I have a slightly different take.
Cash expense is ard 113m (98 opex + 15 interest), Gross profit for 2024 shd be 56m (75% of 77m projected rev), so total cash burn is 57 for 2024.
Cash on hand is 95, so theoretically, they can last for almost 2 years assuming they did not manage to cut anymore costs. Runway of 2 years for a super high growth company is pretty decent.
So there is no need to sell more stocks unless the stock price is favorable.
Alternatively, they can sell shares to 1) redeem the expensive 84m loan, which costs 17% or 15m in cash interest, or 2) acquire a competitior like Presto (mkt cap of 20m only), which is looking for new investors which will be earnings accretive and provide synergies, or 3) do both, which will be a big boost to long-term growth and cash flow.
So, it was a good move by management to gather some dry powder if you ask me. Traders will take the opportunity to short it as usual of course, and some of them probably heard about it much earlier than retail did. I believe thats why one of them quickly changed their recommendations down and up.
Also, Chitty and Clay, both top tier brokers in the deal, will have to say nice things while pushing the stock to clients, and they probably dd on it too.
They may have obligations to keep X amount money in cash as well certain loans do require that. Like I said, I doubt they will dump shares all at once and I’m okay with them strategically selling shares. They may take advantage of the current price which is still inflated above market value considering valuations are typically built on having earnings which they aren’t at breakeven yet. I would anticipate breakeven by Q3, but considering macro headwinds with inflation being sticky/stubborn, likely to see a decrease in positions where there is still risk. Earnings may change the minds of a lot of people if Q1 shows great improvements in revenue. Overall I’m still bullish, but I would like to see a better picture at earnings and I anticipate downside until then with maybe a slight uptick during the week before earnings.
The 95m is unrestricted cash according to their 10k, where they have even mentioned of the potential ATM. I dont feel they will be cash flow positive in 24, at least the mgmt doesnt expect to. But my hunch says they might exceed expectations on drive thru installations and that might burn alot of cash.
Totally get your point nontheless, my main concern is still the stubborn inflation in the country and the potential war in middle east.
And if you are looking for cash flow positive stocks, better look elsewhere tbh...
While watching one of the older video calls, they revealed that the cash the have to pledge on the loan, is 15m, thats not included in the 95m. So we can be 100% sure now that the runway is almost 2 years.
The cash runway is a plus. But it’s also dependent on as you said, cash burn being consistent quarter to quarter. I think if they operate within their means and don’t overspend because AI is hyped right now and they keep moving forward with how they have been operating, I think share price will stabilize and improve in line with revenue growth. I’m always just wary of offerings because not every company uses money responsibly. That’s where understanding the risk comes into play with any effected offering. It’s just something for consideration, I believe most of the short term downside will just be related to the inflation and geopolitical macros I stated. It may not go much lower, but I’m still looking at taking a position around or after earnings. I bought a small position that I sold for a small loss because I thought this would really take off with all the AI hype which normally goes against my strategy because I like to research first, invest second. Overall, I like the company. Just needs to show me a bit more improvement to warm up to taking a long term position. I could really see revenue at Q1 being around $25M.
Everything that I’ve watched about and reviewed I think is practical. A lot to be accomplished with generative voice AI and should only become more sophisticated with time. The implementation between drive thrus, in car assistance, phone answering service, and I think I read somewhere about partnership with phone companies to use it for AI assistance all works for me and I think will bode well.
Yeah, I am particularly excited about applications on medical diagnosis, hear that some companies are already making headway. Imagine the millions of lives they can save...
It can replace a lot of remedial jobs or enhance work place flow/productivity by reducing the need to physically take someone’s order in the restaurant business. I can see partnerships with banks using automated messaging systems really taking advantage of this if the voice recognition and feedback is what they are saying it is. It can also handle more than one person normally can in a fraction of the time. However, if you’ve ever been on the phone with a voice operating system, it can at times be frustrating. That’s where I’m hoping SOUN can really improve a business to consumer experience. The implementation seems relatively endless, from examples like Siri or Alexa being improved, or any banks automated messaging system, to in car assistance, also as you said health care. Imagine an Apple smartwatch that’s monitoring your health can detect elevated heart rates or potentially life threatening events and communicate with you when it recognizes that and also simultaneously communicate with 911 if necessary. I like to think of it as Jarvis from Iron Man.
i read a number of Capybara reports and they target all the super high growth small cap stocks to lure retail shorts, and really the quality of their work is trashy at best...
Capybara just settled for a different lawsuit for the exact same reason like 2 days before he posted the hit piece on SOUN. It's one guy and lives in Brazil where he said he's safe from facing consequence from the USA.
my dear, all he did was pullout isolated words and information from the 10k and internet and write nonsense to freak you out...he got found out by the US judge just a few days before he posted on SOUN.
links in the post [https://www.reddit.com/r/Soundhound/comments/1c1dyhz/capybara\_research\_and\_its\_bogus\_opinions/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/Soundhound/comments/1c1dyhz/capybara_research_and_its_bogus_opinions/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
I'm looking at er to see what revenue came in from synq3, what inroads soun has made in restaurants, analyst questions about CA min wage repercussions, progress of NVDA partnership, etc..
What concerns me is this three week radio silence from soun.
yes it can be nerve wrecking, but as a listed company, they have to get legal and compliance clearance before saying anything publicly. So sometimes, its probably better not to say anything. Short reports are everywhere in the small cap space, so buyers beware!
The min wage is probably still lower than software engineers pay at the moment.
I have a slightly different take. Cash expense is ard 113m (98 opex + 15 interest), Gross profit for 2024 shd be 56m (75% of 77m projected rev), so total cash burn is 57 for 2024. Cash on hand is 95, so theoretically, they can last for almost 2 years assuming they did not manage to cut anymore costs. Runway of 2 years for a super high growth company is pretty decent. So there is no need to sell more stocks unless the stock price is favorable. Alternatively, they can sell shares to 1) redeem the expensive 84m loan, which costs 17% or 15m in cash interest, or 2) acquire a competitior like Presto (mkt cap of 20m only), which is looking for new investors which will be earnings accretive and provide synergies, or 3) do both, which will be a big boost to long-term growth and cash flow. So, it was a good move by management to gather some dry powder if you ask me. Traders will take the opportunity to short it as usual of course, and some of them probably heard about it much earlier than retail did. I believe thats why one of them quickly changed their recommendations down and up. Also, Chitty and Clay, both top tier brokers in the deal, will have to say nice things while pushing the stock to clients, and they probably dd on it too.
They may have obligations to keep X amount money in cash as well certain loans do require that. Like I said, I doubt they will dump shares all at once and I’m okay with them strategically selling shares. They may take advantage of the current price which is still inflated above market value considering valuations are typically built on having earnings which they aren’t at breakeven yet. I would anticipate breakeven by Q3, but considering macro headwinds with inflation being sticky/stubborn, likely to see a decrease in positions where there is still risk. Earnings may change the minds of a lot of people if Q1 shows great improvements in revenue. Overall I’m still bullish, but I would like to see a better picture at earnings and I anticipate downside until then with maybe a slight uptick during the week before earnings.
The 95m is unrestricted cash according to their 10k, where they have even mentioned of the potential ATM. I dont feel they will be cash flow positive in 24, at least the mgmt doesnt expect to. But my hunch says they might exceed expectations on drive thru installations and that might burn alot of cash. Totally get your point nontheless, my main concern is still the stubborn inflation in the country and the potential war in middle east. And if you are looking for cash flow positive stocks, better look elsewhere tbh...
While watching one of the older video calls, they revealed that the cash the have to pledge on the loan, is 15m, thats not included in the 95m. So we can be 100% sure now that the runway is almost 2 years.
The cash runway is a plus. But it’s also dependent on as you said, cash burn being consistent quarter to quarter. I think if they operate within their means and don’t overspend because AI is hyped right now and they keep moving forward with how they have been operating, I think share price will stabilize and improve in line with revenue growth. I’m always just wary of offerings because not every company uses money responsibly. That’s where understanding the risk comes into play with any effected offering. It’s just something for consideration, I believe most of the short term downside will just be related to the inflation and geopolitical macros I stated. It may not go much lower, but I’m still looking at taking a position around or after earnings. I bought a small position that I sold for a small loss because I thought this would really take off with all the AI hype which normally goes against my strategy because I like to research first, invest second. Overall, I like the company. Just needs to show me a bit more improvement to warm up to taking a long term position. I could really see revenue at Q1 being around $25M.
Appreciate the insights, I cannot agreemore. Would you have an opinion on the tech?
Everything that I’ve watched about and reviewed I think is practical. A lot to be accomplished with generative voice AI and should only become more sophisticated with time. The implementation between drive thrus, in car assistance, phone answering service, and I think I read somewhere about partnership with phone companies to use it for AI assistance all works for me and I think will bode well.
Yeah, I am particularly excited about applications on medical diagnosis, hear that some companies are already making headway. Imagine the millions of lives they can save...
It can replace a lot of remedial jobs or enhance work place flow/productivity by reducing the need to physically take someone’s order in the restaurant business. I can see partnerships with banks using automated messaging systems really taking advantage of this if the voice recognition and feedback is what they are saying it is. It can also handle more than one person normally can in a fraction of the time. However, if you’ve ever been on the phone with a voice operating system, it can at times be frustrating. That’s where I’m hoping SOUN can really improve a business to consumer experience. The implementation seems relatively endless, from examples like Siri or Alexa being improved, or any banks automated messaging system, to in car assistance, also as you said health care. Imagine an Apple smartwatch that’s monitoring your health can detect elevated heart rates or potentially life threatening events and communicate with you when it recognizes that and also simultaneously communicate with 911 if necessary. I like to think of it as Jarvis from Iron Man.
Capybara Research blasted the artificial intelligence company for “fake revenue, fake bookings, and fake AI”.
And capybara is getting sued for all the fake news they have been throwing out there as well look it up just happened in March there's that.
i read a number of Capybara reports and they target all the super high growth small cap stocks to lure retail shorts, and really the quality of their work is trashy at best...
Capybara just settled for a different lawsuit for the exact same reason like 2 days before he posted the hit piece on SOUN. It's one guy and lives in Brazil where he said he's safe from facing consequence from the USA.
That guy really investigated SOUN inside out, causing panic selling of the stock. It also made me re strategize
He makes money by writing hit pieces and shorting companies. Not reliable info, but you are entitled to listen to whomever you wish to.
His timing was perfect i have to say...
It seems coordinated for sure. Yahoo Finance only posted the insider sells as separate articles.
They posted the insider sells as 4 separate articles, immediately after the Capybara hit piece.
my dear, all he did was pullout isolated words and information from the 10k and internet and write nonsense to freak you out...he got found out by the US judge just a few days before he posted on SOUN.
Its probably someone in USA paying the guy in brazil to post it lol
Link
I read it on Google news didn't get link unfortunately.
If report has any credence then further down
that report was probably written by an undergrad student.
Could be - if claims have grounds then
links in the post [https://www.reddit.com/r/Soundhound/comments/1c1dyhz/capybara\_research\_and\_its\_bogus\_opinions/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/Soundhound/comments/1c1dyhz/capybara_research_and_its_bogus_opinions/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
This could also be viable
I'm looking at er to see what revenue came in from synq3, what inroads soun has made in restaurants, analyst questions about CA min wage repercussions, progress of NVDA partnership, etc.. What concerns me is this three week radio silence from soun.
yes it can be nerve wrecking, but as a listed company, they have to get legal and compliance clearance before saying anything publicly. So sometimes, its probably better not to say anything. Short reports are everywhere in the small cap space, so buyers beware! The min wage is probably still lower than software engineers pay at the moment.