Earning Date, Transcript Summary & Report

Record Revenue Surge: Strongest quarter on record with $35 million in revenue, over 100% year-over-year increase.

Revenue Guidance Achievement: Achieved top-end of revenue guidance for the full year, indicating business acceleration.

Top-Line Growth CAGR Over 50%: Compound annual growth rate of over 50% in top-line growth over the last five years.

Significant Growth Metrics: Revenue increased by 8 times, queries by 7 times, and bookings by 5 times since going public.

Voice Commerce Ecosystem Launch: Unveiled a new voice commerce ecosystem, enhancing user convenience and creating monetizable opportunities for SoundHound.

Automotive Market Expansion: Strong traction in automotive with multiple POCs from notable automakers and winning four EV brands.

Healthcare Sector Contracts Success: Healthcare sector saw strong wins, including contracts with Duke Health and Wellstar Health System.

Restaurant Sector Expansion: Expansion in the restaurant sector with major brands like Burger King and Whataburger going live.

Contract with Coral Springs: Signed a contract with the City of Coral Springs in government and military sectors, showcasing growth in diverse industries.

New High-Value Energy Deal: Entered a new high seven-figure deal with a large energy customer, diversifying the business portfolio.

CES Engagement and Partnerships: Strong presence at CES with significant interest in new technologies and partnerships with industry leaders.

Subscription and Booking Growth: Achieved over 75% year-over-year growth in cumulative subscriptions and bookings backlog, indicating strong customer activity.

Customer Concentration Reduction: Reduced customer concentration significantly, with the largest customer representing only 14% of revenue in 2024.

Projected Revenue Growth: Expecting revenue growth in 2025 with an outlook of $157 million to $177 million, reflecting strong pipeline and demand.

Adjusted EBITDA Profitability Goal: Commitment to achieving adjusted EBITDA profitability by the end of 2025, indicating a focus on sustainable growth.

Gross Margin Decline: Q4 GAAP gross margin was 40%, down year-over-year, primarily due to the impact of the business and product mix of recent acquisitions.

Gross Margin Decline: Non-GAAP gross margin was 52%, down sequentially due to the inclusion of Amelia for a full quarter compared to only partial quarter in Q3.

R&D Expense Surge: R&D expenses were $20.4 million in Q4, reflecting a 60% year-over-year increase, primarily driven by acquisitions.

Sales and Marketing Expenses Surge: Sales and marketing expenses were $9.6 million in Q4, reflecting a 114% year-over-year increase, primarily driven by acquisitions.

G&A Expense Surge: G&A expenses were $16.4 million in Q4, reflecting a 115% year-over-year increase, primarily driven by acquisitions.

Contingent Liabilities Impact: The financials show a charge related to the change in fair value of contingent liabilities, significantly impacting GAAP loss from operations in Q4 by approximately $220 million.

Non-GAAP Net Loss Analysis: Non-GAAP net loss was $19 million and non-GAAP net loss per share was $0.05 in the quarter, adjusting for non-cash depreciation and amortization, M&A transaction costs, stock-based compensation, and other non-cash items.