SoundThinking, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - SoundThinking, Inc. reported a record revenue of $102.0 million for the full year 2024, marking a 10% increase from$ 92.7 million in 2023, driven by new and expanding customer subscriptions [1][13][16] - The company raised its FY 2025 revenue guidance to a range of $111.0 million to$ 113.0 million, indicating a projected 10% year-over-year growth at the midpoint [1][17] - Adjusted EBITDA margin guidance for FY 2025 has also been increased to a range of 21% to 23% [1][17] Financial Performance - For Q4 2024, revenues decreased by 10% to $23.4 million compared to$ 26.0 million in Q4 2023 [7][9] - Gross profit for Q4 2024 was $11.7 million, representing 50% of revenues, down from$ 15.0 million (58% of revenues) in the same quarter of 2023 [7][10] - The net loss for Q4 2024 was $4.1 million, compared to a net income of$ 3.6 million in Q4 2023 [11][16] - Adjusted EBITDA for Q4 2024 totaled $1.7 million (7% of revenues), down from$ 4.8 million (18% of revenues) in Q4 2023 [12][16] Operational Highlights - The company went live with ShotSpotter in 20 new cities and 5 universities in 2024, with 126 new ShotSpotter go-live miles deployed [6][7] - Annual recurring revenue (ARR) at the beginning of 2025 was $95.6 million, with a revenue retention rate of 105%, slightly down from 107% in 2023 [7][17] - Sales and marketing spend per$ 1.00 of new annualized contract value increased to $0.63 in 2024 from$ 0.52 in 2023 [7][27] Future Outlook - The company expects ARR to grow to approximately $110.0 million by the beginning of 2026 [1][17] - Management expressed optimism about market positioning and growth potential, particularly through the integration of AI-driven capabilities into their platform [6][8]