Analyst Summary:
SoundHound AI, a leading voice artificial intelligence company, reported its financial results for the fourth quarter and full year 2022. The company witnessed an increase in revenues to $115.79 million in 2022 from $25 million in the prior year. SoundHound's CEO, Keyvan Mohajer, said that the company's proprietary Dynamic Interaction and Generative AI solutions are perfectly positioned as conversational AI is at a watershed moment. The CFO of SoundHound, Nitesh Sharan, also stated that the company is entering 2023 in a position of strength, after taking the necessary steps to significantly improve its operating efficiency and having a clear line of sight to near-term profitability and sustained long-term growth.
SoundHound also announced its upcoming launch of its chat AI service for end-users and businesses, delivering the digital assistant experience that users have been desiring for decades. In addition, the company had collaborations and extended partnerships with firms like LG, Hyundai, and Square, among others, to boost its revenue growth.
Forward-looking statements include the expected financial performance of the company, the potential market for the company's products and services, and guidance for financial results for 2023. SoundHound expects to become adjusted EBITDA positive in the fourth quarter of 2023, and it has a cumulative bookings backlog of $62.2 million.
Please note that the company defines Adjusted EBITDA as its GAAP net loss, excluding interest and other expense, net, depreciation and amortization expense, income taxes, and stock-based compensation.