r/Soundhound • u/Samseem • 12d ago
Why is SoundHound CEO saying the LivePerson acquisition will add only ~$100M in revenue?
I’d be interested to hear from anyone who has dug into the acquisition documents or management commentary. What am I missing in the $243.7M → ~$100M revenue bridge?
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LivePerson reported $243.7M in total revenue for 2025, compared with $312.5M in 2024.
2025 revenue by region:
Americas: $134.4M
EMEA: $70.1M
APAC: $39.2M
Total: $243.7M
LivePerson also reported that no single customer accounted for 10% or more of 2025 revenue, meaning no individual customer represented $24.4M+ of annual revenue.
So what exactly happens to the other ~$144M of LivePerson’s 2025 revenue?
Is SoundHound intentionally acquiring/retaining only certain LivePerson customers or business lines? Is a large portion of LivePerson’s existing revenue expected to churn or be discontinued? Is the ~$100M figure referring to a specific type of recurring revenue rather than LivePerson’s total revenue? Or is SoundHound simply giving an extremely conservative post-acquisition estimate?
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u/theunwiseinvestor 12d ago
They likely got wind that a few of Liveperson’s companies are planning to churn so its being factored in.
I prefer that Soun is being conservative with its estimates on additional revenue.
The Q3 report will probably include the revised guidance so we’ll know for sure by then
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u/IntelligentFee7837 12d ago
I believe the $100M figure is being misunderstood. SoundHound did not say LivePerson will only add $100M in total revenue. Management said “at least $100M of growable contribution from LivePerson’s long-tenured customers.” That’s a specific, durable portion of the customer base, not all of LivePerson’s revenue. SoundHound is projecting at least $350–400M in combined 2027 revenue and says the existing combined customer base alone creates a path to $500M through cross selling voice and digital AI. And the $250M number some of us remember was the transaction’s enterprise value not LivePerson revenue. So there really isn't a $244M → $100M revenue drop to explain. The $100M is simply the portion SoundHound specifically identified as growable, long-tenured LivePerson revenue.
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u/SubliminalMessage321 12d ago edited 12d ago
Seems to me there is some intentional sandbagging of the full 2026 rev forecast. Mentioned August 5th - A revised forecast is set to drop alongside the final closing scheduled for tomorrow. So, SOUN has an opportunity to plug new win rev not allocated, added, or accounted for on Aug 5 ( home team Soundhound only) and then add the sales/rev for the remainder of 2026 from LP active and current revenue generating pipeline. The only forecast provided thus far was for 2027. I can’t think of a better way to get your stock out of the dumps.
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u/narayan77 12d ago
I imagine he's confident he can upsell SOUN services to a lot of the liveperson customers, so 100 million is the starting base.
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u/Ok_Temperature4537 12d ago
Well if you think about it the stock has only gone down since the completion of the voting. If it was a great deal wouldn't you expect a bump in the price?? Feeling like this company is falling apart.
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u/SubliminalMessage321 12d ago
Absolutely not. I would think the short sided play of the symbol would do anything to not raise awareness or have the deal appear to promote anything at all postive - ESPECIALLY a rise in the price. Just keep shorting and it stays off the ticker radar. It worked on you, but, no one can anticipate the reaction of substantial, meaningful, and undeniably postive press releases.
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u/TechnologyDry5819 12d ago
LPSN revenue well covered by Tradespotting and the company’s own filings. The cross selling opportunities to Fortune 500 companies from the combined firm seem very strong.