Company Performance - SoundThinking (SSTI) reported a quarterly loss of $0.24 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, marking an earnings surprise of -166.67% [1] - The company posted revenues of $25.89 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.65%, and down from $26.96 million a year ago [2] - Over the last four quarters, SoundThinking has not surpassed consensus EPS estimates and has topped consensus revenue estimates only twice [2] Stock Outlook - SoundThinking shares have declined approximately 14.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.4% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $27.57 million, and for the current fiscal year, it is -$0.28 on revenues of $111.01 million [7] - The estimate revisions trend for SoundThinking was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Security and Safety Services industry, to which SoundThinking belongs, is currently in the top 31% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact SoundThinking's stock performance [5]

Company Participants - SoundThinking's Second Quarter 2025 Earnings Conference Call featured CEO Ralph Clark and CFO Alan Stewart [1] Forward-Looking Statements - The call included forward-looking statements regarding SoundThinking's business strategy and future financial performance, which are subject to risks and uncertainties [2][3] Non-GAAP Financial Measures - The discussion referenced non-GAAP financial measures such as adjusted EBITDA and annual recurring revenue, emphasizing that these should be viewed alongside GAAP results [4]

Financial Data and Key Metrics Changes - The company's Q2 2025 revenues were $25.9 million, representing a 4% decrease from $27 million in Q2 2024, which included a $2.8 million revenue loss from the non-renewal of the Chicago contract [16][17] - Gross profit for Q2 2025 was $13.8 million, or 53% of revenue, compared to $16.1 million, or 60% of revenue in the prior year [17] - Adjusted EBITDA was $3.4 million in Q2 2025, down from $5.1 million in Q2 2024, reflecting delayed contracts and increased costs [17][18] - GAAP net loss was approximately $3.1 million, or a loss of $0.25 per share, compared to a net loss of $800,000, or a loss of $0.06 per share in the prior year [20] Business Line Data and Key Metrics Changes - The company launched ShotSpotter Live in four new cities and expanded in four additional cities during Q2 2025, contributing to a diversified pipeline of over $37 million for the remainder of 2025 [5][6] - The SafePoint pipeline is healthy, with a focus on healthcare and casino verticals, particularly in California due to the AB 2,975 initiative [25] - The integration of the PlateRanger LPR solution with CrimeTracer enhances investigative capabilities, allowing for quicker access to actionable intelligence [9][10] Market Data and Key Metrics Changes - The company is expanding its footprint in South America, with notable deployments in Niteroi, Brazil, and Montevideo, indicating growth opportunities in Latin America [26][27] - The healthcare vertical is expected to benefit from California's new legislation mandating weapon screening capabilities at state hospitals [11] Company Strategy and Development Direction - The company is focused on transforming into a broader public safety technology firm, emphasizing sustainable growth and operational execution [4] - Strategic investments in technology, innovation, and market positioning are yielding positive results, with plans to deepen penetration in existing customer accounts and expand into mid-size municipalities [14][15] - The company is also exploring new opportunities in critical infrastructure protection, particularly with a sniper detection solution aimed at utility companies and financial institutions [6][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver lifesaving alerts and critical crime intelligence, positioning itself well despite potential political changes [12] - The company reaffirmed its full-year revenue guidance of $111 million to $113 million and adjusted EBITDA margin guidance of 20% to 22% [23] - The annual recurring revenue (ARR) is expected to increase from $95.6 million in 2025 to approximately $110 million in 2026, despite the loss of revenue from the Chicago contract [23] Other Important Information - The company ended Q2 2025 with $9 million in cash and cash equivalents, down from $11.7 million at the end of Q1 2025, but cash balance has since increased to over $16 million [20][21] - The company repurchased 31,570 shares at an average price of $14.84, totaling approximately $1.5 million [21] Q&A Session Summary Question: Can you talk about the SafePoint pipeline? - The SafePoint pipeline continues to grow, focusing on healthcare and casino verticals, with significant opportunities in California [25] Question: How is the international market developing? - Recent developments in South America, particularly in Brazil, are promising, with opportunities for expansion in Mexico and South Africa [26][27] Question: What contributed to the increase in cash balance? - The increase is primarily due to timing in receivable collections, indicating strong cash flow generation [28] Question: How much visibility is there into the second half revenue guidance? - The sales team has committed to contracts that should help meet guidance, but timing of large contracts may affect results [30] Question: Can you provide details on the Chicago RFP? - The company is on a shortlist for the Chicago RFP, with a live demonstration scheduled for September, indicating progress in the selection process [54] Question: What are the details regarding the NYPD contract? - The NYPD contract involves a $400,000 expense per quarter, with a revenue of about $250,000 per quarter, leading to overall savings [56] Question: When can the company expect revenue from the SafePoint implementation? - Revenue from the SafePoint implementation is included in the guidance, and the company is working to expedite deployment [48][50]

Financial Performance - Company reported second quarter 2025 revenues of $25.9 million, a decrease of 4% year-over-year from $27.0 million in the same quarter of 2024, primarily due to the non-renewal of a contract with the City of Chicago [5][6] - Gross profit for the second quarter of 2025 was $13.8 million, representing 53% of revenues, down from $16.1 million (60% of revenues) in the same period of 2024 [6] - GAAP net loss for the second quarter of 2025 totaled $3.1 million, compared to a net loss of $0.8 million for the same quarter of 2024 [9] - Adjusted EBITDA for the second quarter of 2025 was $3.4 million (13% of revenues), down from $5.1 million (19% of revenues) in the same period last year [10] Revenue Guidance and Outlook - Company reaffirmed its full-year 2025 revenue guidance range of $111.0 million to $113.0 million, indicating a 10% year-over-year growth at the midpoint [1][13] - The expectation for Annual Recurring Revenue (ARR) is to increase from $95.6 million at the beginning of 2025 to approximately $110.0 million at the beginning of 2026 [1][13] - Management expressed confidence in achieving long-term financial targets of 70% gross margin and 40% Adjusted EBITDA margin while growing topline revenue at 15% per year [4][14] Strategic Initiatives - Company is focusing on scaling solutions and managing expenses to build a resilient business, particularly through investments in AI capabilities to enhance product intelligence and automate internal processes [4] - The company went live with ShotSpotter in four new cities and one new university, while also expanding with four existing customers [6] - Management emphasized the importance of client retention and expansion into new verticals as part of their strategy to maintain leadership in the public safety and security technology market [4] Shareholder Actions - Company repurchased 31,570 shares of common stock for approximately $0.5 million as part of an existing share repurchase program [12]

Company Overview - SoundThinking (SSTI) is expected to report a year-over-year decline in earnings, with a projected loss of $0.09 per share, reflecting a -28.6% change compared to the previous year [3] - Revenues for the upcoming quarter are anticipated to be $26.32 million, down 2.4% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on August 12, and the stock may experience upward movement if results exceed expectations [2] - Conversely, if the results fall short, the stock may decline [2] Estimate Revisions - The consensus EPS estimate has been revised 100% lower in the last 30 days, indicating a significant reassessment by analysts [4] - The Most Accurate Estimate for SoundThinking is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +22.22% [12] Historical Performance - In the last reported quarter, SoundThinking was expected to post a loss of $0.06 per share but actually reported a loss of -$0.12, resulting in a surprise of -100.00% [13] - Over the past four quarters, the company has only beaten consensus EPS estimates once [14] Industry Context - Alarm.com Holdings (ALRM), a peer in the Zacks Security and Safety Services industry, is expected to report earnings of $0.52 per share, indicating a year-over-year change of -10.3% [18] - Alarm.com’s revenue is projected to be $244.54 million, up 4.6% from the previous year [19]

Core Points - SoundThinking, Inc. will hold a conference call on August 12, 2025, to discuss its Q2 2025 financial results [1][2] - The company is a leading public safety technology provider, delivering AI- and data-driven solutions for law enforcement and security professionals [3] Company Overview - SoundThinking, Inc. is listed on Nasdaq under the ticker SSTI and is recognized for its SafetySmart™ platform, which includes various advanced solutions such as ShotSpotter, CrimeTracer™, CaseBuilder™, ResourceRouter™, SafePointe, and PlateRanger™ [3] - The company serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [3] - SoundThinking has been designated as a Great Place to Work Company, indicating a positive work environment [3] Conference Call Details - The conference call will take place at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) [2] - U.S. and international dial-in numbers are provided for participants, along with a conference ID for access [2] - A replay of the call will be available after 7:30 p.m. Eastern time on the same day until August 26, 2025 [3]

Core Insights - SoundThinking has released its fourth annual Environmental, Social, and Governance (ESG) Report, emphasizing its commitment to advancing public safety through responsible technology use [1][2] - The report highlights the company's mission to enhance law enforcement efficiency and equity in community safety outcomes [2][3] Group 1: Public Safety Technology and Community Safety - SoundThinking's SafetySmart™ platform integrates specialized software and data to assist law enforcement in protecting communities, enabling rapid and precise responses to gunfire incidents [4] - The technology supports efficient investigative work and helps agencies optimize resources for improved public safety outcomes [4] Group 2: Social Impact - The report emphasizes SoundThinking's collaboration with local organizations to promote community safety initiatives, positively impacting individuals in the communities served [5] - The company is expanding its Data for Good program, providing non-policing organizations with essential data and tools to address crime and violence root causes [5] Group 3: Governance, Transparency, and Trust - The ESG Report outlines SoundThinking's governance structure, focusing on diversity, equity, and inclusion [6] - The company has enhanced its security framework and established AI governance roles to ensure responsible technology development, demonstrating a commitment to stakeholder trust [6] Group 4: Environmental Sustainability - SoundThinking is dedicated to minimizing its environmental footprint through sustainable practices, including energy-efficient product design and e-waste management [7] - The company applies its technology expertise to environmental protection efforts, such as preserving marine ecosystems in the Coral Triangle [7] Group 5: Company Overview - SoundThinking, Inc. is a leading public safety technology provider, delivering AI- and data-driven solutions for law enforcement and civic leadership [10] - The company serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [10]

Group 1 - SoundThinking, Inc. will participate in the UBS SMID-Cap Multisector Virtual Conference on June 24, 2025, offering one-on-one and small group meetings with investors [1] - The company is recognized as a leading public safety technology provider, delivering AI- and data-driven solutions for law enforcement and security professionals [2] - SoundThinking serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [2] Group 2 - The company's SafetySmart™ platform includes several key products: ShotSpotter, CrimeTracer™, CaseBuilder™, ResourceRouter™, SafePointe, and PlateRanger powered by Rekor [2] - SoundThinking has been designated as a Great Place to Work Company, indicating a positive work environment [2] - Contact information for company representatives is provided for investor relations and inquiries [3]

Financial Data and Key Metrics Changes - The meeting reported that proxies were received for 9,978,265 shares, representing approximately 79% of the total outstanding shares of 12,666,095, indicating strong shareholder engagement [8][29]. Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting. Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting. Company Strategy and Development Direction and Industry Competition - The company continues to focus on improving shareholder access and participation through virtual meetings, which reflects a commitment to enhanced communication and transparency [2][22]. Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [19]. Other Important Information - The proposals for the election of directors and the advisory vote on executive compensation were approved, along with the ratification of the independent registered public accounting firm for the fiscal year ending 12/31/2025 [15][16][38]. Q&A Session Summary Question: Were there any questions from shareholders? - There were no questions from shareholders during the meeting [19][20].

Summary of SoundThinking (SSTI) Conference Call - May 21, 2025 Company Overview - **Company Name**: SoundThinking (formerly ShotSpotter) - **Public Since**: February 2017 - **Current Product Offering**: Safety Smart Platform with six software solutions [3][4] Industry Context - **Market Challenges**: Law enforcement agencies in the U.S. face staffing challenges post-COVID and the "defund the police" movement, leading to increased reliance on technology [5][4] - **Growth in Technology Use**: Agencies are adopting software solutions to enhance operational efficiency due to reduced personnel [5] Key Products and Solutions 1. **ShotSpotter**: Gunshot detection solution, accounting for 65% of revenue, with annual recurring revenue (ARR) growth of $7 to $9 million [6][7] - **Technology**: Utilizes sensors to triangulate gunshot locations within 30 seconds and alerts police within 45 seconds [6] 2. **Resource Router**: Helps agencies manage patrols effectively using AI algorithms [7] 3. **Play Ranger**: Partnership with Recor for license plate readers, expected to ramp up revenue in 2025 [10] 4. **Case Builder**: Case management solution with a recent $18 million contract with the Department of Correction [12][13] 5. **Crime Tracer**: A database solution with over a billion records, aiding law enforcement in investigations [15] 6. **SafePoint**: A weapons detection platform, currently only 2% of revenue but projected to grow significantly due to new regulations [17][22] Financial Performance - **Revenue Growth**: Expected revenue for the current year is between $111 million and $113 million, with a historical growth from $81 million to $102 million over the past few years [29][30] - **Adjusted EBITDA**: Projected to be north of 20% this year, up from 14% last year [31] - **Gross Margins**: Currently around 60%, with potential to reach 70% as operational efficiencies improve [51] Market Potential - **Total Addressable Market (TAM)**: - Gunshot detection: $1.5 billion - License plate readers: $2.5 billion - Weapons detection (SafePoint): Estimated at over $20 billion [29][28] - **International Expansion**: Entering markets like Brazil, where pricing is significantly higher than in the U.S. [52][62] Competitive Landscape - **Limited Competition**: SoundThinking claims minimal competition in gunshot detection, with a strong retention rate of over 98% [34][37] - **Patents**: Holds numerous patents related to its technology, providing a competitive edge [35] Customer Engagement - **Net Promoter Score**: High score of 66%, indicating strong customer satisfaction [33] - **Customer Retention**: High retention rates attributed to the value provided by their solutions [34][37] Regulatory Impact - **California Legislation**: New laws requiring hospitals to install weapons detection systems by March 2027, creating a significant market opportunity [21][22] Conclusion - SoundThinking is positioned for significant growth through its innovative technology solutions, strong financial performance, and expanding market opportunities, particularly in weapons detection and international markets. The company is actively investing in AI and expanding its product offerings to meet the evolving needs of law enforcement agencies.