SoundHound AI (SOUN) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 revenue of $34.5 million, up 101% year-over-year, and full-year revenue of $85 million, reaching the high end of guidance.

• Ended 2024 with $198 million in cash and no debt, positioning for growth in Agentic AI.

• Diversified business across automotive, restaurants, healthcare, energy, government, and retail, reducing customer concentration and expanding recurring revenue streams.

• Launched the third business pillar, voice commerce, and demonstrated end-to-end in-vehicle voice ordering at CES, driving strong OEM and merchant interest.

• Expanded partnerships and showcased innovations with Nvidia, Lucid Motors, LG, and others, reinforcing leadership in voice AI.

Financial highlights

• Q4 revenue: $34.5 million, up 101% year-over-year; full-year revenue: $85 million, up 85%.

• Q4 GAAP gross margin: 39.9%; non-GAAP gross margin: 52.1% (down sequentially due to acquisitions).

• Adjusted EBITDA loss: $16.8 million in Q4; full-year adjusted EBITDA loss: $61.9 million.

• Q4 GAAP net loss: $258.6 million, heavily impacted by non-cash fair value adjustments; non-GAAP net loss: $19 million; non-GAAP net loss per share: $0.05.

• Cumulative subscriptions and bookings backlog reached nearly $1.2 billion, up over 75% year-over-year, with an average duration of slightly over six years.

Outlook and guidance

• 2025 revenue outlook raised to $157–$177 million, with 40% of annual revenue expected in the first half.

• Committed to achieving adjusted EBITDA profitability by the end of 2025 through scale and cost synergies.

• Expect continued strong growth, driven by recurring SaaS revenue and expansion across verticals.