Core Viewpoint - SoundThinking, Inc. has announced a significant milestone in its expansion into South America with a three-year agreement to deploy its ShotSpotter gunshot detection solution in Niterói, Brazil, valued at approximately $1.7 million [1][4] Group 1: Deployment Details - The ShotSpotter system will cover an area of 10 square kilometers in Niterói, a city with nearly 500,000 residents [1] - The deployment is part of the Niterói Pact Against Violence, which aims to enhance public safety through investments in technology and intelligence [3] - ShotSpotter is expected to go live in Niterói in the second quarter of 2025 [4] Group 2: Integration and Impact - The ShotSpotter system will be integrated with Niterói's Integrated Public Security Center (CISP), which includes extensive surveillance infrastructure [2] - The deployment is anticipated to enable faster emergency response and more effective law enforcement operations, contributing to the reduction of crime and violence [2][3] Group 3: Company Perspective - The CEO of SoundThinking expressed excitement about the expansion in South America, highlighting the company's commitment to enhancing public safety through advanced technology [4] - SoundThinking is recognized as a leading public safety technology provider, trusted by over 300 customers and approximately 2,100 agencies [7]

Financial Data and Key Metrics Changes - Q4 2024 revenue decreased by 10% year-over-year to $23.4 million, primarily due to a $3.5 million delay in contract renewals with the NYPD [6][24] - Full year 2024 revenue grew by 10% to a record $102 million, reflecting strong demand for public safety solutions [7][29] - Adjusted EBITDA for Q4 was $1.7 million, down from $4.8 million in Q4 2023, attributed to delayed contracts [25] - Full year 2024 adjusted EBITDA was $14.4 million, consistent with $14.3 million in 2023 [31] Business Line Data and Key Metrics Changes - ShotSpotter went live in 20 new cities and five new universities in 2024, booking $75.7 million in net new and renewal subscription-based ACV, with 59% being multi-year agreements [8][18] - The SafetySmart platform saw significant growth, with a 100% increase in average selling price (ASP) from 2023 to 2024 [14] Market Data and Key Metrics Changes - Approximately 62% of the 2025 qualified ACV pipeline is from non-domestic ShotSpotter, indicating successful diversification efforts [19] - The company ended 2024 with $13.2 million in cash and cash equivalents, significantly higher than $5.7 million at the end of 2023 [36] Company Strategy and Development Direction - The company is focused on leveraging advanced AI/ML capabilities to optimize solutions and enhance the SafetySmart platform [13] - Strategic partnerships, such as with Rekor Systems for the PlateRanger ALPR solution, are aimed at strengthening market positioning [16] - The company is committed to advancing public safety and maximizing shareholder value through innovation and execution of strategic growth priorities [21][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for public safety solutions despite challenges related to budget constraints and the drying up of ARPA funds [50][52] - The company is optimistic about revenue growth in 2025, increasing guidance to $111 million to $113 million, representing approximately 10% year-over-year growth [20][37] Other Important Information - The company reestablished a 30-square-mile ShotSpotter deployment in Puerto Rico and is exploring further expansion opportunities [10] - The NYPD contract renewal of approximately $21.9 million secures service through December 2027, highlighting the long-term partnership [12] Q&A Session Summary Question: Update on Chicago RFP - Management is encouraged by Chicago issuing an RFP for gunshot detection but is still evaluating a response [41] Question: SafePointe multimillion-dollar opportunities - Some of the SafePointe bookings are expected to contribute to the revenue guidance for 2025, with increasing quarterly bookings [44] Question: Pipeline disruption from federal government efforts - Management noted strong demand drivers for policing and public safety, while monitoring budget issues related to ARPA funds [50][52] Question: ARR guidance and gunshot detection growth - Expected incremental growth from gunshot detection is projected to be between $8 million and $9.5 million [56] Question: Top verticals for SafePointe weapon detection - Key verticals include healthcare, gaming centers, and selected corporate sites, focusing on low-friction weapons detection solutions [60]