Core Insights - SoundThinking, Inc. has appointed Burton Goldfield, former President and CEO of TriNet, to its Board of Directors effective April 17, 2025 [1] - Goldfield will also serve on the Audit Committee and Compensation and Human Capital Committee starting from the Company's 2025 annual meeting of stockholders [1] Company Overview - SoundThinking is a leading public safety technology company that provides AI- and data-driven solutions for law enforcement and security professionals [6] - The company serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [6] - Its SafetySmart™ platform includes several key products such as ShotSpotter, CrimeTracer™, CaseBuilder™, ResourceRouter™, SafePointe, and PlateRanger™ [6] Leadership Experience - Burton Goldfield has extensive executive leadership experience, notably leading TriNet through its IPO in March 2014 and transforming it into a leading cloud-based HR provider [2] - His leadership at TriNet included strategic acquisitions to expand market reach and a strong focus on innovation and customer success [2] - Prior to TriNet, Goldfield held leadership roles at Ketera Technologies, Hyperion Solutions Corporation, and IBM Corporation [3] Recognition and Contributions - Goldfield has received accolades such as "Most Admired CEO" by the San Francisco Business Times and "CEO of the Year" by the CEO World Awards [4] - He has contributed articles to Forbes and other publications, showcasing his thought leadership in the industry [4] Strategic Importance - The addition of Goldfield to the Board is seen as a significant move for SoundThinking during a critical phase of its evolution, bringing transformational leadership experience to the company [5]

Core Viewpoint - SoundThinking has integrated PlateRanger into its SafetySmart platform, enhancing public safety capabilities and enabling law enforcement agencies to improve investigative workflows and outcomes [2][4]. Integration and Technology - The integration of PlateRanger, an advanced license plate recognition solution, with ShotSpotter and CrimeTracer allows law enforcement to combine real-time gunshot detection data with vehicle identification and cross-jurisdictional insights [3][5]. - The Rekor Public Safety Network (RPSN) facilitates secure data sharing across jurisdictions, enhancing investigative speed and interoperability while respecting data ownership [6][7]. Benefits to Law Enforcement - The integration provides enhanced investigations by linking gunfire events with suspect vehicle data, allowing for more comprehensive follow-up [5]. - Multi-agency collaboration is improved through integrated systems that enable data sharing, helping to uncover connections between incidents [7]. - The commitment to open standards allows for seamless integration with existing systems, differentiating SoundThinking in the market [7]. Market Impact - SoundThinking serves over 175 ShotSpotter customers and approximately 2,100 CrimeTracer agencies, providing access to more than 1 billion records, thus expanding its market footprint [8].

Core Insights - SoundThinking's ResourceRouter customer base more than doubled in 2024, driven by new patrol operations capabilities that enhance efficiency amid staffing challenges [2][5] - The platform provides officers with critical field information, enabling more effective and safer patrol operations [2][3] Company Overview - SoundThinking, Inc. (NASDAQ:SSTI) is a leading public safety technology provider, delivering AI- and data-driven solutions for law enforcement and security professionals [6] - The company has over 300 customers and has collaborated with approximately 2,100 agencies to improve public safety outcomes [6] Product Features - ResourceRouter includes advanced features that allow officers to access vital operational intelligence on mobile devices, facilitating centralized communication of time-sensitive information [3][4] - The platform's map overlay system serves as a centralized information depot, improving response times and operational efficiency [4] Impact on Law Enforcement - ResourceRouter has been credited with reducing violent crime and enhancing community trust through data-driven policing [5] - The system provides accountability tools for supervisors to track patrol completion in real time, fundamentally changing operational practices [5] Market Demand - The rapid growth of ResourceRouter indicates a strong demand for technology that addresses staffing shortages and enhances patrol efficiency [5]

Customer Base and Market Penetration - As of December 31, 2024, the company had approximately 328 customers and had worked with about 2,100 agencies to enhance public safety outcomes[16] - The company serves law enforcement agencies in three of the ten largest U.S. cities as ShotSpotter customers, indicating early-stage penetration in the public safety market[118] - The two largest customers, the City of New York and the City of Chicago, accounted for 23% and 10% of revenues, respectively, for the year ended December 31, 2024[131] - Approximately 39% of ShotSpotter customers have expanded their coverage areas by an average of almost eight square miles, contributing to a revenue retention rate of 105% for 2024[119] - The company has identified a significant demand for its ResourceRouter solution, estimating a market of up to 1,500 cities with an average investment of $50,000 to $100,000 per year per customer[113] Product Offerings and Innovations - The SafetySmart platform includes six data-driven tools, with ShotSpotter® being the flagship product trusted by 177 cities and 20 universities and corporations[17] - The company has introduced PlateRanger™ powered by Rekor®, an advanced license plate recognition solution launched in July 2024[17] - The integration of solutions with drones and video surveillance enhances situational awareness and improves evidence collection for law enforcement[60] - The CrimeTracer search engine allows law enforcement to access over 1.3 billion structured and unstructured data points, facilitating immediate tactical leads[74] - The CaseBuilder solution aims to improve homicide clearance rates, which were below 50% in 2021, by providing a complete digital case management system[81] - ResourceRouter utilizes AI-driven analysis to optimize patrol deployment, ensuring officers are in the right place at the right time for crime prevention[91] - The PlateRanger solution, launched in partnership with Rekor Systems, enhances investigative efficiency through real-time data sharing and vehicle identification[95] - Detailed Forensic Reports provide comprehensive, court-admissible analysis of shooting incidents, supporting investigations and legal proceedings[61] - The ShotSpotter Insight application allows users to view, search, and filter historical incident data, aiding in investigative efforts[59] - The company invested in enhancing its advanced signal processing and classification algorithms, and deployed a complete overhaul of its SafePointe solution called NextGen in September 2024[137] Financial Performance and Revenue - The company reported a net loss of $9.2 million for the year ended December 31, 2024, with an accumulated deficit of $104.3 million[180] - The company recognizes subscription revenues ratably over the term of contracts, which can lead to fluctuations in reported revenues[174] - The company estimates that a customer in the domestic market for public safety solutions could invest approximately $400,000 per year for ShotSpotter, while smaller cities may invest between $50,000 to $100,000 annually[110] - The company has increased its revolving credit commitment from $20.0 million to $25.0 million and extended the maturity date of its credit agreement to October 15, 2025[227] - As of December 31, 2024, there was $4.0 million outstanding on the company's line of credit[227] Strategic Partnerships and Acquisitions - The acquisition of SafePointe has expanded the total addressable market (TAM) into the estimated $20 billion weapons detection market, broadening the customer base into healthcare, casinos, and enterprise-level corporations[125] - The strategic partnership with Rekor to launch the PlateRanger™ solution is expected to tap into a fast-growing advanced license plate recognition (ALPR) market, with an additional TAM expansion of $3.2 billion[116][125] - The company has acquired complementary technologies or businesses, including LEEDS, LLC in November 2020, Forensic Logic in January 2022, and SafePointe in August 2023[183] Challenges and Risks - The company faces risks related to funding availability for its customers, particularly local governments, which could impact sales[185] - The company’s contract with the City of Chicago ended in November 2024, representing a significant revenue loss of 10%[186] - Macroeconomic pressures, such as inflation and rising interest rates, could adversely affect the company’s ability to maintain or increase revenues[188] - Economic uncertainties, including geopolitical tensions and inflation, may impact customer funding and purchasing decisions, leading to unpredictable revenue growth[205] - A significant portion of customers rely on federal funding for purchasing solutions, and any reduction in such funding could adversely affect sales[200] - New competitors entering the public safety solutions market could increase competition and impact revenue growth[208] - Privacy concerns regarding government surveillance may deter potential customers from purchasing the company's solutions[209] - The ongoing social unrest may adversely affect police agency budgets and funding available to current and potential customers, impacting the company's revenues and operations[211] Growth Strategy and Market Expansion - The company plans to increase investment in international product, sales, and marketing efforts to penetrate new geographies, with only four current ShotSpotter customers outside the U.S.[120] - The company aims to build a global sales organization to further penetrate the market for ShotSpotter and expand its security solutions customer base[132] - The company focuses on new customer acquisition, customer renewal, add-on sales, and coverage expansion through its direct sales teams[132] - The company aims to increase cross-selling efforts to existing customers but faces uncertainty regarding their receptiveness to new solutions[213] Employee Relations and Corporate Culture - The company has been designated a Great Place to Work® Company for the last six years, reflecting its commitment to employee relations and well-being[152] - As of December 31, 2024, the company employed 316 people, with a total attrition rate of less than 20%[152] - The company has a three-pronged strategy to grow diversity over time, focusing on attracting diverse talent, creating an inclusive workplace, and collaborating with customers and partners[154] Research and Development - The company has engaged in research and development activities with manufacturing partners and outsourced certain activities to engineering firms to supplement its internal team[137] - The company continues to evaluate new technologies for integration, aiming to enhance the value of its solutions for customers[60] - The marketing function's largest investment is in demand generation, aimed at driving a new and qualified pipeline for each product in the SafetySmart platform[133] Compliance and Regulatory Issues - Compliance with CJIS standards is necessary for certain customers, and failure to meet these requirements could harm sales and reputation[197] - Changes in federal funding availability and political landscapes may lead to operational changes in federal agencies, impacting the company's business[206]

Core Insights - SoundThinking, Inc. has secured four contracts in the Greater Los Angeles area for its ShotSpotter acoustic gunshot detection system, including one new customer agreement and three renewals [2][3] - The cities adopting or renewing ShotSpotter include Pasadena, Lancaster, Hawaiian Gardens, and Lakewood, all aiming to combat gun violence and enhance community safety [2][4] Company Overview - SoundThinking, Inc. is a public safety technology provider listed on NASDAQ under the ticker SSTI, offering AI- and data-driven solutions for law enforcement and civic leadership [10] - The company has over 300 customers and has collaborated with approximately 2,100 agencies to improve public safety outcomes [10] ShotSpotter Impact - In Pasadena, ShotSpotter has detected over 125 shootings since its deployment in 2022, addressing the issue of unreported gunfire, which exceeded 60% in Q3 2024 [4][5] - Hawaiian Gardens reported 176 ShotSpotter alerts in 2023, leading to the recovery of critical ballistic evidence and improved community relations due to reduced crime [6][7] - Lancaster completed a six-month pilot of ShotSpotter and is now entering a three-year term, with 36 confirmed alerts related to gunshots since its implementation in 2024 [8][9] Community and Law Enforcement Relations - The deployment of ShotSpotter has been recognized as a tool that enhances situational awareness for law enforcement, allowing for quicker responses and better evidence collection [5][9] - Local officials in Hawaiian Gardens and Lakewood have noted improved relationships with community members as a result of the technology's effectiveness in reducing crime [6][7][8]

Company Overview - SoundThinking, Inc. (SSTI) shares increased by 6.1% to close at $18.54, with a notable trading volume that exceeded normal levels. The stock has gained 15.5% over the past four weeks [1][2]. Business Momentum - The recent rally in SoundThinking's stock is attributed to strong business momentum driven by high demand for its transformative solutions and strategic advisory services. A key factor is the renewal of its partnership with the New York City Police Department for law enforcement software and services [2]. Financial Expectations - The company is projected to report a quarterly loss of $0.06 per share, reflecting a year-over-year improvement of 73.9%. Expected revenues are $26.89 million, which is a 5.8% increase from the same quarter last year [3]. Earnings Estimate Revisions - The consensus EPS estimate for SoundThinking has been revised 53.1% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation. This suggests potential for further strength in the stock [4]. Industry Context - SoundThinking operates within the Zacks Security and Safety Services industry. In contrast, Alarm.com Holdings (ALRM), another company in the same sector, saw its stock decline by 3.9% to $56.94, with a negative return of 2.4% over the past month [4]. Competitor Analysis - Alarm.com has experienced a 3.5% downward revision in its consensus EPS estimate to $0.48, which is a 4% decrease compared to the previous year. Alarm.com currently holds a Zacks Rank of 3 (Hold) [5].

Core Insights - SoundThinking, Inc. has renewed its partnership with the New York City Police Department (NYPD) for its subsidiary TechnoLogic Solutions to provide enterprise resource and investigative case management software and services [2][4] - The total contract value for this renewal is approximately $43 million over a 3-year term [2] - TechnoLogic has been supporting NYPD for the past 19 years, providing a customized software solution that serves over 35,000 active users [3] Company Overview - SoundThinking, Inc. is a leading public safety technology provider, delivering AI- and data-driven solutions for law enforcement and security professionals [4] - The company has worked with approximately 2,100 agencies and is trusted by more than 300 customers [4] - SoundThinking's SafetySmartTM platform includes various advanced technologies such as ShotSpotter®, CrimeTracerTM, and CaseBuilderTM, aimed at enhancing public safety outcomes [4]

Company Performance - SoundThinking (SSTI) has returned 20.4% year-to-date, significantly outperforming the average loss of about 3% in the Industrial Products sector [4] - The Zacks Consensus Estimate for SSTI's full-year earnings has increased by 4.7% over the past three months, indicating improving analyst sentiment [3] - SoundThinking belongs to the Security and Safety Services industry, which has seen a loss of about 3.1% this year, further highlighting SSTI's strong performance relative to its peers [5] Industry Context - The Industrial Products sector, which includes 200 individual stocks, is currently ranked 13 in the Zacks Sector Rank [2] - The Security and Safety Services industry, where SoundThinking operates, is ranked 70 in the Zacks Industry Rank [5] - Another outperforming stock in the Industrial Products sector is UniFirst (UNF), which has returned 23.1% year-to-date and has a Zacks Rank of 2 (Buy) [4][5]

Core Viewpoint - SoundThinking, Inc. has announced a significant milestone in its expansion into South America with a three-year agreement to deploy its ShotSpotter gunshot detection solution in Niterói, Brazil, valued at approximately $1.7 million [1][4] Group 1: Deployment Details - The ShotSpotter system will cover an area of 10 square kilometers in Niterói, a city with nearly 500,000 residents [1] - The deployment is part of the Niterói Pact Against Violence, which aims to enhance public safety through investments in technology and intelligence [3] - ShotSpotter is expected to go live in Niterói in the second quarter of 2025 [4] Group 2: Integration and Impact - The ShotSpotter system will be integrated with Niterói's Integrated Public Security Center (CISP), which includes extensive surveillance infrastructure [2] - The deployment is anticipated to enable faster emergency response and more effective law enforcement operations, contributing to the reduction of crime and violence [2][3] Group 3: Company Perspective - The CEO of SoundThinking expressed excitement about the expansion in South America, highlighting the company's commitment to enhancing public safety through advanced technology [4] - SoundThinking is recognized as a leading public safety technology provider, trusted by over 300 customers and approximately 2,100 agencies [7]

Financial Data and Key Metrics Changes - Q4 2024 revenue decreased by 10% year-over-year to $23.4 million, primarily due to a $3.5 million delay in contract renewals with the NYPD [6][24] - Full year 2024 revenue grew by 10% to a record $102 million, reflecting strong demand for public safety solutions [7][29] - Adjusted EBITDA for Q4 2024 was $1.7 million, down from $4.8 million in Q4 2023, attributed to delayed contracts [25] - Full year 2024 adjusted EBITDA was $14.4 million, consistent with $14.3 million in 2023 [31] Business Line Data and Key Metrics Changes - ShotSpotter went live in 20 new cities and five new universities in 2024, booking $75.7 million in net new and renewal subscription-based ACV, with 59% representing multi-year agreements [8][18] - The SafetySmart platform saw significant growth, with a 100% increase in average selling price (ASP) from 2023 to 2024 [14] Market Data and Key Metrics Changes - Approximately 62% of the 2025 qualified ACV pipeline was from non-domestic ShotSpotter, indicating successful diversification efforts [19] - The company ended 2024 with $13.2 million in cash and cash equivalents, significantly higher than $5.7 million at the end of 2023 [36] Company Strategy and Development Direction - The company is focused on leveraging advanced AI/ML capabilities to optimize solutions and enhance the SafetySmart platform [13] - Strategic partnerships, such as with Rekor Systems for the PlateRanger ALPR solution, are aimed at strengthening market positioning [16] - The company is committed to advancing public safety and maximizing shareholder value through innovation and execution of strategic growth priorities [21][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for public safety solutions despite challenges related to budget constraints and the drying up of ARPA funds [50][52] - The company increased its full year 2025 revenue guidance to $111 million to $113 million, representing approximately 10% year-over-year growth [20][37] Other Important Information - The company had a net loss of approximately $9.2 million for the year, compared to a net loss of $2.7 million in the prior year, largely due to contract renewal delays [34] - The revenue retention rate for 2024 was 105%, slightly down from 107% in 2023 [35] Q&A Session Summary Question: Update on Chicago RFP - Management is encouraged by Chicago issuing an RFP for gunshot detection but is still evaluating their response [41] Question: SafePointe multimillion-dollar opportunities - Some of the SafePointe bookings are expected to contribute to the revenue guidance for 2025, with increasing bookings each quarter [44] Question: Pipeline disruption from federal government efforts - Management noted strong demand drivers for public safety solutions and is monitoring budget issues closely, particularly regarding ARPA funds [52] Question: ARR guidance and gunshot detection category growth - Expected incremental growth from the gunshot detection category is projected to be between $8 million and $9.5 million [56] Question: Top verticals for SafePointe weapon detection - Key verticals include healthcare, gaming centers, and selected corporate sites, focusing on low-friction weapons detection solutions [60]