SoundHound cuts FY23 revenue view to $70M-$73M from $77M-$79M

Consensus $75.19M. For fiscal 2023, the Company now expects full year revenue to be between $70 million and $73 million, a decrease from its previous expectation of $77 million to $79 million. The Company now expects full year gross margins of 43% to 45%, a decrease from its previous expectation of 48% to 50%. The Company now expects full year operating expenses of $70 million to $72 million, a decrease from its previous expectation of $76 million to $78 million. For fiscal 2023, non-GAAP cash operating expenses, excluding additional items as detailed below, are now expected to be in the range of $55 million to $57 million, a decrease from its previous expectation of $60 million to $62 million. The Company expects cash burn for the second half of 2023 to be between $3 million to $8 million resulting in cash and cash equivalents of $10 million to $15 million at the end of the year. While the Company expects disposables revenue to account for 75% of its total revenue over the long-term, the Company anticipates that the contribution of disposables revenue as a percentage of total revenue may be slightly lower than this in 2023 given the market receptivity to HVT 2.0.