As of September 30, 2024, SoundHound AI, Inc. reported significant financial growth, with total revenues reaching $25.1 million for the third quarter, an 89% increase from $13.3 million in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $50.2 million, up 75% from $28.7 million year-over-year. This growth was primarily driven by a substantial rise in service subscription revenue, which surged to $19.0 million in Q3 2024, compared to just $491,000 in Q3 2023. However, product royalties revenue declined by 53% to $6.0 million in Q3 2024.
Despite the revenue growth, the company reported increased operating expenses, totaling $58.9 million for Q3 2024, a 112% rise from $27.8 million in Q3 2023. The nine-month operating expenses also increased by 58% to $134.4 million. The loss from operations for Q3 2024 was $(33.8) million, compared to $(14.5) million in Q3 2023, while the net loss for the same period was $(21.8) million, slightly higher than $(20.2) million in Q3 2023. For the nine months, the net loss increased to $(92.1) million from $(70.9) million in the prior year.
The company’s total assets surged to $499.7 million as of September 30, 2024, up from $151.1 million at the end of 2023, largely due to cash and cash equivalents increasing to $135.6 million. Total stockholders’ equity also rose significantly to $296.0 million from $28.2 million at the end of 2023. However, the accumulated deficit widened to $(684.5) million.
Strategically, SoundHound completed two major acquisitions: SYNQ3 on January 3, 2024, for $15.7 million, and Amelia Holdings, Inc. on August 6, 2024, for $103.9 million. These acquisitions are aimed at enhancing the company’s capabilities in voice and conversational AI, with Amelia contributing significantly to revenue in the third quarter. The company also incurred acquisition-related expenses totaling $0.8 million for the nine months ended September 30, 2024.
In terms of workforce, SoundHound had previously implemented a restructuring plan in January 2023, reducing its workforce by approximately 40% to improve profitability. The company continues to face challenges, including the need for additional funding and the expectation of incurring substantial losses in the foreseeable future.
About SOUNDHOUND AI, INC.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.