Summary of the Conference Call Company Overview - **Company Name**: SoundThinking, Inc. (formerly known as ShotSpotter) - **Industry**: Public safety solutions, specifically focusing on gunshot detection and weapons detection technologies - **Key Product**: ShotSpotter, an acoustic gunshot detection technology Core Points and Arguments - **Market Position**: SoundThinking is recognized for its innovative technology in public safety, particularly the ShotSpotter system, which detects and triangulates gunfire incidents using acoustic sensors [6][10] - **Revenue and Growth**: The company reported total revenue of approximately $110 million for the year, with an adjusted EBITDA of 17%, up from 12% the previous year, indicating strong financial performance despite stock price fluctuations [11] - **AI Integration**: The company has integrated AI into four of its products, enhancing operational efficiency and cost savings, which is expected to further improve adjusted EBITDA [11][30] - **Unique Data Advantage**: SoundThinking has a proprietary dataset accumulated over 20 years, which is crucial for the effectiveness of its AI algorithms in gunshot detection [13][14] - **Expansion Plans**: The company is expanding its services both domestically and internationally, with significant opportunities in Brazil and other countries facing gun violence issues [27][28] Additional Important Insights - **Retention Rates**: The company boasts a gross retention rate of 99%, indicating strong customer loyalty and a long customer lifetime value of 10-20 years [22] - **Cost Efficiency**: The cost to create a dollar's worth of annual contract value (ACV) is significantly lower than traditional SaaS companies, at $0.50-$0.60 compared to $1.50 [22][25] - **Regulatory Tailwinds**: New regulations in California and Illinois are driving demand for weapons detection solutions in hospitals and casinos, presenting a substantial market opportunity [33][34] - **Competitive Landscape**: SoundThinking continues to dominate the acoustic gunshot detection market, with a strong competitive moat due to its established technology and customer trust [42][46] - **Future Growth Potential**: The SafePointe weapons detection solution is projected to grow significantly, with a potential market size of over $20 billion, and is expected to reach $50 million in revenue within five years [28][29] Conclusion SoundThinking, Inc. is positioned for continued growth in the public safety sector, leveraging its proprietary technology and data, strong customer retention, and expanding market opportunities driven by regulatory changes. The integration of AI into its products enhances operational efficiency and positions the company favorably against competitors.

Investor Presentation March 2026 S O U N D T H I N K I N G I N V E S T O R P R E S E N T A T I O N DISCLAIMER Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the company's business plans, international expansion, expectations regarding future sales and expens es, ability to capitalize on mark ...

Financial Data and Key Metrics Changes - The company reported record full-year revenue of $104.1 million, a 2% increase over 2024's $102 million [25] - Fourth quarter revenues were $24.8 million, representing a 6% increase year-over-year [22] - Adjusted EBITDA for the full year was $12.6 million, down from $14.4 million in the prior year [25] - GAAP net loss for the year was approximately $9.4 million, compared to a loss of $9.2 million in the previous year [27] Business Line Data and Key Metrics Changes - The ShotSpotter solution generated $67.6 million in ARR, with expectations to add approximately $8.3 million in 2026 [9] - SafePointe bookings reached $1.6 million from 11 customers, with an anticipated contribution of $4 million in ARR for 2026 [5][14] - CrimeTracer exited 2025 with $8.1 million in ARR, with an expected addition of $3.1 million in 2026 [11] - PlateRanger is expected to contribute $1.5 million in new ARR in 2026 [12] Market Data and Key Metrics Changes - The company exited 2025 with an ARR of $95.4 million, with a projected growth of approximately 15% or $14.6 million in 2026 [5] - Revenue retention rate for 2025 was 99%, impacted by the non-renewal of the Chicago ShotSpotter contract [28] Company Strategy and Development Direction - The company is focused on expanding its public safety solutions through innovative technology and AI integration [7][8] - Strategic investments are being made in growth areas like SafePointe and operational efficiencies [20] - The company aims to enhance customer engagement by introducing more solutions within its platform [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the public safety solutions market despite headwinds faced in 2025 [4] - The company is adjusting its full-year revenue guidance to $109 million-$111 million due to delays in expected bookings [29] - Management remains optimistic about long-term value from potential contracts despite temporary setbacks [32] Other Important Information - The company has strengthened its sales team by adding new leaders with experience in scaling operations [15][16] - The board is reviewing business operations to identify efficiency opportunities [42][43] Q&A Session Summary Question: What verticals are most prominent for SafePointe? - The healthcare vertical has shown significant success due to the passive nature of the weapons detection system [36] Question: Status of CaseBuilder deployment in NYPD Corrections? - Progress is being made with new applications for the New York City Department of Correction [38] Question: Expected attrition for ShotSpotter this year? - Total ARR attrition is expected to be about $3 million, with a significant portion related to ShotSpotter [39] Question: Details on the board review for cost-saving measures? - The board is engaged in evaluating opportunities for greater efficiencies within the organization [42][43] Question: Insights on sniper gunshot detection technology? - The company is developing a perimeter-based sniper detection solution, focusing initially on utility substations [46][48] Question: Clarification on SafePointe bookings and ARR expectations? - The company expects to achieve $4 million in ARR from SafePointe in 2026, with a strong pipeline in the healthcare sector [51] Question: Trends in international revenue growth? - The company anticipates new deployments in three countries, with positive expansion expected in Brazil, Uruguay, and South Africa [64]

Financial Data and Key Metrics Changes - The company reported record full-year revenue of $104.1 million, a 2% increase from $102 million in 2024 [25] - Gross profit for the year was $56.6 million, or 54% of revenue, compared to 57% in the prior year [25] - Adjusted EBITDA for 2025 was $12.6 million, down from $14.4 million in 2024 [25] - The GAAP net loss for the year was approximately $9.4 million, or a loss of $0.74 per share, compared to a net loss of $9.2 million in the previous year [27] Business Line Data and Key Metrics Changes - The ShotSpotter solution generated $67.6 million in ARR, with expectations to add approximately $8.3 million in 2026 [9] - SafePointe bookings reached $1.6 million from 11 customers, with an anticipated contribution of $4 million in ARR for 2026 [5][14] - CrimeTracer exited 2025 with $8.1 million in ARR, with an expected addition of $3.1 million in 2026 [11] - PlateRanger is expected to contribute $1.5 million in new ARR in 2026 [12] Market Data and Key Metrics Changes - The company exited 2025 with an ARR of $95.4 million, with a projected growth of approximately 15% or $14.6 million in 2026 [5] - Revenue retention rate for 2025 was 99%, impacted by the non-renewal of the Chicago ShotSpotter contract [28] Company Strategy and Development Direction - The company is focused on expanding its public safety solutions through innovative technology and AI integration [7] - Strategic investments are being made in growth areas like SafePointe and operational efficiencies [20] - The company aims to enhance customer adoption by introducing more solutions within its platform [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the public safety solutions market despite headwinds faced in 2025 [4] - The company is adjusting its revenue guidance for 2026 to $109 million-$111 million due to delays in expected bookings [29] - Management remains optimistic about long-term value from potential contracts despite temporary setbacks [32] Other Important Information - The company has made significant leadership changes to strengthen its sales execution capabilities [15] - The board is reviewing the business to identify opportunities for efficiency and value creation [20] Q&A Session Summary Question: What verticals are most prominent for SafePointe? - The healthcare vertical has shown significant success due to the passive nature of the Weapons Detection System [36] Question: Status of CaseBuilder deployment in NYPD Corrections Department? - Progress is being made with new applications supporting use cases in the New York City Department of Correction [39] Question: Expected attrition for ShotSpotter this year? - Total ARR attrition is expected to be about $3 million, with a significant portion related to ShotSpotter due to budget challenges [40] Question: Details on the board review for cost-saving measures? - The board is engaged in evaluating opportunities for greater efficiencies as the company grows [44] Question: Insights on sniper-based gunshot detection technology? - The company is developing a perimeter-based sniper detection solution, focusing initially on utility substations [48] Question: Progress on PlateRanger and potential deals? - Several pilots have been converted to customers, with expectations to achieve $1.5 million in ARR by the end of 2026 [78]

Financial Data and Key Metrics Changes - The company reported record full-year revenue of $104.1 million, a 2% increase over 2024 [4][24] - Fourth quarter revenues were $24.8 million, representing a 6% increase year-over-year [21] - Adjusted EBITDA for the full year was $12.6 million, down from $14.4 million in the prior year [24] - GAAP net loss for the year was approximately $9.4 million, compared to a net loss of $9.2 million in the previous year [26] Business Line Data and Key Metrics Changes - The company went live with ShotSpotter in 10 new cities and expanded with 11 current customers in 2025 [5] - SafePointe saw $1.6 million in bookings from 11 customers, with expectations for further growth [5] - ShotSpotter exited 2025 with $67.6 million of ARR, with an expected addition of approximately $8.3 million in 2026 [9] - CrimeTracer exited 2025 with $8.1 million of ARR, with an estimated addition of $3.1 million in 2026 [11] Market Data and Key Metrics Changes - The overall market for public safety solutions is described as constructive and growing [4] - The company is positioned to grow its ARR base by approximately 15% or $14.6 million in 2026, net of attrition [5] Company Strategy and Development Direction - The company is focused on deploying connected physical infrastructure and leveraging AI-based algorithms to enhance its offerings [6][8] - Strategic growth investments are being made to position the company for future success in the public safety and security SaaS market [4] - The company aims to introduce customers to more solutions within its platform and focus on integration with complementary solutions [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future despite challenges faced in 2025, highlighting a strong pipeline and customer retention [32] - The company is adjusting its full-year revenue guidance to $109 million-$111 million due to delays in expected bookings [28] - Management emphasized the importance of operational discipline and efficiency as the company grows [19] Other Important Information - The company has made significant investments in AI and has strengthened its sales team with new leadership [14][15] - The revenue retention rate for 2025 was 99%, impacted by the non-renewal of the Chicago ShotSpotter contract [27] Q&A Session Summary Question: What verticals are currently most prominent in the pipeline for SafePointe? - The healthcare vertical is the primary focus due to its appreciation for the passive nature of the weapons detection system [35] Question: Status of CaseBuilder deployment in NYPD Corrections Department? - Progress is being made with new applications to support use cases in the New York City Department of Correction [37] Question: What level of attrition is expected for ShotSpotter this year? - Total ARR attrition is expected to be about $3 million, with a significant portion related to ShotSpotter due to budget challenges [39] Question: Can you elaborate on the board review for efficiency? - The board is engaged in reviewing opportunities to drive greater efficiencies within the organization [42] Question: Commentary on sniper gunshot detection use case? - The company is developing a perimeter-based sniper detection solution, focusing initially on utility substations [45][46] Question: Clarification on SafePointe bookings and ARR expectations? - The company expects to achieve $4 million in ARR from SafePointe in 2026, with a strong pipeline in the healthcare sector [52] Question: How have sales reps been structured for product sales? - A specialized team is dedicated to selling SafePointe, while field sales reps are responsible for the full product suite [56] Question: Trends in international revenue growth? - The company expects to see growth in international deployments, particularly in Brazil, Uruguay, and South Africa [64]

Core Insights - SoundThinking, Inc. has revised its full-year 2025 revenue guidance down from a range of $111.0 million to $113.0 million to approximately $104.0 million due to contract delays [4][12] - The company reported a 4% year-over-year decline in third-quarter revenues, totaling $25.1 million compared to $26.3 million in the same quarter of 2024 [5][7] - Adjusted EBITDA for Q3 2025 was $3.5 million, representing 14% of revenues, down from $4.5 million or 17% of revenues in Q3 2024 [9][19] Financial Performance - Revenues for Q3 2025 were $25.1 million, a decrease of $1.2 million from Q3 2024, primarily due to the absence of a significant contract with the City of Chicago [5][6] - Gross profit for Q3 2025 was $13.6 million, accounting for 54% of revenues, compared to $15.2 million or 58% of revenues in Q3 2024 [6][7] - The company reported a GAAP net loss of $2.0 million for Q3 2025, compared to a net loss of $1.4 million in Q3 2024 [9][24] Operational Highlights - The company expanded its ShotSpotter footprint and introduced new AI capabilities with the CrimeTracer Gen3 beta release [4] - SoundThinking achieved a Net Promoter Score of approximately 70, up from 66, indicating strong customer satisfaction and retention [4][7] - The company repurchased 160,271 shares of common stock for approximately $2.0 million as part of its share repurchase program [11] Future Outlook - The company anticipates accelerated revenue growth and increased profitability in 2026 and beyond, maintaining long-term financial targets of 70% gross margin and 40% Adjusted EBITDA margin [13] - SoundThinking's transformation from a domestic ShotSpotter business to a global SafetySmart platform company is progressing well, with expectations for renewed top-line growth [13][20]

Summary of SoundThinking (SSTI) Conference Call Company Overview - **Company Name**: SoundThinking, formerly known as ShotSpotter - **Ticker Symbol**: SSTI - **Industry**: Public safety technology, focusing on AI and data-driven solutions for law enforcement and security professionals [1][2] Core Business and Growth Strategy - **Unique Platform**: SoundThinking offers a SafetySmart platform that includes various applications aimed at enhancing law enforcement productivity [3] - **Revenue Diversification**: Initially, ShotSpotter accounted for 100% of revenues; now it represents 65%, with expectations to drop to 35% as new solutions are introduced [5] - **Revenue Figures**: - 2024 Revenue: $102 million with 14% adjusted EBITDA - 2025 Projected Revenue: $111 to $113 million with 20% to 22% adjusted EBITDA [6] Product Offerings - **ShotSpotter**: Acoustic gunshot detection technology, crucial for real-time alerts to law enforcement [11] - **ResourceRouter**: AI-based patrol management solution to optimize resource deployment [19] - **CaseBuilder**: Integrated case management tool for detectives, improving case closure rates [20] - **CrimeTracer**: Search and analytics tool with access to over 1 billion police records [21] - **SafePointe**: Weapons detection technology aimed at commercial security [23] - **PlateRanger**: Automatic license plate reader technology [4] Market Opportunity - **Total Addressable Market (TAM)**: Significant growth potential in public safety technology, particularly in concealed weapons detection and international markets [4][29] - **International Expansion**: Recent sales in Latin America (Uruguay and Brazil) with pricing leverage of 3-4 times domestic rates [8][35] Financial Metrics - **Customer Acquisition Cost**: $0.63 per dollar of annual contract value, indicating strong unit economics [7] - **Retention Rates**: High net revenue retention and gross retention rates, supported by a strong Net Promoter Score (NPS) [6][10] - **Long-term Financial Goals**: Targeting 15% top-line revenue growth, 70% gross margin, and 40% adjusted EBITDA over the next few years [29][30] Operational Insights - **Service Level Agreement (SLA)**: 90% SLA with 97% effectiveness in alert accuracy, including false positives and location accuracy [16][17] - **Cost Management**: Anticipated flat costs in goods sold while revenue increases, leading to improved gross margins [28][30] Customer Engagement - **Product Bundling**: Approximately 30 customers utilize more than one solution, with some using up to four [33] - **Strategic Relationships**: Building long-term relationships with law enforcement agencies to enhance service delivery and customer loyalty [10] Additional Considerations - **Acquisitions**: Four acquisitions in the last six years, with no immediate plans for further acquisitions but remaining open to opportunities [30] - **Cash Flow**: Generated $16 million in free cash flow last year, with a focus on maintaining a strong balance sheet [29] This summary encapsulates the key points from the SoundThinking conference call, highlighting the company's strategic direction, product offerings, financial performance, and market opportunities.

Company Overview - SoundThinking, Inc. (Nasdaq: SSTI) is a leading public safety technology company that provides AI- and data-driven solutions for law enforcement, civic leadership, and security professionals [3] - The company serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [3] - SoundThinking's product offerings include ShotSpotter®, CrimeTracer, CaseBuilder, ResourceRouter, SafePointe®, and PlateRanger powered by Rekor® [3] Upcoming Events - SoundThinking will present at the 2025 Annual Gateway Conference on September 4th at 11:00 a.m. Pacific Time [2] - The presentation will be available via live webcast and for replay [2] - Executives from SoundThinking will be available for one-on-one meetings with investors during the conference [2] Company Recognition - SoundThinking has been recognized as a Great Place to Work® company [3]

Financial Data and Key Metrics Changes - The company's Q2 2025 revenues were $25.9 million, representing a 4% decrease from $27 million in Q2 2024, which included a $2.8 million revenue loss from the non-renewal of the Chicago contract [16][17] - Gross profit for Q2 2025 was $13.8 million, or 53% of revenue, compared to $16.1 million, or 60% of revenue in the prior year [17] - Adjusted EBITDA was $3.4 million in Q2 2025, down from $5.1 million in Q2 2024, reflecting delayed contracts and increased costs [17][18] - GAAP net loss was approximately $3.1 million, or a loss of $0.25 per share, compared to a net loss of $800,000, or a loss of $0.06 per share in the prior year [20] Business Line Data and Key Metrics Changes - The company launched ShotSpotter Live in four new cities and expanded in four additional cities during Q2 2025, contributing to a diversified pipeline of over $37 million for the remainder of 2025 [5][6] - The SafePoint pipeline is healthy, with a focus on healthcare and casino verticals, particularly in California due to the AB 2,975 initiative [25] - The integration of the PlateRanger LPR solution with CrimeTracer enhances investigative capabilities, allowing for quicker access to actionable intelligence [9][10] Market Data and Key Metrics Changes - The company is expanding its footprint in South America, with notable deployments in Niteroi, Brazil, and Montevideo, indicating growth opportunities in Latin America [26][27] - The healthcare vertical is expected to benefit from California's new legislation mandating weapon screening capabilities at state hospitals [11] Company Strategy and Development Direction - The company is focused on transforming into a broader public safety technology firm, emphasizing sustainable growth and operational execution [4] - Strategic investments in technology, innovation, and market positioning are yielding positive results, with plans to deepen penetration in existing customer accounts and expand into mid-size municipalities [14][15] - The company is also exploring new opportunities in critical infrastructure protection, particularly with a sniper detection solution aimed at utility companies and financial institutions [6][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver lifesaving alerts and critical crime intelligence, positioning itself well despite potential political changes [12] - The company reaffirmed its full-year revenue guidance of $111 million to $113 million and adjusted EBITDA margin guidance of 20% to 22% [23] - The annual recurring revenue (ARR) is expected to increase from $95.6 million in 2025 to approximately $110 million in 2026, despite the loss of revenue from the Chicago contract [23] Other Important Information - The company ended Q2 2025 with $9 million in cash and cash equivalents, down from $11.7 million at the end of Q1 2025, but cash balance has since increased to over $16 million [20][21] - The company repurchased 31,570 shares at an average price of $14.84, totaling approximately $1.5 million [21] Q&A Session Summary Question: Can you talk about the SafePoint pipeline? - The SafePoint pipeline continues to grow, focusing on healthcare and casino verticals, with significant opportunities in California [25] Question: How is the international market developing? - Recent developments in South America, particularly in Brazil, are promising, with opportunities for expansion in Mexico and South Africa [26][27] Question: What contributed to the increase in cash balance? - The increase is primarily due to timing in receivable collections, indicating strong cash flow generation [28] Question: How much visibility is there into the second half revenue guidance? - The sales team has committed to contracts that should help meet guidance, but timing of large contracts may affect results [30] Question: Can you provide details on the Chicago RFP? - The company is on a shortlist for the Chicago RFP, with a live demonstration scheduled for September, indicating progress in the selection process [54] Question: What are the details regarding the NYPD contract? - The NYPD contract involves a $400,000 expense per quarter, with a revenue of about $250,000 per quarter, leading to overall savings [56] Question: When can the company expect revenue from the SafePoint implementation? - Revenue from the SafePoint implementation is included in the guidance, and the company is working to expedite deployment [48][50]

Core Viewpoint - SoundThinking, Inc. has introduced generative AI capabilities in its CrimeTracer product, enhancing law enforcement's ability to quickly access critical investigative information through natural language queries [1][2][3] Company Overview - SoundThinking, Inc. is a leading public safety technology provider, known for its AI- and data-driven solutions for law enforcement and civic leadership [9] - The company has worked with approximately 2,100 law enforcement agencies across the United States, conducting millions of searches annually to support investigations [3][9] Product Enhancement - The new generative AI functionality allows users to interact with CrimeTracer using conversational queries, simplifying the search process and enabling officers to find connections across billions of records [2][3] - This enhancement is currently in beta testing with select agencies and is expected to be available to all CrimeTracer customers this summer at no additional cost [2][3] Benefits of AI Integration - The AI search capabilities provide several key benefits: - Natural Language Queries: Officers can ask questions using everyday language rather than technical search syntax [7] - More Comprehensive Results: The system can identify connections across disparate data sources that might otherwise be missed [7] - Increased Efficiency: The technology reduces the time spent formulating searches and analyzing results [7] - Democratized Access: Advanced search capabilities are accessible to all officers, not just specialized analysts [7] User Feedback - Early testing of the AI chatbot has shown strong potential for providing faster and easier access to crime data, helping investigators surface hard-to-find connections that can advance cases [4]