SoundThinking(SSTI) - 2024 Q4 - Annual Results

Revenue Performance - Full Year 2024 revenues increased 10% to a record $102.0 million, compared to $92.7 million in 2023[6] - Fourth quarter 2024 revenues decreased 10% to $23.4 million, compared to $26.0 million for the same quarter of 2023[6] - For the three months ended December 31, 2024, SoundThinking reported revenues of $23,411,000, a decrease of 10.5% compared to $26,045,000 in the same period of 2023[31] Profitability and Loss - GAAP net loss for the full year 2024 totaled $9.2 million, compared to a net loss of $2.7 million in 2023[15] - The net loss for the year ended December 31, 2024, was $9,180,000, compared to a net loss of $2,718,000 in 2023, reflecting a significant increase in losses[31] - Adjusted EBITDA for the full year 2024 totaled $14.4 million, compared to $14.3 million in 2023[15] - Adjusted EBITDA for the year ended December 31, 2024, was $14,358,000, slightly up from $14,349,000 in 2023, indicating stable operational performance despite net losses[31] Annual Recurring Revenue (ARR) - Annual recurring revenue (ARR) starting January 1, 2025 was $95.6 million, with a revenue retention rate of 105%[6] - The company expects ARR to increase to approximately $110.0 million at the beginning of 2026[16] - The company’s Annual Recurring Revenue (ARR) is expected to increase, driven by contract renewals and new customer acquisitions[27] Financial Guidance - The company raised its FY 2025 revenue guidance range to $111.0 million to $113.0 million, representing 10% year-over-year growth at the midpoint[16] - Adjusted EBITDA margin guidance for FY 2025 increased to 21% to 23%[16] Operating Expenses - Total operating expenses for the full year 2024 increased 22% to $65.7 million, primarily due to a full year of expenses related to SafePointe[14] Customer Metrics - The revenue retention rate is a key metric, indicating that if it exceeds 100%, it reflects low churn and revenue growth from existing customers[25] - Sales and marketing spend per $1.00 of new annualized contract value is used to measure the efficiency of customer acquisition efforts[26] Strategic Initiatives - The company went "live" with ShotSpotter in 20 new cities and 5 universities in 2024[7] - The company is focused on integrating AI-driven capabilities to enhance operational momentum and revenue growth in 2025 and beyond[27] - The company plans to continue innovating and executing against its strategic and financial growth priorities to deliver value to stakeholders[27] Balance Sheet Highlights - Total current assets increased to $43,528 million in 2024, up from $40,305 million in 2023, representing a growth of 5.5%[33] - Cash and cash equivalents rose significantly to $13,183 million in 2024, compared to $5,703 million in 2023, marking an increase of 131.5%[33] - Total liabilities increased slightly to $64,394 million in 2024 from $63,951 million in 2023, reflecting a growth of 0.7%[33] - Total stockholders' equity decreased to $72,399 million in 2024 from $74,757 million in 2023, a decline of 3.2%[33] - Accounts receivable and contract asset decreased to $25,170 million in 2024 from $30,700 million in 2023, a reduction of 17.9%[33] - Deferred revenue, short-term decreased to $38,401 million in 2024 from $41,265 million in 2023, a decline of 6.8%[33] - Additional paid-in capital increased to $177,021 million in 2024 from $170,139 million in 2023, an increase of 4.0%[33] - Accumulated deficit increased to $(104,298) million in 2024 from $(95,118) million in 2023, reflecting a worsening of 9.2%[33] - Property and equipment, net decreased to $20,131 million in 2024 from $21,028 million in 2023, a decline of 4.3%[33] - Total assets decreased to $136,793 million in 2024 from $138,708 million in 2023, a decline of 1.3%[33]