SoundThinking(US:SSTI)2021-05-12 03:19Financial Data and Key Metrics Changes - The company reported record revenues of $15 million, up 44% from Q1 of 2020, and adjusted EBITDA of $3.3 million, up 53% year over year [9][34] - Gross profit for Q1 2021 was $8.7 million, representing 58% of revenue, consistent with the prior year [33] - Adjusted net income for Q1 was $244,000 or $0.02 per share, compared to $13,000 or zero cents per share in the prior-year period [39] Business Line Data and Key Metrics Changes - The company went live in six new cities with ShotSpotter Respond and expanded deployments in five cities [9][10] - The ShotSpotter Connect offering is showing encouraging growth and traction within the existing customer base [22][23] Market Data and Key Metrics Changes - The company is experiencing a robust go-live activity and has a solid pipeline of new city and expansion projects expected to launch in the next 60 to 90 days [11] - The federal stimulus is positively impacting municipal funding, providing budgetary resources for agencies to procure services [17][18] Company Strategy and Development Direction - The company is raising its full-year 2021 revenue guidance from $58 million to a range of $60 million to $61 million, reflecting improved demand for its core solutions [27][43] - The integration of the LEEDS acquisition is progressing well, allowing the company to focus on customer-facing services and the development of ShotSpotter Investigate [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the funding environment for local law enforcement, driven by federal stimulus and the return of earmarks [55][56] - The company is seeing a shift in law enforcement's approach towards technology, focusing on efficiency and effectiveness in public safety [56][57] Other Important Information - Deferred revenue at the end of the quarter was $25 million, and the company ended the quarter with $10.9 million in cash and cash equivalents [41][42] - The company repurchased approximately 56,000 shares at an average price of $39.02 for $2.2 million [42] Q&A Session Summary Question: What were the drivers of the sales and marketing step up? - The increase was due to additional personnel in sales and marketing, as well as expansion in customer success [49] Question: Can you talk about the pipeline of large deals? - The company is seeing a mix of small, medium, and large city deals, with encouraging movement in tier 4 and tier 5 markets [50][51] Question: How is the sales cycle around the Connect offering? - The company is on a learning curve but is seeing strong traction within the existing customer base [52][53] Question: What is the outlook for ShotSpotter Respond growth in the US? - The outlook has become more positive due to improved funding and demand for technology in law enforcement [55][56] Question: How is the implementation of the Investigate solution? - The implementation is expected to be similar to previous solutions, requiring integration with existing systems [67] Question: What is the impact of supply chain issues on the 3G refresh? - The company has planned ahead and does not expect supply chain issues to impact their operations [71] Question: Are there any former clients looking to re-engage? - One customer that previously stated they would not renew has reversed their decision and plans to expand their deployment [87][89]