SoundThinking (SSTI) Conference Transcript

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$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$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.