SoundThinking (NasdaqCM:SSTI) FY Conference March 24, 2026 01:30 PM ET Company ParticipantsAlan Stewart - CFORalph Clark - President and CEOConference Call ParticipantsRichard Baldry - Managing Director and Senior Research AnalystNone - AnalystRichard BaldryWe're gonna move on now to ShotSpotter. It's a company we've dealt with. We actually helped them IPO a number of years ago now, so we've known them for a long, long time. I'll say the same thing I said in the last session. I'm really glad to have you her ...

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]

SoundThinking (NasdaqCM:SSTI) Q4 2025 Earnings call March 03, 2026 04:30 PM ET Company ParticipantsAlan Stewart - CFOAlex Latimore - Research AssociateElle Niebuhr - Equity Research AssociateRalph Clark - CEOConference Call ParticipantsJeremy Hamblin - Senior Research AnalystTrevor Walsh - Director and Senior Equity Research AnalystOperatorGood afternoon, and welcome to SoundThinking's fourth quarter and full year 2025 earnings conference call. My name is Diego, and I will be your operator for today's call. ...

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. reported a record revenue of $104.1 million for the full year 2025, marking a 2% increase from $102.0 million in 2024 [1][12] - The company updated its revenue guidance for 2026 to a range of $109.0 million to $111.0 million, indicating a projected 6% year-over-year growth at the midpoint [1][14] - Adjusted EBITDA margin guidance for 2026 was revised to a range of 16% to 18% [1][14] Full Year 2025 Financial Highlights - Total revenues for 2025 were $104.1 million, up 2% from $102.0 million in 2024, primarily driven by new and expanding customer subscriptions [12] - Gross profit decreased by 2% to $56.6 million, representing 54% of revenues, compared to 57% in 2024 [12] - The net loss for 2025 was $9.4 million, slightly higher than the $9.2 million loss in 2024 [13] - Adjusted EBITDA for 2025 totaled $12.6 million, down from $14.4 million in 2024 [13] Fourth Quarter 2025 Financial Highlights - Revenues for Q4 2025 were $24.8 million, a 6% increase from $23.4 million in Q4 2024 [7][9] - Gross profit for Q4 2025 was $12.6 million, accounting for 51% of revenues, compared to 50% in Q4 2024 [7][9] - The net loss for Q4 2025 was $2.8 million, an improvement from a $4.1 million loss in Q4 2024 [10] - Adjusted EBITDA for Q4 2025 was $1.3 million, down from $1.7 million in the same period last year [11] Operational Developments - The company went "live" with ShotSpotter in 1 new city and expanded in 4 existing customer locations during Q4 2025 [7] - For the full year, SoundThinking launched ShotSpotter in 10 new cities and 2 universities, along with 11 expansions with current customers [7] - The annual recurring revenue (ARR) at the start of 2026 was $95.4 million, with a revenue retention rate of 99% [7][12] Strategic Outlook - The company aims to enhance its customer base and improve operating leverage through increased investments in innovation and AI capabilities [6][8] - Management expressed confidence in the ability to drive growth, reduce costs, and deliver value to customers and shareholders [8]

Core Insights - SoundThinking, Inc. will release its fourth quarter and full-year 2025 financial results on March 3, 2026, and will host a conference call to discuss these results [2][4] Financial Results Announcement - The conference call is scheduled for March 3, 2026, at 4:30 p.m. Eastern Time, with financial results to be issued in a press release prior to the call [2] - Participants can join via webcast on SoundThinking's Investor Relations website or by telephone [3] Upcoming Investor Conference - Ralph Clark, President and CEO, and Alan Stewart, CFO, will participate in the ROTH Conference on March 23-24, 2026, at the Ritz-Carlton Hotel in Laguna Niguel, California [4] - A live webcast and replay of the presentation will be available on SoundThinking's Investor Relations website [4] Company Overview - SoundThinking, Inc. is a leading public safety technology company providing AI- and data-driven solutions for law enforcement and security professionals [5] - The company serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [5] - Key products include ShotSpotter, CrimeTracer, CaseBuilder, ResourceRouter, SafePointe, and PlateRanger, which collectively aim to improve efficiency and effectiveness in public safety [5]

Core Viewpoint - SoundThinking, Inc. is enhancing its sales leadership by appointing Kirk Arthur as Senior Vice President of Global Sales and Manuel Nylen as Vice President of Sales for SafePointe, aiming for accelerated growth in public safety, security, and enterprise markets [1][2]. Group 1: Leadership Appointments - Kirk Arthur will lead the global sales and solutions organization, focusing on go-to-market strategy, revenue execution, and customer engagement [3]. - Manuel Nylen will oversee sales for SafePointe, targeting expansion in healthcare, gaming, corporate campuses, and other security-sensitive environments [3]. Group 2: Leadership Backgrounds - Kirk Arthur has extensive experience in public service and enterprise technology, previously serving at Microsoft and the United States Secret Service, where he led initiatives in government modernization and electronic crimes [4]. - Manuel Nylen has a strong background in security technology sales, having held leadership roles at Milestone Systems and BriefCam, where he focused on revenue growth and channel partnerships [5]. Group 3: Company Growth Strategy - The appointments come at a crucial time for SoundThinking, as the company aims to scale its SafetySmart™ platform across various markets [2][6]. - Arthur emphasizes the significant market potential and innovative solutions that SoundThinking offers, aiming to enhance public safety profiles [6]. - Nylen describes SafePointe as a transformative solution in security, utilizing AI to improve weapons detection without traditional checkpoints [6]. Group 4: Company Overview - SoundThinking, Inc. is a leading public safety technology company providing AI- and data-driven solutions for law enforcement and security professionals, trusted by over 300 customers and approximately 2,100 agencies [9]. - The company's SafetySmart™ platform includes various solutions such as ShotSpotter, CrimeTracer™, CaseBuilder™, ResourceRouter™, SafePointe, and PlateRanger powered by Rekor [9].

Core Insights - SoundThinking has opened a new Alert Review Center (ARC) in downtown Orlando, FL, which will serve as a centralized operational hub for its SafePointe alert review operations, creating nearly 30 public-safety jobs in the region [1][3]. Group 1: Company Operations - The ARC will support SafePointe, an AI-enabled weapons detection system, by allowing trained reviewers to analyze alerts in real time, providing timely and accurate information for safety operations in various public spaces [2][3]. - The facility is located in 1,872 square feet of office space in the Regions Bank Tower, demonstrating SoundThinking's long-term commitment to the downtown Orlando area through a three-year renewable lease [4]. Group 2: Employment and Economic Impact - The consolidation of previously remote roles into the downtown facility is expected to contribute to the growth of the technology and public-safety workforce in the region, with nearly 30 full-time employees anticipated once hiring is complete [3]. - The decision to establish the ARC in downtown Orlando is seen as a boost to the local ecosystem of innovative employers, reinforcing the area's appeal for companies looking to grow and collaborate [5]. Group 3: Company Background - SoundThinking, Inc. (Nasdaq: SSTI) is a leading public safety technology company that provides AI- and data-driven solutions for law enforcement and security professionals, trusted by over 300 customers and approximately 2,100 agencies [7].

Core Insights - SoundThinking, Inc. will have its CFO Alan Stewart participate virtually in the 28th Annual Needham Growth Conference on January 15, 2026, providing an opportunity for investors to engage with management [1]. Company Overview - SoundThinking, Inc. is a leading public safety technology provider that offers AI- and data-driven solutions for law enforcement, civic leadership, and security professionals [2]. - The company serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [2]. - SoundThinking's SafetySmart™ platform includes several key products: - ShotSpotter, an acoustic gunshot detection system - CrimeTracer™, a law enforcement search engine - CaseBuilder™, an investigation management system - ResourceRouter™, software for directing patrol and anti-violence resources - SafePointe, an AI-based weapons detection system - PlateRanger powered by Rekor, an automatic license plate recognition solution [2]. - The company has been recognized as a Great Place to Work [2].

Core Insights - SoundThinking, Inc. reported worse-than-expected Q3 financial results, with losses of 16 cents per share compared to the analyst consensus estimate of 6 cents per share [1] - Quarterly sales were $25.100 million, missing the analyst consensus estimate of $27.953 million [1] - The company cut its FY2025 sales guidance from a range of $111 million-$113 million to $104 million [2] Financial Performance - Q3 losses were reported at 16 cents per share, missing expectations [1] - Sales for the quarter were $25.100 million, below the expected $27.953 million [1] Guidance Update - FY2025 sales guidance was revised down from $111 million-$113 million to $104 million [2] Company Developments - The company is focused on enhancing community safety through data and technology, with recent expansions in its ShotSpotter footprint and new AI capabilities [3] - The Net Promoter Score increased from 66 to approximately 70, indicating strong customer satisfaction and retention [3] Market Reaction - Following the earnings announcement, SoundThinking shares fell by 19.6%, trading at $6.78 [3] Analyst Ratings - Cantor Fitzgerald analyst maintained an Overweight rating but lowered the price target from $20 to $16 [6] - Citizens analyst also maintained a Market Outperform rating while reducing the price target from $19 to $16 [6]