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]

SoundThinking, Inc. (NASDAQ:SSTI) Q4 2024 Earnings Conference Call February 25, 2025 4:30 PM ET Company Participants Ralph Clark - Chief Executive Officer Alan Stewart - Chief Financial Officer Conference Call Participants Trevor Walsh - Citizens JMP Bruce Goldfarb - Lake Street Capital Mike Latimore - Northland Capital Markets Operator Good afternoon, and welcome to SoundThinking's Fourth Quarter and Full Year 2024 Earnings Conference Call. My name is Diego, and I will be your operator for today's call. Jo ...

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]

Core Insights - SoundThinking, Inc. has announced a multi-year renewal of its partnership with the New York Police Department (NYPD) for the ShotSpotter acoustic gunshot detection system, valued at approximately $21.8 million [2][4]. Company Overview - SoundThinking, Inc. is a leading public safety technology provider that offers AI- and data-driven solutions for law enforcement and security professionals, trusted by over 300 customers and approximately 2,100 agencies [5]. Product Effectiveness - ShotSpotter has been deployed in New York City since 2015 and has proven effective in addressing the issue of unreported gunfire, which can exceed 80% of total instances. The system has helped reduce response times, assist in evidence collection, locate victims, and build trust between law enforcement and underserved communities [3]. Performance Metrics - SoundThinking is contractually obligated to maintain a 90% accuracy rate for gunfire triangulation, with an average monthly accuracy rate of 94% reported in 2024 [3].

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]