SoundHound AI, Inc. Q4 FY2025 earnings call

• 2025 was a record year with nearly doubling revenue year over year and Q4 being a record quarter with 59% revenue growth and improved profit metrics.
• Signed over 100 customer deals in Q4 across different industries and regions, including automotive, telecommunications, athletic shoes, healthcare, etc.
• Agentic platform is a key advantage, ready for deployment across multiple verticals and touchpoints, with unified AI agent framework.
• Enterprise AI platform delivering better customer outcomes with record containment rates, resolving majority of inbound interactions without human escalation, and automation intensity increasing.

Q4 2025 revenue was $55.1 million, up 59% year-over-year. Full year 2025 revenue was $169 million, up 99% versus prior year. Automotive saw growth with new OEM deals, voice commerce had momentum, restaurant order activity crossed 9 million calls in Q4, enterprise AI performed well in various verticals like healthcare and financial services. Revenue contribution details not explicitly given but key segments showed strong growth.

• Expect 2026 revenue to be in the range of $225 million to $260 million.
• Starting 2026 with strong momentum, pipeline building across verticals, and focus on continued rapid growth while working towards profitability.
• Expect seasonality to improve as recurring business mix grows, and long-term goal of 70%+ gross margins and 30%+ EBIT margins.

Actual results could differ materially from forward-looking statements. Risks and uncertainties affecting business discussed in SEC filings, no detailed specific risks outlined in the call beyond general forward-looking statement disclaimers.

Q: How are you handling deployment and customer service capacity with many balls in the air?

A: We are able to deploy faster, go live faster, develop faster due to AI advances, so demand is up but resource requirement is down.

Q: Changes in pricing or upselling during renewals?

A: Renewals are upsell moments with agentic solution, can come with price increase, bigger volume commitment, and higher containment rates lead to more revenue.

Q: Durability of enterprise AI business in agentic era?

A: Automation is a tailwind, we benefit from GenAI, and we can move faster using AI advances, quality and pace better for us.

Q: Progression of business efficiency in 2026?

A: Expect efficiencies in product development, deployment, and operation, with EBITDA margin improvements as scale increases and operating leverage realized.

Q: Success in automotive vertical this quarter?

A: Great year in automotive with multiple OEM deals, due to great solutions, being a good partner, best technology, and voice commerce flywheel.

Q: Amelia customers on agentic AI version 7.3?

A: On pathway to migrate majority over by middle of 2026, with acceleration in Q1, higher containment rates lead to incremental revenue.

Q: How Amelia wins new customers vs competitors?

A: We have decades of experience, deep technology and data, provide best models from various sources, better economic incentive alignment tied to customer outcomes.

Q: M&A in annual guide and stock comp?

A: Guidance doesn't contemplate future M&A not baked in, stock comp distributed to all employees, mindful of dilution and cost structure while attracting talent.