SoundHound AI, Inc. (NASDAQ:SOUN) Q4 2023 Earnings Call Transcript

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Nitesh Sharan: Thanks, Mike.

Operator: Thank you. One moment for our next question. Our next question comes from Brett Knoblauch with Cantor Fitzgerald. Your line is now open.

Brett Knoblauch: Hi, guys, thanks for taking my question. Maybe — it was nice that you kind of gave us some info on, I guess, the year-over-year growth in auto units. I was wondering if you could maybe give us some type of indication for how many units or devices your technology is currently embedded in, and if that’s something you could foresee giving us on a more frequent basis going forward?

Keyvan Mohajer: We are in the millions. We considered disclosing the exact number. One challenge is that some of our customers don’t give us unique device IDs. So then it makes it more difficult to accurately measure. So, it might all look like one device, but it might be a million devices. There are ways to interpolate that, but definitely you are in the millions of cars and TVs and IoT devices.

Nitesh Sharan: The other measure we do give, and we put it in the press release, but it’s the queries, which is another sort of an indicator of usage and activity, and that has been growing. It’s been growing. We’ve been giving that number for a couple of years now and crossing 3.5 billion sort of run rate is an indication of the breadth and also just the usage curve increases that we’re excited about.

Brett Knoblauch: Got it. And then on maybe the restaurant business. I guess any update to how many units you guys are currently deployed in and what you’re targeting for end of this year? I think [indiscernible] White Castle, you’re expecting to be in over 100 by the end of the year. But maybe more broadly speaking, given you kind of expect Pillar 2 to be north of 20% of the business this year?

Nitesh Sharan: Yeah, I’ll break apart. We do, with SYNQ3, now have thousands and thousands, right? They brought a big arsenal of restaurants, the likes of customer names I gave a little earlier. Then we’re always growing and have these massive deals that are currently we’re working on that — it’s tens of thousands of potential opportunities. So I think the best way to — and I will say the pricing can range, if you’re kind of in the phone ordering, it could be in the hundreds of dollars per location. If you’re in drive-thru market, it could be north of thousands. So kind of really in our more advanced state, could be well beyond that of tech. So, units and location are going to kind of be driven by the integration pace. We believe we are unpacking and addressing a market that has hundreds of thousands of locations.

So, what we have today is a small fraction. And I’d say in the U.S. alone, it’s a million food establishments and globally multiples of that. So, we are going to grow from the 10,000 range by the end of the year quite meaningfully and then hopefully we’ll be soon talking about hundreds of thousands that we’re in and the revenue numbers will follow.

Brett Knoblauch: Thank you. Most appreciate it.

Nitesh Sharan: Thanks, Brett.

Operator: Thank you. We’re showing no further questions at this time. This concludes today’s conference call. Thank you for participating. You may now disconnect.

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