SoundHound AI Reports Second Quarter Revenue Increase of 42%, Adjusted EBITDA Improves 50%, Strong Increase in Cash Position, Investment in Generative AI Foundation Model

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[{"type":"text","content":" SANTA CLARA, Calif.--(BUSINESS WIRE)--\nSoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice artificial intelligence, today reported its financial results for the second quarter of 2023.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230808072152/en/SoundHound AI Reports Second Quarter Revenue Increase of 42%, Adjusted EBITDA Improves 50%, Strong Increase in Cash Position, Investment in Generative AI Foundation Model (Graphic: Business Wire)\n“We mark another quarter of strong growth, with our AI powering millions of devices and services and billions of successful interactions per year. We expect our unique Generative AI integration will result in faster adoption and even greater capabilities,” said Keyvan Mohajer, CEO and Co-Founder of SoundHound. “And now, we are combining our vast amounts of experience and data to create the first of its kind, multimodal foundation model, supporting speech-to-meaning and enabling incredible new experiences.”\n\n\nFinancial Highlights - Second Quarter\n\n\n\nReported revenue was $8.8 million, an increase of 42% year-over-year\n\n\n\nGross margin was 79%, an improvement of approximately 1,900 basis points compared to 60% in the prior year\n\n\n\nOperating loss was $16.4 million, an improvement of 43% year over year\n\n\n\nNet loss was $21.9 million, an improvement of 28% year over year\n\n\n\nEarnings per share was a net loss of ($0.10), compared to ($0.19) in the previous year\n\n\n\nAdjusted EBITDA (non-GAAP) was a loss of ($9.9) million, a year-over-year improvement of 50%\n\n\n\nSignificantly strengthened balance sheet, the company has approximately $130 million in total cash as of June 30, 2023\n\n\n\n“In the second quarter we significantly improved our liquidity position and continued our strong growth trajectory, all while making the business more efficient,” said Nitesh Sharan, CFO of SoundHound. “We are judiciously balancing between our profit objectives and the massive growth opportunities in front of us.”\n\n\nBusiness Highlights - Second Quarter and Recent Highlights\n\n\n\nGenerative AI Foundation Model: training an innovative multi-modal foundation model supporting both audio and text, combining the power of Large Language Models with SoundHound’s Speech-to-Meaning® technology using over a million hours of f...

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