SoundHound AI, Inc. Announces Second Quarter Financial Results With $283 Million In Cumulative Bookings Backlog, Up More Than 3x Year-Over-Year
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“We are delighted to have kicked off our first quarter as a publicly listed company with strong business momentum. We have seen significant growth in bookings, user queries, customers, and new product launches,” said
Second Quarter Business Highlights
- Cumulative bookings backlog increased 207% year-over-year, marking the third straight quarter of triple-digit growth
- Monthly queries increased 3x since the start of 2021 and more than doubled year over year
-
Reported revenues were
$6.2 million , up 43% quarter-over-quarter, down year-over-year, although up 56% when excluding prior year one-time revenue impact derived from a customer upon the conclusion of a professional services contract - Announced several new and expanded relationships including Square, Hyundai, Stellantis and LG
-
Launched first-of-its-kind voice ordering solution
SoundHound for Restaurants with strong initial demand -
Commenced trading on NASDAQ on
April 28 th
“Despite broader macroeconomic volatility, our Q2 results demonstrate our accelerating growth,” said
Second Quarter 2022 Financial Highlights
|
Three Months Ended |
|||||||||||
(thousands) |
|
|
|
|||||||||
Cumulative bookings backlog1 |
$ |
283,431 |
|
$ |
229,827 |
|
$ |
92,305 |
|
|||
|
|
|
|
|
|
|
||||||
Revenues |
$ |
6,152 |
|
$ |
4,290 |
|
$ |
8,2792 |
|
|||
Operating expenses: |
|
|
|
|
|
|
||||||
Cost of revenues |
$ |
2,488 |
|
$ |
1,773 |
|
$ |
1,628 |
|
|||
Sales and marketing |
|
4,370 |
|
|
2,581 |
|
|
1,008 |
|
|||
Research and development |
|
18,862 |
|
|
16,650 |
|
|
14,023 |
|
|||
General and administrative |
|
9,362 |
|
|
4,003 |
|
|
4,119 |
|
|||
Total operating expenses |
$ |
35,082 |
|
$ |
25,007 |
|
$ |
20,778 |
|
|||
Operating profit (loss) |
$ |
(28,930 |
) |
$ |
(20,717 |
) |
$ |
(12,499 |
) |
|||
Net profit (loss) |
$ |
(30,668 |
) |
$ |
(25,103 |
) |
$ |
(14,651 |
) | |||
Net earnings (loss) per share |
|
(0.19 |
) |
|
(0.29 |
) |
|
(0.22 |
) |
|||
|
|
|
|
|
|
|
||||||
Adjusted EBITDA3 |
$ |
(20,015 |
) |
$ |
(17,037 |
) |
$ |
(9,770 |
) |
1) |
Cumulative bookings backlog is cumulative new bookings minus revenue associated with the booking in the current period. |
|
2) |
Reported revenues in the second quarter 2021 were impacted by a one-time recognition of |
|
3) |
Please see table below for a reconciliation from GAAP to non-GAAP. |
Second Quarter 2022 Summary Cash Flows
(thousands) |
Six Months Ended |
|||||||
|
|
|
||||||
Cash flows: |
|
|
|
|
||||
Net cash used in operating activities |
$ |
(46,767 |
) |
$ |
(32,625 |
) |
||
Net cash used in investing activities |
|
(982 |
) |
|
(111 |
) |
||
Net cash provided by financing activities |
|
90,167 |
|
|
35,254 |
|
||
Net change in cash and cash equivalents |
$ |
42,418 |
|
$ |
2,518 |
|
The Company’s cash and cash equivalents was
Business Outlook
Additional Information
On
Conference Call and Webcast
About
Forward Looking Statements
This press release contains forward-looking statements, which are not historical facts, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting SoundHound’s business including, current uncertainties associated with the COVID-19 pandemic, our inability to predict or measure supply chain disruptions resulting from the COVID-19 pandemic and other causes, the potential future revenue associated with our AI platform products and services; our rate of growth; our ability to predict direct and indirect customer demand for our existing and future products and to secure adequate manufacturing capacity; our ability to hire, retain and motivate employees; the effects of competition, including price competition within our industry segment; technological, regulatory and legal developments that uniquely or disproportionately impact our industry segment; developments in the economy and financial markets and other risks described in the Prospectus filed
Non-GAAP Measures of Financial Performance
To supplement our financial statements, which are presented on the basis of
Reconciliation of GAAP Net Profit (Loss) to Non-GAAP Adjusted EBITDA
(thousands) |
Three Months Ended |
|||||||||||
|
|
|
|
|||||||||
GAAP net profit (loss) |
$ |
(30,668 |
) |
$ |
(25,103 |
) |
$ |
(14,651 |
) |
|||
|
|
|
|
|
|
|
||||||
Adjustments: |
|
|
|
|
|
|
||||||
Interest and other expense1 |
$ |
(1,349 |
) |
$ |
(4,034 |
) |
$ |
(2,110 |
) |
|||
Income taxes |
|
(389 |
) |
|
(352 |
) |
|
(43 |
) |
|||
Depreciation and Amortization |
|
(1,052 |
) |
|
(1,216 |
) |
|
(1,382 |
) |
|||
Stock-based compensation |
$ |
7,863 |
$ |
2,464 |
$ |
1,346 |
||||||
Adjusted EBITDA |
$ |
(20,015 |
) |
$ |
(17,037 |
) |
$ |
(9,770 |
) |
1) |
Includes other income/(expense) of |
Contacts
408-724-1498
[email protected]
415-610-6590
[email protected]
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except share and per share data) |
||||||||
|
|
|
|
|
||||
|
(Unaudited) |
|
|
|
||||
ASSETS |
|
|
|
|
||||
|
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
$ |
65,010 |
|
$ |
21,626 |
|
||
Restricted cash equivalents |
|
— |
|
460 |
|
|||
Accounts receivable, net of allowances of |
|
1,015 |
|
|
2,060 |
|
||
Prepaid expenses |
|
4,685 |
|
|
1,276 |
|
||
Debt issuance cost |
|
122 |
|
|
1,132 |
|
||
Other current assets |
|
927 |
|
|
917 |
|
||
Total current assets |
|
71,759 |
|
|
27,471 |
|
||
Restricted cash equivalents, non-current |
|
230 |
|
|
736 |
|
||
Right-of-use assets |
|
9,535 |
|
|
10,291 |
|
||
Property and equipment, net |
|
4,868 |
|
|
6,155 |
|
||
Deferred tax asset |
|
2,169 |
|
|
2,169 |
|
||
Debt issuance cost |
|
235 |
|
|
— |
|
||
Deferred offering costs |
|
— |
|
|
1,264 |
|
||
Other assets |
|
1,007 |
|
|
1,117 |
|
||
Total assets |
$ |
89,803 |
|
$ |
49,203 |
|
||
|
|
|
|
|
|
|
||
LIABILITIES, REDEEMABLE CONVERTIBLE
|
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
$ |
5,348 |
|
$ |
3,760 |
|
||
Accrued liabilities |
|
5,939 |
|
|
7,298 |
|
||
Operating lease liabilities |
|
3,299 |
|
|
3,281 |
|
||
Financing lease liabilities |
|
361 |
|
|
1,301 |
|
||
Income tax liability |
|
2,829 |
|
|
2,737 |
|
||
Deferred revenue |
|
6,174 |
|
|
6,042 |
|
||
Convertible note |
|
— |
|
|
29,868 |
|
||
Derivative liability |
|
— |
|
|
3,488 |
|
||
Notes payable |
|
16,930 |
|
|
29,964 |
|
||
Total current liabilities |
|
40,880 |
|
|
87,739 |
|
||
|
|
|
|
|
|
|
||
Operating lease liabilities, net of current portion |
|
7,124 |
|
|
8,611 |
|
||
Financing lease liabilities, net of current portion |
|
214 |
|
|
292 |
|
||
Deferred revenue, net of current portion |
|
9,465 |
|
|
14,959 |
|
||
Notes payable, net of current portion |
|
26,126 |
|
|
— |
|
||
Other liabilities |
|
1,338 |
|
|
1,336 |
|
||
Total liabilities |
|
85,147 |
|
|
112,937 |
|
||
Commitments and contingencies (Note 7) |
|
|
|
|
||||
|
|
|
|
|
||||
Legacy |
|
— |
|
|
279,503 |
|
||
|
|
|
|
|
||||
Stockholders’ equity (deficit): |
|
|
|
|
||||
Legacy |
|
— |
|
|
1 |
|||
Class A Common Stock, |
|
16 |
|
— |
|
|||
Class B Common Stock, |
|
4 |
|
— |
|
|||
Additional paid-in capital |
|
447,136 |
|
|
43,491 |
|
||
Accumulated deficit |
|
(442,500 |
) |
|
(386,729 |
) |
||
Total stockholders’ equity (deficit) |
|
4,656 |
|
(343,237 |
) |
|||
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit) |
$ |
89,803 |
|
$ |
49,203 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Revenues |
$ |
6,152 |
|
$ |
8,279 |
|
$ |
10,442 |
|
$ |
12,018 |
|
||||
Operating expenses: |
|
|
|
|
|
|
||||||||||
Cost of revenues |
|
2,488 |
|
|
1,628 |
|
|
4,261 |
|
|
3,221 |
|
||||
Sales and marketing |
|
4,370 |
|
|
1,008 |
|
|
6,951 |
|
|
2,084 |
|
||||
Research and development |
|
18,862 |
|
|
14,023 |
|
|
35,512 |
|
|
28,466 |
|
||||
General and administrative |
|
9,362 |
|
|
4,119 |
|
|
13,365 |
|
|
7,365 |
|
||||
Total operating expenses |
|
35,082 |
|
|
20,778 |
|
|
60,089 |
|
|
41,136 |
|
||||
Loss from operations |
|
(28,930 |
) |
|
(12,499 |
) |
|
(49,647 |
) |
|
(29,118 |
) |
||||
|
|
|
|
|
|
|||||||||||
Other expense, net: |
|
|
|
|
|
|
||||||||||
Interest expense |
|
(1,572 |
) |
|
(2,294 |
) |
|
(4,549 |
) |
|
(3,042 |
) |
||||
Other income (expense), net |
|
223 |
|
|
184 |
|
|
(834 |
) |
|
(1,542 |
) |
||||
Total other expense, net |
|
(1,349 |
) |
|
(2,110 |
) |
|
(5,383 |
) |
|
(4,584 |
) |
||||
Loss before provision for income taxes |
|
(30,279 |
) |
|
(14,609 |
) |
|
(55,030 |
) |
|
(33,702 |
) |
||||
Provision for income taxes |
|
389 |
|
|
43 |
|
|
741 |
|
|
210 |
|
||||
Net loss |
|
(30,668 |
) |
|
(14,652 |
) |
|
(55,771 |
) |
|
(33,912 |
) |
||||
Other comprehensive gain: |
|
|
|
|
|
|
||||||||||
Unrealized holding gain on available-for-sale
|
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
||||
Comprehensive loss |
$ |
(30,668 |
) |
$ |
(14,651 |
) |
$ |
(55,771 |
) |
$ |
(33,911 |
) |
||||
|
|
|
|
|
|
|
||||||||||
Net loss per share: |
|
|
|
|
|
|
||||||||||
Basic and diluted |
$ |
(0.19 |
) |
$ |
(0.22 |
) |
$ |
(0.48 |
) |
$ |
(0.51 |
) |
||||
|
|
|
|
|
|
|
||||||||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
||||||||||
Basic and diluted |
|
161,976,429 |
|
|
67,357,878 |
|
|
116,031,777 |
|
|
66,666,508 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
Six Months Ended
|
|||||||
|
2022 |
|
2021 |
|||||
Cash flows from operating activities: |
|
|
||||||
Net loss |
$ |
(55,771 |
) |
$ |
(33,912 |
) |
||
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
2,269 |
|
|
2,836 |
|
||
Stock-based compensation |
|
10,327 |
|
|
2,734 |
|
||
Change in fair value of derivative and warrant liability |
|
606 |
|
|
1,314 |
|
||
Amortization of debt issuance cost |
|
2,185 |
|
|
1,399 |
|
||
Non-cash lease amortization |
|
1,545 |
|
|
1,790 |
|
||
Changes in operating assets and liabilities: |
|
|
||||||
Accounts receivable |
|
1,045 |
|
|
(2,323 |
) |
||
Prepaid expenses |
|
(3,409 |
) |
|
266 |
|
||
Other current assets |
|
(10 |
) |
|
(373 |
) |
||
Operating lease liabilities |
|
(2,258 |
) |
|
(2,096 |
) |
||
Other assets |
|
110 |
|
|
(26 |
) |
||
Accounts payable |
|
1,846 |
|
|
(107 |
) |
||
Accrued liabilities |
|
108 |
|
|
1,468 |
|
||
Deferred revenue |
|
(5,362 |
) |
|
(4,845 |
) |
||
Other liabilities |
|
2 |
|
|
(750 |
) |
||
Net cash used in operating activities |
|
(46,767 |
) |
|
(32,625 |
) |
||
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment |
|
(982 |
) |
|
(111 |
) |
||
Net cash used in investing activities |
|
(982 |
) |
|
(111 |
) |
||
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from issuance of convertible notes, net of issuance cost |
|
— |
|
|
5,044 |
|
||
Proceeds from note payable, net of issuance cost |
|
— |
|
|
29,833 |
|
||
Proceeds from the issuance of common stock upon exercise of options |
|
2,904 |
|
|
1,672 |
|
||
Proceeds from Business Combination, net of transaction costs paid |
|
91,695 |
|
|
— |
|
||
Payments on notes payable |
|
(3,416 |
) |
|
— |
|
||
Payments on finance leases |
|
(1,016 |
) |
|
(1,295 |
) |
||
Net cash provided by financing activities |
|
90,167 |
|
|
35,254 |
|
||
Net increase in cash, cash equivalents, and restricted cash equivalents |
|
42,418 |
|
|
2,518 |
|
||
Cash, cash equivalents, and restricted cash equivalents, beginning of period |
|
22,822 |
|
|
44,982 |
|
||
Cash, cash equivalents, and restricted cash equivalents, end of period |
$ |
65,240 |
|
$ |
47,500 |
|
||
|
|
|
|
|
||||
Reconciliation to amounts on the condensed consolidated balance sheets: |
|
|
|
|
||||
Cash and cash equivalents |
$ |
65,010 |
|
$ |
46,210 |
|
||
Current portion of restricted cash equivalents |
|
— |
|
|
230 |
|
||
Non-current portion of restricted cash equivalents |
|
230 |
|
|
1,060 |
|
||
Total cash, cash equivalents, and restricted cash equivalents shown in the condensed consolidated statements of cash flows |
$ |
65,240 |
|
$ |
47,500 |
|
||
|
|
|
|
|
||||
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
Cash paid for: |
|
|
|
|
||||
Interest |
$ |
1,140 |
|
$ |
149 |
|
||
Income taxes |
$ |
33 |
|
$ |
18 |
|
||
|
|
|
|
|
||||
Noncash investing and financing activities |
|
|
|
|
||||
Operating lease liabilities and right-of-use assets through adoption of ASC 842 |
$ |
— |
|
$ |
11,428 |
|
||
Conversion of convertible note into common stock pursuant to Business Combination |
$ |
20,239 |
|
$ |
— |
|
||
Unpaid deferred offering costs associated with the Business Combination |
$ |
1,006 |
|
$ |
— |
|
||
Conversion of redeemable convertible preferred stock to common stock pursuant to Business Combination |
$ |
279,503 |
|
$ |
— |
|
||
Debt discount through issuance of common stock warrants |
$ |
— |
|
$ |
3,842 |
|
||
Operating lease liabilities arising from obtaining right-of-use assets |
$ |
650 |
|
$ |
— |
|
||
Property and equipment acquired under finance leases or debt |
$ |
— |
|
$ |
650 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005284/en/
408-724-1498
[email protected]
415-610-6590
[email protected]
Source: