SoundHound AI, Inc. · NASDAQ:SOUN
SoundHound AI — SPAC Merger (November 2021)
52 slides from SoundHound AI's SPAC merger presentation, Nov 16, 2021
Slide 1: Houndify Everything
Houndify Everything November 2021 ©2021 SoundHound Inc.
Slide 2: Disclaimer and Other Important Information
Disclaimer and Other Important Information This Presentation (the “Presentation”) is for informational purposes only to assist interested parties in evaluating a proposed initial business combination (the “Transaction” or “Business Combination”) among Archimedes Tech SPAC Partners Co. ("Archimedes")
Slide 3: Disclaimer and Other Important Information
Disclaimer and Other Important Information These forward-looking statements are subject to a number of risks and uncertainties, including, the inability of the parties to successfully or timely consummate the Transaction, including the risk that any required regulatory approvals are not obtained, ar
Slide 4: SoundHound + Archimedes
SoundHound + Archimedes A strong combination of business, financial, and technical leadership • Technical founder and • Global public company • Technology veteran and entrepreneur finance leader operations leader • 20+ years of experience • Formerly CFO of Global • Operations, marketing, scaling compa
Slide 5: SoundHound Inc. Investment Highlights
SoundHound Inc. Investment Highlights Best-in-Class Voice AI Technology With Over 15 Years of Development and Innovation • Fully integrated voice AI solution including cloud, embedded, and hybrid solutions • Industry-leading Speech-to-Meaning® and Speech-to-Text technology surpassing competitors in
Slide 6: Company Overview
Company Overview Creating the next disruption in human-computer interfaces
Slide 7: “This is Insane!”
“This is Insane!” Number 1 post on Reddit with 2+ million views in one day http://www.youtube.com/watch?v=px7d3tUkjes 7 ©2021 SoundHound Inc.
Slide 8: Our Vision
A conversational voice AI platform that: exceeds human capabilities delivers value and delight to end users Our Vision creates an ecosystem with billions of products enables innovation and monetization opportunities for product creators. Confidential and Proprietary 8 ©2021 SoundHound Inc.
Slide 9: The World Is Evolving into a Voice-Enabled Reality
The World Is Evolving into a Voice-Enabled Reality Voice AI is poised to create the next major disruption in computing Computers Mobile Voice AI Keyboard, mouse, screen Touchscreen IoT, hands-free, ambient Interfaces are integrated & multimodal Every company Every company TODAY: Every company needed
Slide 10: Massive Market Opportunity for Voice AI
Massive Market Opportunity for Voice AI Total Addressable Market (2026E)1 IoT Auto 90% 75B Of new vehicles globally are Connected devices Banking Retail projected to have voice worldwide by 20253 assistants by 20282 $160B+ TAM Contact Center Hospitality d 8B+ 94% Healthcare Number of voice assistant
Slide 11: 75 Billion IoT Products Untapped
75 Billion IoT Products Untapped Limited or no interface Voice AI unleashes the power of the Internet to users Voice AI brings products to life Voice AI converts IoT to AIoT Source: Statista projected number by 2025 11 ©2021 SoundHound Inc.
Slide 12: Technology Leaders Disrupted Markets and Expanded Upon Them
Technology Leaders Disrupted Markets and Expanded Upon Them Positioned to be the leader in Human-Computer interaction and the next generation of search monetization • Disrupted desktop computing • Disrupted mobile • Operating system • Monetization platform • Business value for Product • Business val
Slide 13: Growing Void and Demand for an Independent Voice AI Platform
Growing Void and Demand for an Independent Voice AI Platform The Rise of Independent Disruptors Voice AI from Big Tech SoundHound Opportunity • Focused resources • Conflict of interest • Disruptive Technology • Fueled by AI democratization of • Hidden agenda • Custom voice assistants computing platfo
Slide 14: Established Growth and Adoption With Significant Pipeline
Established Growth and Adoption With Significant Pipeline An inflection point in our global reach and scale 100M Monthly Houndify Queries 2x in ~ last 6 months Viral Demo: Platform “This Is Insane” Company Founded Multiple customer announcements Stealth Voice AI forthcoming Innovation 2005 2015 2016 2
Slide 15: Global Presence and Language Reach
Global Presence and Language Reach Roadmap for 38 languages and 114 acoustic variations Available Now Roadmap English (US) Cantonese English (UK) Czech English (AU) Croatian English (India) Danish Spanish Farsi (Persian) Spanish (Mexico) Finnish Portuguese Greek Portuguese (Brazil) Hindi French Hung
Slide 16: SoundHound Inc. Leadership
SoundHound Inc. Leadership Long-tenured team with deep expertise and Tim Stonehocker • Audio recognition algorithms, search technologies, and scalable systems proven ability to attract and retain the best talent CTO • B.S. Comp. Science, M.A. Music, Stanford • Previously at Amazon/A9 Lisa Flattery •
Slide 17: Backed by Leading Strategic and Financial Investors
Backed by Leading Strategic and Financial Investors Over $280M raised from a cross-industry group of multinational investors with a combined reach of over 2B users Select Strategic Investors Select Financial Investors Note Includes $15M of convertible debt converted at merger event. 17 ©2021 SoundHo
Slide 18: Technology Overview
Technology Overview Breakthrough innovation with established adoption and growing momentum
Slide 19: Strong Cross-Industry Adoption and Integration
Strong Cross-Industry Adoption and Integration http://www.youtube.com/watch?v=1BjV_cE1RQ0 19 ©2021 SoundHound Inc.
Slide 20: Adoption From Market Leaders
Adoption From Market Leaders Custom branded voice assistants powered by Houndify Select Products In Market “Partnering with SoundHound Inc. and integrating such a natural, conversational voice interface in our • Mercedes: MBUX (multiple models) vehicles, allows the driving experience to become even
Slide 21: Technology Breakthroughs
Technology Breakthroughs Unmatched innovations in voice AI Deep Meaning Speech-to-Meaning® Collective AI® Understanding® Large Data Structures AUTOMATIC NATURAL SPEECH MEANING Weighted Programming SPEECH LANGUAGE RECOGNITION UNDERSTANDING Patterns Instructions Speech Meaning or Text Deep Meaning Und
Slide 22: Speech-to-Meaning®
Speech-to-Meaning® Breakthrough technology that understands speech like humans TRADITIONAL APPROACH Typical technologies use a two-step process: Speech-to-text and then AUTOMATIC NATURAL text-to-meaning SPEECH SPEECH LANGUAGE MEANING TRANSCRIPTION UNDERSTANDING RECOGNITION Humans don't convert speec
Slide 23: Deep Meaning Understanding®
Deep Meaning Understanding® Enabling natural and complex conversations Show me hotels in San Francisco that are less than $600 but not less than $300, are pet friendly, Large Data have a gym and a pool, with at Structures least 3 stars, staying for 2 nights, ✓ Understands complex and don’t include a
Slide 24: Collective AI®
Collective AI® A global AI that knows the answer to any question and can perform any task Extensible platform for developer collaboration to create a global AI that is always learning and is larger than the sum of its parts: • Interconnected domains and knowledge graphs • Crowdsourced to domain expe
Slide 25: Competitive Advantage
Competitive “Big Tech” 1 “Big Tech” 2 “Big Tech” 3 Legacy Vendors “Big Tech” 4 Advantage Speech-to-Meaning® (Real-Time ASR+NLU) ✓ Basic NLU ✓ ✓ ✓ ✓ ✓ ✓ Deep Meaning Understanding® (Complex Conversation Support) ✓ NLU Platform ✓ ✓ ✓ Collective AI®: Extensible Platform ✓ Dual Hybrid Technology ✓ ✓ Emb
Slide 26: Strong Patent Protection
Strong Patent Protection 227 Patents: 81 granted, 146 pending Speech Recognition ASR accuracy, SLMs, AM training, pronunciations, phrase spotting, EOU detection, speech attribute detection Natural Language Domains, grammars & phrasings, parsing & interpretation, slot values, disambiguation & modal d
Slide 27: Houndify Ecosystem Extends Product and Brand Value
Houndify Ecosystem Extends Product and Brand Value Three use case categories combine to unlock the value of IoT products and generate revenue • Core product use cases “Go back 30 seconds” • Expands beyond “Add this show to my favorites” limited/complex UI • Cloud or Edge/On-device • Access global co
Slide 28: Financial Overview
Financial Overview Growth in usage fuels financial momentum and strengthens go-to-market strategy
Slide 29: Accelerating Growth in Houndify Queries
Accelerating Growth in Houndify Queries Delivering 100M+ monthly queries with a total of 1B expected in 2021 as products continue to launch and usage grows Monthly Houndify Queries 125M 100M Doubled in ~6 months 75M 50M 25M 0M 2016 2017 2018 2019 2020 6/2021 29 ©2021 SoundHound Inc.
Slide 30: Growth In Bookings Provides a Foundation For Revenue Growth
Growth In Bookings Provides a Foundation For Revenue Growth Bookings backlog expected to double year-over-year Forecasted Rev. by Cust. Relationship (% gr rev) Proj. Annual Bookings Backlog & Gross Revenue (in millions) • 100% of projected revenue in 2021 is driven • Bookings are represented by mult
Slide 31: Three Revenue Generation Pillars
Three Revenue Generation Pillars Established royalty and subscription revenues creating an ecosystem of voice advertising and commerce Houndified Products Houndified Services Houndified Ads + Commerce Voice-enabled products across Customer service, food ordering, content, Revenue from users of Houndifie
Slide 32: Monetization Growth
Monetization Growth Increased usage incentivizes growth in monetized services Monetization Flywheel Compound Market Impact Monetization improves adoption • Free or reduced cost to implement Services and improves adoption by products and Users make domains get services queries and increased revenue t
Slide 33: Projected Revenue Contribution by Category
Projected Revenue Contribution by Category Commentary Contribution by Revenue Category (% gross revenue) Three revenue “pillars” generating compounded growth: 1. Royalty revenue from Houndified products • Includes cars and IoT products. 2. Subscription revenue from Houndified services • Includes custo
Slide 34: Extensive Selection of Voice AI Content and Services
Extensive Selection of Voice AI Content and Services Available as white label with full redistribution rights Select Content Domain Partners Houndify Responds With the Best Content Domain “What does the check engine light mean?” “My tire is low, what is the “Will it be raining at PSI I need to fill i
Slide 35: Robust Projected Growth Profile
Robust Projected Growth Profile Summary Financials (in millions) (2)[3] (1) Source: Management estimates. Note: Bookings, forecasted Gross Profit, and Adj. EBITDA are non-GAAP measures. Forecasted Gross Profit excludes depreciation and amortization. Financials audited in accordance with PCAOB auditing
Slide 36: Gross Monetization – Implied Revenue Per User
Gross Monetization – Implied Revenue Per User SoundHound Projection Historical Industry KPIs Aggregate Monetization per User / Year Facebook (Global) ARPU Google (Global) ARPU SoundHound’s projected revenue per Facebook (US) ARPU: $164 Google (US) ARPU: $281 device is conservative relative to Facebo
Slide 37: SoundHound’s Undeniable Criteria For Adoption
SoundHound’s Undeniable Criteria For Adoption Breakthrough Houndify Voice AI technology with 5+ year Technology Outdated Current Disruptive lead on competition Legacy Big Tech Houndify Brand Control Lose brand Independent/White Label Houndify offers full control over brand, users, and data Big Tech
Slide 38: Transaction Overview
Transaction Overview SoundHound Inc.
Slide 39: Transaction Overview
Transaction Overview (in millions, except per share figures) Sources & Uses Pro Forma Valuation Sources of Funds Uses of Funds Pro Forma Ownership Pro Forma Revenue Multiples Note: Assumes no redemptions from SPAC trust account and assumes new shares are issued at a price of $10.00. Pro forma shares
Slide 40: Attractive Valuation Relative to Revenue and Revenue Growth
Attractive Valuation Relative to Revenue and Revenue Growth Incumbent Disruptive AI and Monetization Voice AI 2024P 2024P Revenue 2024P Revenue Revenue TEV / Revenue 2021E-2024P 2021E-2024P 2021E-2024P Revenue Revenue Revenue Revenue CAGR Source: Management estimates, Company materials , Wall Street
Slide 41: Attractive Valuation Relative to EBITDA and Profitability
Attractive Valuation Relative to EBITDA and Profitability Incumbent Disruptive AI and Monetization Voice AI 2025P 2024P EBITDA 2024P EBITDA EBITDA TEV / EBITDA 2025P 2026P 2024P EBITDA 2024P EBITDA EBITDA EBITDA EBITDA Margins 41 ©2021 SoundHound Inc. Source: Management estimates, Company materials ,
Slide 42: Significant Near Term Value Creation Opportunity
Significant Near Term Value Creation Opportunity Peer Group 2022 Valuations Illustrative SoundHound Value Creation Opportunity TEV / 2022P Revenue Transaction Value Present Value at Peer Valuations (5) ($ in billions) Future value calculated based on outlined forward multiples applied to 2026E Revenu
Slide 43: Significant Medium to Long Term Value Creation Opportunity
Significant Medium to Long Term Value Creation Opportunity ($ in billions) SoundHound is the only independent provider of Voice AI across industries with a scalable monetization model Source: Management estimates, Company materials, Wall Street research, and FactSet as of 11/12/2021. 43 ©2021 SoundHo
Slide 44: Appendix
Appendix SoundHound Inc.
Slide 45: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adj. EBITDA Reconciliation (in millions) Source: Company financials.. 45 ©2021 SoundHound Inc.
Slide 46: Recent Strategic Developments
Recent Strategic Developments Strategic Partnership with Oracle • In August 2021, SoundHound entered into a strategic partnership with Oracle Corporation (“Oracle”), a leading global cloud infrastructure provider, to accelerate its global expansion • Increases availability of SoundHound’s services t
Slide 47: Significant Lead in Voice AI Technology and Adoption
Voice AI technology has high barriers to entry • Requires years of R&D • Very few competitors • Unlikely new players Significant Lead in Voice AI Technology and Adoption Many industry giants have tried and not succeeded Houndify maintains its technology lead on competition, with proven adoption and e
Slide 48: Diversity in Voice AI
Our world will be filled with smart devices and robots But they will not all have the same name We will have multiple assistants, with Diversity in Voice AI different names, varying expertise and unique personalities We will be living in a multi-assistant world, all connected to one Collective AI – a
Slide 49: Example Monetizable Scenario
Example Monetizable Scenario USER CAR I’m hungry I found several restaurants near your next exit. The first result is White Castle. User orders food I can take your order now and have it $ Transaction ready for pick up or deliver to your house. Would you like to hear top items on their menu? $ Recomm
Slide 50: Future Reality: Personalized Experience for Houndify users
Future Reality: Personalized Experience for Houndify users Unified and across products creates value across the ecosystem IoT Voice Biometrics Multi-Zone Audio • Allows for personal identification • Can better differentiate multiple • Works across Houndify products speakers, especially in automotive •
Slide 51: In-car sentence accuracy
In-car sentence accuracy In different conditions. Test performed by Houndify automotive customer. (%) 0 km/h 60 km/h 105 km/h 120 km/h Large Tech 89% 81% 58% 33% Company Houndify 95% 90% 78% 66% 51 ©2021 SoundHound Inc.
Slide 52: Houndify Everything
Houndify Everything November 2021 ©2021 SoundHound Inc.