SoundHound AI CFO Nitesh Sharan Speaking at Piper Sandler Growth Frontiers Conference

Introduction

During the recent Piper Sandler Growth Frontiers Conference, Jim Fish of the software team had the opportunity to engage with Nitesh Sharan, CFO of SoundHound AI, discussing the evolution of the company, its drive toward B2B solutions, and the competitive landscape of voice AI technology.

Introduction to SoundHound AI

SoundHound AI, which went public about two and a half years ago, initially focused on a B2C model but has transitioned to a more robust B2B strategy. Sharan elaborated on this evolution, breaking down the company’s initiatives under three strategic pillars.

Sharan noted that SoundHound has a legacy in voice AI, with nearly 20 years of experience, largely fueled by a consumer app aimed at music recognition. However, the company’s primary focus has shifted toward voice enabling products that include automotive systems, TVs, and smart appliances.

Voice AI Ecosystem and Three Pillar Strategy

The first pillar is voice-enabling products. SoundHound has focused on automotive applications as a primary entry point, aiming to make driving safer through voice-enabled interactions. The company has been able to garner traction and partnerships with various automotive manufacturers, gaining market share from established players like Nuance.

The second pillar, voice-enabling services, is particularly strong in the restaurant industry, with Sharan citing engagement in food ordering operations. Recent acquisitions, including that of Amelia in the customer service sector, are aimed at enhancing capabilities across multiple industries like healthcare and financial services.

Finally, the third pillar is a monetization ecosystem, which integrates voice-enabled services and products, creating new revenue streams. Sharan shared a practical example: customers can seamlessly order coffee through voice commands while driving, demonstrating a real-world application of their technology.

Automotive Market Penetration

The conversation transitioned to automotive market penetration, where Sharan provided insights into the current state. He noted a 75% penetration of voice in vehicles. While SoundHound is still in the single digits regarding its market share, the company sees substantial growth potential within their existing partnerships that collectively represent approximately 20% of the global automotive market.

Competitive Landscape

SoundHound faces competition in various sectors, particularly from big tech and private companies. Sharan emphasized that SoundHound's advantage lies in its comprehensive technology stack encompassing speech recognition, natural language understanding, and text-to-speech capabilities. Unlike many of its competitors, SoundHound has built a complete voice AI ecosystem that allows for seamless customer service across diverse applications.

Integration and Demand Growth

Sharan highlighted recent growth metrics, noting that SoundHound has achieved over 100% growth in backlog bookings, with an expectation of sustained growth in revenue streams. The integrations with companies like Amelia enable SoundHound to accelerate customer journeys for larger enterprises in highly regulated industries, drastically reducing the time it would take to understand and fulfill customer requirements.

Conclusion

SoundHound's journey from B2C to B2B and its strategic initiatives position it well for the future in the expanding voice AI market. As the company continues to innovate and adapt, it is poised to play a significant role in the transformation of how humans interact with technology, emphasizing the importance of voice as an essential interface.

Keywords

• SoundHound AI
• Voice AI
• B2B Strategy
• Nitesh Sharan
• Voice-Enabled Products
• Automotive
• Conversational AI
• Amelia Acquisition
• Monetization Ecosystem
• Restaurant Industry

FAQ

1. What is SoundHound AI's primary focus now?
SoundHound AI is currently concentrating on its B2B strategy, focusing primarily on voice-enabled products and services.

2. How does SoundHound AI differentiate from its competitors?
SoundHound AI has a comprehensive voice AI ecosystem that includes speech recognition, natural language understanding, and text-to-speech capabilities, providing an edge over competitors who may only offer parts of this technology.

3. What recent acquisition has SoundHound AI made?
SoundHound AI recently acquired Amelia to enhance its voice-enabled services capabilities, particularly in highly regulated industries.

4. What is the growth outlook for SoundHound AI?
SoundHound AI has reported over 100% growth in backlog bookings and expects sustained growth, targeting a consistent growth rate of around 50% over the next several years.

5. In which industries is SoundHound AI seeing significant demand?
The restaurant industry has been a significant area of growth for SoundHound, along with opportunities in automotive, healthcare, and financial services.