchmarks and Model Training - The company's Polaris foundation model is benchmarked using real-life interactions and standardized tests, with a focus on reducing hallucination in AI responses. The model has been trained on billions of real conversations and over a million hours of audio [67][68][69][70] Question: Capacity and Resource Allocation Across Verticals - The company sees significant growth opportunities in automotive, restaurants, and enterprise AI agents, with a focus on scaling existing partnerships and expanding into new industries like healthcare and financial services [72][73][74][75][76][77][78][79] Question: Revenue Outlook and Acquisition Impact - The increased revenue outlook for 2024 and 2025 is driven by both organic growth and the impact of acquisitions, with significant cross-sell and upsell opportunities across the portfolio [80][81][82] Question: Backlog and Seasonality - The company's cumulative subscriptions and bookings backlog has doubled year-over-year, with a combined metric now exceeding $1 billion. Seasonality is expected to stabilize as the business shifts more towards SaaS [84][85][86][95][96] Question: M&A Appetite and Industry Focus - The company is open to strategic M&A opportunities, particularly in industries like energy and retail, but is currently focused on integrating recent acquisitions and driving growth in existing verticals [99][100][101][102][103][104][105] Question: Partnerships with Large AI LLM Companies - The company uses OpenAI as one of its vendors and has built an LLM-agnostic architecture, allowing it to arbitrate across multiple LLMs, including its own Polaris foundation model [106] Question: Restaurant Business Growth and Future Plans - The company is the leader in AI for restaurants, with seven of the top 20 QSRs as customers. Future plans include integrating voice AI across automotive and restaurant ecosystems, enabling voice commerce and advanced ordering capabilities [107][108]

SoundHound AI, Inc. (SOUN) came out with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this company would post a loss of $0.09 per share when it actually produced a loss of $0.11, delivering a surprise of -22.22%.Over the last four quarters, the company has surpas ...

Cash and Cash Equivalents - Cash and cash equivalents increased to $135.6 million as of September 30, 2024, compared to $95.3 million as of December 31, 2023[11] - Total unrestricted cash and cash equivalents as of September 30, 2024 was $135.6 million[25] - Total cash, cash equivalents, and restricted cash equivalents increased to $136.417 million as of September 30, 2024, from $109.035 million at the beginning of the period[18] Accounts Receivable and Contract Assets - Accounts receivable, net of allowances, rose to $13.6 million as of September 30, 2024, from $4.1 million as of December 31, 2023[11] - Contract assets and unbilled receivable, net of allowance for credit losses, increased to $24.6 million as of September 30, 2024, from $11.8 million as of December 31, 2023[11] - Unbilled receivables from Customer A and C accounted for 35% each of the company's unbilled receivables balance as of September 30, 2024[35] Total Assets and Liabilities - Total current assets grew to $181.2 million as of September 30, 2024, compared to $113.5 million as of December 31, 2023[11] - Total liabilities increased to $203.7 million as of September 30, 2024, from $123.0 million as of December 31, 2023[11] - Stockholders' equity significantly rose to $296.0 million as of September 30, 2024, from $28.2 million as of December 31, 2023[11] - Total assets measured at fair value increased from $90.5 million as of December 31, 2023, to $117.7 million as of September 30, 2024, primarily driven by growth in cash equivalents and treasury bills[184] Revenue and Net Loss - Revenues for the three months ended September 30, 2024, were $25.1 million, an increase of 89% compared to $13.3 million in the same period in 2023[13] - Net loss for the three months ended September 30, 2024, was $21.8 million, compared to a net loss of $20.2 million in the same period in 2023[13] - Net loss for the nine months ended September 30, 2024, was $92.082 million, compared to $70.934 million for the same period in 2023[18] - The company reported a net loss of $21.8 million for the three months ended September 30, 2024, and $92.1 million for the nine months ended September 30, 2024[24] - Revenue for the three months ended September 30, 2024 was $25.094 million, compared to $13.268 million for the same period in 2023, representing an 89.2% increase[95] - Revenue for the nine months ended September 30, 2024 was $50.150 million, compared to $28.726 million for the same period in 2023, representing a 74.6% increase[95] - Hosted services revenue for the three months ended September 30, 2024 was $17.546 million, compared to $4.262 million for the same period in 2023, representing a 311.7% increase[95] - Service subscriptions revenue for the three months ended September 30, 2024 was $19.029 million, compared to $0.491 million for the same period in 2023, representing a 3775.6% increase[99] - The United States accounted for $13.471 million of revenue for the three months ended September 30, 2024, compared to $0.792 million for the same period in 2023, representing a 1601.1% increase[96] Operating Expenses and Loss from Operations - Research and development expenses for the three months ended September 30, 2024, were $19.5 million, an increase of 53% compared to $12.8 million in the same period in 2023[13] - Total operating expenses for the three months ended September 30, 2024, were $58.9 million, an increase of 112% compared to $27.8 million in the same period in 2023[13] - Loss from operations for the three months ended September 30, 2024, was $33.8 million, compared to a loss of $14.5 million in the same period in 2023[13] - Net cash used in operating activities for the nine months ended September 30, 2024, was $75.755 million, compared to $54.395 million for the same period in 2023[18] - Depreciation and amortization expenses for the nine months ended September 30, 2024, were $8.115 million, up from $1.941 million in the same period in 2023[18] Stock-Based Compensation and Equity Issuance - Stock-based compensation for the three months ended September 30, 2024, was $9.1 million[14] - Stock-based compensation for the nine months ended September 30, 2024, was $23.292 million, up from $20.639 million in the same period in 2023[18] - Issuance of Class A common stock under the Equity Distribution Agreement resulted in $48.3 million in additional paid-in capital[14] - Issuance of Class A common stock for equity incentive awards resulted in $436,000 in additional paid-in capital[14] - Issuance of Class A common stock upon acquisition of Amelia resulted in $23.9 million in additional paid-in capital[14] - Proceeds from sales of Class A common stock under the Sales Agreement and Equity Distribution Agreement were $287.271 million for the nine months ended September 30, 2024[18] - Total additional paid-in capital increased to $980.150 million as of September 30, 2024, from $585.699 million as of September 30, 2023[16] - The company sold 37,907,219 shares of common stock under the Sales Agreement, raising $137.3 million in gross proceeds and $133.8 million in net proceeds[156] - Under the Equity Distribution Agreement, the company sold 31,694,198 shares of common stock, raising $150.0 million in gross proceeds and $146.2 million in net proceeds[159] - The company granted a total of 9,254,425 and 13,646,611 RSUs during the three and nine months ended September 30, 2024, respectively[171] - Total unrecognized stock-based compensation expense related to unvested RSUs with service conditions was approximately $76.5 million as of September 30, 2024[172] - Total unrecognized stock-based compensation expense related to unvested Performance-based RSUs was approximately $8.6 million as of September 30, 2024[173] - Stock-based compensation expense for the three months ended September 30, 2024, was $9.06 million, compared to $6.69 million for the same period in 2023[178] Acquisitions and Goodwill - Goodwill and intangible assets, net, were recorded at $111.7 million and $182.6 million, respectively, as of September 30, 2024, following recent acquisitions[11] - The company completed the acquisition of Synq3, Inc. on January 3, 2024, and Amelia Holdings, Inc. on August 6, 2024[23] - The fair value of contingent earnout consideration under SYNQ3 and Amelia acquisitions was $73.2 million[20] - The company acquired SYNQ3 for a total preliminary purchase consideration of $15.7 million, including $3.9 million in cash and 5,755,910 shares of Class A Common Stock[45][47] - The SYNQ3 acquisition is expected to expand the company's AI customer service solutions and accelerate the deployment of generative AI capabilities in the restaurant industry[46] - The company agreed to pay up to $0.8 million in cash and 1,434,936 shares of Class A Common Stock to certain SYNQ3 stockholders based on tiered annual revenue targets for fiscal years 2024, 2025, and 2026[51] - The company acquired Amelia Holdings for a total preliminary purchase consideration of $103.9 million, including 3,809,520 shares of Class A Common Stock and $8.4 million in cash for seller transaction expenses[59] - The Amelia acquisition is expected to strengthen the company's position in voice and conversational AI and allow entry into new industries such as healthcare, insurance, financial services, and retail[58] - The company agreed to issue up to 16,822,429 shares of Class A Common Stock to Amelia selling shareholders based on achievement of certain revenue targets in fiscal years 2025 and 2026[59] - The company recognized $1.9 million in acquisition-related expenses for the nine months ended September 30, 2024, primarily related to the SYNQ3 and Amelia acquisitions[57] - The company recorded goodwill of $6.039 million from the SYNQ3 acquisition, reflecting expected synergies from increased revenue opportunities and cost savings[54] - The company assumed $121.5 million in senior secured term loan facility from Amelia as part of the acquisition[60] - The company recorded a $0.5 million loss related to the Contingent Amelia Earnout Consideration for the three and nine months ended September 30, 2024[63] - The preliminary purchase price for the acquisition is $103.886 million, including $8.407 million in cash paid, $15.291 million in equity consideration, $8.628 million in equity consideration in escrow, and $71.560 million in contingent earnout consideration[65] - Identified assets acquired total $192.095 million, including $174.500 million in intangible assets, $8.239 million in accounts receivable, and $1.128 million in cash and cash equivalents[65] - Liabilities assumed total $193.900 million, including $70.000 million in short-term debt, $23.144 million in deferred revenue, and $14.839 million in accounts payable[65] - Goodwill acquired on the acquisition is $105.691 million, which includes expected synergies from increased revenue opportunities and cost savings[65] - SYNQ3 contributed revenue of $2.8 million and $8.9 million, and net loss of $1.9 million and $5.2 million, for the three and nine months ended September 30, 2024, respectively[68] - Amelia contributed revenue of $15.6 million and net loss of $0.4 million for the three and nine months ended September 30, 2024[68] - Unaudited pro forma revenue for the three and nine months ended September 30, 2024, is $33.766 million and $104.154 million, respectively, with net losses of $31.943 million and $123.192 million[70] - The Company incurred $4.8 million in acquisition-related expenses during the three months ended September 30, 2024[67] - Developed technology, customer relationships, and trade names acquired have preliminary fair values of $98.900 million, $68.600 million, and $7.000 million, respectively, with useful lives of 7.0, 7.0, and 5.0 years[67] - The Company completed an immaterial acquisition on June 14, 2024, for a total preliminary purchase consideration of $1.0 million, recognizing a preliminary gain on bargain purchase of $1.2 million[73] - Goodwill increased by $111.730 million during the nine months ended September 30, 2024, primarily due to the acquisitions of SYNQ3 and Amelia[105] - Intangible assets had a net carrying value of $182.579 million as of September 30, 2024, with developed technology accounting for $102.067 million of the total[107] - Future amortization expense of intangible assets is expected to be $30.334 million in 2025 and $29.372 million in 2026[109] Debt and Financing - Long-term debt decreased to $39.7 million as of September 30, 2024, from $84.3 million as of December 31, 2023[11] - Contingent acquisition liabilities were recorded at $74.5 million as of September 30, 2024[11] - Payments on Term Loan and Amelia Debt totaled $175.602 million for the nine months ended September 30, 2024[18] - The company incurred $6.0 million in stated interest and $1.5 million in interest expense related to the debt discount for the nine months ended September 30, 2024, under the Term Loan[131] - The company prepaid $105.6 million on June 7, 2024, to fully settle the Term Loan, including a $5.0 million prepayment premium and $0.6 million in transaction expenses, resulting in a $15.6 million loss on debt extinguishment[132] - The company assumed $121.5 million in debt from the Amelia Acquisition, with $70.0 million paid in cash and 2,943,917 shares of Class A common stock issued to settle fees. The remaining balance is $39.7 million, maturing on June 30, 2026[134] - As of September 30, 2024, the company's long-term debt carrying value was $39.7 million, down from $84.3 million as of December 31, 2023[135] Customer Concentration - Customer A accounted for 12% of revenue for the three months ended September 30, 2024, and 19% for the nine months ended September 30, 2024[36] - Customer C accounted for 16% of revenue for the nine months ended September 30, 2024[36] Contingent Liabilities and Litigation - Contingent holdback consideration decreased from $2.55 million as of March 31, 2024, to $731,000 as of September 30, 2024, due to measurement period adjustments and settlements[186] - Contingent earnout consideration increased significantly from $4.41 million as of June 30, 2024, to $74.45 million as of September 30, 2024, largely due to the acquisition of Amelia[188] - The company recognized a loss of $0.5 million related to contingent holdback consideration for the nine months ended September 30, 2024[186] - The company recognized a gain of $1.5 million and a loss of $1.2 million related to contingent earnout consideration for the three and nine months ended September 30, 2024, respectively[188] - The risk-free interest rate used for fair value measurement of contingent holdback consideration decreased from 4.6% in January 2024 to 3.9% in September 2024[187] - The company recorded a $1.9 million liability for accrued litigation liabilities as of September 30, 2024, related to a reversed judgment in favor of TEBO[114] - A $3.4 million liability was recorded for potential sales tax exposure as of September 30, 2024, up from $0.2 million as of December 31, 2023[115] Stock and Warrants - Total Class A common stock shares outstanding as of September 30, 2024, were 336,481,401, compared to 208,975,388 as of September 30, 2023[16] - The company issued 2,269,982 shares of Class A Common Stock in March 2024 from the cashless exercise of Term Loan Warrants, with no warrants outstanding as of September 30, 2024[117] - As of September 30, 2024, there were 3,665,996 Public Warrants and Private Warrants issued and outstanding, with no exercises during the three and nine months ended September 30, 2024 and 2023[123] - The company raised $25.0 million by issuing 835,011 shares of Series A Convertible Preferred Stock, all of which were converted to Class A Common Stock by September 30, 2024[138] - During the nine months ended September 30, 2024, 475,005 shares of preferred stock were converted into 16,624,215 shares of Class A Common Stock[143] - As of September 30, 2024, the company had 284,248 shares remaining for issuance under the 2022 Incentive Plan[161] - 816,479 shares of Class A Common Stock were issued under the 2022 Employee Stock Purchase Plan as of September 30, 2024[162] - The company adopted the 2024 Employment Inducement Incentive Award Plan, reserving 6,000,000 shares of Class A Common Stock, with no shares issued as of September 30, 2024[163] - Total unrecognized stock-based compensation expense related to unvested stock options was approximately $1.9 million, expected to be recognized over a weighted-average period of 0.91 years[166] Technology and Intellectual Property - The company's voice AI technology processes billions of interactions annually and powers millions of products and services globally[197] - SoundHound holds over 155 granted patents and has more than 115 patents pending, covering areas such as speech recognition and natural language understanding[199] - The company's Houndify platform offers over 100 content domains, enabling developers to leverage its voice AI technology for various applications[198] - SoundHound provides disruptive technologies superior to alternatives, offering better terms, brand control, user experience customization, and data access[203] - The company aims to win on technology and brand control dimensions, offering a white-label solution for customers to maintain brand and user experience[204] - SoundHound's platform enables product creators to generate additional revenue through Voice AI, incentivizing platform adoption[205] Future Commitments and Obligations - The company committed to pay a minimum of $98.0 million in cloud costs over a seven-year period under an exclusive agreement with a cloud service provider[111] - Aggregate non-cancelable future minimum payments as of September 30, 2024, total $80,750 thousand, with $24,000 thousand due in both 2027 and 2028[113] - The aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts was $66.9 million as of September 30, 2024, with $40.9 million expected to be recognized within one year[104] Restructuring and Other Expenses - The company recorded $

Revenue and Growth - Total revenues for September 2024 reached $25,094,000, a 89.5% increase from $13,268,000 in September 2023[2]. - Total current assets rose to $181,209,000 as of September 30, 2024, compared to $113,542,000 at December 31, 2023, marking a 59.5% increase[1]. - Cash flows provided by financing activities totaled $115,445 thousand for the nine months ended September 30, 2024, compared to $155,175 thousand in the same period of 2023, indicating a decrease of 25.7%[3]. Expenses and Losses - Operating expenses for September 2024 totaled $58,861,000, up from $27,798,000 in September 2023, representing a 111.2% increase[2]. - The company reported a loss from operations of $33,767,000 for September 2024, compared to a loss of $14,530,000 in September 2023, reflecting a 132.5% increase in operational losses[2]. - Net loss for September 2024 was $21,751,000 compared to a net loss of $20,197,000 in September 2023, indicating a 7.7% increase in losses[2]. - Net loss for the nine months ended September 30, 2024, was $92,082 thousand, compared to a net loss of $70,934 thousand for the same period in 2023, representing a 29.5% increase in losses[3]. Cash and Assets - Cash and cash equivalents increased to $135,606,000 as of September 30, 2024, from $95,260,000 at December 31, 2023, reflecting a 42.3% growth[1]. - Total cash, cash equivalents, and restricted cash equivalents at the end of the period were $136,417 thousand, up from $109,921 thousand at the end of the previous year, marking a 24.0% increase[4]. - Goodwill and intangible assets combined reached $294,309,000 as of September 30, 2024, indicating significant investment in acquisitions[1]. Liabilities and Deficits - Total liabilities increased to $203,667,000 as of September 30, 2024, up from $122,954,000 at December 31, 2023, representing a 65.5% rise[1]. - The company’s accumulated deficit grew to $(684,461,000) as of September 30, 2024, compared to $(592,379,000) at December 31, 2023, indicating a worsening financial position[1]. Operational Metrics - The weighted-average common shares outstanding for September 2024 were 360,385,812, compared to 242,022,268 in September 2023, showing a 49% increase[2]. - Net cash used in operating activities increased to $75,755 thousand for the nine months ended September 30, 2024, from $54,395 thousand in the prior year, reflecting a 39.3% increase[3]. - Deferred revenue increased to $8,993 thousand for the nine months ended September 30, 2024, compared to $5,532 thousand in the prior year, representing a 62.5% increase[3]. Other Financial Activities - Cash paid for interest during the nine months ended September 30, 2024, was $4,448 thousand, down from $7,945 thousand in the same period of 2023, a decrease of 44.4%[4]. - Stock-based compensation increased to $23,292 thousand for the nine months ended September 30, 2024, compared to $20,639 thousand in the prior year, reflecting an increase of 12.8%[3]. - The company reported a loss on early extinguishment of debt amounting to $15,587 thousand for the nine months ended September 30, 2024, compared to $837 thousand in the same period of 2023[3]. - The company made payments related to acquisitions totaling $11,732 thousand for the nine months ended September 30, 2024[3]. - Cash paid for income taxes was $1,677 thousand for the nine months ended September 30, 2024, slightly up from $1,645 thousand in the same period of 2023[4].

Group 1 - The article discusses the initiation of coverage for Soundhound AI, Inc. (NASDAQ: SOUN) with a "Hold" rating, indicating a cautious outlook on the stock [1] - The analysis highlights the company's expansion efforts as a key factor in the investment thesis [1] - The author emphasizes the importance of filtering vast amounts of information to identify critical investment ideas [1] Group 2 - The article mentions that the chief investment analyst operates a group called Beyond the Wall Investing, which provides insights similar to those used by institutional market participants [1] - There is a promotion for a subscription service that offers access to high-quality analysis of Wall Street buying and selling ideas [1]

Earnings and Financial Performance - SoundHound AI (SOUN) is scheduled to report its third-quarter 2024 results on Nov 12, with a Zacks Consensus Estimate for revenues of $23.68 million, indicating a 78.47% growth from the year-ago quarter [1] - The consensus mark for loss is pegged at 8 cents per share, unchanged over the past 60 days, compared to a loss of 9 cents per share in the year-ago quarter [1] - SOUN's earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, missed it twice, and met it once, with an average negative surprise of 5% [2] Growth Drivers and Market Opportunities - SOUN offers conversational intelligence through Voice AI solutions in 25 languages, benefiting from the growing demand for Generative AI and large language models [3] - The company's AI-driven customer service solutions, such as Smart Ordering, Employee Assist, and Smart Answering, cater to the restaurant and auto sectors, contributing to revenue growth [4] - Smart Answering has opened a massive market in customer service, boosting top-line growth [5] - SOUN had a $723 million cumulative subscriptions and bookings backlog at the end of Q2 2024, roughly doubling year-over-year, with an average duration of seven years [6] Stock Performance and Valuation - Year-to-date, SOUN shares have surged 227.8%, outperforming the broader Zacks Computer & Technology sector (31.1%) and the Zacks IT Services industry (14.2%) [7] - SOUN's forward 12-month Price/Sales ratio is 17.58, higher than its median of 15.33 and the Zacks Computer & Technology sector's 6.41 [8] Market Expansion and Strategic Moves - SOUN's addressable market is worth over $140 billion, spanning automotive, restaurants, customer service, entertainment, Smart TVs, and IoT devices [10] - The company has more than 270 patents, with over 155 granted and more than 115 pending [10] - In Q2 2024, SOUN's AI services were employed by existing restaurant customers like Jersey Mike's and new clients, including Beef 'O' Brady's, which launched SOUN's voice AI ordering system across corporate locations [11] - The global light vehicle auto market TAM is expected to grow from 88 million to 95 million units by 2028, while the restaurant market TAM is projected to grow from $3.3 trillion to $4.4 trillion by 2028 [12] - SOUN has expanded its footprint in the automotive industry by integrating its SoundHound Chat AI voice assistant with ChatGPT into vehicles across 11 European markets [13] - The company signed a new contract in Q2 2024, becoming the first to introduce ChatGPT-style capabilities to in-vehicle voice assistants in Latin America [14] - SOUN's acquisition of SYNQ3 in early 2024 strengthened its presence in the restaurant sector, while the acquisition of Allset's key assets enhanced its Voice AI capabilities [15] - The acquisition of conversational AI leader Amelia is expected to create a combined clientele of roughly 200 marquee customers, with earnings accretion anticipated by the second half of 2025 [16] Conclusion - SOUN is well-positioned to benefit from the strong TAM of global automotive and restaurant markets, driven by its innovative portfolio [17]

Stock Performance - SoundHound AI shares surged 22.1% in the last trading session, closing at $6.95, driven by higher-than-usual trading volume [1] - The stock has gained 22.9% over the past four weeks [1] - SAIC shares declined 0.2% in the last trading session, closing at $148.94, with a 4.1% return over the past month [3] Financial Expectations - SoundHound AI is expected to post a quarterly loss of $0.08 per share, representing a year-over-year improvement of 11.1% [2] - Revenue for SoundHound AI is projected at $23.68 million, a 78.5% increase from the year-ago quarter [2] - SAIC's consensus EPS estimate for the upcoming report remains unchanged at $2.17, reflecting a 4.4% decline from the previous year [4] Business Development - SoundHound AI is expanding its portfolio and client base, offering Voice AI solutions in multiple languages for cloud and device-based systems [1] Industry Context - SoundHound AI operates in the Zacks Computers - IT Services industry, alongside SAIC [3] - SAIC currently holds a Zacks Rank of 2 (Buy), while SoundHound AI has a Zacks Rank of 3 (Hold) [3][4]