[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Q1 2022 unaudited financials show significant changes, primarily from the January 2022 Forensic Logic acquisition [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $110.2 million by March 31, 2022, primarily due to the Forensic Logic acquisition Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$110,204** | **$72,304** | | Cash and cash equivalents | $8,852 | $15,636 | | Goodwill | $23,171 | $2,816 | | Intangible assets, net | $29,220 | $13,564 | | **Total Liabilities** | **$61,429** | **$38,489** | | Deferred revenue, short-term | $33,886 | $26,235 | | Accrued expenses and other current liabilities | $12,952 | $6,680 | | **Total Stockholders' Equity** | **$48,775** | **$33,815** | - The increase in **Goodwill to $23.2 million** is primarily due to the acquisition of Forensic Logic, which added $20.4 million[50](index=50&type=chunk) - Intangible assets increased significantly due to the Forensic Logic acquisition, which added assets such as software technology ($7.1M), tradenames ($1.0M), and customer relationships ($8.2M)[41](index=41&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2022 revenues grew 41% to $21.2 million, resulting in a net income of $387,000, a substantial increase from Q1 2021 Q1 Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Revenues | $21,214 | $15,013 | | Gross Profit | $12,924 | $8,688 | | Total Operating Expenses | $12,492 | $8,519 | | Operating Income | $432 | $169 | | Net Income | $387 | $79 | | Net Income per Share, diluted | $0.03 | $0.01 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2022 operating cash flow was positive $1.3 million, a reversal from Q1 2021, with $6.5 million used in investing activities for an acquisition Q1 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $1,283 | $(1,496) | | Net cash used in investing activities | $(6,526) | $(1,231) | | Net cash used in financing activities | $(1,621) | $(2,374) | | **Decrease in cash, cash equivalents** | **$(6,864)** | **$(5,101)** | - The primary use of cash in investing activities was **$4.6 million for a business acquisition**, net of cash acquired[21](index=21&type=chunk) - Financing activities included **$1.6 million for repurchases of common stock**[21](index=21&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the $31.6 million Forensic Logic acquisition, significant customer concentration, and Q1 2022 common stock repurchases - On January 3, 2022, the company acquired Forensic Logic for total estimated consideration of **$31.6 million**, comprising $4.9M cash, $14.3M in stock, and an estimated $12.4M in contingent earnout[40](index=40&type=chunk)[41](index=41&type=chunk) - For Q1 2022, two customers accounted for **38% and 10% of total revenues**, respectively, indicating significant customer concentration[34](index=34&type=chunk) - The company repurchased **57,623 shares of its common stock for $1.6 million** during the quarter, with $1.4 million remaining available under the repurchase program[60](index=60&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2022's 41% revenue growth to new customers and the Forensic Logic acquisition, despite ongoing pandemic and supply chain risks [Overview](index=17&type=section&id=Overview) The company expanded its precision-policing solutions with the Forensic Logic acquisition, achieving 41% revenue growth in Q1 2022, noting high customer concentration - Acquired Forensic Logic in January 2022 to enhance its suite of precision policing technology solutions, adding lead generation to its case management offerings[85](index=85&type=chunk) - Revenues grew **41% year-over-year to $21.2 million** for the three months ended March 31, 2022[89](index=89&type=chunk) - Customer concentration remains high, with the City of New York and the City of Chicago representing **38% and 10% of total revenues**, respectively, in Q1 2022[89](index=89&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q1 2022 saw revenues increase by $6.2 million (41%), gross profit by 49%, and operating expenses by 47%, with G&A rising due to legal fees Comparison of Operations (in thousands) | Line Item | Q1 2022 | Q1 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $21,214 | $15,013 | $6,201 | 41% | | Gross Profit | $12,924 | $8,688 | $4,236 | 49% | | Total Operating Expenses | $12,492 | $8,519 | $3,973 | 47% | | Income from Operations | $432 | $169 | $263 | 156% | | Net Income | $387 | $79 | $308 | 390% | - The **$6.2 million revenue increase** was driven by new customers, existing customer expansions, Forensic Logic's revenue contribution, and a delayed contract amendment[133](index=133&type=chunk) - General and Administrative expenses increased by **$1.4 million**, primarily due to a $0.9 million rise in legal expenses related to the lawsuit against VICE Media for defamation[138](index=138&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company's $8.9 million cash and $20.0 million loan facility provide sufficient liquidity, with cash used for the Forensic Logic acquisition and stock repurchases - As of March 31, 2022, the company had **$8.9 million in cash and cash equivalents** and access to a **$20.0 million revolving loan facility**, with no amounts outstanding[141](index=141&type=chunk) - The acquisition of Forensic Logic includes a contingent earnout of up to **$9.5 million payable based on 2022 revenues** and up to **$10.5 million based on 2023 revenues**[145](index=145&type=chunk) - During Q1 2022, the company repurchased **57,623 shares for $1.6 million**, leaving $1.5 million available under the program[147](index=147&type=chunk) [Item 3. Qualitative and Quantitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in market risk exposure during Q1 2022, with primary risks remaining interest rate, foreign exchange rate, and inflation fluctuations - There were no material changes in market risk during Q1 2022 compared to the disclosures in the 2021 Annual Report on Form 10-K[161](index=161&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2022, while integrating internal controls of the newly acquired Forensic Logic - The CEO and CFO concluded that as of March 31, 2022, the company's disclosure controls and procedures were effective[162](index=162&type=chunk) - Following the January 2022 acquisition of Forensic Logic, the company is continuing to integrate its internal controls into ShotSpotter's control structure[163](index=163&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) Significant risks include ongoing COVID-19 impacts, supply chain disruptions, reliance on government contracts, social unrest, reputational damage, and intellectual property concerns - The COVID-19 pandemic continues to pose a material adverse risk, with potential impacts on customer funding, supply chain disruptions (specifically semiconductor chips), and deployment delays[168](index=168&type=chunk)[172](index=172&type=chunk) - Social unrest and movements like "Defund the Police" may directly or indirectly affect police agency budgets and funding available to current and potential customers[191](index=191&type=chunk) - The business is exposed to reputational risk from real or perceived false positive/negative alerts and negative publicity, such as the lawsuit filed against VICE Media for alleged defamation[210](index=210&type=chunk)[212](index=212&type=chunk) - The company relies on a single contract manufacturer for its proprietary sensors and faces risks from component shortages, particularly semiconductor chips[266](index=266&type=chunk)[267](index=267&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued $14.3 million in common stock for the Forensic Logic acquisition and repurchased $1.6 million of its own stock during Q1 2022 - Issued **464,540 shares of common stock valued at $14.3 million** as part of the Forensic Logic acquisition on January 3, 2022, in an unregistered sale[331](index=331&type=chunk) Issuer Purchases of Equity Securities (Q1 2022) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2022 | — | — | | Feb 2022 | — | — | | Mar 2022 | 57,623 | $28.34 | | **Total** | **57,623** | **$28.34** | [Item 6. Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section indexes all exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - The Exhibit Index lists documents filed with the report, including certifications from the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act[337](index=337&type=chunk)

ShotSpotter Inc. (NASDAQ:SSTI) Q1 2022 Earnings Conference Call May 10, 2022 4:30 PM ET Company Participants Ralph Clark - CEO Alan Stewart - CFO Conference Call Participants Brian Ruttenbur - Imperial Capital Richard Baldry - ROTH Capital Matt Pfau - William Blair Charles Erlikh - Robert W. Baird Operator Good afternoon, and welcome to ShotSpotter's First Quarter 2022 Earnings Conference Call. My name is Tom, and I will be your operator for today's call. Joining us are ShotSpotter's CEO, Ralph Clark; and C ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) ShotSpotter provides precision-policing technology, including gunshot detection, AI-driven patrol, and case management, primarily serving law enforcement via subscriptions - The company's flagship public safety solution, ShotSpotter Respond, is the leading outdoor gunshot detection, location, and alerting system, trusted by law enforcement in over **125 cities** as of December 31, 2021[16](index=16&type=chunk) - ShotSpotter generates revenue through annual subscriptions for its solutions, with coverage areas under contract for **911 square miles** as of December 31, 2021[17](index=17&type=chunk) - The company has expanded its product suite to include ShotSpotter Connect (patrol management), ShotSpotter Investigate (case management), and security solutions like SecureCampus and SiteSecure[16](index=16&type=chunk) [Overview and Industry Background](index=6&type=section&id=Item%201.%20Business-Overview) ShotSpotter addresses critical public safety gaps by providing precision-policing solutions to combat underreported gunfire and improve case clearance rates - The majority of urban gunfire goes unreported. A Brookings Institute report suggests approximately **80%** of gunshots detected by ShotSpotter are not reported to 911 by residents[20](index=20&type=chunk) - The company aims to solve three key problems: the violent crime problem exacerbated by unreported gunfire, the inefficiency of 'gut-based' police patrolling, and low case closure rates for homicides[19](index=19&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - Homicide clearance rates in the U.S. averaged **61%** in 2020, indicating a significant number of suspects are not held accountable, which ShotSpotter's solutions aim to improve[24](index=24&type=chunk) [Our Solutions](index=8&type=section&id=Item%201.%20Business-Our%20Solutions) ShotSpotter offers a Precision Policing Platform including Respond for gunfire detection, Connect for AI-driven patrol, and Investigate for case management - ShotSpotter Respond alerts are typically sent within **45 seconds** of a gunfire incident, providing precise location, number of shots, and other tactical data to first responders[29](index=29&type=chunk)[35](index=35&type=chunk) - The system uses an array of 20-25 intelligent sensors per square mile, which send data to cloud servers for multilateration analysis, followed by human review at the Incident Review Center (IRC)[33](index=33&type=chunk)[40](index=40&type=chunk) - ShotSpotter Investigate, launched in July 2021, provides a complete digital case management solution to help detectives consolidate evidence, collaborate, and improve case closure rates[65](index=65&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) - The company's forensic evidence and expert witness testimony have been admitted in over **200 criminal prosecutions** across numerous states under both Frye and Daubert standards[50](index=50&type=chunk) [Our Markets and Growth Strategy](index=18&type=section&id=Item%201.%20Business-Our%20Markets%20and%20Growth%20Strategy) The company targets law enforcement and security markets, with a growth strategy focused on customer acquisition, expansion, international growth, and new product development - The domestic market for the public safety solution (ShotSpotter Respond) is estimated at approximately **1,400 cities**[73](index=73&type=chunk) - The domestic market for security solutions (SecureCampus/SiteSecure) includes an estimated **5,000 college campuses and airports**[74](index=74&type=chunk) - A key growth strategy is "land and expand," with approximately **43%** of Respond customers having expanded their coverage areas from their initial deployments as of year-end 2021[81](index=81&type=chunk) - The company's overall revenue retention rate was **125%** for 2021, indicating strong customer retention and expansion[81](index=81&type=chunk) [Competition](index=22&type=section&id=Item%201.%20Business-Competition) ShotSpotter operates in a fragmented market, facing limited direct competition for wide-area gunshot detection but broader competition in policing technology - The company is not aware of any direct competitors offering wide-area solutions comparable to ShotSpotter Respond[98](index=98&type=chunk) - Competitors for security solutions (SiteSecure/SecureCampus) include Alarm.com, Safety Dynamics Inc., V5 Systems, EAGL, and Flock Safety[101](index=101&type=chunk) - Competitors for the ShotSpotter Connect solution include Geolitica, Inc. and potentially CAD providers like CentralSquare Technologies and Motorola Solutions, Inc[102](index=102&type=chunk) - For its case management solution, competitors include RMS providers like Mark43 and Tyler, as well as purpose-built solutions such as Kaseware and CaseClosed[104](index=104&type=chunk) [Human Capital](index=23&type=section&id=Item%201.%20Business-Human%20Capital) As of December 2021, ShotSpotter employed 167 people with low attrition, emphasizing diversity and offering competitive compensation and COVID-19 support - As of December 31, 2021, the company employed **167 people**, all in the United States, with a total attrition rate below **17%** in 2021[110](index=110&type=chunk) - The company reports strong diversity metrics: women comprise **31%** of employees and underrepresented minorities **47%**. At the board level, women represent **33%** and underrepresented minorities **56%**[112](index=112&type=chunk)[116](index=116&type=chunk) - In response to COVID-19, the company implemented work-from-home policies, provided flexible hours, additional paid time off, and a work-from-home fund for employees[118](index=118&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including COVID-19 supply chain impacts, profitability challenges, government funding sensitivity, operational dependencies, and legal/regulatory issues - The COVID-19 pandemic has materially and adversely affected the business, with ongoing risks related to supply chain disruptions, particularly an industry-wide chip shortage impacting sensor delivery[129](index=129&type=chunk)[132](index=132&type=chunk) - The company has not been profitable recently, reporting a net loss of **$4.4 million** for the year ended December 31, 2021, and may not achieve or maintain profitability in the future[144](index=144&type=chunk) - Ongoing social unrest, protests, and movements like "Defund the Police" may adversely affect police agency budgets and funding available to current and potential customers[149](index=149&type=chunk) - The company relies on a single contract manufacturer for its proprietary ShotSpotter sensors, creating risk in the event of an interruption in supply[220](index=220&type=chunk) - Real or perceived false positive or false negative alerts could damage the company's reputation and adversely affect growth prospects and results of operations[165](index=165&type=chunk) [Properties](index=53&type=section&id=Item%202.%20Properties) ShotSpotter leases its main offices in Fremont, Washington D.C., and Newark, believing current facilities are adequate for immediate needs - The company's principal facilities are leased office spaces in Fremont, CA; Washington, DC; and Newark, NJ[288](index=288&type=chunk) - ShotSpotter does not own any real property and believes its current leased facilities are adequate for the immediate future[289](index=289&type=chunk) [Legal Proceedings](index=53&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in a civil rights lawsuit and filed a defamation lawsuit against VICE Media, seeking over $300 million in damages - The company is a defendant in a civil rights lawsuit filed by Silvon S. Simmons against the City of Rochester, alleging collusion to fabricate gunshot alert evidence. The company believes the claims are without merit[290](index=290&type=chunk) - On October 12, 2021, ShotSpotter filed a defamation lawsuit against VICE Media, LLC, seeking over **$200 million** in compensatory and **$100 million** in punitive damages[291](index=291&type=chunk) [Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[295](index=295&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=55&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) ShotSpotter's common stock trades on Nasdaq, with no cash dividends paid or planned, as earnings are retained for business expansion - The company's common stock has been listed on the Nasdaq Capital Market under the symbol "SSTI" since June 7, 2017[298](index=298&type=chunk) - The company has never declared or paid cash dividends and does not intend to in the foreseeable future, retaining funds for business expansion[300](index=300&type=chunk) - Proceeds from the IPO were used to repay debt (**$13.7 million**), fund the acquisition of HunchLab (**$1.7 million**), and fund the acquisition of LEEDS (**$14.6 million**)[304](index=304&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=56&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2021, revenues grew 27% to $58.2 million, but the company reported a $4.4 million net loss due to increased operating expenses, while maintaining solid liquidity | Metric | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Revenue retention rate | 125% | 107% | 111% | | Sales and marketing spend per $1.00 of new annualized contract value | $0.37 | $0.51 | $0.43 | | Net new "go-live" square miles | 101 | 49 | 82 | | Annual recurring revenue ("ARR") (in millions) | $63.2 | $46.3 | $42.9 | - Revenues increased by **27%** to **$58.2 million** in 2021 from **$45.7 million** in 2020[318](index=318&type=chunk) - The company reported a net loss of **$4.4 million** in 2021, a significant decrease from the **$1.2 million** net income in 2020[320](index=320&type=chunk) - Two customers, the City of New York and the City of Chicago, accounted for **28%** and **14%** of total revenues in 2021, respectively[318](index=318&type=chunk) [Results of Operations](index=64&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations-Results%20of%20Operations) Revenues increased 27% in 2021, but rising operating expenses, particularly in sales, marketing, and G&A, led to an operating loss | (In thousands) | 2021 | 2020 | | :--- | :--- | :--- | | **Revenues** | **$58,155** | **$45,734** | | Gross Profit | $32,519 | $26,975 | | *Gross Margin* | *56%* | *59%* | | Total Operating Expenses | $36,588 | $25,682 | | Operating Income (Loss) | $(4,069) | $1,293 | | **Net Income (Loss)** | **$(4,431)** | **$1,225** | - The **$12.4 million** revenue increase in 2021 was primarily from new customers, expansions of existing coverage, and contributions from the LEEDS acquisition[365](index=365&type=chunk) - Sales and marketing expenses increased by **$5.2 million** (**50%**) in 2021, mainly due to higher commissions, personnel costs from a full year of LEEDS headcount, and increased trade show expenses[368](index=368&type=chunk) - General and administrative expenses increased by **$4.3 million** (**44%**) in 2021, driven by a **$1.3 million** increase in legal/litigation costs and a **$1.3 million** increase in contingent consideration expense for the LEEDS earnout[370](index=370&type=chunk) [Liquidity and Capital Resources](index=67&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations-Liquidity%20and%20Capital%20Resources) As of December 2021, ShotSpotter had $15.6 million in cash and an undrawn $20.0 million credit facility, with operating cash flow of $9.8 million - As of December 31, 2021, the company had **$15.6 million** in cash and cash equivalents and an available, undrawn **$20.0 million** revolving credit facility[382](index=382&type=chunk) | (In thousands) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net cash from Operating activities | $9,822 | $11,209 | $13,692 | | Net cash used in Investing activities | $(7,884) | $(18,758) | $(4,909) | | Net cash from (used in) Financing activities | $(2,266) | $(956) | $5,482 | - In 2021, the company repurchased **95,151 shares** of its common stock for **$3.6 million** under its stock repurchase program[389](index=389&type=chunk) - The company estimates a contingent earnout payment of **$1.5 million** to be paid in 2023 related to the 2020 acquisition of LEEDS[386](index=386&type=chunk) [Critical Accounting Estimates](index=70&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations-Critical%20Accounting%20Estimates) Critical accounting estimates involve significant judgment in revenue recognition for subscriptions and professional services, business acquisitions, and stock-based compensation - Revenue Recognition: Subscription revenues are recognized ratably over the contract term. Setup fees, if deemed a material right, are recognized over a period of three to five years[338](index=338&type=chunk)[409](index=409&type=chunk) - Professional services revenue from the LEEDS acquisition is recognized over time based on cumulative resource costs incurred as a percentage of total forecast costs, requiring significant management judgment[413](index=413&type=chunk)[415](index=415&type=chunk) - Business Acquisitions: The allocation of purchase price to acquired assets, particularly intangible assets like customer relationships and developed technology, requires critical estimates of future cash flows and discount rates[419](index=419&type=chunk) - Goodwill: Goodwill is tested for impairment annually or when trigger events occur. The fair value of the reporting unit is estimated using a discounted cash flow methodology, which requires significant judgment[420](index=420&type=chunk) [Financial Statements and Supplementary Data](index=74&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The audited consolidated financial statements present the company's financial position and results, showing a net loss of $4.4 million in 2021 | (In thousands) | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Total Current Assets | $34,274 | $31,136 | | Total Assets | $72,304 | $66,320 | | **Liabilities & Equity** | | | | Total Current Liabilities | $34,502 | $30,979 | | Total Liabilities | $38,489 | $32,015 | | Total Stockholders' Equity | $33,815 | $34,305 | | (In thousands) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Revenues | $58,155 | $45,734 | $40,752 | | Gross Profit | $32,519 | $26,975 | $24,343 | | Net (Loss) Income | $(4,431) | $1,225 | $1,798 | - The independent auditor, Baker Tilly US, LLP, issued an unqualified opinion on the consolidated financial statements[429](index=429&type=chunk) [Notes to Consolidated Financial Statements](index=81&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data-Notes%20to%20Consolidated%20Financial%20Statements) Notes detail revenue recognition, the LEEDS acquisition, goodwill, financing, tax carryforwards, equity plans, legal contingencies, and the Forensic Logic acquisition - The company acquired LEEDS in November 2020 for a total consideration of **$23.8 million**, which included cash, stock, and a contingent earnout[512](index=512&type=chunk) - As of Dec 31, 2021, the company had federal net operating loss carryforwards of approximately **$78.4 million** to offset future taxable income, subject to limitations[540](index=540&type=chunk) - The company has a stock repurchase program of up to **$15 million**; during 2021, it repurchased **95,151 shares** for **$3.6 million**[552](index=552&type=chunk)[553](index=553&type=chunk) - Subsequent to year-end, on January 3, 2022, the company acquired Forensic Logic, LLC for **$5.0 million** in cash, **$15.0 million** in common stock, and additional contingent consideration[583](index=583&type=chunk) [Controls and Procedures](index=104&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 2021, noting LEEDS integration as a material change - Management concluded that as of December 31, 2021, the company's disclosure controls and procedures were effective[585](index=585&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2021[588](index=588&type=chunk) - The integration of internal controls from the LEEDS acquisition, completed in November 2020, is considered a material change to the company's internal control over financial reporting[586](index=586&type=chunk) [Other Information](index=104&type=section&id=Item%209B.%20Other%20Information) No other information is reported for this item - None[589](index=589&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=105&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the Proxy Statement - Information for this item is incorporated by reference from the company's definitive Proxy Statement[593](index=593&type=chunk) [Executive Compensation](index=105&type=section&id=Item%2011.%20Executive%20Compensation) Executive and director compensation information is incorporated by reference from the company's definitive Proxy Statement - Information for this item is incorporated by reference from the company's definitive Proxy Statement[594](index=594&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=105&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information for beneficial owners and management is incorporated by reference from the company's definitive Proxy Statement - Information for this item is incorporated by reference from the company's definitive Proxy Statement[595](index=595&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=105&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the company's definitive Proxy Statement - Information for this item is incorporated by reference from the company's definitive Proxy Statement[596](index=596&type=chunk) [Principal Accountant Fees and Services](index=105&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the company's definitive Proxy Statement - Information for this item is incorporated by reference from the company's definitive Proxy Statement[597](index=597&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=106&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists consolidated financial statements and refers to the Exhibit Index for all filed or incorporated exhibits - This section contains the consolidated financial statements and a list of exhibits filed with the report[600](index=600&type=chunk)[602](index=602&type=chunk) [Form 10-K Summary](index=106&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary was provided - None[603](index=603&type=chunk)

ShotSpotter, Inc. (NASDAQ:SSTI) Q4 2021 Earnings Conference Call February 22, 2022 4:30 PM ET Company Participants Ralph Clark - CEO Alan Stewart - CFO Conference Call Participants Richard Baldry - ROTH Capital Charlie Erlikh - Baird Brian Ruttenbur - Imperial Capital Jeremy Hamblin - Craig-Hallum Capital Group Michael Latimore - Northland Capital Markets Erik Suppiger - JMP Securities Matt Pfau - William Blair Operator Good afternoon, and welcome to ShotSpotter's Fourth Quarter and Full Year 2021 Conferenc ...

[০] ShotSpotter® | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|---------------|--------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Investor | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Presentation | | | | | | | | | | | | | | | | | | | November 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | DISCLAIMER Cautionary Note Regarding Forward-Looking Statements 2 This pre ...

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, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ShotSpotter, Inc. (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of incorporation or organization) 39300 Civic Center Dr., Suite 300 Fremont, Californ ...

ShotSpotter, Inc. (NASDAQ:SSTI) Q3 2021 Earnings Conference Call November 9, 0000 6:30 PM ET Company Participants Ralph Clark – Chief Executive Officer Alan Stewart – Chief Financial Officer Conference Call Participants Matt Pfau – William Blair Brian Ruttenbur – Imperial Capital Ryan Kimbrel – Craig-Hallum Operator Good afternoon and welcome to ShotSpotter’s Third Quarter 2021 Earnings Conference Call. My name is Sachi, and I will be your operator for today’s call. Joining us are ShotSpotter’s CEO, Ralph C ...

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, 2021 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) (State or other jurisdiction of incorporation or or ...

ShotSpotter, Inc. (NASDAQ:SSTI) Q2 2021 Earnings Conference Call August 10, 2021 4:30 PM ET Company Participants Ralph Clark – Chief Executive Officer Alan Stewart – Chief Financial Officer Conference Call Participants Charlie Erlikh – Baird Richard Baldry – ROTH Capital Jeremy Hamblin – Craig-Hallum Capital Group Brian Ruttenbur – Imperial Capital David Robinson – William Blair Mike Latimore – Northland Capital Markets Operator Good afternoon and welcome to ShotSpotter's Second Quarter 2021 Earnings Confe ...

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents ShotSpotter, Inc.'s unaudited condensed consolidated financial statements for Q1 2021, reporting a **44% revenue increase to $15.0 million** and **net income of $79,000** [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2021, total assets decreased to **$64.4 million** from **$66.3 million** at year-end 2020, primarily due to reduced cash, with total liabilities and equity also slightly lower Condensed Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $10,940 | $16,043 | | Total current assets | $29,700 | $31,136 | | Total assets | $64,443 | $66,320 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $29,762 | $30,979 | | Total liabilities | $30,672 | $32,015 | | Total stockholders' equity | $33,771 | $34,305 | | Total liabilities and stockholders' equity | $64,443 | $66,320 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2021, revenues increased **44% to $15.0 million**, leading to a gross profit of **$8.7 million** and a net income of **$79,000**, or **$0.01 per diluted share** Q1 2021 vs. Q1 2020 Statement of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Revenues | $15,013 | $10,458 | | Gross Profit | $8,688 | $6,116 | | Operating Income (Loss) | $169 | $(23) | | Net Income | $79 | $13 | | Net Income per Share, diluted | $0.01 | $0.00 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2021 saw a net cash outflow of **$5.1 million**, with **$1.5 million** used in operations, **$1.2 million** in investing, and **$2.4 million** in financing, reducing cash to **$10.9 million** Summary of Cash Flows (in thousands) | Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(1,496) | $5,726 | | Net cash used in investing activities | $(1,231) | $(1,141) | | Net cash used in financing activities | $(2,374) | $(289) | | **Increase (decrease) in cash and cash equivalents** | **$(5,101)** | **$4,296** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's SaaS business model, significant accounting policies, **$53.1 million** in remaining performance obligations, the LEEDS acquisition, and the stock repurchase program - The company provides precision-policing solutions, including ShotSpotter Respond, Connect, and Investigate, primarily through a SaaS-based subscription model to law enforcement agencies[23](index=23&type=chunk) Remaining Performance Obligations as of March 31, 2021 (in thousands) | Period | Amount | | :--- | :--- | | Remainder of 2021 | $34,403 | | 2022 | $11,174 | | 2023 | $4,985 | | Thereafter | $2,560 | | **Total** | **$53,122** | - In November 2020, the company acquired LEEDS, LLC for a total estimated purchase consideration of **$23.8 million**, including cash, stock, and a contingent earnout of up to **$5.0 million**[38](index=38&type=chunk) - During Q1 2021, the company repurchased **56,162 shares** of its common stock for **$2.2 million**, with **$4.5 million** remaining available for repurchase under the program as of March 31, 2021[55](index=55&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2021 financial performance, highlighting a **44% revenue increase**, strategic acquisitions, COVID-19 impacts, and the company's liquidity position [Overview](index=16&type=section&id=Overview) The company provides precision-policing solutions, achieving **44% YoY revenue growth to $15.0 million** in Q1 2021, with significant customer concentration in New York and Chicago - The company's flagship product is ShotSpotter Respond, an outdoor gunshot detection system, with expanded offerings including ShotSpotter Connect (patrol management) and ShotSpotter Investigate (case management)[68](index=68&type=chunk) Key Performance Metrics Q1 2021 | Metric | Q1 2021 | Q1 2020 | Change | | :--- | :--- | :--- | :--- | | Revenues (in millions) | $15.0 | $10.5 | +44% | | Net New 'Go-Live' Cities | 6 | (1) | N/A | - Customer concentration remains high, with the City of New York and the City of Chicago representing **47% of total revenues** for the three months ended March 31, 2021[77](index=77&type=chunk) [Impact of COVID-19 and Social Unrest on our Business](index=19&type=section&id=Impact%20of%20COVID-19%20and%20Social%20Unrest%20on%20our%20Business) COVID-19 and social unrest, including 'Defund the Police' movements, adversely impact business operations by hindering deployments, affecting customer funding, and disrupting supply chains - The COVID-19 pandemic has adversely impacted the company's ability to deploy customer solutions since mid-March 2020 due to work-from-home policies and travel restrictions[72](index=72&type=chunk)[88](index=88&type=chunk) - Social unrest and movements such as 'Defund the Police' may directly or indirectly affect police agency budgets and funding available to current and potential customers[89](index=89&type=chunk)[166](index=166&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q1 2021 revenues increased by **$4.5 million (44%)** due to new customers and acquisitions, while cost of revenues and operating expenses rose by **$2.0 million** and **$2.4 million**, respectively Comparison of Operations (in thousands) | Item | Q1 2021 | Q1 2020 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Revenues | $15,013 | $10,458 | $4,555 | 44% | | Gross Profit | $8,688 | $6,116 | $2,572 | 42% | | Total Operating Expenses | $8,519 | $6,139 | $2,380 | 39% | | Operating Income (Loss) | $169 | $(23) | $192 | (835%) | - The **$4.5 million revenue increase** was primarily due to new customers, expansions of existing coverage, renewals delayed from the prior quarter, and revenue from the LEEDS acquisition[117](index=117&type=chunk) - Sales and marketing expenses increased by **$1.4 million**, driven by higher personnel costs (**$0.6 million**) and other costs including commissions and amortization related to the LEEDS acquisition (**$0.9 million**)[119](index=119&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity relies on **$10.9 million** in cash and a **$20.0 million** undrawn credit facility, with **$2.2 million** used for stock repurchases in Q1 2021 - The company's principal source of liquidity is cash and cash equivalents of **$10.9 million** as of March 31, 2021[124](index=124&type=chunk) - A revolving credit facility of **$20.0 million** is available, with no outstanding balance as of March 31, 2021[124](index=124&type=chunk) - The company repurchased **56,162 shares** for **$2.2 million** in Q1 2021, with **$4.5 million** remaining under its stock repurchase program[128](index=128&type=chunk) [Item 3. Qualitative and Quantitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure, primarily related to interest and foreign exchange rates, were reported for Q1 2021 compared to the 2020 Annual Report - There were no material changes in the company's market risk during the first quarter of 2021[141](index=141&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management deemed disclosure controls effective as of March 31, 2021, noting the LEEDS acquisition's internal control integration as a material change - Management concluded that as of March 31, 2021, the company's disclosure controls and procedures were effective[142](index=142&type=chunk) - The integration of internal controls from the November 2020 acquisition of LEEDS, LLC is considered a material change in internal control over financial reporting[143](index=143&type=chunk) PART II. OTHER INFORMATION [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) This section details significant risks, including COVID-19 impacts, 'Defund the Police' movements, reliance on government contracts, lengthy sales cycles, competition, and technology and supply chain vulnerabilities - The COVID-19 pandemic has had a material adverse effect on the business, with future impacts on deployment ability, customer funding, and supply chains remaining uncertain[148](index=148&type=chunk) - Ongoing social unrest, protests, and movements such as 'Defund the Police' may negatively affect police agency budgets and funding available to customers[166](index=166&type=chunk) - The company's sales cycle can be lengthy and unpredictable, often lasting up to **nine months or more**, especially when dealing with government entities[175](index=175&type=chunk) - The company relies on a single contract manufacturer for its proprietary ShotSpotter sensors, creating a significant supply chain risk[230](index=230&type=chunk) - The company must upgrade its sensors from 3G to LTE technology, which is estimated to be a significant capital expenditure of approximately **$5.0 million** in total[228](index=228&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents