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]

Core Viewpoint - SoundThinking (SSTI) reported a quarterly loss of $0.32 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.02, marking an earnings surprise of -1,500% [1] Financial Performance - The company posted revenues of $23.41 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 12.97%, compared to $26.05 million in the same quarter last year [2] - Over the last four quarters, SoundThinking has surpassed consensus EPS estimates only once and topped consensus revenue estimates two times [2] Stock Performance - SoundThinking shares have increased by approximately 8.7% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] Future Outlook - The company's earnings outlook will be crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is -$0.14 on revenues of $25.41 million, and for the current fiscal year, it is -$0.22 on revenues of $108.11 million [7] Industry Context - The Security and Safety Services industry, to which SoundThinking belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Revenue Performance - Full Year 2024 revenues increased 10% to a record $102.0 million, compared to $92.7 million in 2023[6] - Fourth quarter 2024 revenues decreased 10% to $23.4 million, compared to $26.0 million for the same quarter of 2023[6] - For the three months ended December 31, 2024, SoundThinking reported revenues of $23,411,000, a decrease of 10.5% compared to $26,045,000 in the same period of 2023[31] Profitability and Loss - GAAP net loss for the full year 2024 totaled $9.2 million, compared to a net loss of $2.7 million in 2023[15] - The net loss for the year ended December 31, 2024, was $9,180,000, compared to a net loss of $2,718,000 in 2023, reflecting a significant increase in losses[31] - Adjusted EBITDA for the full year 2024 totaled $14.4 million, compared to $14.3 million in 2023[15] - Adjusted EBITDA for the year ended December 31, 2024, was $14,358,000, slightly up from $14,349,000 in 2023, indicating stable operational performance despite net losses[31] Annual Recurring Revenue (ARR) - Annual recurring revenue (ARR) starting January 1, 2025 was $95.6 million, with a revenue retention rate of 105%[6] - The company expects ARR to increase to approximately $110.0 million at the beginning of 2026[16] - The company’s Annual Recurring Revenue (ARR) is expected to increase, driven by contract renewals and new customer acquisitions[27] Financial Guidance - The company raised its FY 2025 revenue guidance range to $111.0 million to $113.0 million, representing 10% year-over-year growth at the midpoint[16] - Adjusted EBITDA margin guidance for FY 2025 increased to 21% to 23%[16] Operating Expenses - Total operating expenses for the full year 2024 increased 22% to $65.7 million, primarily due to a full year of expenses related to SafePointe[14] Customer Metrics - The revenue retention rate is a key metric, indicating that if it exceeds 100%, it reflects low churn and revenue growth from existing customers[25] - Sales and marketing spend per $1.00 of new annualized contract value is used to measure the efficiency of customer acquisition efforts[26] Strategic Initiatives - The company went "live" with ShotSpotter in 20 new cities and 5 universities in 2024[7] - The company is focused on integrating AI-driven capabilities to enhance operational momentum and revenue growth in 2025 and beyond[27] - The company plans to continue innovating and executing against its strategic and financial growth priorities to deliver value to stakeholders[27] Balance Sheet Highlights - Total current assets increased to $43,528 million in 2024, up from $40,305 million in 2023, representing a growth of 5.5%[33] - Cash and cash equivalents rose significantly to $13,183 million in 2024, compared to $5,703 million in 2023, marking an increase of 131.5%[33] - Total liabilities increased slightly to $64,394 million in 2024 from $63,951 million in 2023, reflecting a growth of 0.7%[33] - Total stockholders' equity decreased to $72,399 million in 2024 from $74,757 million in 2023, a decline of 3.2%[33] - Accounts receivable and contract asset decreased to $25,170 million in 2024 from $30,700 million in 2023, a reduction of 17.9%[33] - Deferred revenue, short-term decreased to $38,401 million in 2024 from $41,265 million in 2023, a decline of 6.8%[33] - Additional paid-in capital increased to $177,021 million in 2024 from $170,139 million in 2023, an increase of 4.0%[33] - Accumulated deficit increased to $(104,298) million in 2024 from $(95,118) million in 2023, reflecting a worsening of 9.2%[33] - Property and equipment, net decreased to $20,131 million in 2024 from $21,028 million in 2023, a decline of 4.3%[33] - Total assets decreased to $136,793 million in 2024 from $138,708 million in 2023, a decline of 1.3%[33]

Core Insights - SoundThinking, Inc. reported a record revenue of $102.0 million for the full year 2024, marking a 10% increase from $92.7 million in 2023, driven by new and expanding customer subscriptions [1][13][16] - The company raised its FY 2025 revenue guidance to a range of $111.0 million to $113.0 million, indicating a projected 10% year-over-year growth at the midpoint [1][17] - Adjusted EBITDA margin guidance for FY 2025 has also been increased to a range of 21% to 23% [1][17] Financial Performance - For Q4 2024, revenues decreased by 10% to $23.4 million compared to $26.0 million in Q4 2023 [7][9] - Gross profit for Q4 2024 was $11.7 million, representing 50% of revenues, down from $15.0 million (58% of revenues) in the same quarter of 2023 [7][10] - The net loss for Q4 2024 was $4.1 million, compared to a net income of $3.6 million in Q4 2023 [11][16] - Adjusted EBITDA for Q4 2024 totaled $1.7 million (7% of revenues), down from $4.8 million (18% of revenues) in Q4 2023 [12][16] Operational Highlights - The company went live with ShotSpotter in 20 new cities and 5 universities in 2024, with 126 new ShotSpotter go-live miles deployed [6][7] - Annual recurring revenue (ARR) at the beginning of 2025 was $95.6 million, with a revenue retention rate of 105%, slightly down from 107% in 2023 [7][17] - Sales and marketing spend per $1.00 of new annualized contract value increased to $0.63 in 2024 from $0.52 in 2023 [7][27] Future Outlook - The company expects ARR to grow to approximately $110.0 million by the beginning of 2026 [1][17] - Management expressed optimism about market positioning and growth potential, particularly through the integration of AI-driven capabilities into their platform [6][8]

Summary: SoundThinking, Inc. today announced a multi-year renewal of its partnership with the New York Police Department for the deployment of ShotSpotter, the industry-leading acoustic gunshot detection system. FREMONT, Calif., Feb. 18, 2025 (GLOBE NEWSWIRE) -- SoundThinking, Inc. (Nasdaq: SSTI), a leading public safety technology provider, today announced that the New York Police Department (NYPD) renewed its ShotSpotter acoustic gunshot detection service. The multi-year contract renewal is valued at appr ...

Core Points - SoundThinking, Inc. will release its fourth quarter and full year 2024 earnings on February 25, 2025, followed by a conference call to discuss the results [2][3] - The company will also present at the ROTH Conference on March 17, 2025, with management available for one-on-one meetings with investors [4][5] Financial Results Announcement - The conference call is scheduled for February 25, 2025, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) [2] - Financial results will be issued in a press release prior to the call, and a live audio webcast will be available [3] Upcoming Investor Conference - Ralph Clark, President and CEO, and Alan Stewart, CFO, will present at the ROTH Conference in Dana Point, California [4] - A live webcast and replay of the presentation will be accessible through SoundThinking's Investor Relations website [5] Company Overview - SoundThinking, Inc. is a leading public safety technology company providing AI- and data-driven solutions for law enforcement and security professionals [6] - The company serves approximately 300 customers and has collaborated with over 2,100 agencies to enhance public safety outcomes [6] - Key products include ShotSpotter, CrimeTracer, CaseBuilder, ResourceRouter, SafePointe, and PlateRanger powered by Rekor [6]

Core Insights - SoundThinking, Inc. hosted a community bike building event in partnership with the New Orleans Police Department and the New Orleans Recreation Development Commission to support local children [1][2][3] Group 1: Event Details - Approximately 275 SoundThinking employees, including senior executives, collaborated with 10 NOPD officers to build bikes for children aged 5 to 9 [2] - Each team received bike parts to assemble bicycles and wrote custom messages for the recipients before handing them over to NORD for delivery [2] Group 2: Company Mission and Community Support - SoundThinking's mission extends beyond public safety technologies to support under-resourced communities, emphasizing the importance of community engagement [3] - The company has previously contributed to various organizations, including Officer Down Memorial Page and First Responder Therapy Dogs, showcasing its commitment to community support [3] Group 3: Community Impact - New Orleans Police Superintendent Anne Kirkpatrick expressed gratitude for SoundThinking's partnership, highlighting its role in providing hope during challenging times [4] - Larry Barabino, Jr., CEO of NORD, noted that the bikes symbolize freedom and opportunity for children, reinforcing the positive impact of such partnerships [4] Group 4: Company Overview - SoundThinking, Inc. is a leading public safety technology provider, delivering AI- and data-driven solutions for law enforcement and security professionals [5] - The company serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [5]

Company Overview - SoundThinking, Inc. is a leading public safety technology company that provides AI- and data-driven solutions for law enforcement, civic leadership, and security professionals [3] - The company serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [3] - SoundThinking's SafetySmart™ platform includes several key products such as ShotSpotter®, CrimeTracer™, CaseBuilder™, ResourceRouter™, SafePointe®, and PlateRanger powered by Rekor [3] Upcoming Events - Alan Stewart, Chief Financial Officer of SoundThinking, will present at the 27th Annual Needham Growth Conference on January 14, 2025, at approximately 10:15 a.m. Eastern Time [2] - A live webcast and replay of the presentation will be available on SoundThinking's Investor Relations website [1]

Revenue Performance - Revenues for the three months ended September 30, 2024, were $26.3 million, a 10% increase from $24.0 million in the same period of 2023[87]. - For the nine months ended September 30, 2024, revenues reached $78.6 million, an 18% increase from $66.7 million in 2023[88]. - Revenues generated within the United States accounted for 99% of total revenues for both Q3 2024 and Q3 2023[89]. - Revenues for the three months ended September 30, 2024, increased by $2.3 million to $26.25 million, a 9% increase compared to $23.98 million in the same period of 2023[120]. - Revenues increased by $11.9 million to $78.6 million for the nine months ended September 30, 2024, representing an 18% growth compared to $66.7 million in 2023[127]. Revenue Sources - ShotSpotter revenues represented approximately 65% of total revenues for Q3 2024, down from 69% in Q3 2023[87]. - The City of New York and the City of Chicago accounted for 23% and 11% of total revenues, respectively, for the three months ended September 30, 2024[87]. Profitability and Loss - The company reported a net loss of $1.4 million for the three months ended September 30, 2024, compared to a net loss of $1.9 million in the same period of 2023[91]. - The net loss for the three months ended September 30, 2024, was $1.44 million, a reduction of $0.43 million compared to a net loss of $1.87 million in the same period of 2023[120]. - Operating loss improved by $1.6 million, decreasing to $4.1 million from $5.6 million, reflecting a 28% reduction in losses[127]. - Net loss narrowed by $1.3 million to $5.1 million, representing 6% of revenues, compared to 10% in the prior year[127]. Expenses - Cost of revenues rose by $0.8 million to $10.98 million, primarily due to increased product costs associated with a growing customer base[122]. - Operating expenses totaled $16.26 million, an increase of $1.03 million, with sales and marketing expenses rising by $0.89 million due to higher personnel costs[120][125]. - Research and development expenses increased by $0.2 million, driven by an increase in headcount to support product development initiatives[123]. - Total operating expenses rose by $6.9 million to $50.2 million, accounting for 64% of revenues, compared to 65% in 2023[127]. - Sales and marketing expenses increased by $2.0 million to $21.6 million, primarily due to higher personnel costs[130]. - Research and development expenses grew by $1.5 million to $10.4 million, largely attributed to increased headcount from the SafePointe acquisition[131]. Cash Flow and Financial Position - Cash provided by operating activities increased significantly by $12.4 million to $23.1 million, driven by a $13.4 million increase in deferred revenue[146][148]. - As of September 30, 2024, the company had cash and cash equivalents of $15.3 million and accounts receivable of $25.9 million, with an available credit facility of $21.0 million[137]. Market Presence and Expansion - The number of net new "go-live" cities and universities was 3 for Q3 2024, down from 7 in Q3 2023[96]. - ShotSpotter went live in four new cities and one university, expanding its presence and services during the quarter[121]. - The company plans to expand its international presence and has secured a three-year agreement to double ShotSpotter coverage in Montevideo, Uruguay[94]. - As of September 30, 2024, ShotSpotter had coverage areas under contract for 1,193 square miles, with 1,187 square miles live[82]. - The company had 218 SafePointe lanes under contract as of September 30, 2024[82]. Risk Factors - No material changes in market risk were reported during the nine months ended September 30, 2024, compared to the previous disclosures[156]. - Market risk exposure is primarily due to fluctuations in interest rates, foreign exchange rates, and inflation[155]. Share Repurchase - The company repurchased 418,940 shares at an average price of $14.31 per share for approximately $6.0 million under the stock repurchase program[143].

Financial Data and Key Metrics Changes - The company reported revenues of $26.3 million for Q3 2024, a 10% increase from $24 million in Q3 2023 [30] - Year-to-date revenues reached $78.6 million, representing an 18% increase from the same period last year [7] - Gross profit for Q3 2024 was $15.2 million, or 58% of revenue, compared to $13.8 million, or 57% of revenue in the prior year [31] - Adjusted EBITDA increased approximately 5% to $4.5 million from $4.3 million in Q3 2023 [32] - GAAP net loss was approximately $1.4 million, or a loss of $0.11 per share, compared to a net loss of $1.9 million, or a loss of $0.15 per share in the prior year [36] Business Line Data and Key Metrics Changes - The SafetySmart platform now includes six data-driven tools, with significant growth in CaseBuilder's subscription-based revenue, which grew approximately 1,000% year-over-year [15][10] - ShotSpotter went live in four new cities and expanded in eight existing cities during Q3 [11] - ResourceRouter is performing above expectations, with five implementations planned for Q4 [13] - The PlateRanger solution targets a $2.5 billion total addressable market (TAM) growing at a 15% CAGR [14] Market Data and Key Metrics Changes - The company is on track to exceed 100 new ShotSpotter go-live miles this year, including five new cities and nine expansion projects [12] - The Chicago ShotSpotter service concluded in late September, with a formal contract termination expected [21] - A University of Chicago Crime Lab study estimated that ShotSpotter deployment saves approximately 85 lives per year [23] Company Strategy and Development Direction - The company is focused on expanding its SafetySmart platform and enhancing public safety technology solutions [8] - Strategic partnerships, such as with Rekor Systems, are key to integrating new technologies into the SafetySmart platform [14] - The company aims to maintain a diversified and profitable growth trajectory into 2025 and beyond [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining full-year revenue guidance of $104 million to $106 million despite the loss of the Chicago contract [39] - The company anticipates revenue growth in 2025 to a range of $107 million to $109 million, even with the expected loss from the Chicago contract [40] - Management highlighted the importance of helping law enforcement agencies communicate the efficacy of their solutions to secure ongoing support [58][60] Other Important Information - The company ended Q3 2024 with $15.3 million in cash and cash equivalents, up from $9.8 million at the end of Q2 2024 [38] - Deferred revenue at the end of the quarter was $49.5 million, consistent with the previous quarter [37] Q&A Session Summary Question: Specificity of the Chicago RFI and competition - Management noted familiarity with the RFI requirements and expressed encouragement about the opportunity [42] Question: Pipeline and feedback on SafePointe upgrade - The pipeline for SafePointe is strong, with several deals expected to close in Q4 [43] Question: 2025 guidance and go-lives for ShotSpotter and SafePointe - Management expects ShotSpotter to exceed 100 miles and noted strong bookings for SafePointe [44][45] Question: Chicago contract impact on 2024 revenue - The expected revenue contribution from the Chicago contract in 2024 is about $9.2 million [49] Question: Sales cycle elongation for ShotSpotter - Sales cycles for ShotSpotter remain stable at 12 to 18 months, while SafePointe has shorter cycles [50] Question: Revenue recognition timing for SafePointe - SafePointe contracts can go live in as little as six to seven weeks after signing [54] Question: Strategic rationale for product efficacy study - The study aims to help law enforcement agencies communicate the value of ShotSpotter technology [58][60]