Market Overview - U.S. stock futures showed mixed movements following a mixed trading session on Wednesday, with major indices experiencing slight fluctuations [1] - The 10-year Treasury bond yielded 4.08%, while the two-year bond was at 3.57%, indicating market expectations for potential interest rate cuts by the Federal Reserve [2] Stock Performance - Cisco Systems Inc. (NASDAQ:CSCO) saw a premarket increase of 7.04% after reporting positive financial results for the first quarter, maintaining a stronger price trend across various time frames [7] - Walt Disney Co. (NYSE:DIS) was up 0.29% ahead of its earnings report, with analysts predicting earnings of $1.04 per share on revenue of $22.75 billion, also showing a strong price trend [8] - Applied Materials Inc. (NASDAQ:AMAT) rose 0.55% with expected earnings of $2.10 per share on revenue of $6.67 billion, maintaining a strong price trend [8] - SoundThinking Inc. (NASDAQ:SSTI) fell 3.32% after disappointing third-quarter results and lowering its FY25 sales guidance, reflecting a weaker price trend [8] - Dlocal Ltd. (NASDAQ:DLO) dropped 11.37% despite beating third-quarter estimates, as its gross profit margin declined to 37% from 42% year-over-year, indicating a weaker price trend in the short and medium terms [8] Sector Performance - Most sectors on the S&P 500 closed positively, with healthcare, financial, and materials stocks recording the largest gains on Wednesday [5] Analyst Insights - BlackRock maintains an "overweight" view on U.S. equities, supported by a softening labor market that may allow the Federal Reserve to cut interest rates, which could benefit U.S. stocks and the AI sector [9] - The firm emphasizes that AI developments are crucial for corporate earnings, which are seen as a key factor supporting U.S. market valuations compared to other developed markets [10] Economic Data - Upcoming economic data releases, including October's CPI and initial jobless claims, will be delayed due to the recent government shutdown, impacting market expectations [11][13]

分组1 - Walt Disney Co. is expected to report quarterly earnings of $1.04 per share on revenue of $22.75 billion [2] - Cisco Systems Inc. reported first-quarter revenue of $14.88 billion, exceeding analyst estimates of $14.77 billion, and raised its fiscal 2026 guidance [2] - Cisco's adjusted earnings for the first quarter were $1.00 per share, surpassing analyst expectations of 98 cents per share [2] - Applied Materials Inc. is anticipated to post quarterly earnings of $2.10 per share on revenue of $6.67 billion [2] - SoundThinking Inc. reported disappointing third-quarter results and lowered its FY25 sales guidance, leading to an 11.6% drop in shares [2] - JD.Com Inc. is expected to report quarterly earnings of 34 cents per share on revenue of $41.33 billion [2]

Core Insights - SoundThinking (SSTI) reported a quarterly loss of $0.16 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.07, marking an earnings surprise of -128.57% [1] - The company generated revenues of $25.1 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 9.28% and down from $26.25 million a year ago [2] - SoundThinking shares have declined approximately 36.4% year-to-date, contrasting with the S&P 500's gain of 16.4% [3] Company Performance - Over the last four quarters, SoundThinking has not surpassed consensus EPS estimates and has only topped revenue estimates once [2] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $29.25 million, while for the current fiscal year, it is -$0.47 on revenues of $111.27 million [7] Industry Context - The Security and Safety Services industry, to which SoundThinking belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact SoundThinking's stock performance [5]

Financial Data and Key Metrics Changes - The company's Q3 2025 revenues were $25.1 million, a 4% decrease from $26.3 million in Q3 2024, primarily due to delays in significant contracts [16][17] - Gross profit was $13.6 million, or 54% of revenue, compared to $15.2 million, or 58% of revenue in the prior year [17] - Adjusted EBITDA was $3.5 million, down from $4.5 million in Q3 2024, with a revised full-year revenue guidance lowered from $111-$113 million to approximately $104 million [15][21] Business Line Data and Key Metrics Changes - The company expanded its ShotSpotter technology into two new cities and one university, but faced challenges in converting demand into bookings [4][5] - SafePoint technology gained momentum due to California's AB 2975 mandate, with multiple pilot programs underway [9] - The upcoming launch of Crime Tracer Gen 3 is expected to enhance the company's offerings significantly [8] Market Data and Key Metrics Changes - The company reported strong customer retention, with a net promoter score (NPS) of plus 70, indicating high customer satisfaction [6] - International expansion efforts showed promise, particularly with deployments in Uruguay and Brazil [4][34] Company Strategy and Development Direction - The company is focusing on realigning its sales organization and improving sales execution to convert a strong pipeline into bookings [5][15] - Strategic initiatives include enhancing AI capabilities and expanding into healthcare security markets [7][9] - The company aims to deepen penetration into existing accounts and expand into mid-sized municipalities [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged temporary setbacks in sales execution but remains optimistic about long-term growth prospects [15][23] - The company expects to see operational improvements in Q4 2025 and into 2026, with a revenue guidance of $114-$116 million for 2026 [21][23] Other Important Information - The company repurchased 160,271 shares at an average price of $12.43, totaling approximately $2 million in Q3 2025 [20] - Deferred revenue as of September 30, 2025, was $43.9 million, consistent with the previous quarter [20] Q&A Session Summary Question: Why is the margin guidance lower for 2026 compared to 2025? - Management indicated that the lower margin guidance is due to conservatism in revenue expectations and potential delays in key contracts [25] Question: What is the expected revenue for Q4 2025? - Management expects Q4 revenue to be relatively flat compared to Q3, with ongoing delays impacting bookings [28] Question: How is the sales cycle for SafePoint compared to ShotSpotter? - The sales cycle for SafePoint is shorter, around 12 months, while ShotSpotter typically takes 12-18 months due to more complex decision-making processes [35] Question: What is the status of the Chicago Gunshot Detection RFP? - Management is optimistic about the RFP process, noting that there is a line item in the mayor's budget for gunshot detection technology [56] Question: Will there be catch-up payments for the Puerto Rico contract? - Management indicated that catch-up payments are unlikely as the service has been turned off, and costs may increase for the renewal [52][53]

Financial Performance - Revenues for Q3 2025 decreased by 4% to $25.1 million, down from $26.3 million in Q3 2024[6] - Gross profit for Q3 2025 was $13.6 million, representing 54% of revenues, compared to $15.2 million or 58% of revenues in Q3 2024[6] - GAAP net loss for Q3 2025 totaled $2.0 million, compared to a net loss of $1.4 million in Q3 2024[10] - Adjusted EBITDA for Q3 2025 was $3.5 million, or 14% of revenues, down from $4.5 million or 17% of revenues in Q3 2024[10] - Revenues for Q3 2025 were $25.1 million, a decrease of 4.4% compared to $26.25 million in Q3 2024[26] - Gross profit for Q3 2025 was $13.634 million, down from $15.217 million in Q3 2024, reflecting a gross margin of 54.2%[26] - Operating loss for Q3 2025 was $2.056 million, compared to a loss of $1.046 million in Q3 2024[26] - Net loss for Q3 2025 was $2.044 million, or $0.16 per share, compared to a net loss of $1.440 million, or $0.11 per share in Q3 2024[26] Guidance and Future Outlook - The company lowered its full-year 2025 revenue guidance from $111.0 million to approximately $104.0 million[13] - Adjusted EBITDA margin guidance for 2025 was also lowered from 20%-22% to 14%-15%[13] - The company expects to deliver accelerated revenue growth and increased profitability in 2026 and beyond[14] - Long-term financial targets include a gross margin of 70% and an Adjusted EBITDA margin of 40%, with a revenue growth target of 15% per year[14] Shareholder Actions - The company repurchased 160,271 shares of common stock for approximately $2.0 million during the quarter[12] Customer and Market Engagement - The company has over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes[23] - The company’s SafetySmart platform includes several advanced solutions, such as ShotSpotter and CrimeTracer, aimed at improving law enforcement efficiency[23] Workplace Culture - SoundThinking has been recognized as a Great Place to Work, indicating a positive workplace culture[23] Research and Development - Research and development expenses for Q3 2025 were $4.097 million, an increase from $3.413 million in Q3 2024[26] Assets and Liabilities - Total current assets increased to $46.103 million as of September 30, 2025, up from $43.528 million at the end of 2024[28] - Total liabilities decreased to $60.885 million as of September 30, 2025, from $64.394 million at the end of 2024[28] Customer Satisfaction - The company achieved a Net Promoter Score of approximately 70, up from 66 in the same period last year[6]

Core Insights - SoundThinking, Inc. has revised its full-year 2025 revenue guidance down from a range of $111.0 million to $113.0 million to approximately $104.0 million due to contract delays [4][12] - The company reported a 4% year-over-year decline in third-quarter revenues, totaling $25.1 million compared to $26.3 million in the same quarter of 2024 [5][7] - Adjusted EBITDA for Q3 2025 was $3.5 million, representing 14% of revenues, down from $4.5 million or 17% of revenues in Q3 2024 [9][19] Financial Performance - Revenues for Q3 2025 were $25.1 million, a decrease of $1.2 million from Q3 2024, primarily due to the absence of a significant contract with the City of Chicago [5][6] - Gross profit for Q3 2025 was $13.6 million, accounting for 54% of revenues, compared to $15.2 million or 58% of revenues in Q3 2024 [6][7] - The company reported a GAAP net loss of $2.0 million for Q3 2025, compared to a net loss of $1.4 million in Q3 2024 [9][24] Operational Highlights - The company expanded its ShotSpotter footprint and introduced new AI capabilities with the CrimeTracer Gen3 beta release [4] - SoundThinking achieved a Net Promoter Score of approximately 70, up from 66, indicating strong customer satisfaction and retention [4][7] - The company repurchased 160,271 shares of common stock for approximately $2.0 million as part of its share repurchase program [11] Future Outlook - The company anticipates accelerated revenue growth and increased profitability in 2026 and beyond, maintaining long-term financial targets of 70% gross margin and 40% Adjusted EBITDA margin [13] - SoundThinking's transformation from a domestic ShotSpotter business to a global SafetySmart platform company is progressing well, with expectations for renewed top-line growth [13][20]

Core Insights - SoundThinking has launched CrimeTracer Gen3, marking the most significant upgrade in the product's history, transforming it into a comprehensive crime-fighting solution for law enforcement agencies [1][3] - The new version connects over 1 billion CJIS-compliant records, making it the largest law enforcement crime data repository, and utilizes advanced AI technology to provide actionable insights [2][3] Product Features - CrimeTracer Gen3 introduces automated patrol briefings, natural language search, and AI-driven analysis, enhancing the capabilities for patrol officers, analysts, investigators, and command staff [1][5] - Key features include a Patrol Dashboard for shift briefings, a Trends Dashboard for data insights, enhanced natural language search, AI summarization of reports, centralized case folders, and entity summary pages [5][9] Market Impact - The usage of CrimeTracer by over 2,100 agencies creates a network effect, increasing the value of the system as more records are added, thus improving decision-making for law enforcement [4][8] - The integration with other SafetySmart platform solutions, such as ShotSpotter and PlateRanger, creates a unified ecosystem for data sharing among law enforcement agencies [5][8]

Core Viewpoint - SoundThinking, Inc. has announced a rescheduling of its third quarter 2025 financial results release and conference call due to an unforeseen scheduling conflict, now set for November 12, 2025 [1][2] 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 serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [4] - SoundThinking's SafetySmart™ platform includes several key products such as ShotSpotter, CrimeTracer™, CaseBuilder™, ResourceRouter™, SafePointe, and PlateRanger™ powered by Rekor [4] - The company has been recognized as a Great Place to Work [4] Upcoming Financial Results - The third quarter 2025 earnings conference call will occur on November 12, 2025, at 4:30 p.m. Eastern Time, with financial results to be released prior to the call [2] - Participants can join the call via webcast on SoundThinking's Investor Relations website or by telephone [3]

Core Viewpoint - SoundThinking, Inc. is set to release its third quarter 2025 financial results on November 11, 2025, and will participate in the ROTH Technology Conference on November 19, 2025, highlighting its ongoing engagement with investors and stakeholders [1][2][4]. Financial Results Announcement - The conference call to discuss the third quarter 2025 financial results will take place on November 11, 2025, at 4:30 p.m. Eastern Time [2]. - Financial results will be released in a press release prior to the call [2]. Participation in Investor Conference - SoundThinking's executive management will attend the ROTH Technology Conference in New York City on November 19, 2025 [4]. - Interested parties can contact the investor relations team for additional information or to schedule meetings [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]. - Key products include the SafetySmart™ platform, which features ShotSpotter, CrimeTracer™, CaseBuilder™, ResourceRouter™, SafePointe, and PlateRanger™ powered by Rekor [5].

Summary of SoundThinking (SSTI) Conference Call Company Overview - **Company Name**: SoundThinking, formerly known as ShotSpotter - **Ticker Symbol**: SSTI - **Industry**: Public safety technology, focusing on AI and data-driven solutions for law enforcement and security professionals [1][2] Core Business and Growth Strategy - **Unique Platform**: SoundThinking offers a SafetySmart platform that includes various applications aimed at enhancing law enforcement productivity [3] - **Revenue Diversification**: Initially, ShotSpotter accounted for 100% of revenues; now it represents 65%, with expectations to drop to 35% as new solutions are introduced [5] - **Revenue Figures**: - 2024 Revenue: $102 million with 14% adjusted EBITDA - 2025 Projected Revenue: $111 to $113 million with 20% to 22% adjusted EBITDA [6] Product Offerings - **ShotSpotter**: Acoustic gunshot detection technology, crucial for real-time alerts to law enforcement [11] - **ResourceRouter**: AI-based patrol management solution to optimize resource deployment [19] - **CaseBuilder**: Integrated case management tool for detectives, improving case closure rates [20] - **CrimeTracer**: Search and analytics tool with access to over 1 billion police records [21] - **SafePointe**: Weapons detection technology aimed at commercial security [23] - **PlateRanger**: Automatic license plate reader technology [4] Market Opportunity - **Total Addressable Market (TAM)**: Significant growth potential in public safety technology, particularly in concealed weapons detection and international markets [4][29] - **International Expansion**: Recent sales in Latin America (Uruguay and Brazil) with pricing leverage of 3-4 times domestic rates [8][35] Financial Metrics - **Customer Acquisition Cost**: $0.63 per dollar of annual contract value, indicating strong unit economics [7] - **Retention Rates**: High net revenue retention and gross retention rates, supported by a strong Net Promoter Score (NPS) [6][10] - **Long-term Financial Goals**: Targeting 15% top-line revenue growth, 70% gross margin, and 40% adjusted EBITDA over the next few years [29][30] Operational Insights - **Service Level Agreement (SLA)**: 90% SLA with 97% effectiveness in alert accuracy, including false positives and location accuracy [16][17] - **Cost Management**: Anticipated flat costs in goods sold while revenue increases, leading to improved gross margins [28][30] Customer Engagement - **Product Bundling**: Approximately 30 customers utilize more than one solution, with some using up to four [33] - **Strategic Relationships**: Building long-term relationships with law enforcement agencies to enhance service delivery and customer loyalty [10] Additional Considerations - **Acquisitions**: Four acquisitions in the last six years, with no immediate plans for further acquisitions but remaining open to opportunities [30] - **Cash Flow**: Generated $16 million in free cash flow last year, with a focus on maintaining a strong balance sheet [29] This summary encapsulates the key points from the SoundThinking conference call, highlighting the company's strategic direction, product offerings, financial performance, and market opportunities.