Introduction

SoundHound is an unprofitable 19-year-old company with a broken business model and no clear path to profitability. Management has deceived investors about their technology, partnerships, revenue, and growth. Multiple large customers have paid SoundHound to cancel their contracts, but the company has recorded these one-time payments as product revenue. SoundHound also pulls revenue forward in time for products that customers have not yet built and for which SoundHound has not been paid. Given SoundHound’s history of losing large contracts, we feel it’s likely that much of this revenue will never materialize.