Exhibit 99.1 SoundThinking, Inc. Reports First Quarter 2024 Financial Results Revenues Increased 23% to $25.4 Million, Driven by New and Expanding Customer Subscriptions, and Contributions from SafePointe Company Reaf irms FY 2024 Revenue Guidance Range of $104.0 Million to $106.0 Million, Representing 13% Year- Over-Year Growth at the Midpoint and FY 2024 Adjusted EBITDA Margin Guidance Range of 18 to 20% FREMONT, CA – May 14, 2024 – SoundThinking, Inc. (Nasdaq: SSTI), a leading public safety technology co ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 (Mark One) FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 SoundThinking, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 47-0949915 (State or other jurisdiction of in ...

Exhibit 99.1 SoundThinking, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results Revenues Increased 24% to a Record $26.0 Million, Marking Highest Quarterly Revenues in Company History Company Introduces FY 2024 Revenue Guidance Range of $104.0 Million to $106.0 Million, Representing 13% Year- Over-Year Growth at the Midpoint and FY 2024 Adjusted EBITDA Margin Guidance Range of 18 to 20% FREMONT, CA – February 27, 2024 – SoundThinking, Inc. (Nasdaq: SSTI), a leading public safety technology comp ...

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Presents SoundThinking's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents SoundThinking's financial position, detailing assets, liabilities, and equity as of September 30, 2023, and December 31, 2022 Condensed Consolidated Balance Sheets (in thousands) | Metric | September 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Total Assets | $132,957 | $122,748 | | Total Liabilities | $64,847 | $61,803 | | Total Stockholders' Equity | $68,110 | $60,945 | | Cash and cash equivalents | $5,800 | $10,479 | | Accounts receivable and contract assets, net | $24,966 | $30,957 | | Goodwill | $33,728 | $22,971 | | Intangible assets, net | $37,898 | $27,318 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details SoundThinking's revenues, gross profit, operating income, and net income for the three and nine months ended September 30, 2023 and 2022 Three Months Ended September 30 (in thousands) | Metric | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------------- | :----- | :----- | :--------- | :--------- | | Revenues | $23,977 | $18,775 | $5,202 | 28% | | Gross profit | $13,752 | $10,302 | $3,450 | 33% | | Operating income (loss) | $(1,482) | $4,075 | $(5,557) | (136%) | | Net income (loss) | $(1,874) | $4,033 | $(5,907) | (146%) | | Net income (loss) per share, basic | $(0.15) | $0.33 | $(0.48) | (145%) | Nine Months Ended September 30 (in thousands) | Metric | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------------- | :----- | :----- | :--------- | :--------- | | Revenues | $66,672 | $60,005 | $6,667 | 11% | | Gross profit | $37,719 | $34,875 | $2,844 | 8% | | Operating income (loss) | $(5,640) | $7,710 | $(13,350) | (173%) | | Net income (loss) | $(6,361) | $7,430 | $(13,791) | (186%) | | Net income (loss) per share, basic | $(0.52) | $0.61 | $(1.13) | (185%) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Presents SoundThinking's comprehensive income and loss, including net income and other comprehensive income components, for specified periods Comprehensive Income (Loss) (in thousands) | Period | Net Income (Loss) | Comprehensive Income (Loss) | | :-------------------------- | :---------------- | :-------------------------- | | Three Months Ended Sep 30, 2023 | $(1,874) | $(1,873) | | Three Months Ended Sep 30, 2022 | $4,033 | $3,955 | | Nine Months Ended Sep 30, 2023 | $(6,361) | $(6,433) | | Nine Months Ended Sep 30, 2022 | $7,430 | $7,329 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Outlines changes in SoundThinking's stockholders' equity, including common stock, additional paid-in capital, and accumulated deficit Stockholders' Equity Summary (in thousands, except share data) | Metric | Balance at January 1, 2023 | Balance at September 30, 2023 | | :-------------------------- | :------------------------- | :---------------------------- | | Common Stock Shares | 12,243,929 | 12,720,608 | | Common Stock Par Value | $62 | $64 | | Additional Paid-in Capital | $153,573 | $167,169 | | Accumulated Deficit | $(92,400) | $(98,761) | | Total Stockholders' Equity | $60,945 | $68,110 | - Issuance of common stock from acquisitions contributed **$11,291 thousand** to additional paid-in capital during the nine months ended September 30, 2023[18](index=18&type=chunk) - Repurchase of common stock resulted in a reduction of **$5,595 thousand** in additional paid-in capital during the nine months ended September 30, 2023[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes SoundThinking's cash inflows and outflows from operating, investing, and financing activities for the nine months ended September 30 Cash Flows for Nine Months Ended September 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :-------------------------------- | :----- | :----- | | Net cash provided by operating activities | $10,635 | $10,069 | | Net cash used in investing activities | $(15,785) | $(13,668) | | Net cash provided by (used in) financing activities | $535 | $(2,331) | | Net change in cash and cash equivalents | $(4,615) | $(5,930) | | Cash, cash equivalents and restricted cash at end of period | $5,800 | $9,604 | - Investing activities in 2023 were primarily driven by the acquisition of SafePointe (**$10,995 thousand**) and purchases of property and equipment (**$4,350 thousand**)[20](index=20&type=chunk)[170](index=170&type=chunk) - Financing activities in 2023 included **$7,000 thousand** in proceeds from the line of credit, offset by **$5,595 thousand** in common stock repurchases and **$1,500 thousand** in contingent consideration payments[20](index=20&type=chunk)[172](index=172&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and additional information supporting the condensed consolidated financial statements, covering accounting policies and specific accounts [Note 1. Organization and Description of Business](index=8&type=section&id=Note%201.%20Organization%20and%20Description%20of%20Business) Details SoundThinking's rebranding, its SafetySmart™ Platform offerings, and the acquisition of SafePointe, LLC in August 2023 - SoundThinking, Inc. (formerly ShotSpotter, Inc.) rebranded in April 2023 to reflect its broader public safety impact[23](index=23&type=chunk) - The company introduced its SafetySmart™ Platform, which includes ShotSpotter®, CrimeTracer™, CaseBuilder™, and ResourceRouter™[23](index=23&type=chunk) - In August 2023, SoundThinking acquired SafePointe, LLC, adding an AI-based weapons detection product offering to its SafetySmart Platform[23](index=23&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=8&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines the accounting principles and significant management estimates used in preparing the financial statements, including customer and supplier concentration - The condensed consolidated financial statements are prepared in accordance with U.S. GAAP and SEC interim financial reporting rules[25](index=25&type=chunk) - Management's significant estimates include valuation of accounts receivable, tangible and intangible assets, contingent consideration, stock-based compensation, revenue recognition, and income taxes[28](index=28&type=chunk) Customer Concentration | Metric | September 30, 2023 | December 31, 2022 | | :-------------------------------- | :----------------- | :----------------- | | Accounts Receivable (top 2 customers) | 13% and 12% | 23% and 17% | | Revenues (top 2 customers, 3 months) | 24% and 9% | 26% and 11% | | Revenues (top 2 customers, 9 months) | 25% and 9% | 32% and 10% | - The company relies on a limited number of suppliers, with a single supplier for its proprietary sensors[34](index=34&type=chunk) [Note 3. Revenue Related Disclosures](index=10&type=section&id=Note%203.%20Revenue%20Related%20Disclosures) Provides details on deferred revenue, remaining performance obligations, and the types of revenue recognized by SoundThinking Deferred Revenue (in thousands) | Period | Beginning Balance | Ending Balance | | :-------------------------- | :---------------- | :------------- | | Nine Months Ended Sep 30, 2023 | $43,720 | $38,346 | | Nine Months Ended Sep 30, 2022 | $26,709 | $36,969 | Remaining Performance Obligations as of September 30, 2023 (in thousands) | Period | Amount | | :---------------- | :------- | | Remainder of 2023 | $22,506 | | 2024 | $55,249 | | 2025 | $26,352 | | Thereafter | $13,576 | | **Total** | **$117,683** | - For the nine months ended September 30, 2023, **$63.0 million** in revenue was recognized from monthly subscription, maintenance, and support services, and **$3.7 million** from professional software development services[38](index=38&type=chunk) [Note 4. Acquisitions](index=10&type=section&id=Note%204.%20Acquisitions) Details SoundThinking's acquisitions of SafePointe, LLC in 2023 and Forensic Logic, LLC in 2022, including purchase considerations and recognized assets - In August 2023, SoundThinking acquired SafePointe, LLC for a total purchase consideration of **$25.6 million**, consisting of **$11.4 million** in cash, **$11.2 million** in common stock, and a **$3.0 million** contingent earnout[41](index=41&type=chunk) - The SafePointe acquisition resulted in the recognition of **$10.757 million** in goodwill and acquired intangible assets including customer relationships (**$2.5 million**), software technology (**$9.2 million**), and tradename (**$1.1 million**)[42](index=42&type=chunk) - In January 2022, the company acquired Forensic Logic, LLC for **$31.6 million**, including **$4.9 million** in cash, **$14.3 million** in common stock, and a **$12.4 million** contingent earnout[48](index=48&type=chunk) [Note 5. Fair Value Measurements](index=12&type=section&id=Note%205.%20Fair%20Value%20Measurements) Discusses the fair value measurements of contingent consideration liabilities for acquisitions, classified as Level III, and their changes - Contingent consideration liabilities for Forensic Logic and SafePointe acquisitions are classified as Level III fair value measurements[52](index=52&type=chunk)[53](index=53&type=chunk) - The fair value of Forensic Logic's contingent consideration decreased by **$0.9 million** during the nine months ended September 30, 2023, due to revised revenue forecasts[52](index=52&type=chunk)[54](index=54&type=chunk) - The SafePointe contingent consideration liability was estimated at **$3.0 million** as of the acquisition date in August 2023[53](index=53&type=chunk)[54](index=54&type=chunk) [Note 6. Goodwill](index=13&type=section&id=Note%206.%20Goodwill) Reports the goodwill balance and attributes its increase primarily to the SafePointe acquisition Goodwill Balance (in thousands) | Date | Amount | | :---------------- | :------- | | September 30, 2023 | $33,728 | | December 31, 2022 | $22,971 | - The increase in goodwill is primarily attributable to the acquisition of SafePointe (**$10,757 thousand**)[55](index=55&type=chunk) [Note 7. Intangible Assets, Net](index=13&type=section&id=Note%207.%20Intangible%20Assets%2C%20Net) Presents the net balance of intangible assets by type, including customer relationships and software technology, and details future amortization Intangible Assets, Net (in thousands) | Asset Type | September 30, 2023 (Net) | December 31, 2022 (Net) | | :-------------------------- | :----------------------- | :---------------------- | | Customer relationships | $21,465 | $20,210 | | Acquired software technology | $14,569 | $6,125 | | Patents and intellectual property | $779 | $94 | | Tradename | $1,085 | $889 | | **Total intangible assets, net** | **$37,898** | **$27,318** | - Intangible amortization expense was **$3.0 million** for the nine months ended September 30, 2023, up from **$2.1 million** in the prior year[57](index=57&type=chunk) Future Intangible Asset Amortization as of September 30, 2023 (in thousands) | Period | Amount | | :---------------- | :------- | | Remainder of 2023 | $963 | | 2024 | $3,841 | | 2025 | $3,823 | | 2026 | $3,783 | | 2027 | $3,770 | | Thereafter | $21,718 | | **Total** | **$37,898** | [Note 8. Details of Certain Condensed Consolidated Balance Sheet Accounts](index=14&type=section&id=Note%208.%20Details%20of%20Certain%20Condensed%20Consolidated%20Balance%20Sheet%20Accounts) Provides detailed breakdowns of specific balance sheet accounts, including accounts receivable, contract assets, accrued expenses, and other current and long-term liabilities Accounts Receivable and Contract Assets, Net (in thousands) | Date | Amount | | :---------------- | :------- | | September 30, 2023 | $24,966 | | December 31, 2022 | $30,957 | Accrued Expenses and Other Current Liabilities (in thousands) | Date | September 30, 2023 | December 31, 2022 | | :-------------------------- | :----------------- | :----------------- | | Personnel-related accruals | $5,393 | $5,971 | | Contingent consideration liability | $2,323 | $1,500 | | **Total** | **$10,482** | **$9,965** | Other Liabilities (Long-Term) (in thousands) | Date | September 30, 2023 | December 31, 2022 | | :-------------------------- | :----------------- | :----------------- | | Operating lease liabilities | $1,803 | $2,554 | | Contingent consideration liability | $2,994 | $3,246 | | **Total** | **$4,797** | **$5,800** | [Note 9. Related Party Transactions](index=15&type=section&id=Note%209.%20Related%20Party%20Transactions) Discloses revenues recognized from SoundThinking Labs projects with charitable organizations linked to related parties - The company recognized **$85,000** in revenues from SoundThinking Labs projects with charitable organizations linked to a former director and a significant stockholder for the nine months ended September 30, 2023[61](index=61&type=chunk) [Note 10. Stock Repurchase Program](index=15&type=section&id=Note%2010.%20Stock%20Repurchase%20Program) Details the company's common stock repurchases during the period and the remaining authorization under its stock repurchase program - During the nine months ended September 30, 2023, the company repurchased **228,782 shares** of common stock for **$5.6 million** at an average price of **$24.41 per share**[62](index=62&type=chunk) - As of September 30, 2023, **$19.4 million** remains available under the **$25.0 million** stock repurchase program approved in November 2022[162](index=162&type=chunk) [Note 11. Net Income (Loss) per Share](index=15&type=section&id=Note%2011.%20Net%20Income%20%28Loss%29%20per%20Share) Presents basic and diluted net income (loss) per share, along with weighted-average shares outstanding, for quarterly and nine-month periods Net Income (Loss) per Share (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net income (loss) | $(1,874) | $4,033 | $(6,361) | $7,430 | | Weighted-average shares outstanding, basic | 12,480,830 | 12,167,632 | 12,320,119 | 12,156,980 | | Net income (loss) per share, basic | $(0.15) | $0.33 | $(0.52) | $0.61 | | Net income (loss) per share, diluted | $(0.15) | $0.33 | $(0.52) | $0.60 | - **1,776,793** potentially dilutive shares (options to purchase common stock) were excluded from diluted EPS calculation for Q3 2023 and 9M 2023 as their effect would have been anti-dilutive[65](index=65&type=chunk) [Note 12. Equity Incentive Plans](index=16&type=section&id=Note%2012.%20Equity%20Incentive%20Plans) Details stock option activity, stock-based compensation expense, and changes in shares reserved under the company's equity incentive plans Stock Option Activity (Nine Months Ended September 30, 2023) | Metric | Number of Options Outstanding | Weighted Average Exercise Price | | :-------------------------- | :---------------------------- | :------------------------------ | | Outstanding at Dec 31, 2022 | 1,256,056 | $28.20 | | Granted | 654,714 | $25.73 | | Exercised | (17,214) | $8.61 | | Canceled | (116,763) | $32.04 | | Outstanding at Sep 30, 2023 | 1,776,793 | $27.21 | - Stock-based compensation expense totaled **$7,272 thousand** for the nine months ended September 30, 2023, allocated across cost of revenues, sales and marketing, R&D, and G&A[74](index=74&type=chunk) - The number of shares reserved for issuance under the 2017 Equity Incentive Plan increased by **612,196 shares** on January 1, 2023, due to an evergreen provision[68](index=68&type=chunk) [Note 13. Financing Arrangements](index=17&type=section&id=Note%2013.%20Financing%20Arrangements) Describes the amended Umpqua Credit Agreement, including the increased revolving credit commitment, outstanding balance, and available loan facility - The Umpqua Credit Agreement was amended in November 2022, increasing the revolving credit commitment to **$25.0 million** and extending the maturity date to October 15, 2024[75](index=75&type=chunk) - As of September 30, 2023, **$7.0 million** was outstanding on the company's line of credit, primarily used to partially fund the SafePointe acquisition[76](index=76&type=chunk) - The available loan facility as of September 30, 2023, was approximately **$18.0 million**[76](index=76&type=chunk) [Note 14. Commitments and Contingencies](index=18&type=section&id=Note%2014.%20Commitments%20and%20Contingencies) Details SoundThinking's involvement in a legal proceeding concerning gunshot alert evidence and the potential adverse effects of an unfavorable outcome - SoundThinking is a defendant in a legal proceeding alleging conspiracy to violate civil rights and malicious prosecution related to gunshot alert evidence, which the company is vigorously disputing[78](index=78&type=chunk) - An unfavorable outcome in litigation could require substantial damages or prevent the sale of certain products, potentially having a material adverse effect on the company's business[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses SoundThinking's financial condition and operational performance, including business overview, key factors, financial comparisons, and liquidity [Overview](index=19&type=section&id=Overview) Provides a business overview, including SoundThinking's rebranding, SafetySmart™ platform, SafePointe acquisition, and key operational metrics - SoundThinking, Inc. (formerly ShotSpotter, Inc.) rebranded in April 2023 and offers the SafetySmart™ platform, including ShotSpotter®, CrimeTracer™, CaseBuilder™, and ResourceRouter™[83](index=83&type=chunk) - The company acquired SafePointe, LLC in August 2023, integrating its AI-based weapons detection system into the SafetySmart platform[83](index=83&type=chunk)[90](index=90&type=chunk) Revenue Contribution from ShotSpotter | Period | ShotSpotter Revenue % of Total | | :-------------------------- | :----------------------------- | | Three Months Ended Sep 30, 2023 | 69% | | Three Months Ended Sep 30, 2022 | 74% | | Nine Months Ended Sep 30, 2023 | 71% | | Nine Months Ended Sep 30, 2022 | 68% | Net New 'Go-Live' Cities and Universities | Period | Net New 'Go-Live' | | :-------------------------- | :----------------- | | Three Months Ended Sep 30, 2023 | 7 | | Three Months Ended Sep 30, 2022 | 6 | | Nine Months Ended Sep 30, 2023 | 21 | | Nine Months Ended Sep 30, 2022 | 17 | [Components of Results of Operations](index=22&type=section&id=Components%20of%20Results%20of%20Operations) Explains the primary drivers of SoundThinking's revenues and costs, including subscription services, cost of revenues, and operating expenses - The majority of revenues are derived from subscription services, recognized ratably over the contract term (typically one to three years)[106](index=106&type=chunk) - Cost of revenues for ShotSpotter solutions primarily includes depreciation of sensor networks, communication expenses, hosting costs, IRC operations, and personnel costs[115](index=115&type=chunk) - Operating expenses (sales and marketing, R&D, G&A) are expected to increase in absolute dollars in the near term due to growth, but generally decrease as a percentage of revenues over time[121](index=121&type=chunk) - Research and development efforts focus on new lower-cost sensor hardware, feature development, functionality improvements, and leveraging AI/ML for acoustic event analysis[124](index=124&type=chunk)[128](index=128&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Analyzes SoundThinking's financial performance, comparing revenues, gross profit, and net income for the three and nine months ended September 30 [Comparison of Three Months Ended September 30, 2023 and 2022](index=26&type=section&id=Comparison%20of%20Three%20Months%20Ended%20September%2030%2C%202023%20and%202022) Compares SoundThinking's financial performance for the third quarter, highlighting changes in revenues, net income, and operating expenses - Revenues increased by **$5.2 million (28%)** to **$24.0 million**, driven by new customers, expansion of existing coverage, and contributions from the SafePointe acquisition[135](index=135&type=chunk) - Net income shifted to a **loss of $(1.9) million** in 2023 from a **$4.0 million profit** in 2022, a **146% decrease**[134](index=134&type=chunk) - Total operating expenses increased by **$9.0 million (145%)**, primarily due to **$0.7 million** in SafePointe acquisition expenses, **$0.5 million** in legal costs, and **$0.6 million** in personnel-related costs[139](index=139&type=chunk) [Comparison of Nine Months Ended September 30, 2023 and 2022](index=27&type=section&id=Comparison%20of%20Nine%20Months%20Ended%20September%2030%2C%202023%20and%202022) Compares SoundThinking's financial performance for the nine-month period, detailing changes in revenues, net income, and operating expenses - Revenues increased by **$6.7 million (11%)** to **$66.7 million**, mainly from new customers and expanded coverage areas[145](index=145&type=chunk) - Net income shifted to a **loss of $(6.4) million** in 2023 from a **$7.4 million profit** in 2022, an **186% decrease**[144](index=144&type=chunk) - Total operating expenses increased by **$16.2 million (60%)**, driven by higher sales and marketing (**$2.9 million**), R&D (**$1.3 million**), and G&A (**$4.1 million**) expenses[144](index=144&type=chunk)[147](index=147&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses SoundThinking's financial liquidity, including cash position, credit facilities, and future cash requirements for operations and acquisitions - As of September 30, 2023, the company had **$5.8 million** in cash and cash equivalents and an available credit facility of approximately **$18.0 million**, with **$7.0 million** outstanding[154](index=154&type=chunk) - Management believes existing cash, credit facility, and operating cash flow will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[155](index=155&type=chunk) - Future cash requirements include contingent earnouts for SafePointe (up to **$11.5 million** through 2025) and Forensic Logic (up to **$10.5 million** for 2023), and the remaining **$19.4 million** under the stock repurchase program[157](index=157&type=chunk)[159](index=159&type=chunk)[162](index=162&type=chunk) Cash Flows for Nine Months Ended September 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :-------------------------------- | :----- | :----- | | Net cash provided by operating activities | $10,635 | $10,069 | | Net cash used in investing activities | $(15,785) | $(13,668) | | Net cash provided by (used in) financing activities | $535 | $(2,331) | [Critical Accounting Estimates](index=31&type=section&id=Critical%20Accounting%20Estimates) Highlights management's significant estimates and assumptions in financial reporting, noting no material changes from the prior annual report - The preparation of financial statements requires management to make estimates and assumptions affecting reported amounts of revenues, assets, liabilities, costs, and expenses[173](index=173&type=chunk) - No material changes to critical accounting policies and estimates were reported from those disclosed in the 2022 Annual Report on Form 10-K[174](index=174&type=chunk) [Recently Issued Accounting Pronouncements](index=31&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) Directs readers to Note 2 for information regarding recently issued accounting pronouncements relevant to the financial statements - Refer to Note 2, Summary of Significant Accounting Policies, for information on recently issued accounting pronouncements[175](index=175&type=chunk) [Item 3. Qualitative and Quantitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) Discusses SoundThinking's market risk exposure, primarily from interest rates, foreign exchange, and inflation, with no material changes reported - The company's market risk exposure is primarily due to fluctuations in interest rates, foreign exchange rates, and inflation[176](index=176&type=chunk) - No material changes in market risk occurred during the nine months ended September 30, 2023, compared to the 2022 Annual Report on Form 10-K[177](index=177&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and procedures, with ongoing integration of SafePointe's internal controls and no other material changes - Management concluded that disclosure controls and procedures were effective as of September 30, 2023[178](index=178&type=chunk) - Internal controls at SafePointe are being integrated into the company's control structure following its acquisition in August 2023[179](index=179&type=chunk) - No other material changes in internal control over financial reporting occurred during the quarter ended September 30, 2023[179](index=179&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) Incorporates legal proceedings information from Note 14, detailing a civil rights and malicious prosecution lawsuit against the company - Information on legal proceedings is incorporated by reference from Note 14 to the condensed consolidated financial statements[181](index=181&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) Outlines significant investment risks, categorized by growth, public safety, operations, legal compliance, and common stock ownership, including AI and supply chain concerns [Summary of Risk Factors](index=33&type=section&id=Summary%20of%20Risk%20Factors) Summarizes high risks associated with SoundThinking common stock, covering business growth, operational challenges, and external market factors - Investing in SoundThinking common stock involves high risks, including those related to business growth, service interruptions, market penetration, customer funding availability, and fluctuating operating results[183](index=183&type=chunk) - Other significant risks include unprofitability, need for additional capital, complexities of government contracts, failure of solutions to meet expectations, false positive alerts, negative publicity, economic downturns, and privacy concerns[183](index=183&type=chunk) [Risks Related to Our Growth](index=34&type=section&id=Risks%20Related%20to%20Our%20Growth) Identifies risks impacting SoundThinking's growth, including customer acquisition, market expansion, fluctuating results, profitability, and capital needs - The company's ability to grow depends on accelerating new customer acquisition, expanding coverage for existing customers, international expansion, entering new vertical markets, and managing macroeconomic pressures[184](index=184&type=chunk) - Quarterly results may fluctuate significantly due to factors like customer base expansion/contraction, contract renewals, sales timing, customer budgets, and general economic conditions[188](index=188&type=chunk) - The company reported a **net loss of $6.4 million** for the nine months ended September 30, 2023, and an **accumulated deficit of $98.8 million**, indicating it may not achieve or maintain profitability[195](index=195&type=chunk) - Additional capital may be required to fund business growth, potentially leading to equity dilution for existing stockholders or restrictive covenants from debt financing[198](index=198&type=chunk) [Risks Related to Our Public Safety Business](index=37&type=section&id=Risks%20Related%20to%20Our%20Public%20Safety%20Business) Addresses risks specific to SoundThinking's public safety business, including government contracts, renewal challenges, alert accuracy, and public perception - Success depends on maintaining and increasing sales to government entities, which are influenced by factors like funding availability, political changes, and public perception[199](index=199&type=chunk) - The contract with the City of Chicago (**9% of 9M 2023 revenues**) expires in February 2024, and a delayed renewal with Puerto Rico poses a risk to operating results[201](index=201&type=chunk) - Real or perceived false positive gunshot alerts or failures to generate alerts for actual gunfire could damage the company's brand, reputation, and growth prospects[216](index=216&type=chunk) - Negative publicity, economic uncertainties, geopolitical developments, and social unrest (e.g., 'Defund the Police' movement) can adversely affect customer funding and business operations[220](index=220&type=chunk)[225](index=225&type=chunk) [Strategic and Operational Risks](index=42&type=section&id=Strategic%20and%20Operational%20Risks) Covers risks related to international expansion, technology interruptions, acquisition integration, supply chain dependencies, and the use of artificial intelligence - Expanding into new international markets exposes the company to significant regulatory, economic, and political risks, potentially delaying sales and increasing costs[227](index=227&type=chunk)[292](index=292&type=chunk) - Interruptions or performance problems with technology, infrastructure, or third-party providers (e.g., wireless carriers, data centers) could impair service delivery and harm the business[233](index=233&type=chunk)[236](index=236&type=chunk)[259](index=259&type=chunk) - Acquisitions, such as SafePointe and Forensic Logic, carry risks including integration challenges, failure to retain key personnel, unforeseen liabilities, and potential dilution from stock issuance[251](index=251&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk) - Reliance on a limited number of suppliers, including a single contract manufacturer for proprietary ShotSpotter sensors, creates supply chain vulnerabilities[280](index=280&type=chunk) - The use of artificial intelligence (AI) in products and services may lead to operational challenges, legal liability, reputational concerns, and competitive risks due to potential flaws, biases, or misuse[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk) [Legal and Regulatory Risks](index=51&type=section&id=Legal%20and%20Regulatory%20Risks) Examines legal and regulatory risks, including data privacy, AI compliance, NOL limitations, and intellectual property protection and infringement claims - The company is subject to stringent and evolving data privacy and security laws (e.g., GDPR, CCPA, wiretapping laws) and contractual obligations, with non-compliance potentially leading to investigations, fines, and litigation[300](index=300&type=chunk)[304](index=304&type=chunk)[306](index=306&type=chunk)[313](index=313&type=chunk) - The use of generative AI tools introduces new legal and compliance uncertainties, including intellectual property ownership challenges and risks of disclosing confidential information[331](index=331&type=chunk)[332](index=332&type=chunk) - The ability to use net operating losses (NOLs) to offset future taxable income may be limited by ownership changes under Section 382 of the Internal Revenue Code and state-specific rules[316](index=316&type=chunk) - Failure to adequately protect intellectual property rights (patents, trade secrets) could adversely affect the business, and the company may face costly intellectual property infringement claims from third parties[322](index=322&type=chunk)[329](index=329&type=chunk) [Risks Related to the Ownership of Our Common Stock](index=59&type=section&id=Risks%20Related%20to%20the%20Ownership%20of%20Our%20Common%20Stock) Addresses risks concerning common stock ownership, including price volatility, potential dilution from future sales, dividend policy, and anti-takeover provisions - The market price of common stock may be volatile due to fluctuations in operating results, analyst coverage, funding availability, economic conditions, and negative publicity[335](index=335&type=chunk) - Substantial future sales of common stock could cause the market price to decline, and the stock repurchase program, while intended to enhance value, could increase volatility or diminish cash reserves[337](index=337&type=chunk)[338](index=338&type=chunk)[339](index=339&type=chunk) - The company does not intend to pay dividends for the foreseeable future, requiring investors to rely on stock price appreciation for returns[346](index=346&type=chunk) - Anti-takeover provisions in charter documents and Delaware law, such as a classified board and restrictions on stockholder actions, could make an acquisition more difficult and limit stockholder influence[347](index=347&type=chunk)[349](index=349&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details unregistered equity sales for acquisitions and common stock repurchases during Q3 2023, including shares issued and program status - On August 15, 2023, **4,638 shares** of common stock were issued to PredPol Inc. for intellectual property assets[353](index=353&type=chunk) - On August 18, 2023, **549,579 shares** of common stock were issued to SafePointe members as partial consideration for the acquisition[353](index=353&type=chunk) - These issuances were deemed exempt from registration under Section 4(a)(2) of the Securities Act[354](index=354&type=chunk) Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Dollar Value of Shares that May Yet Be Purchased Under the Program (in thousands) | | :-------------------------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------------- | | July 1, 2023 - July 31, 2023 | — | — | $21,358 | | August 1, 2023 - August 31, 2023 | 44,980 | $20.60 | $20,431 | | September 1, 2023 - September 30, 2023 | 48,032 | $21.15 | $19,416 | | **Total** | **93,012** | **$20.88** | | [Item 6. Exhibits](index=63&type=section&id=Item%206.%20Exhibits) Provides an index of all exhibits filed with the Form 10-Q, including corporate governance documents, officer certifications, and XBRL data - The exhibit index includes corporate governance documents (Amended and Restated Certificate of Incorporation, Bylaws), certifications of principal executive and financial officers, and various Inline XBRL documents[358](index=358&type=chunk) [Signatures](index=65&type=section&id=Signatures) The report is officially signed by SoundThinking, Inc.'s President, CEO, and CFO on November 14, 2023, certifying its submission - The report was signed by Ralph A. Clark, President and Chief Executive Officer, and Alan R. Stewart, Chief Financial Officer, on November 14, 2023[363](index=363&type=chunk)[364](index=364&type=chunk)

SoundThinking, Inc. (NASDAQ:SSTI) Q3 2023 Earnings Conference Call November 7, 2023 4:30 PM ET Company Participants Ralph Clark - President, CEO & Director Alan Stewart - CFO Conference Call Participants Richard Baldry - ROTH MKM Partners Michael Latimore - Northland Capital Markets Yi Fu Lee - Cantor Fitzgerald Operator Good afternoon, and welcome to SoundThinking's Third Quarter 2023 Conference Call. My name is Ariel, and I will be your operator for today's call. Joining us are SoundThinking's CEO, Ralph ...

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, 2023 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 SoundThinking, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 47-0949915 (State or other jurisdiction ...

Financial Data and Key Metrics - The company maintains its full-year 2023 revenue guidance in the range of $92 million to $94 million, while adjusting the adjusted EBITDA margin to 16% to 18% of revenues [1][4] - Q2 2023 revenues were $22.1 million, a 10% increase compared to $20 million in Q2 2022 [6] - Gross profit for Q2 2023 was $12.7 million or 57% of revenue, compared to $11.6 million or 58% of revenue in Q2 2022 [6] - Adjusted net income for Q2 2023 was a loss of $3.5 million or $0.28 per share, compared to a loss of $427,000 or $0.04 per share in Q2 2022 [8] - Adjusted EBITDA for Q2 2023 was $2.4 million or 11% of revenues, down from $4.1 million or 20% of revenues in Q2 2022 [62][64] - The company ended Q2 with $3.9 million in cash and cash equivalents, down from $10.5 million at the end of Q4 2022 [16] Business Line Data and Key Metrics - The company launched ShotSpotter in seven new cities and one new university, and expanded in seven current cities and one current university in Q2 [2] - The company expects to add approximately 140 new miles of ShotSpotter coverage in 2023, a 40% increase compared to 2022 [31] - The company closed three cross-sell/bundled deals in Q2, with the pipeline for such deals growing [53] - The company is negotiating an agreement with PredPol to transition their customers to SoundThinking's ResourceRouter solution and acquire their patents [22] Market Data and Key Metrics - The company is seeing increased interest in its SafetySmart platform solutions across various markets [2] - The company is working with the Chicago Police Department to demonstrate the value of ShotSpotter in saving lives and enhancing investigations [20] - The company is negotiating a multiyear contract with Puerto Rico, following a 90-day interim extension [24][43] Company Strategy and Industry Competition - The company is focused on expanding its competitive moat with new features like Ground Truth and Shot Cast, which enhance law enforcement transparency and effectiveness [52] - The company is investing in innovation, including a new acoustic gunshot detection sensor platform with improved accuracy [21] - The company is leveraging its platform to target new buying centers, such as state-level agencies, in addition to traditional local law enforcement [109] Management Commentary on Operating Environment and Future Outlook - The company is confident in its growth trajectory, particularly in partnering with law enforcement for digital transformation [13] - The company expects gross margins to improve in the second half of 2023, driven by the large CaseBuilder contract with the Department of Corrections [6][74] - The company anticipates that G&A expenses will decrease as a percentage of revenues in Q3 and Q4, despite staying similar in absolute dollars [32] - The company is optimistic about its prospects for a multiyear contract award in Puerto Rico, given its track record and value to the Puerto Rico Police Department [43] Other Important Information - The company repurchased 100,401 shares at an average price of $23.79 for approximately $2.4 million in Q2 [16] - The company has approximately $25 million available on its line of credit and no short or long-term debt outstanding [16] - The company experienced zero attrition in Q2 [48] Q&A Session Summary Question: Can you provide more details on the potential upside to the 140-mile ShotSpotter deployment forecast? - The company is working on closing several deals that could add an additional 10 miles, depending on the timing of contract negotiations and deployment [10][67] Question: Can you discuss the factors around deploying the large CaseBuilder deal and its impact on the P&L? - The company has already staffed up for the Department of Corrections contract, which is expected to bring in $2 million annually in subscription revenue and $1-2 million in professional services, with higher gross margins [90] Question: What percentage of bookings in the first half of the year came from Tier 4 and Tier 5 cities? - The company did not provide a specific percentage but mentioned that new cities and expansions are contributing to the growth [73] Question: Can you provide more color on the expected gross margins for the second half of the year? - The company expects gross margins to improve, potentially reaching close to 60% by year-end, driven by the Puerto Rico contract and the Department of Corrections deal [74] Question: How are you managing account conflict as you add more reps per territory? - The company has a structured approach with territory reps collaborating with overlay reps specializing in different products, ensuring effective account management [91] Question: What is a reasonable target for EBITDA margin going forward? - The company expects to return to EBITDA margins in the 20s next year, driven by prudent investments in sales and marketing and the scaling of the business [92][93] Question: Can you discuss the demand environment for the CrimeTracer solution? - The company is seeing strong demand, with one bundled deal led by the CrimeTracer solution, indicating a growing pipeline for cross-sell opportunities [96][98]

SoundThinking, Inc. (NASDAQ:SSTI) Q1 2023 Results Conference Call May 9, 2023 4:30 PM ET Company Participants Ralph Clark - CEO Alan Stewart - CFO Conference Call Participants Brian Ruttenbur - Imperium Capital Richard Baldry - ROTH MKM Jeremy Hamblin - Craig-Hallum Jaeson Schmidt - Lake Street Willow Miller - William Blair & Company Operator Good afternoon, and welcome to SoundThinking's First Quarter 2023 Conference Call. My name is Ali, and I will be your operator for today's call. Joining us are SoundTh ...

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, 2023 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 SoundThinking, Inc. Indicate by check mark whether the registrant has submitted electronically every Interactive Data File ...

& SOUNDTHINKING Cautionary Note Regarding Forward-Looking Statements Investment Highlights Loyal customer base with minimum churn and down-sell 3 | --- | --- | --- | --- | |------------------------------------|-----------------------------|---------------------------------------------|--------------------------------| | | | | | | $2.5bn+ Core TAM | $81mm 2022 Revenue 1 | ~23% 2021A-2025E Revenue CAGR 2 | 20% 2022 Adj. EBITDA Margin 1 | | 124% Net Revenue Retention Rate 3 | 99% Gross Retention Rate 4 | $0.40 ...