SoundHound AI (SOUN) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 revenue of $34.5 million, up 101% year-over-year, and full-year revenue of $85 million, reaching the high end of guidance and reflecting 85% annual growth.

• Ended 2024 with nearly $200 million in cash and no debt, positioning for growth in Agentic AI.

• Expanded business and leadership in voice AI with major customer wins, new partnerships, and strategic acquisitions across automotive, healthcare, restaurants, government, retail, and energy.

• Launched the third business pillar, voice commerce, creating a unified ecosystem for users, merchants, and OEMs, and unveiled in-vehicle voice commerce platform at CES 2025.

• Five-year compound annual growth rate exceeds 50%, with revenue, queries, and bookings growing 8x, 7x, and 5x, respectively, since going public.

Financial highlights

• Q4 revenue: $34.5 million, up 101% year-over-year; full-year revenue: $85 million, up 85%.

• Q4 GAAP gross margin: 39.9%; non-GAAP gross margin: 52.1% (down from 77.9% prior year); full-year non-GAAP gross margin: 58.5%.

• Adjusted EBITDA loss: $16.8 million in Q4; full-year adjusted EBITDA loss: $61.9 million; non-GAAP net loss: $19 million in Q4; non-GAAP net loss per share: $0.05.

• Year-end cash and equivalents: $198 million; ended 2024 with no debt after paying down acquisition-related borrowings.

• Cumulative subscriptions and bookings backlog: nearly $1.2 billion, up over 75% year-over-year, with an average duration of slightly over six years.

Outlook and guidance

• 2025 revenue outlook increased to $157–$177 million, with 40% of annual revenue expected in the first half.

• Committed to achieving adjusted EBITDA profitability by end of 2025.

• Expect continued strong growth, improved revenue predictability, and margin expansion as SaaS mix increases.