SoundHound SPAC Presentation Deck
Significant Near Term Value Creation Opportunity
Peer Group 2022 Valuations
TEV/2022P Revenue
Average: 11.0x
10.0x
cerence
25.6x
10.3x
cerence
(1)
NUANCE
Incumbent Voice Al
Average: 32.0x
31.4x
TEV/2022P EBITDA
(1)
NUANCE
12.7x
Incumbent Voice Al
(2)
NUANCE
Acquisition
38.9x
(2)
NUANCE
Acquisition
28.2x
Disruptive Al & (3)
Monetization
70.0x
Disruptive Al & (3,4)
Monetization
Illustrative SoundHound Value Creation Opportunity
Present Value at Peer Valuations (5)
Future value calculated based on outlined forward
multiples applied to 2026E Revenue and EBITDA,
discounted 20% annually to December 31,2021
Transaction Value
($ in billions)
$2.1
Revenue
EBITDA
3-9x Increase
$8.5
$5.5
Incumbent Voice Al
10 - 15x
25 - 35x
$18.0
$15.0
Disruptive Al &
Monetization
27-32x
65 - 75x
Source: Management estimates, Company materials, Wall Street research, CapitallQ, and FactSet as of 11/12/2021. Note: Nuance revenue and EBITDA forecasts reflect management estimates. (1) Multiple reflects trading as of market close on the day prior to the
announced acquisition by Microsoft. (2) Multiple reflects Microsoft's cash offer price of $56.00 per share. (3) Disruptive Al and Monetization peer average includes Monday.com, NVIDIA,, Roku, Shopify, Snap, Snowflake, Tesla, Trade Desk, Twilio, and Zoom. (4)
Excludes EBITDA multiples above 100.0x or below 0.0x. (5) Present value assuming valuation multiples applied to 2026P Revenue and EBITDA, 12/31/2021 valuation date and 20% discount rate.
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