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SoundHound AI acquires Allset to expand voice ordering

EditorNatashya Angelica
Published 06/20/2024, 11:28 AM

SANTA CLARA, Calif. & LOS ANGELES - SoundHound AI , Inc. (NASDAQ: NASDAQ:SOUN), a key player in voice artificial intelligence, has acquired significant assets from Allset, an online food ordering platform. The integration of Allset's team into SoundHound marks a strategic move to enhance the company's voice AI capabilities and advance its vision of a voice commerce ecosystem.

Allset, established in 2015, has developed a local pick-up ordering system that connects diners with nearly 7,000 restaurant partners across the nation, such as Joe & The Juice and Charleys Cheesesteaks. The platform is recognized for its efficiency and cost-effective dining solutions, which stand apart from traditional delivery apps by eliminating high fees.

The acquisition will see Allset's restaurant partners gaining access to SoundHound's suite of voice AI products, aiming to improve operational efficiency and sales while reducing costs. Allset's Co-Founders, Stas Matviyenko and Anna Polishchuk, bring their marketplace expertise to SoundHound, with ambitions to propel the company's voice monetization platform.

SoundHound is currently a market leader in restaurant voice AI solutions, serving over 10,000 restaurant locations. Their technology facilitates voice-enabled ordering via multiple channels, including phone, drive-thru, kiosk, and mobile apps. It is designed to understand various languages, integrate with point-of-sale systems, and enhance customer interactions with upselling and promotions.

The acquisition is expected to enrich SoundHound's voice AI offerings, particularly in the restaurant sector, by leveraging Allset's established restaurant relationships and marketplace knowledge. Keyvan Mohajer, CEO and Co-Founder of SoundHound AI, emphasized the combined efforts to deliver convenient and dynamic voice-enabled ordering methods.

This development is part of SoundHound's broader engagement with clients across diverse sectors, including smart devices and automotive, where its solutions are integrated into millions of units globally.

The press release contains forward-looking statements regarding the anticipated benefits and integration of Allset's assets into SoundHound's business operations. These statements are subject to a range of uncertainties, and there is no guarantee that the envisaged outcomes will be realized as predicted.

The information presented is based on a press release statement from SoundHound AI, Inc. and does not include any speculative or promotional content. The focus remains on the factual aspects of the acquisition and the potential advancements in voice AI technology for consumer convenience in the food ordering space.

In other recent news, SoundHound AI, a leader in the voice artificial intelligence (AI) technology sector, has made significant strides in its financial position. The company recently prepaid its $100 million debt in full, eliminating future interest and fees totaling over $55 million. This move, which also released about $14 million of previously restricted cash, has left SoundHound AI with no outstanding debt and a cash reserve of roughly $180 million.

SoundHound AI's Q1 financial results also showed a robust 73% surge in revenue, with earnings exceeding $11 million. Despite an operating and net loss for the quarter, the company has displayed confidence in its future performance by raising its full-year revenue guidance. SoundHound AI's backlog of $682 million underscores the firm's strong customer commitment and long-term contracts.

The company's AI customer service solutions, including its drive-thru AI service and Smart Ordering offering, have been well-received, contributing to its strong Q1 performance. SoundHound AI has also formed partnerships with NVIDIA (NASDAQ:NVDA) and Perplexity AI to enhance its voice assistant capabilities. These developments are part of the company's ongoing strategy to meet the growing demand for its voice AI solutions.

InvestingPro Insights

As SoundHound AI (NASDAQ: SOUN) forges ahead with its acquisition of Allset's assets, the company's financials and market performance offer a backdrop to this strategic move. With a market capitalization of $1.35 billion, SoundHound underscores its position in the competitive voice AI landscape. The company's significant revenue growth over the last twelve months, clocking in at 51.31%, reflects its expanding market presence and innovative edge.

An InvestingPro Tip highlights that SoundHound holds more cash than debt on its balance sheet, indicating a solid liquidity position that could support its ambitious expansion plans in the voice commerce ecosystem. Moreover, the company's liquid assets exceed its short-term obligations, further reinforcing its financial stability.

Investors should note, however, that analysts have tempered expectations regarding profitability, with SoundHound not anticipated to be profitable this year. The stock has experienced considerable price volatility, with a 1-week price total return of -11.47% and a 3-month price total return of -48.42%, yet it has seen a large price uptick over the last six months, with a 95.69% return. This volatility may reflect the competitive nature of the tech sector and investor sentiment about SoundHound's growth trajectory.

For those interested in deeper analysis and more InvestingPro Tips, SoundHound has 13 additional tips available on InvestingPro. Subscribers can gain valuable insights into the company's prospects and potential investment opportunities. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore the comprehensive analysis that InvestingPro offers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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