SoundThinking(SSTI)

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SoundThinking(SSTI) - 2020 Q4 - Annual Report
2021-03-29 20:27
Coverage and Market Opportunities - As of December 31, 2020, ShotSpotter had coverage areas under contract for over 810 square miles, with 779 square miles live, across over 110 cities and 12 campuses/sites[18] - The company estimates that the domestic market for its public safety solution consists of approximately 1,400 cities with four or more homicides per 100,000 residents, with an average investment of about $400,000 per year for ShotSpotter Respond[71] - The company has identified an additional market opportunity in smaller cities, which could add several hundred potential customers, each expected to invest between $50,000 to $100,000 per year for ShotSpotter Respond[71] - The international market for ShotSpotter Respond includes around 200 cities in regions such as the European Union and Central America, with an estimated average investment of approximately $1.0 million per year per customer[72] - The company estimates the domestic market for its security solutions includes approximately 5,000 college campuses and airports, with average customer investments of $50,000-$75,000 per year[75] - The market for ShotSpotter Connect is estimated to include around 2,500 cities, with average customer investments of $50,000-$100,000 per year, and potential international customers could invest over $100,000 annually[76] - The company anticipates a significant opportunity to expand internationally, estimating a market of approximately 200 cities outside the U.S. with at least 500,000 residents[80] Technology and Solutions - ShotSpotter's gunshot detection technology enables alerts to be sent within approximately 45 seconds of a gunfire incident being detected[30] - ShotSpotter's intelligent sensors are designed to filter out ambient noise and accurately detect impulsive sounds, ensuring high precision in gunfire detection[37] - The Incident Review Center (IRC) operates 24/7 and can confirm gunfire incidents within seconds, providing precise location data and details about the incident[41] - The ShotSpotter Respond application allows field personnel to receive real-time alerts, including a unique Respond ID number, time of gunfire, and contextual information about the incident[47] - ShotSpotter Connect uses AI-driven analysis to direct officers to patrol areas with the highest predicted crime risk, enhancing community engagement and reducing enforcement bias[59][60] - The company acquired the CrimeCenter investigative case management solution in November 2020, rebranding it as ShotSpotter Investigate, aimed at improving clearance rates for law enforcement agencies[66][69] - The company offers Detailed Forensic Reports (DFRs) that provide comprehensive analysis of shooting incidents, which have been admitted in over 100 criminal prosecutions across various states[51] Public Safety and Community Impact - Approximately 80% of gunshots detected by ShotSpotter's public safety solution are not reported to 911 by residents, highlighting a significant public safety gap[21] - The deployment of ShotSpotter's solutions is expected to improve community trust and engagement while enhancing public safety outcomes[19] - The average homicide clearance rate in the United States was 61% in 2019, indicating a need for improved investigative case management solutions[25] - The average homicide clearance rate in the U.S. over the last five years is 61%, indicating a significant opportunity for the company's solutions to assist law enforcement in solving cases more effectively[67] - In 2020, the company issued over 230,000 gunshot alerts to customers, enabling emergency dispatch centers to respond within 45 seconds of a gunfire incident report[55] Financial Performance and Business Operations - The company has faced challenges due to the COVID-19 pandemic, which has materially affected its business operations[14] - The two largest customers, City of Chicago and City of New York, accounted for 18% and 15% of revenues, respectively, for the year ended December 31, 2020[86] - The company has added over 80 new ShotSpotter Respond customers since transitioning to a subscription model in 2011, with a retention rate exceeding 100%[86] - The company plans to leverage its existing customer base to drive adoption of new products, aiming to increase revenue per customer through complementary technologies[78] - Total revenues generated outside the United States were $0.7 million in 2020, compared to $1.0 million in 2019 and $0.9 million in 2018[119] - As of December 31, 2020, the company had cash and cash equivalents of $16.0 million, consisting entirely of bank deposits[412] Workforce and Diversity - The company employed 157 people as of December 31, 2020, with a total attrition rate of less than 11%[109] - Women represented 27% of the company's employees, while underrepresented minorities accounted for 50%[110] - The company is committed to advancing diversity, equity, and inclusion, with a three-pronged strategy to attract diverse talent and create an inclusive workplace[111] Research and Development - The research and development team focuses on enhancing signal processing algorithms and integrating AI, with 20 employees dedicated to these efforts as of December 31, 2020[93] - The company had 34 issued patents as of December 31, 2020, with expiration dates ranging from 2022 to 2034[105] Competitive Landscape - The company operates in a highly competitive environment, facing direct competition from companies like Alarm.com and Safety Dynamics Inc.[100] - The company does not engage in any hedging strategies to manage foreign currency exchange risks, primarily related to the South African Rand[413] - The company has not experienced material effects from inflation on its business or financial condition[414] COVID-19 Response - The company has implemented significant changes in response to the COVID-19 pandemic, including flexible work hours and additional paid time off[117]
SoundThinking(SSTI) - 2020 Q4 - Earnings Call Transcript
2021-02-27 22:32
Financial Data and Key Metrics Changes - Q4 2020 revenue was $12.6 million, representing a 16% year-over-year growth from $10.9 million in Q4 2019 [7][20] - Full year 2020 revenue was $45.7 million, up over 12% from $40.8 million in 2019 [21] - Adjusted EBITDA for Q4 2020 was $3.1 million, compared to $3.2 million in Q4 2019, while full year adjusted EBITDA increased to $11.9 million, up 28% from $9.4 million in 2019 [22] - GAAP net loss for Q4 was $220,000, or a loss of $0.02 per share, while full year GAAP net income was $1.2 million, or $0.11 per share [26][27] Business Line Data and Key Metrics Changes - The company ended 2020 with $46.3 million in annual recurring revenue in its core ShotSpotter business [8] - Revenue retention rate for the year was 107%, compared to 111% in 2019 [19] - The company managed GAAP revenue attrition to less than $500,000 in 2020, despite pandemic-related budget pressures [11] Market Data and Key Metrics Changes - The company engaged with over 110 cities, alerting on 234,000 gunshot activations in 2020, indicating a material increase in gun violence from 2019 [12] - The company added 6 cities in the Tier 4 and Tier 5 market segments, demonstrating the viability of its services in underpenetrated markets [13] Company Strategy and Development Direction - The company aims to expand its product portfolio with the launch of ShotSpotter Investigate, targeting a broader suite of precision policing solutions [15][29] - The company is focused on maintaining strong customer loyalty and reducing customer creation costs, which stood at $0.51 per dollar of revenue [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic pipeline and the potential recovery of international markets, particularly in South Africa and Latin America [29] - The company reaffirmed its revenue guidance for 2021 at $58 million to $60 million, expecting LEEDS to contribute approximately $10 million in revenue [17][27] Other Important Information - The company ended Q4 2020 with $16 million in cash and cash equivalents, down from $28.7 million at the end of Q3 2020 [27] - Deferred revenue at the end of Q4 was $24.6 million, compared to $20.6 million at the end of Q3 2020 [27] Q&A Session Summary Question: Update on in-person deployments on campuses - Management is actively engaging in security opportunities on college and corporate campuses, particularly in areas with gun violence concerns [34] Question: Thoughts on potential M&A opportunities - Management is currently focused on integrating the LEEDS acquisition and is not actively seeking additional M&A opportunities at this time [36] Question: Factors affecting deployment backlog - Management indicated that the deployment pace is expected to improve in 2021 compared to 2020, with a strong pipeline in place [42] Question: Awareness of potential churn in renewals - Management is cautiously estimating attrition could rise to 3% to 4% in 2021, reflecting ongoing municipal budget challenges [43] Question: Impact of LEEDS on operating expenses - Management noted that LEEDS contributed less than half of the revenue in Q4, with additional amortization costs expected throughout 2021 [45] Question: Sales cycles for smaller cities - Management reported shorter sales cycles for Tier 4 and Tier 5 cities, indicating a strategic focus on these markets [47] Question: Contribution of LEEDS to revenue - Management confirmed that the $10 million contribution from LEEDS is primarily from existing contracts, with no new customer sales expected in 2021 [56]
Shotspotter (SSTI) Investor Presentation - Slideshow
2020-11-22 18:50
[o] ShotSpotter' 1 Investor Presentation November 2020 le Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the company's business plans, the anticipated impact of the COVID-19 pandemic, international expansion, expectations regarding future sales and expenses, our ability to capitalize on mark ...
SoundThinking(SSTI) - 2020 Q3 - Earnings Call Transcript
2020-11-10 04:08
ShotSpotter, Inc. (NASDAQ:SSTI) Q3 2020 Earnings Conference Call November 9, 2020 4:30 PM ET Company Participants Ralph Clark - Chief Executive Officer Mary Hentges - Interim Chief Financial Officer Conference Call Participants Matt Pfau - William Blair Charlie Erlikh - Baird Joseph Osha - JMP Securities Jeremy Hamblin - Craig-Hallum Capital Group Jeff Kessler - Imperial Capital Operator Good afternoon and welcome to ShotSpotter’s Third Quarter 2020 Earnings Conference Call. My name is Eilee and I will be y ...
SoundThinking(SSTI) - 2020 Q3 - Quarterly Report
2020-11-09 21:44
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38107 ShotSpotter, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 47-0949915 (State or other jurisdicti ...
ShotSpotter (SSTI) Investor Presentation - Slideshow
2020-08-17 18:00
[o] ShotSpotter' 1 Investor Presentation August 2020 le Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the company's business plans, the anticipated impact of the COVID-19 pandemic, international expansion, expectations regarding future sales and expenses, our ability to capitalize on market ...
SoundThinking(SSTI) - 2020 Q2 - Earnings Call Transcript
2020-08-08 14:45
Financial Data and Key Metrics Changes - The company reported quarterly revenues of $11.3 million, a 10% increase from $10.3 million in the same quarter last year [8][33] - Net income for the quarter was $866,000 or $0.07 per diluted share, compared to $387,000 or $0.03 per diluted share in Q2 2019 [8][37] - Adjusted EBITDA for the second quarter was $3.4 million, a 41% increase from $2.4 million in the prior-year period [34] Business Line Data and Key Metrics Changes - The company went live with 26 new mines, including expansions in Cincinnati and New York City, and new deployments in Springfield, Illinois, Albuquerque, the U.S. Virgin Islands, and Mammoth County, New Jersey [8][9] - Six multiyear contracts were renewed in Q2, representing nearly $7 million in bookings [14] Market Data and Key Metrics Changes - The number of ShotSpotter loaded gunfire incidents increased by 34.6% year-to-date 2020 compared to 2019, and over 68% since the George Floyd incident [23] - The company has expanded its presence in New York City to cover approximately 74 miles [21] Company Strategy and Development Direction - The company aims to enhance its value by providing complementary solutions to its core gunshot detection technology, including an emissions platform for crime trend analysis [27] - The management believes that the "Defund the Police" movement may represent a potential catalyst for the business, as it aligns with the demand for precision policing [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's long-term opportunities, noting that public safety remains a priority for municipal budgets [42] - The company expects to remain profitable in both Q3 and Q4, as well as for the entirety of 2020 [39] Other Important Information - The company ended the quarter with $25.8 million in cash and no short or long-term debt, while planning to raise the borrowing limit on its revolving line of credit [38] - Deferred revenue at the end of the quarter was $23.3 million, down from $24.6 million at the end of Q1 2020 [37] Q&A Session Summary Question: Can you provide clarity on the revised guidance range? - Management narrowed the guidance due to increased visibility, expecting attrition to be around 2% to 3% instead of the previously anticipated 5% [46][47] Question: What is the potential for further expansion in New York City? - Management indicated that New York City is fairly well deployed, covering over 70 square miles, and further significant expansion is not expected at this time [48][49] Question: How is the selling cycle changing in the work-from-home environment? - The company is finding innovative ways to engage prospects digitally and has seen increased inbound interest due to social unrest and rising gun violence [54][56] Question: Can you comment on the disinformation campaign mentioned? - Management noted that while there is energy around the "Defund the Police" movement, the core of the movement focuses on reimagining policing rather than abolishing it [61][63] Question: How is the company addressing budgetary meetings for municipalities? - Management is optimistic about maintaining normal attrition rates and is prepared to assist municipalities in finding funding to support their ShotSpotter services [70][72] Question: Are there challenges in deployments due to COVID-19 restrictions? - While some mobility has returned, challenges remain in certain areas where restrictions are still in place [74][90] Question: How are Latin American opportunities progressing? - The pipeline for Latin American opportunities is strong, with expectations for at least one booking before the end of the year [83] Question: How does the current level of interest compare to last year? - The current pipeline is stronger than last year, driven by the increase in gun violence [87]
SoundThinking(SSTI) - 2020 Q2 - Quarterly Report
2020-08-07 23:09
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38107 ShotSpotter, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 47-0949915 (State or other jurisdiction of ...
SoundThinking(SSTI) - 2020 Q1 - Earnings Call Presentation
2020-05-20 16:42
1 [o] ShotSpotter' Investor Presentation May 2020 le Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the company's business plans, the anticipated impact of the COVID-19 pandemic, international expansion, expectations regarding future sales and expenses, our ability to capitalize on market op ...
SoundThinking(SSTI) - 2020 Q1 - Quarterly Report
2020-05-11 19:30
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | - ...