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SoundHound AI Inc. (SOUN-4.73%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements for the year, showing a significant increase in revenues to $84.7 million from $45.9 million in the previous year. This increase was primarily driven by the acquisition of SYNQ3 and Amelia, which contributed to the growth in service subscription revenues.
Cost of revenues increased to $43.3 million, resulting in a gross margin of 49%, down from 75% in the previous year. The decrease in gross margin was attributed to the acquisitions, which included lower-margin businesses and amortization of acquired intangible assets.
Operating expenses rose sharply to $426 million, largely due to a $222.7 million change in the fair value of contingent acquisition liabilities and increased costs associated with the acquisitions.
SoundHound reported a net loss of $350.7 million for the year, compared to a net loss of $88.9 million in 2023. This was influenced by the increased operating expenses and a $15.6 million loss on early extinguishment of debt.
The company completed the acquisition of SYNQ3 and Amelia, expanding its market reach and enhancing its AI capabilities. The acquisitions are expected to strengthen SoundHound's position in the voice and conversational AI markets.
SoundHound raised $407.3 million through sales of Class A common stock under various equity distribution agreements during the year. The funds are intended to support growth initiatives and general corporate purposes.
The company ended the year with $198.2 million in cash and cash equivalents, reflecting its improved liquidity position following the equity raises and acquisitions.
SoundHound's management believes the company will be able to fund its operations for at least the next twelve months, despite the ongoing net losses.
The filing also details various risks, including competition in the voice AI market, reliance on key customers, and the challenges of integrating recent acquisitions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the SoundHound AI Inc. annual 10-K report dated March 11, 2025. To report an error, please email earnings@qz.com.