EX-99.2 3 soun-20250508ex992financia.htm EX-99.2 Document

SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
March 31,
2025		December 31,
2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$245,809 $198,240 
Accounts receivable, net of allowances of $1,538 and $726 as of March 31, 2025 and December 31, 2024, respectively
20,177 23,159 
Contract assets and unbilled receivable, net21,419 26,645 
Other current assets7,646 7,476 
Total current assets295,051 255,520 
Restricted cash equivalents, non-current676 676 
Right-of-use assets5,059 4,692 
Property and equipment, net1,053 1,239 
Goodwill101,210 101,704 
Intangible assets, net167,446 174,943 
Deferred tax asset5 4 
Contract assets and unbilled receivable, non-current, net12,270 12,879 
Other non-current assets4,766 2,296 
Total assets$587,536 $553,953 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$6,720 $5,559 
Accrued liabilities18,076 26,291 
Operating lease liabilities2,064 1,898 
Finance lease liabilities40 49 
Income tax liability2,264 2,750 
Deferred revenue26,888 23,876 
Other current liabilities3,978 7,319 
Total current liabilities60,030 67,742 
Operating lease liabilities, net of current portion2,526 2,403 
Deferred revenue, net of current portion7,517 6,862 
Contingent acquisition liabilities113,147 286,898 
Income tax liability, net of current portion3,115 3,075 
Other non-current liabilities4,208 4,320 
Total liabilities190,543 371,300 
Commitments and contingencies
Stockholders’ equity:
Series A Preferred Stock, $0.0001 par value; 1,000,000 shares authorized; 0 and 0 shares issued and outstanding, aggregate liquidation preference of $— and $— as of March 31, 2025 and December 31, 2024, respectively
— — 
Class A Common Stock, $0.0001 par value; 455,000,000 shares authorized; 368,869,290 and 361,096,457 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively
36 35 
Class B Common Stock, $0.0001 par value; 44,000,000 shares authorized; 32,535,408 and 32,535,408 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively
3 3 
Additional paid-in capital1,209,871 1,125,470 
Accumulated deficit(813,128)(943,060)
Accumulated other comprehensive income 211 205 
Total stockholders’ equity396,993 182,653 
Total liabilities and stockholders’ equity$587,536 $553,953 


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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
March 31,
20252024
Revenues$29,129 $11,594 
Operating expenses:
Cost of revenues18,511 4,669 
Sales and marketing12,007 5,542 
Research and development24,756 14,878 
General and administrative18,407 10,267 
Change in fair value of contingent acquisition liabilities(176,100)4,162 
Amortization of intangible assets3,451 605 
Total operating expenses(98,968)40,123 
Income (loss) from operations128,097 (28,529)
Other expense, net:
Interest expense(235)(5,664)
Other income, net2,889 1,479 
Total other income (expense), net2,654 (4,185)
Income (loss) before provision for income taxes130,751 (32,714)
Provision for income taxes819 295 
Net income (loss)$129,932 $(33,009)
Earnings attributable to participating Class A Common Shares(705)— 
Cumulative dividends attributable to Series A Preferred Stock— (343)
Net income (loss) attributable to SoundHound common shareholders$129,227 $(33,352)
Other comprehensive income:
Unrealized gains on investments6 36 
Comprehensive income (loss)$129,938 $(32,973)
Net income (loss) per share:
Basic$0.33 $(0.12)
Diluted$0.31 $(0.12)
Weighted-average common shares outstanding:
Basic393,893,313 286,596,559 
Diluted414,156,455 286,596,559 



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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
20252024
Cash flows used in operating activities:
Net income (loss)$129,932 $(33,009)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization7,755 1,470 
Stock-based compensation17,440 6,979 
Amortization of debt issuance cost— 1,231 
Loss on disposal of property and equipment31 — 
Non-cash lease amortization664 743 
Foreign currency gain/loss from remeasurement(160)(55)
Change in fair value of contingent acquisition liabilities(176,100)4,162 
Change in fair value of derivative(1,289)— 
Deferred income taxes(1)(281)
Other, net903 45 
Changes in operating assets and liabilities:
Accounts receivable, net2,347 (1,248)
Other current assets(239)(533)
Contract assets5,816 939 
Other non-current assets(1,181)93 
Accounts payable1,151 905 
Accrued liabilities(8,403)(673)
Other current liabilities(581)— 
Operating lease liabilities(836)(888)
Deferred revenue3,667 (1,606)
Other non-current liabilities(101)(222)
Net cash used in operating activities(19,185)(21,948)
Cash flows used in investing activities:
Purchases of property and equipment(162)(99)
Payment related to acquisition, net of cash acquired— (3,689)
Net cash used in investing activities(162)(3,788)


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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – Continued
(In thousands)
(Unaudited)
Three Months Ended
March 31,
20252024
Cash flows provided by financing activities:
Proceeds from sales of Class A common stock under the Sales Agreement and Second Equity Distribution Agreement
67,707 137,274 
Proceeds from exercise of stock options and employee stock purchase plan666 8,887 
Proceeds from warrants exercised13 — 
Payment of financing costs associated with the Sales Agreement and Second Equity Distribution Agreement(1,355)(3,435)
Payments on finance leases(21)(28)
Net cash provided by financing activities67,010 142,698 
Effects of exchange rate changes on cash(94)103 
Net change in cash, cash equivalents, and restricted cash equivalents47,569 117,065 
Cash, cash equivalents, and restricted cash equivalents, beginning of period198,916 109,035 
Cash, cash equivalents, and restricted cash equivalents, end of period$246,485 $226,100 
Reconciliation to amounts on the condensed consolidated balance sheets:
Cash and cash equivalents$245,809 $211,744 
Non-current portion of restricted cash equivalents676 14,356 
Total cash, cash equivalents, and restricted cash equivalents shown in the condensed consolidated statements of cash flows
$246,485 $226,100 
Supplemental disclosures of cash flow information:
Cash paid for interest$2 $3,539 
Cash paid for income taxes$1,230 $727 
Noncash investing and financing activities:
Conversion of Series A Preferred Stock to Class A common stock$— $12,090 
Deferred offering costs reclassified to additional paid-in capital$69 $— 
Property and equipment acquired under accrued liabilities$— $83 
Fair value of Class A common stock and deferred equity consideration issued to acquire SYNQ3$— $10,295 
Fair value of contingent earnout consideration to acquire SYNQ3$— $1,676 
Fair value of contingent holdback consideration to acquire SYNQ3$— $981 
Fair value of deferred cash consideration under SYNQ3 acquisition$— $143 
Unpaid deferred offering cost $— $200 

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