The chart below shows how SOUN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SOUN sees a +13.20% change in stock price 10 days leading up to the earnings, and a -2.02% change 10 days following the report. On the earnings day itself, the stock moves by +1.66%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
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.
Negative
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.
SoundHound AI, Inc. (SOUN) Q4 2024 Earnings Call Transcript
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