SoundHound burned -$34.07M of free cash flow in Q2, and -$115.9M over the last four quarters. The burn is funded by selling shares: 6.23M shares through the ATM in Q2 alone, share count up from 400M to 431M in a year.
The stock is $4.22. A year ago the crowd paid $18.36 for the same story.
Thursday after the close, it reports. Two checks, set on October 13 — the lines do not move:
- Free cash flow better than -$34.07M
- Zero new ATM share sales in the 10-Q
Clear both and the bear case breaks — I'll say so in public. Fail either one and the funding model is the story for another quarter. The $230–260M full-year guide now also carries the LivePerson acquisition, which closed September 4.
Full video breakdown is in my pinned comment. Not financial advice.