SoundThinking(US:SSTI)2021-08-11 02:00Financial Data and Key Metrics Changes - The company reported Q2 2021 revenue of $14.6 million, a 30% increase from $11.3 million in Q2 2020 [4][20] - Adjusted EBITDA for Q2 2021 was $2.9 million, down from $3.4 million in the same period last year [5][21] - The net loss for Q2 2021 was $250,000, compared to an adjusted net income of $866,000 in Q2 2020 [25] Business Line Data and Key Metrics Changes - The company added two new cities for ShotSpotter Respond and one multi-unit security customer during the quarter [4][19] - There were three expansions in existing cities, maintaining a low attrition rate of approximately 1% [7][19] - ShotSpotter Connect saw three new deployments, indicating growth in the product line [4][62] Market Data and Key Metrics Changes - The company reported a 40% increase in gunfire alerts in the first half of 2021 compared to the same period in 2020 [8] - The funding environment is robust, with $3 billion earmarked for acoustic gunshot detection projects in the House appropriations bill [10][68] Company Strategy and Development Direction - The company is focused on expanding its precision policing solutions and has plans to enhance the capabilities of ShotSpotter Investigate [16] - The strategic opening of a D.C. office aims to strengthen relationships with law enforcement and policymakers [13] - The company is evaluating legal actions to defend its brand against negative publicity [6][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, reaffirming full-year 2021 revenue guidance of $60 million to $61 million, representing a 32% growth from 2020 [16][27] - The company noted that the endorsement from the Biden administration has positively impacted sales and market perception [12][56] Other Important Information - The company ended Q2 2021 with $15.6 million in cash and cash equivalents, up from $10.9 million at the end of Q1 2021 [26] - Deferred revenue at the end of Q2 was $19.8 million, down from $25 million at the end of Q1 2021 [26] Q&A Session Summary Question: Impact of federal stimulus on state and local governments - Management noted that federal stimulus funds are directly benefiting cities without additional steps required, which is encouraging for future growth [33] Question: Addressing the "defund the police" narrative - Management has publicly pushed back against claims regarding the efficacy of ShotSpotter, commissioning independent analyses to counter negative narratives [41][42] Question: Cost impact of public relations efforts - The estimated cost impact in Q2 for legal and public relations efforts was about $400,000, with expectations for continued costs in Q3 [49] Question: Changes in sales cycles - Management indicated that sales cycles have shrunk, with more inbound calls and quicker transactions due to increased awareness of gun violence issues [76][78] Question: Number of cities added - The company added two new cities and expanded in three existing cities during the quarter [61]