SoundHound AI Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Scott Buck - H C Wainwright & Co LLC (Pre-Merger) - Analyst : I'm curious, as demand for AI automation appears to be accelerating, are you seeing any opportunities to improve your selling process or maybe optimize pricing?

Question: Scott Buck - H C Wainwright & Co LLC (Pre-Merger) - Analyst : And then second, I'm curious, of your existing customer base, how much of the potential wallet share do you think you have? I mean, is there 50% left in the current customers or more than that of potential future earnings?

Question: Leo Carpio - Joseph Gunnar & Co LLC - Analyst : I got a couple of quick questions. First, regarding the guidance you gave for 2025, the revised one. Two parts. First, I saw that we had a Q2 beat, yet the guidance doesn't reflect that completely. Is that part of the seasonality you talked about, or is it just an element of conservatism? And then secondly, is there acquisitions incorporated in this guidance or is it just strictly organic?

Question: Leo Carpio - Joseph Gunnar & Co LLC - Analyst : Quick question. Also on the Red Lobster account link, could you give us some background in terms of how did that contract came about? I think given that the company was in bankruptcy, how it came out? Just interested to know the details.

Question: Vijay Devar - Northland Capital Markets - Analyst : This is Vijay Devar for Michael Latimore. Can you provide any color on how to model 3Q versus 4Q revenue?

Question: Vijay Devar - Northland Capital Markets - Analyst : Got it. And if you could kind of highlight key drivers of growth in the second half. Is it Amelia software sales or phone ordering or professional services? What would it be? Or the combination of all three?

Question: Thomas Blakey - Cantor Fitzgerald LP - Analyst : Congratulations on the results. The auto vertical, Pillar 1, I suppose, congratulations on the China win. Can you just maybe talk to maybe the royalty opportunity there? I understand you guys typically have some kind of non-recurring revenue up front when you win a big customer like this, but I know you don't want to give the customer name, but just kind of any indication there in terms of size and opportunity on maybe a SAR basis? And using that as a segue, I think we need an update on kind of tariffs and units on the auto side. And I have a follow-up if you can, please.

Question: Thomas Blakey - Cantor Fitzgerald LP - Analyst : Great answer. And it's good to have the higher ARPU kind of trending in the right direction with that kind of whole cadre of services. So on the auto side, so maybe my second question would be on the Voice Commerce. I think you've mentioned it a couple different times. It certainly sounds like it's being mixed into from that kind of like platform sale as Kevyan was alluding to. Maybe just to address like head on because this is obviously a huge optionality for SoundHound, you mentioned all businesses were up double-digits. Could you maybe sharpen the pencil on updates on Voice Commerce? It sounds like it maybe has pulled in. You weren't expecting any revenues until calendar '26, I think was the most recent kind of messaging to the Street. But it sounds like maybe that's changed. I just wanted to get a clarification there.