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ShotSpotter (SSTI) Q3 Earnings call transcript Nov 12, 2024

Daily EarningsTuesday, Nov 12, 2024 9:19 pm ET

1min read

REKR -- SSTI --

Revenue Growth and Strategic Initiatives

In its recent earnings call, SoundThinking, a leading provider of public safety technology solutions, reported a strong third quarter with revenues up 10% from the same period last year, totaling $26.3 million. This growth was attributed to the success of the company's strategic initiatives, operational efficiency measures, and the commitment to delivering value to its shareholders. The company's year-to-date revenue stood at $78.6 million, marking an 18% increase from the previous year.

Strategic Partnerships and Product Expansion

SoundThinking's focus on strategic partnerships and product expansion has been a key driver of its success. The company's recent strategic partnership with Rekor Systems to integrate vehicle license plate recognition solutions into its SafetySmart platform is a notable highlight of the quarter. This partnership targets a $2.5 billion TAM that is growing at a 15% CAGR, signaling a promising opportunity for SoundThinking.

Financial Performance and Guidance

The company's financial performance was also commendable, with gross profit for the quarter at $15.2 million, up from $13.8 million in the third quarter of 2023. The adjusted EBITDA for the quarter was up 5% from the previous year, standing at $4.5 million. The company's adjusted EBITDA margin is expected to remain at 18% to 20% for the full year 2024, with revenue projected to reach $104 million to $106 million. For 2025, SoundThinking is expecting a revenue increase to a range of $107 million to $109 million, along with an adjusted EBITDA increase to a range of 19% to 21%.

Product Innovation and Challenges

SoundThinking's commitment to innovation was evident in the recent upgrade of its SafePointe Next Gen weapon detection system. The company expects a strong pipeline for SafePointe, with a focus on addressing potential supply constraints for the AI-based edge solution.

Market Position and Competition

SoundThinking's market position has been strengthened by its strategic initiatives and product launches. The company's world-class Net Promoter Score of 66% underscores its operational excellence and the value it delivers to its clients. The recent RFI issued by the City of Chicago, soliciting bids for 'First Responder Technology Solutions', highlights the competitive landscape and the importance of SoundThinking's solutions in addressing the city's safety needs.

Conclusion

SoundThinking's Q3 2024 earnings call underscored the company's strategic initiatives, financial performance, and market position. The company's commitment to innovation, strategic partnerships, and operational efficiency positions it well for continued growth and success in the public safety technology market.

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