SoundHound AI, Inc.

Good day and thank you for standing by. Welcome to SoundHound's third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Scott Smith, Head of Investor Relations. Please go ahead.

Good afternoon and thank you for joining our third quarter 2025 conference call. With me today is our CEO, Kayvon Mahajer, and our CFO, Nitesh Charan. We'll begin with some short remarks before moving to Q&A. We'd also like to remind everyone that we will be making forward-looking statements on this call. Actual results could differ materially from those suggested by our forward-looking statements. Please refer to our filings with the SEC for a detailed discussion of the risks and uncertainties that could affect our business and for discussion statements that qualify as forward-looking statements. In addition, we may discuss certain non-GAAP measures. Please refer to today's press release for more detailed financial results and further details on the definitions, limitations, and uses of those measures and reconciliations from GAAP to non-GAAP. Also note that the forward-looking statements on this call are based on information available to us. As of today's date, we undertake no obligation to update any forward-looking statements except as required by law. Finally, this call is being audio webcast in its entirety on our Investor Relations website, and audio replay will be available following today's call. With that, I would like to turn the call over to our CEO, Kayvon Mahajer. Please go ahead, Kevan.

Thank you, Scott, and thank you to everyone for joining the call today. Q3 marks another quarter of precise execution against our plan. Enterprise AI adoption is booming globally, and Samham is strengthening its leading position by anchoring its deployments in millions of endpoints across highly diversified industries and customers, with much more potential remaining in the near and long-term horizons. In just the first three quarters of the year, we have already achieved a record year in revenue of $114 million, up 127%, and we are raising our outlook once again. This quarter, we also celebrated our 20th year as a company. We started in a Stanford dorm room with the mission to voice enable the world with conversational intelligence. Our long-term focus, dedication, and strategic execution has paid off, as the opportunities before us are now advancing at an exponential rate. Two decades of technical innovation has given us the speed and agility to truly capitalize on these opportunities. Our deep understanding of AI has allowed us to achieve market readiness rapidly, while many others are still experimenting. Indeed, we are already in the market, achieving real success and creating measurable value for our customers with our technology as the driving force. And we have a track record of groundbreaking work and being highly responsive to new technological advancements. We pioneered speech to meaning over 10 years ago, which combines speech recognition and language understanding in real time to deliver superior speed and accuracy. Likewise, we pioneered deep meaning understanding over 10 years ago, and we're the first voice technology company to enable the processing of complex and compound conversations while others were still delivering simple limited commands. Our work a decade ago paved the way to leading the world in the agentic experiences we are seeing today. We were the first to go into production with a voice-enabled generative AI assistant in automotive within weeks of LLMs becoming a proven architecture in language understanding and years ahead of big tech. And this year, we were one of the first in the world to introduce a fully agentic platform for enterprise businesses, Amelia 7. Importantly, thanks to our years of IP accumulation and our mature platform, we are able to combine deterministic flows with machine learning models where the latter still lacks the reliability to go from proof of concept into production. This advantage has enabled us to deploy faster and scale faster, and also avoid the explosion in model costs that other companies are battling today. Now let me give you an update on Polaris, our most recent groundbreaking work. SoundHound's multimodal multilingual foundation model, Polaris, continues to prove its superiority in accuracy, speed, and cost. As we move more Amelia platform clients from third-party legacy vendors to use Polaris, we are able to reduce the error rate by as much as three times. Our customers are thrilled, and transitioning them to Polaris will help us drive down engineering and hardware costs and achieve faster iteration cycles to improve our speech foundation models. We also continue to ask support for new languages and have innovated new methods to provide speech model customization with a rapid turnaround time and minimal deployment overhead. We've innovated new training methodologies that reduce the cost of training and amounts of data required while significantly improving model accuracy. Notably, we are one of the very few companies that can support our customers in the environment of their choice, whether it is in our cloud, in their cloud, on the edge, or on-prem, as well as a hybrid combination. Polaris, in our view, is another significant disruption that widens the gap between us and the competition in our journey to realize SoundHunt's vision. And while innovation is clearly a major source of strength and the foundation of our growth story, we've also demonstrated repeatable success with our acquisition strategy. Within 12 to 18 months of our key acquisitions to date, we were able to convert their pre-measure decline to post-measure growth. and turn them into leaders in their field as a fully integrated business unit within SoundHound. While acquisition is not a requirement for our success, it provides a unique opportunity for SoundHound to change the equation and accelerate our trajectory. We've been able to find great businesses with amazing teams, strong customer relationships, and solutions highly aligned with our three pillars of business and arm them with what they needed to thrive, including SoundHound's strong IP, replacing their legacy tech dependencies with in-house models that are more accurate, faster, and less costly with 20 years of data and innovation behind them, improving their customer experiences while reducing their costs, strong financial backing for innovation and expansion, and proven scale, strong brand, and credibility. This quarter, we acquired InterActions, a pioneer in customer service and workflow orchestration and we are already moving fast to combine functions to create a comprehensive and dynamic contact center and customer service offering that incorporates a full spectrum of automation and human assisted capabilities. We have now demonstrated our M&A Playbook multiple times, learning from each acquisition and getting faster and stronger every time. Just as we did with our past acquisitions, we are now integrating our strong IP and replacing their dependencies on third party models with more accurate, faster, and less costly Sanhan build models. And with our robust financial position, we can give them the resources they need for innovation and expansion. With this latest combination, we expect to achieve the results we achieved through previous acquisitions, harvesting cost synergies by moving their stack into our own cloud and realizing revenue synergies with cross-selling and up-selling. With that, let me now talk about some specific customer highlights in Q3. In IoT and robotics, we had a significant win, signing a deal with a large Chinese company that offers intelligence-based interaction in hardware and software products. We agreed to integrate SanhanChat AI into double-digit millions of AI-enabled smart devices, which will initially be distributed in the Indian market, leveraging our strong language capabilities in Indian languages. In automotive, we continued to see strong adoption and have begun to deepen our market penetration beyond global light vehicles. We are excited to now be working with a major globally renowned sports car brand to develop a unique personality for its vehicle assistant. Additionally, Jeep Vehicles rolled out our category-leading chat AI voice assistant in Europe. And our work with existing EV customers, including Lucid, TAG, and others, are seeing promising results. TAG has just recently expanded throughout the German market. We've also signed multiple deals with prominent two-wheeler companies based in the expansive Indian market, as well as multinational commercial fleet vehicle company based out of Italy that manufactures light, medium, and heavy vehicles, including trucks, vans, and buses. In financial services, we continue to work with seven out of the top 10 global financial institutions with three buying additional services and two signing renewals. We also signed a new enterprise technology deal with a prominent organization supporting credit unions throughout the United States. In energy, we signed new contracts with a large utilities company that generates, transmits, distributes, and sells electricity in the United States, and a Texas-based electricity provider serving millions of customers. In retail and consumer goods, we had a net new upsell with a major multinational brand with an extensive product portfolio of food, beverage, and consumer goods. And through our smart answering solution, we won deals with one of the fastest growing global health clubs in the United States and a US-based global franchise that offers state-of-the-art training facilities for elite athletes. In restaurants, one of our most established verticals, we are a market leader and continue to see strong adoption with our cutting-edge solutions. Notably, we signed a deal to deploy our AI ordering solutions with a nationally recognized full-service restaurant chain and has franchise wins with Firehouse Subs, Five Guys, and McAllister's Deli. And we are now fully rolled out in all Mod Pizza, Habit Burger, Red Lobster, and Torchy's Tacos locations, in addition to existing brands, Chipotle and Casey's. Pete's Coffee expanded further with Employee Assist, which will now be deployed in all company-owned locations. Earlier this year, we introduced a new product called Voice Insights, targeting brands that require a precursor to full automation, for example, due to missing APIs and infrastructure. Voice Insights is our AI-powered solution that analyzes customer and employee interactions in real time in order to measure efficiency, satisfaction, and other metrics that can help restaurants improve their operations. We are seeing strong interest from our customer brands and prospects, with several brands already in process of rolling it out within just months of being introduced. In healthcare, We launched with a large precision medicine provider to pioneer an inbound and outbound agentic AI solution, which is the first of its kind in the healthcare space. We also signed with a U.S.-based regional hospital system to deploy the Amelia platform, and we renewed our relationship with one of the leading healthcare companies for wholesale medical supplies. In insurance, French insurer Apivia Cortage announced that it will deploy Amelia 7 to bring agentic AI to its contact centers. We also renewed with a global insurance company that provides services to multinational corporations and a highly regarded Mexico-based insurance company specializing in auto insurance. In telecommunications, we signed a large, well-known communications provider that offers fiber internet, digital television, and other services to residential and business customers in over 20 U.S. states. In IT services, we renewed a multi-year contract and upsold to one of the largest internet domain registry and web hosting companies in the world. We also want to deal with a leading provider of managed cybersecurity services, cloud and IT infrastructure solutions based out of the United States. With Channel Partners, we entered into a strategic partnership with leading technology services distributor, Teleris, to bring Amelia 7 and Autonomix to their enterprise CX and EX landscape. Additionally, We signed a multi-year deal with a long-standing partner that specializes in CRM, AI, and workforce engagement management. We entered into a retailer agreement with Vox AI, a company that offers purpose-driven customer experience solutions, and entered into strategic partnerships with two of the leading software and service providers of full suite studio gym, health, and wellness club management. Many of these important deals and partnerships are a result of our success and growing leadership in enterprise AI. I'm excited to talk more about this increasingly important focus area for SoundHound as we lean in on agentic AI with our differentiating agentic plus framework. With our acquisition of interactions, we've added a number of preeminent Fortune 100 companies across various industries to our already strong portfolio of global brands. For example, we now offer our solutions to one of the largest footwear and apparel brands in the world, to a Silicon Valley-based platform giant, and to some of the major names in automotive, energy, financial services, insurance, healthcare, technology, and telecommunications. Not to mention that we've added hundreds of new patents that we can leverage to increase our innovation modes. We see enterprise AI as one of the biggest near-term opportunities, so we are aggressively expanding our product suites and our customer engagement in that space. On that note, we've just updated the Amelia 7 platform to version 7.3, introducing some capability upgrades that have already been wowing customers and prospects, including major improvements to conversational latency and barging handling to deliver an even more natural and intuitive voice experience for customers. The Amelia 7 platform, which offers enterprise-grade agentic AI, is already making a real impact where it has been deployed, and we are now expanding its availability globally and already seeing brand new logos in our pipeline. Much of this interest is driven by our unique approach to agentic AI, what we call our Agentic Plus framework. It's an agentic system designed for enterprises that balances the power of multi-agent orchestration and generative AI with essential business requirements and controls. While many internal AI projects stall in pilot phase, Our approach consistently brings use cases to market within days or weeks rather than months. Within any given AI agent workflow, there may be certain functions that are more appropriate to complete with predictable deterministic automation, especially when personal security is in question. And there are times when human escalation is necessary or required by our customers. The complexity and sensitivity of enterprise use cases demand a highly intelligent, hybrid agentic system that delivers safe, efficient end-to-end orchestration. Agentic Plus provides exactly that, a practical, scalable framework that brings forward-looking AI use cases into real-world operations today. This is where we see the true value unlock in enterprise AI transformation. As with all of our solutions, this advanced technology has been built upon decades of R&D, troves of data, and an understanding of what motivates our customers. Our platform is LLM agnostic with relevant enterprise integrations and SoundHound's trademark agility means we will adapt and upgrade Amelia 7 at the pace of AI innovation. We aim to always remain at the cutting edge for our customers. That brings me on to voice commerce. Voice commerce is our highly anticipated solution that seamlessly brings conveniences like food ordering and recent additions such as parking payments and restaurant reservations into the vehicle for the convenience of drivers, as well as other IoT devices like TVs. We've now taken POCs to advanced stages with a number of OEMs and merchants, and have already successfully placed live voice orders from cars and completed the transaction. We are looking forward to seeing these go into full production in 2026. We have four OEMs showing strong interest in this groundbreaking technology with others following very closely. One of them in particular is poised to be the first to market together with a large USR. We've also completed the integration with a larger paid parking service provider and a restaurant reservations company. We are on track to have some exciting announcements early next year. In addition, voice commerce is driving new conversations with smart TV manufacturers. and in particular, we are in talks with two prominent global manufacturers to enable consumers to order food or other services while watching TV simply by speaking to the device. More to come on that in the near future. We are nearly fully integrated with two tech platform giants in order to offer our voice ordering to their many millions of users. Going live to consumers is now imminent, with more to come on this opportunity. We believe this is a proof point that our decades of relentless innovation is delivering technology that is ready for mass adoption, even by big tech. We will have a prominent presence at CES once again in January, showcasing our solutions with participation from several partners. We look forward to seeing some of you there. In closing, we continue to deliver strong results. Some of the largest companies in the world are coming to us for solutions to address their AI goals. we are at the very beginning of addressing the massive market opportunity in front of us. We are a pioneer in voice and conversational AI, and the expertise we've gained over the past decades are becoming recognized more and more every day. We are delivering value-driven, agentic AI solutions to our customers, and we are ready to offer a voice commerce solution no other company has been able to bring to market. With that, I'll now turn the call over to Nitesh to talk about our financial performance key growth drivers, and business outlook.