Agreement Fuels Company’s Plans for Sustained Rapid Growth and
Innovation and Includes Ability to Upsize to $125 Million
SoundHound AI, Inc. (Nasdaq: SOUN) (“SoundHound AI”), a global
leader in voice artificial intelligence, today announced that it
closed a new $125 million loan facility, with $100 million
fully-funded at closing, from Atlas Credit Partners.
This strategic transaction completes the Company’s plans
announced at the beginning of this year to refinance its current
debt and further solidify its balance sheet. This new facility will
enable SoundHound AI to replace its existing $30 million debt with
a more favorable structure that reduces the company’s cash outflows
and extends the maturity date to 2027. Additionally, the funds
provide substantial incremental capital to drive further innovation
and support the Company’s growth plans.
With the significantly strengthened balance sheet, and
SoundHound AI’s track record of groundbreaking innovation, the
Company believes it will be able to accelerate its pace of
innovation and market expansion. Recent advances in artificial
intelligence, including Generative AI and Large Language Models,
have catalyzed a wave of breakthroughs that are transforming how
humans can converse more naturally and seamlessly with technology.
SoundHound’s recent groundbreaking launches of Dynamic Interaction
and SoundHound Chat AI showcase the latest chapters in its long
track record of technological leadership. The Company has
strengthened its unique position through its ability to efficiently
combine market advances with its best-in-class voice AI
capabilities.
SoundHound AI is poised to significantly grow its subscription
business with its innovative customer service offering, which
includes its suite of AI-based customer service products supporting
call answering and food ordering for restaurants ranging from SMBs
to large enterprises, and to drive continued growth in its
licensing business, which includes smart devices, TV, and
automotive verticals, while delivering against its $332 million
bookings backlog as of December 31, 2022.
“The clear intersection between demand for sophisticated
Conversational AI and adoption of SoundHound’s category-leading
technology stack with 17+ years of maturity has created a unique
opportunity,” said Keyvan Mohajer, CEO and Co-Founder of
SoundHound. “Today, this potential has been acknowledged and
underscored with a significant financial commitment from Atlas
Credit Partners. Having this additional capital available will play
a key role in setting SoundHound up for continued, long term
success.”
This new minimally-dilutive financing gives SoundHound AI the
flexibility to deliver on its short-term objectives and long-term
vision through this four-year loan. By adding significant capital
to an already robust balance sheet, the Company is positioned with
ample liquidity to effectively navigate potential market
uncertainties while fueling growth.
After closing costs, other expenses and repayment of existing
debt, the Company is expected to have a cash balance of over $100
million. The Credit Agreement also allows SoundHound AI to
potentially tap into additional capital of up to $25 million.
“Today’s announcement with SoundHound AI demonstrates our
commitment to empowering technology leaders in their respective
categories. After meeting Keyvan and the SoundHound team, the
sophistication of their voice AI, robust data, and technology stack
made our decision to partner natural,” said Drew Mallozzi, Chief
Investment Officer and Managing Partner at Atlas Credit Partners.
“We believe our investment will help SoundHound AI to accelerate
the pace at which they are redefining voice AI and enable them to
further extend their global lead.”
Union Square Advisors LLC and Cantor Fitzgerald & Co acted
as financial advisors to SoundHound AI in connection with this
credit facility.
To learn more, visit https://www.atlascreditpartners.com or
https://www.soundhound.com/
About SoundHound AI
SoundHound AI (Nasdaq: SOUN), a leading innovator of
conversational intelligence, offers an independent voice AI
platform that enables businesses across industries to deliver
best-in-class conversational experiences to their customers. Built
on proprietary Speech-to-Meaning® and Deep Meaning Understanding®
technologies, SoundHound’s advanced voice AI platform provides
exceptional speed and accuracy and enables humans to interact with
products and services like they interact with each other—by
speaking naturally. SoundHound is trusted by companies around the
globe, including Hyundai, Mercedes-Benz, Pandora, Qualcomm, Snap,
Square, Toast, LG, VIZIO, KIA, and Stellantis.
www.soundhound.com
About Atlas Credit Partners
Atlas Credit Partners is a Houston, Texas based asset management
firm specializing in credit investing and partnering directly with
middle market growth companies; providing minimally-dilutive
capital solutions to management teams to facilitate transition,
accelerate growth and create long-term value for all stakeholders.
Atlas committed over $750 million in 2022 to businesses in
transition and leverages more than 70 years of combined business
experience at top-tier institutions to help its portfolio companies
grow through introductions, enabling management teams to connect
with other partners within Atlas’ proprietary network while
offering a multi-cycle runway for companies to enact their business
plans. To learn more, visit https://www.atlascreditpartners.com, or
follow the company on LinkedIn.
Forward Looking Statements
This press release contains forward-looking statements, which
are not historical facts, within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Our actual results,
performance or achievements may differ materially from those
expressed or implied by these forward-looking statements. In some
cases, you can identify forward-looking statements by the use of
words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,”
“continue,” “likely,” “will,” “would” and variations of these terms
and similar expressions, or the negative of these terms or similar
expressions. Such forward-looking statements, including, but not
limited to, statements regarding our expectations regarding our
growth, cost efficiency, profitability, and cash flow, our expected
revenue growth rate, benefits of our new loan facility with Atlas
Credit Partners, our expectations regarding market demand and
technology advancements in our markets, including conversational
AI, our category leadership, market acceptance of our products, our
unique competitive position, our ability to deliver on our
short-term objectives and long-term vision, our ability to
effectively navigate any potential market uncertainties while
fueling growth, the pace of our innovation and market expansion,
our bookings backlog and ability to convert into revenue, and our
ability to achieve growth and performance objectives, are
necessarily based upon estimates and assumptions that, while
considered reasonable by us and our management, are inherently
uncertain. As a result, readers are cautioned not to place undue
reliance on these forward-looking statements. Actual results may
differ materially from those indicated by these forward-looking
statements as a result of risks and uncertainties impacting
SoundHound’s business including, but not limited to, adequacy of
our capital resources for our expected financial goals; continued
adoption of our current and future products, our ability to shift
emphasis from our current licensing business and increase our focus
on SoundHound for Restaurants; our inability to predict or measure
supply chain disruptions at our customers resulting from the
COVID-19 pandemic and other causes; the effects of inflationary
conditions, economic uncertainty, recessionary risks and exchange
rate fluctuations, the potential future revenue associated with our
AI platform products and services; our rate of growth; our ability
to reduce costs and improve our operating efficiency while
maintaining revenue growth; our ability to predict direct and
indirect customer demand for our existing and future products and
to secure adequate manufacturing capacity; our ability to hire,
retain and motivate employees; the effects of competition,
including price competition within our industry segment;
technological, regulatory and legal developments that uniquely or
disproportionately impact our industry; developments in the economy
and financial markets and those other factors described in our risk
factors set forth in our filings with the Securities and Exchange
Commission from time to time, including our Annual Report on Form
10-K for the year ended December 31, 2022, as updated by our
subsequent Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K. We do not intend to update or alter our forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230417005377/en/
SoundHound AI Media Contact Fiona McEvoy 415-610-6590
PR@SoundHound.com
Atlas Credit Partners Media Contact Erika Siemasko JMG
Public Relations 212-206-1645 Erika@jmgpr.com
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