SoundHound AI (SOUN) CEO on Earnings, OASYS & Recent Acquisitions

**SPEAKER_1** (0:00)
And I do want to bring Sam back into the conversation, and welcome in our next guest. Turn our attention to the earnings from an AI company. Joining us now, the CEO of SoundHound AI, Keyvan Mohajer. Thank you so much for being with us today. Keyvan, first things first, if you wouldn't mind just walking us through what you think are the key takeaways from your earnings report.

**Keyvan Mohajer** (0:21)
Thank you for having me. We announced last week, we had an amazing quarter, revenue was $62 million. It was up 45 percent year over year, 40 percent sequentially, and it was up 10 times since the first quarter we reported as a public company about four years ago in Q2 of 2022
A lot of other metrics also improved, profitable metrics improved both sequentially and year over year. We're very proud of our results, but where we are now is nothing compared to where we think we're going to be. In a few years, the market for agent AI enterprise is expected to reach almost a trillion dollars by 2030 And SoundHound has everything it needs to capture a good portion of that.

**SPEAKER_3** (1:06)
Okay. So record Q2 all-time high revenue here are 61.9 million, up 45 percent. So quite a significant beat and raise here also to the full year outlook. I'm just wondering then exactly what drove that? I mean, where is the biggest opportunity as far as what your company offers with respect to the services that you're providing through SoundHound at the enterprise level?

**Keyvan Mohajer** (1:36)
Well, a lot of the wins came out of our new platform that we call Oasys.
It's been decades in the making. Oasys stands for Orchestrated Agent System. It's agent AI for enterprises. It demos really well. We've been in demos, we've been in RFPs. We had one particular that we described in earnings. It was an eight-digit commitment, that's double-digit million dollars, that we signed in less than 90 days from the very first meeting. So the first demo to signing up the contract was less than 90 days, and we had other similar situations in Q2.
We are everywhere. We think every business is going to need an AI agent. They went from needing a website to needing a mobile app, now it's AI agents. And AI agents, you build them once, you want to build them once and deploy them everywhere. You want them to answer your phone, be on your websites, be on your mobile app, answer messages, and Oasys is designed to build exactly that.

**SPEAKER_1** (2:33)
And Keyvan, you disclosed something that I thought was of particular interest that you're about to launch a whole new consumer channel here that is tied to voice commerce, which I'm absolutely fascinated by. I know you say you've signed some contracts with some major global players, including an automaker, an electronics manufacturer, hoping perhaps you can give Sam and I an exclusive on one of those. But also, if you wouldn't mind just walking us through what voice commerce and the opportunity looks like for a user.

**Keyvan Mohajer** (3:05)
Yes, absolutely. Voice commerce is a vision we came up with a few years ago in 2019 Actually, we've talked about it for a few years and we are ready to actually roll it out this year. We power devices, SoundHound powers devices like cars and TVs and IoT devices. So we are the AI assistant of these devices. We also power businesses like we automate drive-throughs. If you go to a drive-through and waiting line, you ended up talking to our AI. We power the phone line of many merchants, whether they're restaurants or other types of merchants. Then voice commerce brings them together. So if you're driving your car and you're talking to your car to do navigation, ask for weather, control their air conditioning, and you are going to go to a drive-through at some point on the road, you could actually order by talking to your car. You don't have to go find a drive-through, waiting line, and get to the kiosk. You talk to the AI in the car that's powered by SoundHound. The AI that's powered by SoundHound talks to the AI of the merchant, that's also powered by SoundHound. That immediately delivers value to the end user because it's faster, convenient, but we also generate net new leads for the merchants because these are the cars on the road. That's a monetizable moment. We will share that revenue with the car maker and the TV maker and other devices. We expect that we'll create an ecosystem where everybody benefits from it.
The example I mentioned, it was in food ordering, but you can book appointments and do other types of transactions.