SoundHound Merges with SYNQ3, Expanding Voice AI for Restaurants Despite Financial Losses
• SoundHound AI specializes in using AI to turn audio into usable data for models. It started as a music recognition app in 2005 and has evolved into voice recognition software.
• Key clients are automakers like Stellantis and restaurants like White Castle. Products automate drive-thrus to quickly take orders with 90%+ accuracy.
• Recently merged with SYNQ3, adding 25+ national/multinational customers in restaurant voice AI space. Creates revenue synergies.
• Financially, revenue grew 19% YoY last quarter to $13.3M. But operating at a loss of $14.5M as it grows. Has $110M cash after taking on debt.
• Valuation at 12x sales isn't cheap but not expensive. High risk, high reward AI stock with potential for huge gains or losses.