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]

Financial Performance - Company reported second quarter 2025 revenues of $25.9 million, a decrease of 4% year-over-year from $27.0 million in the same quarter of 2024, primarily due to the non-renewal of a contract with the City of Chicago [5][6] - Gross profit for the second quarter of 2025 was $13.8 million, representing 53% of revenues, down from $16.1 million (60% of revenues) in the same period of 2024 [6] - GAAP net loss for the second quarter of 2025 totaled $3.1 million, compared to a net loss of $0.8 million for the same quarter of 2024 [9] - Adjusted EBITDA for the second quarter of 2025 was $3.4 million (13% of revenues), down from $5.1 million (19% of revenues) in the same period last year [10] Revenue Guidance and Outlook - Company reaffirmed its full-year 2025 revenue guidance range of $111.0 million to $113.0 million, indicating a 10% year-over-year growth at the midpoint [1][13] - The expectation for Annual Recurring Revenue (ARR) is to increase from $95.6 million at the beginning of 2025 to approximately $110.0 million at the beginning of 2026 [1][13] - Management expressed confidence in achieving long-term financial targets of 70% gross margin and 40% Adjusted EBITDA margin while growing topline revenue at 15% per year [4][14] Strategic Initiatives - Company is focusing on scaling solutions and managing expenses to build a resilient business, particularly through investments in AI capabilities to enhance product intelligence and automate internal processes [4] - The company went live with ShotSpotter in four new cities and one new university, while also expanding with four existing customers [6] - Management emphasized the importance of client retention and expansion into new verticals as part of their strategy to maintain leadership in the public safety and security technology market [4] Shareholder Actions - Company repurchased 31,570 shares of common stock for approximately $0.5 million as part of an existing share repurchase program [12]

Core Points - SoundThinking, Inc. will hold a conference call on August 12, 2025, to discuss its Q2 2025 financial results [1][2] - The company is a leading public safety technology provider, delivering AI- and data-driven solutions for law enforcement and security professionals [3] Company Overview - SoundThinking, Inc. is listed on Nasdaq under the ticker SSTI and is recognized for its SafetySmart™ platform, which includes various advanced solutions such as ShotSpotter, CrimeTracer™, CaseBuilder™, ResourceRouter™, SafePointe, and PlateRanger™ [3] - The company serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [3] - SoundThinking has been designated as a Great Place to Work Company, indicating a positive work environment [3] Conference Call Details - The conference call will take place at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) [2] - U.S. and international dial-in numbers are provided for participants, along with a conference ID for access [2] - A replay of the call will be available after 7:30 p.m. Eastern time on the same day until August 26, 2025 [3]

Core Insights - SoundThinking has released its fourth annual Environmental, Social, and Governance (ESG) Report, emphasizing its commitment to advancing public safety through responsible technology use [1][2] - The report highlights the company's mission to enhance law enforcement efficiency and equity in community safety outcomes [2][3] Group 1: Public Safety Technology and Community Safety - SoundThinking's SafetySmart™ platform integrates specialized software and data to assist law enforcement in protecting communities, enabling rapid and precise responses to gunfire incidents [4] - The technology supports efficient investigative work and helps agencies optimize resources for improved public safety outcomes [4] Group 2: Social Impact - The report emphasizes SoundThinking's collaboration with local organizations to promote community safety initiatives, positively impacting individuals in the communities served [5] - The company is expanding its Data for Good program, providing non-policing organizations with essential data and tools to address crime and violence root causes [5] Group 3: Governance, Transparency, and Trust - The ESG Report outlines SoundThinking's governance structure, focusing on diversity, equity, and inclusion [6] - The company has enhanced its security framework and established AI governance roles to ensure responsible technology development, demonstrating a commitment to stakeholder trust [6] Group 4: Environmental Sustainability - SoundThinking is dedicated to minimizing its environmental footprint through sustainable practices, including energy-efficient product design and e-waste management [7] - The company applies its technology expertise to environmental protection efforts, such as preserving marine ecosystems in the Coral Triangle [7] Group 5: Company Overview - SoundThinking, Inc. is a leading public safety technology provider, delivering AI- and data-driven solutions for law enforcement and civic leadership [10] - The company serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [10]

Group 1 - SoundThinking, Inc. will participate in the UBS SMID-Cap Multisector Virtual Conference on June 24, 2025, offering one-on-one and small group meetings with investors [1] - The company is recognized as a leading public safety technology provider, delivering AI- and data-driven solutions for law enforcement and security professionals [2] - SoundThinking serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [2] Group 2 - The company's SafetySmart™ platform includes several key products: ShotSpotter, CrimeTracer™, CaseBuilder™, ResourceRouter™, SafePointe, and PlateRanger powered by Rekor [2] - SoundThinking has been designated as a Great Place to Work Company, indicating a positive work environment [2] - Contact information for company representatives is provided for investor relations and inquiries [3]

Summary of SoundThinking (SSTI) Conference Call - May 21, 2025 Company Overview - **Company Name**: SoundThinking (formerly ShotSpotter) - **Public Since**: February 2017 - **Current Product Offering**: Safety Smart Platform with six software solutions [3][4] Industry Context - **Market Challenges**: Law enforcement agencies in the U.S. face staffing challenges post-COVID and the "defund the police" movement, leading to increased reliance on technology [5][4] - **Growth in Technology Use**: Agencies are adopting software solutions to enhance operational efficiency due to reduced personnel [5] Key Products and Solutions 1. **ShotSpotter**: Gunshot detection solution, accounting for 65% of revenue, with annual recurring revenue (ARR) growth of $7 to $9 million [6][7] - **Technology**: Utilizes sensors to triangulate gunshot locations within 30 seconds and alerts police within 45 seconds [6] 2. **Resource Router**: Helps agencies manage patrols effectively using AI algorithms [7] 3. **Play Ranger**: Partnership with Recor for license plate readers, expected to ramp up revenue in 2025 [10] 4. **Case Builder**: Case management solution with a recent $18 million contract with the Department of Correction [12][13] 5. **Crime Tracer**: A database solution with over a billion records, aiding law enforcement in investigations [15] 6. **SafePoint**: A weapons detection platform, currently only 2% of revenue but projected to grow significantly due to new regulations [17][22] Financial Performance - **Revenue Growth**: Expected revenue for the current year is between $111 million and $113 million, with a historical growth from $81 million to $102 million over the past few years [29][30] - **Adjusted EBITDA**: Projected to be north of 20% this year, up from 14% last year [31] - **Gross Margins**: Currently around 60%, with potential to reach 70% as operational efficiencies improve [51] Market Potential - **Total Addressable Market (TAM)**: - Gunshot detection: $1.5 billion - License plate readers: $2.5 billion - Weapons detection (SafePoint): Estimated at over $20 billion [29][28] - **International Expansion**: Entering markets like Brazil, where pricing is significantly higher than in the U.S. [52][62] Competitive Landscape - **Limited Competition**: SoundThinking claims minimal competition in gunshot detection, with a strong retention rate of over 98% [34][37] - **Patents**: Holds numerous patents related to its technology, providing a competitive edge [35] Customer Engagement - **Net Promoter Score**: High score of 66%, indicating strong customer satisfaction [33] - **Customer Retention**: High retention rates attributed to the value provided by their solutions [34][37] Regulatory Impact - **California Legislation**: New laws requiring hospitals to install weapons detection systems by March 2027, creating a significant market opportunity [21][22] Conclusion - SoundThinking is positioned for significant growth through its innovative technology solutions, strong financial performance, and expanding market opportunities, particularly in weapons detection and international markets. The company is actively investing in AI and expanding its product offerings to meet the evolving needs of law enforcement agencies.

Financial Data and Key Metrics Changes - The company reported a revenue growth of 12% year over year, reaching $28.3 million in Q1 2025, driven by solid new sales and renewal activity [4][15] - Adjusted EBITDA grew 50% year over year to $4.5 million, highlighting operational leverage and a profitable growth strategy [4][17] - GAAP net loss was approximately $1.5 million, or a loss of $0.12 per share, compared to a net loss of $2.9 million in the prior year [19] Business Line Data and Key Metrics Changes - The renewal of two contracts with the New York City Police Department contributed approximately $3.5 million in catch-up revenue [4][16] - The company went live with four new cities and one expansion in the quarter, indicating growth in the ShotSpotter deployment [5] - Resource Router is currently deployed in over 20 agencies, more than double its installed base in less than 18 months [10] Market Data and Key Metrics Changes - The company is seeing strong demand for its capabilities in the public safety technology space, particularly in healthcare and casino verticals [11][25] - The international ShotSpotter pipeline is robust, with a new deployment in Niteroi, Brazil, marking a return to a strategically important market [5][67] - The company expects accelerated traction with ShotSpotter internationally in the second half of 2025 and early 2026 [6] Company Strategy and Development Direction - The company is focused on expanding its platform and data aggregation capabilities to position itself as a leader in public safety technology [3] - The introduction of SafePoint aligns with new legislation in California requiring hospitals to deploy weapon protection systems by 2027, creating a significant market opportunity [11][12] - The company is investing in AI capabilities to enhance its product offerings and operational efficiency [18][71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of their offerings and the differentiated value they bring to customers, particularly in light of recent contract renewals [7][8] - The company remains vigilant about headwinds related to municipal funding and budgets but believes it is well-positioned to drive revenue and ARR growth for 2025 [13][21] - Full-year revenue guidance is reaffirmed at $111 million to $113 million, with adjusted EBITDA margin guidance slightly reduced to 20% to 22% [20][21] Other Important Information - The company ended Q1 2025 with $11.7 million in cash and cash equivalents, significantly higher than the $5.7 million at the end of 2023 [20] - The company repurchased 33,493 shares at an average price of $15.04 for approximately $504,000 in Q1 2025 [20] Q&A Session Summary Question: How does the company manage the pipeline across its broader suite of tools? - Management indicated that each product solution has its own pipeline metrics, with a solid pipeline across the platform, particularly in Resource Router and Crime Tracer [23] Question: What early feedback has been received on the revamped SafePoint product? - Management reported success in the healthcare vertical, with proof of concept deployments underway in major healthcare chains [25][26] Question: Are meaningful bookings expected from Plate Ranger this year? - Management indicated a significant amount of pipeline exists, with actual bookings expected to be around $1 million, with revenue anticipated to increase next year [29][30] Question: What is the expected sales cycle for SafePoint given the 2027 requirement? - Management noted that the opportunity for SafePoint is more of a 2026 opportunity, with traction being made in other markets [38][40] Question: How does the company view the impact of the New York contracts on gross margins? - Management explained that additional expenses in Q1 impacted adjusted EBITDA, but the New York contracts contributed positively to the bottom line [42][44] Question: What is the estimated number of facilities required to comply with the new California law? - Management estimated about 400 hospitals in California would need to comply, translating to approximately 4,000 lanes needing protection [56][58] Question: What is the pricing model for SafePoint compared to traditional solutions? - Management stated that SafePoint charges about $20,000 per year per lane, which is competitive compared to traditional solutions [60] Question: What are the international expansion plans? - Management highlighted ongoing discussions for expansion in Brazil and other Latin American countries, with a focus on significant pricing leverage in international markets [66][68]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 12% year over year, reaching $28.3 million in Q1 2025, driven by solid new sales and renewal activity [4][14] - Adjusted EBITDA grew 50% year over year to $4.5 million, highlighting operational leverage and a profitable growth strategy [4][15] - GAAP net loss was approximately $1.5 million, or a loss of $0.12 per share, compared to a net loss of $2.9 million in the prior year [18] Business Line Data and Key Metrics Changes - The renewal of two contracts with the New York City Police Department contributed approximately $3.5 million in catch-up revenue [4][15] - The company went live with four new cities and one expansion in Q1, with a robust international ShotSpotter pipeline [5] - Resource Router is currently deployed in over 20 agencies, more than double its installed base in less than 18 months [10] Market Data and Key Metrics Changes - The company expects accelerated traction with ShotSpotter internationally in the second half of 2025 and early 2026 [6] - The California Assembly Bill 2975 mandates hospitals to deploy weapon protection systems by 2027, creating a significant market opportunity [11][12] - The company anticipates annual recurring revenue (ARR) to increase from $95.6 million at the beginning of 2025 to approximately $110 million at the beginning of 2026 [20] Company Strategy and Development Direction - The company is focused on expanding its platform and data aggregation capabilities to position itself as a leader in public safety technology [3] - Investments are being made in AI capabilities, particularly for the Crime Tracer and SafePoint solutions [17][12] - The company is taking risk mitigation efforts to address potential headwinds related to municipal funding and budgets [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of their offerings and the differentiated value they bring to cities like Chicago [6] - The company remains vigilant about headwinds but believes it is well-positioned to drive revenue and ARR growth for 2025 [13] - Management reaffirmed full-year revenue guidance of $111 million to $113 million, while slightly reducing adjusted EBITDA guidance to 20% to 22% [19][20] Other Important Information - The company ended Q1 with $11.7 million in cash and cash equivalents, compared to $13.2 million at the end of Q4 2024 [19] - The company repurchased 33,493 shares at an average price of $15.04 for approximately $504,000 in Q1 2025 [19] Q&A Session Summary Question: How does the company manage the pipeline across its broader suite of tools? - Management indicated that each product solution has its own pipeline metrics, with a solid pipeline across the platform, particularly in Resource Router and Crime Tracer [22][23] Question: What early feedback has been received on the revamped SafePoint product? - Management noted success in the healthcare vertical, with proof of concept deployments underway in major healthcare chains [24][25] Question: Will there be meaningful bookings from Plate Ranger this year? - Management expects bookings to be in the $1 million range, with significant revenue increases anticipated next year [28][29] Question: What is the expected sales cycle for SafePoint given the 2027 requirement? - Management indicated that the opportunity for SafePoint is more of a 2026 opportunity, with traction being made in other markets [37][38] Question: How should revenue progression be viewed for Q2? - Management suggested a reduction in Q2 revenue, with expectations for growth in Q3 and Q4 as investments begin to pay off [48] Question: What is the annualized cost of SafePoint compared to traditional solutions? - Management stated that SafePoint charges about $20,000 per year per lane, offering a compelling solution compared to traditional methods [59][60] Question: What are the international opportunities and timing for expansion? - Management highlighted excitement about returning to Brazil and ongoing discussions for expansion in other Latin American countries [66][68]

Core Viewpoint - SoundThinking has integrated PlateRanger into its SafetySmart platform, enhancing public safety capabilities and enabling law enforcement agencies to improve investigative workflows and outcomes [2][4]. Integration and Technology - The integration of PlateRanger, an advanced license plate recognition solution, with ShotSpotter and CrimeTracer allows law enforcement to combine real-time gunshot detection data with vehicle identification and cross-jurisdictional insights [3][5]. - The Rekor Public Safety Network (RPSN) facilitates secure data sharing across jurisdictions, enhancing investigative speed and interoperability while respecting data ownership [6][7]. Benefits to Law Enforcement - The integration provides enhanced investigations by linking gunfire events with suspect vehicle data, allowing for more comprehensive follow-up [5]. - Multi-agency collaboration is improved through integrated systems that enable data sharing, helping to uncover connections between incidents [7]. - The commitment to open standards allows for seamless integration with existing systems, differentiating SoundThinking in the market [7]. Market Impact - SoundThinking serves over 175 ShotSpotter customers and approximately 2,100 CrimeTracer agencies, providing access to more than 1 billion records, thus expanding its market footprint [8].

Core Insights - SoundThinking, Inc. has secured four contracts in the Greater Los Angeles area for its ShotSpotter acoustic gunshot detection system, including one new customer agreement and three renewals [2][3] - The cities adopting or renewing ShotSpotter include Pasadena, Lancaster, Hawaiian Gardens, and Lakewood, all aiming to combat gun violence and enhance community safety [2][4] Company Overview - SoundThinking, Inc. is a public safety technology provider listed on NASDAQ under the ticker SSTI, offering AI- and data-driven solutions for law enforcement and civic leadership [10] - The company has over 300 customers and has collaborated with approximately 2,100 agencies to improve public safety outcomes [10] ShotSpotter Impact - In Pasadena, ShotSpotter has detected over 125 shootings since its deployment in 2022, addressing the issue of unreported gunfire, which exceeded 60% in Q3 2024 [4][5] - Hawaiian Gardens reported 176 ShotSpotter alerts in 2023, leading to the recovery of critical ballistic evidence and improved community relations due to reduced crime [6][7] - Lancaster completed a six-month pilot of ShotSpotter and is now entering a three-year term, with 36 confirmed alerts related to gunshots since its implementation in 2024 [8][9] Community and Law Enforcement Relations - The deployment of ShotSpotter has been recognized as a tool that enhances situational awareness for law enforcement, allowing for quicker responses and better evidence collection [5][9] - Local officials in Hawaiian Gardens and Lakewood have noted improved relationships with community members as a result of the technology's effectiveness in reducing crime [6][7][8]