SoundHound, a Santa Clara, CA-based voice AI company that provides conversational AI services for the automotive, connected home, and hospitality applications, raised $25 million in equity to shore up its position in the market.
The oversubscribed financing includes investments from a diverse set of financial and strategic investors, both from the current shareholder base and new capital providers.
This new financing will further steps to strengthen its balance sheet and fully fund its business plan in anticipation of being GAAP operating cash flow positive by the end of 2023.
Additionally, SoundHound pre-announces strong preliminary 2022 results with revenue of approximately $31 million, at the high end of its prior guidance, and gross margins in excess of 70%1.
The Company expects revenue growth in 2023 to accelerate to approximately 50% year-over-year due to its strong customer base, well over $300 million bookings foundation, and increasing demand for its voice AI-enabled customer service products.
SoundHound believes that burgeoning market demand and significant advances in technology are creating the conditions for an explosion in conversational AI, and SoundHound’s next-generation products and services are at the center of this revolution.
Company: SoundHound AI Inc.
Raised: $25.0M
Round: Equity
Funding Month: January 2023
Lead Investors: Undisclosed
Additional Investors:
Company Website: https://www.soundhound.com/
Software Category: Voice AI
About the Company: SoundHound an innovator of conversational intelligence, offers an independent voice AI platform that enables businesses across industries to deliver best-in-class conversational experiences to their customers. Built on proprietary Speech-to-Meaning® and Deep Meaning Understanding® technologies, SoundHound’s advanced voice AI platform provides exceptional speed and accuracy and enables humans to interact with products and services as they interact with each other—by speaking naturally. SoundHound is trusted by companies around the globe, including Hyundai, Mercedes-Benz, Pandora, Qualcomm, Netflix, Snap, Square, LG, VIZIO, KIA, and Stellantis.
Source: https://www.businesswire.com/news/home/20230124005519/en/SoundHound-AI-Secures-New-Financing-to-Strengthen-Balance-Sheet-Pre-Announces-Outperformance-in-2022-Results