We got some big news coming out of SoundHound Inc., folks. They just reported their financial results for the third quarter of 2023, and let me tell you, it’s looking pretty damn good for them. They’ve hit a record revenue of $13.3 million, marking a 52% increase from the last quarter. That’s no joke, man. They also forecasted a positive adjusted EBITDA for Q4. The reason for this strong performance is high demand for their products, like automotive assistants, AI features, and customer service solutions. These guys are on fire. They’re planning to roll out the first version of their Polaris initiative, a multimodal generative AI foundation model, in the next few weeks.
During the earnings call, they talked about how their products are in high demand, leading to a 52% increase in revenue from the previous quarter. Their adjusted EBITDA also saw a big improvement. They’re expanding their customer base in the automotive industry with partnerships with big names like Hyundai, Stellantis, and Togg. SoundHound’s voice-enabled employee assist technology is catching on in the restaurant industry, and they’re not stopping there. They’ve even completed the first phase of their Polaris initiative and their Q4 revenue guidance range is $16 million to $20 million. These guys are investing heavily in bringing industry-leading offerings to various verticals beyond 2023.
Their voice-enabled employee assist technology is really making waves in the restaurant industry. Employees are able to get instructions without having to stop and look at a manual or go ask someone. And it’s not just in-store – they’re using it for drive-thru ordering too, and it’s getting some real results. They’ve also got some big partnerships with companies like Jersey Mike’s and Krispy Kreme. They’re also doing some cool things in the automotive and IoT space. It’s some impressive stuff, man.
Now, let’s talk numbers. SoundHound’s market capitalization is sitting at $430.86M, with revenue of $36.15M in the last twelve months as of Q2 2023. They’ve got a negative P/E ratio of -3.83, but their revenue growth has been really impressive, with an 84.22% increase. They’ve got more cash than debt on their balance sheet, which is a good sign. But they’re burning through cash pretty quick, and analysts don’t think they’ll be profitable this year.
Overall, SoundHound is feeling pretty good about their position in the AI industry. They’ve got a really unique angle, and they’re making moves. It’s gonna be interesting to see where these guys go from here. Keep an eye on them, people. They’re doing some big things.