SoundThinking, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results
SoundThinking (SSTI) reported record revenues of $102.0 million for FY 2024, marking a 10% increase from 2023. However, Q4 2024 saw a revenue decline of 10% to $23.4 million, impacted by $3.5 million in delayed contract renewals.
The company reported a full-year GAAP net loss of $9.2 million, compared to a $2.7 million loss in 2023. Annual recurring revenue (ARR) stood at $95.6 million at the start of 2025, with a revenue retention rate of 105%.
For FY 2025, SoundThinking has raised its guidance, projecting revenues of $111.0-113.0 million (10% YoY growth at midpoint) and increased Adjusted EBITDA margin to 21-23%. The company expects ARR to reach approximately $110.0 million by early 2026.
Operational highlights include ShotSpotter going live in 20 new cities, 5 universities, and 24 expansions with existing customers during 2024.
SoundThinking (SSTI) ha riportato ricavi record di 102,0 milioni di dollari per l'anno fiscale 2024, segnando un aumento del 10% rispetto al 2023. Tuttavia, il quarto trimestre del 2024 ha visto un calo dei ricavi del 10%, scendendo a 23,4 milioni di dollari, influenzato da 3,5 milioni di dollari in rinnovi di contratti ritardati.
L'azienda ha riportato una perdita netta GAAP su base annua di 9,2 milioni di dollari, rispetto a una perdita di 2,7 milioni di dollari nel 2023. Il fatturato ricorrente annuale (ARR) si è attestato a 95,6 milioni di dollari all'inizio del 2025, con un tasso di retention dei ricavi del 105%.
Per l'anno fiscale 2025, SoundThinking ha alzato le sue previsioni, prevedendo ricavi tra 111,0 e 113,0 milioni di dollari (crescita del 10% anno su anno al punto medio) e un margine EBITDA rettificato aumentato al 21-23%. L'azienda si aspetta che l'ARR raggiunga circa 110,0 milioni di dollari entro l'inizio del 2026.
I punti salienti operativi includono il lancio di ShotSpotter in 20 nuove città, 5 università e 24 espansioni con clienti esistenti durante il 2024.
SoundThinking (SSTI) reportó ingresos récord de 102,0 millones de dólares para el año fiscal 2024, marcando un aumento del 10% en comparación con 2023. Sin embargo, el cuarto trimestre de 2024 vio una disminución de ingresos del 10% a 23,4 millones de dólares, afectado por 3,5 millones de dólares en renovaciones de contratos retrasadas.
La compañía reportó una pérdida neta GAAP anual de 9,2 millones de dólares, en comparación con una pérdida de 2,7 millones de dólares en 2023. Los ingresos recurrentes anuales (ARR) se situaron en 95,6 millones de dólares a principios de 2025, con una tasa de retención de ingresos del 105%.
Para el año fiscal 2025, SoundThinking ha aumentado su guía, proyectando ingresos de 111,0 a 113,0 millones de dólares (crecimiento del 10% interanual en el punto medio) y un margen EBITDA ajustado aumentado al 21-23%. La compañía espera que el ARR alcance aproximadamente 110,0 millones de dólares a principios de 2026.
Los aspectos destacados operativos incluyen el lanzamiento de ShotSpotter en 20 nuevas ciudades, 5 universidades y 24 expansiones con clientes existentes durante 2024.
SoundThinking (SSTI)는 2024 회계연도에 1억 2백만 달러의 기록적인 수익을 보고하며, 2023년 대비 10% 증가했습니다. 그러나 2024년 4분기에는 2천 3백 40만 달러로 10% 감소했으며, 이는 350만 달러의 계약 갱신 지연으로 인해 영향을 받았습니다.
회사는 2023년 270만 달러 손실에 비해 연간 GAAP 순손실이 920만 달러라고 보고했습니다. 연간 반복 수익(ARR)은 2025년 초에 9천 5백 60만 달러로, 수익 유지율은 105%에 달했습니다.
2025 회계연도에 대해 SoundThinking은 매출을 1억 1천 1백만에서 1억 1천 3백만 달러로 예상하며(중간값 기준으로 연간 성장률 10%), 조정된 EBITDA 마진을 21-23%로 증가시켰습니다. 회사는 2026년 초까지 ARR이 약 1억 1천만 달러에 이를 것으로 예상하고 있습니다.
운영 하이라이트로는 2024년 동안 20개 새로운 도시, 5개 대학 및 기존 고객과의 24개 확장이 포함됩니다.
SoundThinking (SSTI) a annoncé des revenus records de 102,0 millions de dollars pour l'exercice 2024, marquant une augmentation de 10 % par rapport à 2023. Cependant, le quatrième trimestre 2024 a connu une baisse des revenus de 10 % à 23,4 millions de dollars, impactée par 3,5 millions de dollars de renouvellements de contrats retardés.
L'entreprise a déclaré une perte nette GAAP sur l'année de 9,2 millions de dollars, contre une perte de 2,7 millions de dollars en 2023. Les revenus récurrents annuels (ARR) s'élevaient à 95,6 millions de dollars au début de 2025, avec un taux de rétention des revenus de 105 %.
Pour l'exercice 2025, SoundThinking a relevé ses prévisions, projetant des revenus de 111,0 à 113,0 millions de dollars (croissance de 10 % en glissement annuel au point médian) et une marge EBITDA ajustée augmentée à 21-23 %. L'entreprise s'attend à ce que l'ARR atteigne environ 110,0 millions de dollars d'ici début 2026.
Les faits saillants opérationnels incluent le lancement de ShotSpotter dans 20 nouvelles villes, 5 universités et 24 expansions avec des clients existants en 2024.
SoundThinking (SSTI) berichtete von Rekordumsätzen in Höhe von 102,0 Millionen Dollar für das Geschäftsjahr 2024, was einem Anstieg von 10% im Vergleich zu 2023 entspricht. Im vierten Quartal 2024 gab es jedoch einen Umsatzrückgang von 10% auf 23,4 Millionen Dollar, bedingt durch 3,5 Millionen Dollar an verspäteten Vertragsverlängerungen.
Das Unternehmen meldete einen Jahresverlust nach GAAP von 9,2 Millionen Dollar, verglichen mit einem Verlust von 2,7 Millionen Dollar im Jahr 2023. Der wiederkehrende Jahresumsatz (ARR) betrug zu Beginn des Jahres 2025 95,6 Millionen Dollar, mit einer Umsatzbindungsrate von 105%.
Für das Geschäftsjahr 2025 hat SoundThinking seine Prognose angehoben und rechnet mit Umsätzen zwischen 111,0 und 113,0 Millionen Dollar (10% Wachstum im Jahresvergleich im Mittelwert) und einer Erhöhung der bereinigten EBITDA-Marge auf 21-23%. Das Unternehmen erwartet, dass der ARR bis Anfang 2026 etwa 110,0 Millionen Dollar erreichen wird.
Zu den betrieblichen Höhepunkten gehört der Start von ShotSpotter in 20 neuen Städten, 5 Universitäten und 24 Erweiterungen bei bestehenden Kunden im Jahr 2024.
- Record annual revenue of $102.0M, up 10% YoY
- Raised FY2025 revenue guidance to $111-113M
- Increased Adjusted EBITDA margin guidance to 21-23%
- Strong expansion with 20 new cities and 24 customer expansions
- 105% revenue retention rate
- Q4 revenue declined 10% YoY to $23.4M
- Full-year net loss increased to $9.2M from $2.7M in 2023
- Q4 gross margin decreased to 50% from 58% YoY
- Operating expenses increased 22% YoY
- Sales and marketing spend per $1.00 of new contract value increased to $0.63 from $0.52
Insights
SoundThinking's Q4 and full-year 2024 results reveal a company at an inflection point, with concerning short-term performance issues but potentially promising long-term positioning. The record annual revenue of $102.0 million (10% YoY growth) masks significant Q4 challenges that investors should carefully evaluate.
The Q4 performance raises several red flags. Beyond the $3.5 million in delayed contract renewals impacting revenue, the more troubling metric is the 800 basis point gross margin compression (58% to 50% YoY). This substantial margin deterioration suggests potential pricing pressure or cost structure issues that management hasn't fully addressed. The company's sales efficiency is also declining, with sales and marketing spend per $1 of new ACV increasing to $0.63 from $0.52 - indicating it's becoming more expensive to acquire new business.
Most concerning is the essentially flat ARR growth (
Management's optimistic guidance for 2025 - projecting ARR growth from $95.6 million to approximately $110.0 million and significantly improved Adjusted EBITDA margins of 21-23% (up from 14%) - requires careful scrutiny. This represents a substantial acceleration from current performance metrics and depends heavily on successful contract renewals, including the pending
The widening GAAP net loss (
Positively, the three-year, $21.9 million NYPD contract renewal and continued penetration into new cities (20 in 2024) demonstrate market validation. The company's balance sheet remains manageable with
Investors should closely monitor Q1 2025 results, particularly whether the delayed
SoundThinking's 2024 results reveal a company navigating the complex transition from a specialized acoustic detection provider to a broader public safety technology platform, with both technological achievements and implementation challenges.
The company's core ShotSpotter technology continues to demonstrate market validation with deployments in 20 new cities and 5 universities during 2024. However, the nearly flat ARR growth (
The significant gross margin compression in Q4 (50% vs 58% in Q4 2023) likely reflects increased implementation costs associated with more complex deployments and integrations. As SoundThinking expands beyond simple acoustic sensors to more sophisticated data analytics platforms, they face higher upfront costs before reaching operational efficiency. This technological transition period explains management's confidence in projecting improved EBITDA margins of 21-23% for 2025, as these implementations should become more streamlined.
CEO Ralph Clark's emphasis on AI-driven capabilities represents a necessary evolution rather than a differentiating advantage. The acoustic gunshot detection market is maturing, with competitors like Flock Safety and Axon Enterprise also incorporating AI into their public safety platforms. SoundThinking's competitive advantage lies in their extensive acoustic data library and deployment experience across diverse urban environments, which provides training data for their AI models that newer entrants lack.
The 126 new ShotSpotter go-live miles (with 30 recapturing Puerto Rico) demonstrates continued geographic expansion, but the technology needs to evolve beyond simple detection to maintain growth. Their SafetySmart Platform represents this evolution, integrating gunshot detection with broader data analytics capabilities that provide actionable intelligence to law enforcement. This platform approach is critical for expanding their addressable market beyond the finite number of high-crime urban areas where acoustic detection alone provides sufficient ROI.
The $21.9 million NYPD renewal validates their technology effectiveness in major metropolitan deployments, but the delayed $3.5 million in contract renewals raises questions about customer acquisition costs and deployment timelines. As public safety technology becomes more competitive and budget-constrained municipalities evaluate multiple solutions, SoundThinking must accelerate their technology integration to maintain their market position.
Looking ahead, their projected ARR growth to
SoundThinking's 2024 results reveal important dynamics in the municipal public safety technology market that extend beyond simple financial metrics. The company's performance highlights both the resilience and constraints of municipal technology budgets in the current fiscal environment.
The delayed $3.5 million in contract renewals that impacted Q4 results reflects a growing trend of extended procurement cycles in municipal budgeting. Cities are increasingly implementing more rigorous evaluation processes for technology renewals rather than treating them as automatic extensions. This scrutiny comes as municipalities face competing priorities for resources, with public safety technology vendors now required to continuously demonstrate ROI to secure budget allocations.
The virtually flat ARR growth (
The increasing customer acquisition costs (
The NYPD renewal ($21.9 million over three years) demonstrates that major metropolitan areas with sufficient tax bases continue to prioritize these technologies. However, the 105% revenue retention rate (down from 107%) suggests smaller municipalities may be scaling back deployments or negotiating more favorable terms upon renewal as budget pressures intensify.
From a municipal budget perspective, SoundThinking's pivot toward AI-enhanced capabilities aligns with the broader trend of cities seeking integrated public safety platforms rather than point solutions. Municipalities increasingly favor technologies that can leverage existing infrastructure investments and provide multiple functionalities from single vendors to maximize budget efficiency.
The company's gross margin compression (50% vs 58% in Q4 2023) likely reflects pricing concessions made to secure municipal renewals in an increasingly competitive landscape. As cities implement formal technology assessment frameworks and competitive bidding requirements, vendors like SoundThinking face pressure to adjust pricing structures while simultaneously investing in advanced capabilities.
Looking ahead, SoundThinking's projected ARR growth to
Full Year 2024 Revenues Increased
Fourth quarter and 2024 financial results were affected by the delay of approximately
Company Raises FY 2025 Revenue Guidance Range to
FREMONT, Calif., Feb. 25, 2025 (GLOBE NEWSWIRE) -- SoundThinking, Inc. (Nasdaq: SSTI) (“SoundThinking” or the “Company”), a leading public safety technology company, today reported financial results for the fourth quarter and fiscal year ended December 31, 2024.
Fourth Quarter 2024 Financial and Operational Highlights
- Revenues decreased
10% to$23.4 million , compared to$26.0 million for the same quarter of 2023. - Gross profit decreased
22% to$11.7 million (50% of revenues), compared to$15.0 million (58% of revenues) for the same quarter of 2023. - GAAP net loss totaled
$4.1 million , compared to GAAP net income of$3.6 million for the same quarter of 2023. - Adjusted EBITDA1 totaled
$1.7 million (7% of revenues), compared to$4.8 million (18% of revenues) for the same quarter of 2023. - Went “live” with ShotSpotter in 3 new cities, 1 new university and 7 expansions with existing customers.
1 See the section below titled “Non-GAAP Financial Measures and Key Business Metrics” for more information about Adjusted EBITDA and its reconciliation to GAAP net income (loss).
Full Year 2024 Financial and Operational Highlights
- Revenues increased
10% to a record$102.0 million , compared to$92.7 million in 2023. - Gross profit increased
10% to$57.9 million (57% of revenues), compared to$52.7 million (57% of revenues) in 2023. - GAAP net loss totaled
$9.2 million , compared to GAAP net loss of$2.7 million in 2023. - Adjusted EBITDA2 totaled
$14.4 million (14% of revenues), compared to$14.3 million (15% of revenues) in 2023. - Annual recurring revenue2 starting on January 1, 2025 was
$95.6 million , compared to$95.4 million on January 1, 2024. Revenue retention rate2 was105% , compared to107% in 2023. - Sales and marketing spend per
$1.00 of new annualized contract value2 was$0.63 , compared to$0.52 in 2023. - Went “live” with ShotSpotter in 20 new cities, 5 universities and 24 expansions with current customers.
2 See the section below titled “Non-GAAP Financial Measures and Key Business Metrics” for more information about Adjusted EBITDA and its reconciliation to GAAP net income (loss), annual recurring revenue, revenue retention rate and sales and marketing spend per
Management Commentary
“Innovation and consistent execution against our strategic growth priorities enabled us to achieve record revenue of
“I am enthusiastic about our market positioning and growth potential in both domestic and international markets across our differentiated SafetySmart Platform. In 2024, ShotSpotter went live in 20 new cities and 5 universities and we deployed 126 new ShotSpotter go-live miles, approximately 30 of which were a recapture of Puerto Rico. In 2025 thus far, we announced a three-year contract renewal valued at approximately
“Looking forward in 2025, we plan to continue innovating and executing against our strategic and financial growth priorities to deliver meaningful value for our stakeholders, particularly through the integration of AI-driven capabilities. By incorporating AI and data-driven solutions into our platform, we aim to enhance efficiency and provide even more actionable insights to the agencies and the communities those agencies serve. Our sales pipeline is encouraging and I am pleased that we are starting the year with strong momentum. ARR is starting the year at
Fourth Quarter 2024 Financial Results
The fourth quarter 2024 financial results were affected by the delay of approximately
Revenues for the fourth quarter of 2024 were
Gross profit for the fourth quarter of 2024 was
Total operating expenses for the fourth quarter of 2024 were
Net loss for the fourth quarter of 2024 totaled
Adjusted EBITDA for the fourth quarter of 2024 totaled
At quarter end, the Company had
Full Year 2024 Financial Results
The full year 2024 financial results were affected by the delay of approximately
Revenues in 2024 increased
Gross profit in 2024 increased
Total operating expenses in 2024 increased
Net loss in 2024 totaled
Adjusted EBITDA for 2024 totaled
Financial Outlook
The Company is raising its full year 2025 revenue guidance range to
The Company’s financial outlook statements are based on current expectations. The preceding statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Safe Harbor Statement” below. The Company has not reconciled its Adjusted EBITDA outlook to GAAP net income (loss) due to the uncertainty and variability of interest income (expense), income taxes, depreciation and amortization, stock-based compensation expenses and acquisition-related expenses, including adjustments to the Company’s contingent consideration obligation, which are reconciling items between Adjusted EBITDA and GAAP net income (loss). Because the Company cannot reasonably predict such items, a reconciliation to forecasted GAAP net income (loss) is not available without unreasonable effort. Such items could have a significant impact on the calculation of GAAP net income (loss). For more information, see “Non-GAAP Financial Measures and Key Business Metrics” below.
Conference Call
SoundThinking will hold a conference call today February 25, 2025 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results and provide an update on business conditions.
SoundThinking management will host the presentation, followed by a question-and-answer period.
U.S. dial-in: 1-877-407-8029
International dial-in: 1-201-689-8029
Conference ID: 13751116
A live audio webcast of the conference call will be available in listen-only mode simultaneously and available for replay here and via the investor relations section of the Company’s website at https://www.soundthinking.com/.
Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization.
A replay of the call will be available after 7:30 p.m. Eastern time on the same day through March 11, 2025.
U.S. replay dial-in: 877-660-6853
International replay dial-in: 1-201-612-7415
Replay ID: 13751116
Non-GAAP Financial Measures and Key Business Metrics
Adjusted Net Income (Loss): Adjusted net income (loss), a non-GAAP financial measure, represents the Company’s net income (loss) before acquisition-related expenses, including adjustments to the Company's contingent consideration obligation, restructuring expense and loss from disposal of fixed assets.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, represents the Company’s net income (loss) before interest (income) expense, income taxes, depreciation, amortization and impairment, restructuring costs and losses on restructuring related fixed asset disposals, stock-based compensation expense and acquisition-related expenses, including adjustments to the Company's contingent consideration obligation. Adjusted EBITDA is a measure used by management internally to understand and evaluate the Company’s core operating performance and trends across accounting periods and in connection with developing future operating plans, making strategic decisions regarding the allocation of capital and considering initiatives focused on cultivating new markets for its solutions. In particular, the exclusion of these expenses in calculating Adjusted EBITDA facilitates comparisons of the Company’s operating performance on a period-to-period basis.
SoundThinking believes adjusted net income (loss) and Adjusted EBITDA also provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. For example, SoundThinking adjusts EBITDA for stock-based compensation expense and acquisition-related expenses because such expenses often vary for reasons that are generally unrelated to financial and operational performance in a particular period. Stock-based compensation is utilized by SoundThinking to attract and retain employees with a goal of long-term retention and the alignment of employee interests with those of the Company and its stockholders, rather than to address operational performance for any particular period’s financial performance measures, in particular net income (loss), or its other GAAP financial results.
The following table presents a reconciliation of GAAP net income (loss), the most directly comparable GAAP measure, to adjusted net loss, for each of the periods indicated (in thousands, except share and per share data):
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| GAAP net income (loss) | $ | (4,079 | ) | $ | 3,643 | $ | (9,180 | ) | $ | (2,718 | ) | |||||
| Less: | ||||||||||||||||
| Acquisition-related expenses | — | (97 | ) | — | 767 | |||||||||||
| Restructuring expense | (10 | ) | — | 336 | — | |||||||||||
| Loss on disposal of fixed assets | 18 | — | 23 | — | ||||||||||||
| Change in fair value of contingent consideration | — | (4,763 | ) | (554 | ) | (5,686 | ) | |||||||||
| Adjusted net loss | $ | (4,071 | ) | $ | (1,217 | ) | $ | (9,375 | ) | $ | (7,637 | ) | ||||
| Net loss per share, basic | $ | (0.32 | ) | $ | 0.29 | $ | (0.72 | ) | $ | (0.22 | ) | |||||
| Net loss per share, diluted | $ | (0.32 | ) | $ | 0.28 | $ | (0.72 | ) | $ | (0.22 | ) | |||||
| Adjusted net loss per share, basic and diluted | $ | (0.32 | ) | $ | (0.10 | ) | $ | (0.74 | ) | $ | (0.61 | ) | ||||
| Weighted-average shares used in computing net (loss) income per share and adjusted net (loss) income per share, basic | 12,589,833 | 12,736,747 | 12,710,236 | 12,425,132 | ||||||||||||
| Weighted-average shares used in computing net (loss) income per share and adjusted net (loss) income per share, diluted | 12,589,833 | 12,856,219 | 12,710,236 | 12,425,132 | ||||||||||||
The following table presents a reconciliation of Adjusted EBITDA to GAAP net income (loss), the most directly comparable GAAP measure, for each of the periods indicated (in thousands):
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| GAAP net income (loss) | $ | (4,079 | ) | $ | 3,643 | $ | (9,180 | ) | $ | (2,718 | ) | |||||
| Less: | ||||||||||||||||
| Interest (income) expense, net | (22 | ) | 112 | 154 | 48 | |||||||||||
| Income taxes | 111 | 561 | 778 | 1,204 | ||||||||||||
| Depreciation, amortization and impairment | 2,699 | 2,626 | 10,673 | 10,752 | ||||||||||||
| Restructuring expense | (10 | ) | — | 336 | — | |||||||||||
| Loss on disposal of fixed assets | 18 | — | 23 | — | ||||||||||||
| Stock-based compensation expense | 3,000 | 2,710 | 12,128 | 9,982 | ||||||||||||
| Change in fair value of contingent consideration | — | (4,763 | ) | (554 | ) | (5,686 | ) | |||||||||
| Acquisition-related expenses | — | (97 | ) | — | 767 | |||||||||||
| Adjusted EBITDA | $ | 1,717 | $ | 4,792 | $ | 14,358 | $ | 14,349 | ||||||||
Annual Recurring Revenue (ARR): ARR is calculated for a year based on the expected GAAP revenue for the year from contracts that are in effect on January 1st of such year, assuming all such contracts that are due for renewal during the year renew as expected on or near their renewal date, and including contracts executed during the year after January 1st, but for which GAAP revenue recognition starts January 1st of the year.
Revenue Retention Rate: We calculate our revenue retention rate for each year by dividing the (a) total revenues for such year from those customers who were customers during the corresponding prior year by (b) the total revenues from all customers in the corresponding prior year. For the purposes of calculating our revenue retention rate, we count as customers all entities with which we had contracts in the applicable year. Revenue retention rate for any given period does not include revenues attributable to customers first acquired during such period. We focus on our revenue retention rate because we believe that this metric provides insight into revenues related to and retention of existing customers. If our revenue retention rate for a year exceeds
Sales and Marketing Spend per
Forward-Looking Statements
This press release and earnings call referencing this press release contains "forward-looking statements" within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the Company’s expectations for its estimated revenue and Adjusted EBITDA for 2025, the Company's expectations for the increase in its ARR, ability to drive profitable growth and build upon existing contracts and partnerships, including in the United States and internationally, the potential renewal of the customer contract with New York Police Department and the timing of such renewal, and the Company’s plan to continue innovating and executing against its strategic and financial growth priorities to deliver meaningful value to its stakeholders, the Company's expectations of benefits through integration of AI-driven capabilities, operating momentum, sales pipeline, revenue growth, operating leverage and margin expansion in 2025 and beyond. Words such as "expect," "anticipate," "should," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "could," "intend," or variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control. The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company’s ability to renew its contract with New York Police Department and the timing of such renewal; the Company’s ability to successfully negotiate and execute contracts with new and existing customers in a timely manner, if at all; the Company’s ability to maintain and increase sales, including sales of the Company’s newer product lines; the availability of funding for the Company’s customers to purchase the Company’s solutions; the complexity, expense and time associated with contracting with government entities; the Company’s ability to maintain and expand coverage of existing public safety customer accounts and further penetrate the public safety market; the potential effects of negative publicity; the Company’s ability to sell its solutions into international and other new markets; the lengthy sales cycle for the Company’s solutions; changes in federal funding available to support local law enforcement; the Company’s ability to deploy and deliver its solutions; the Company’s ability to maintain and enhance its brand; and the Company’s ability to address the business and other impacts and uncertainties associated with macroeconomic factors, as well as other risk factors included in the Company’s most recent annual report on Form 10-K and other SEC filings. These forward-looking statements are made as of the date of this press release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this press release and the earnings call referencing this press release as a result of new information, future events or changes in its expectations.
About SoundThinking, Inc.
SoundThinking, Inc. (Nasdaq: SSTI) is a leading public safety technology company that delivers AI- and data-driven solutions for law enforcement, civic leadership, and security professionals. SoundThinking is trusted by more than 300 customers and has worked with approximately 2,100 agencies to drive more efficient, effective, and equitable public safety outcomes. The Company’s SafetySmart™ platform includes ShotSpotter®, the leading acoustic gunshot detection system; CrimeTracer™, the leading law enforcement search engine; CaseBuilder™, a one-stop investigation management system; ResourceRouter™, software that directs patrol and community anti-violence resources to help maximize their impact; SafePointe®, an AI-based weapons detection system; and PlateRanger powered by Rekor, a leading ALPR solution. SoundThinking has been designated a Great Place to Work® Company.
Company Contact:
Alan Stewart, CFO
SoundThinking, Inc.
+1 (510) 794-3100
astewart@soundthinking.com
Investor Relations Contacts:
Ankit Hira
Solebury Strategic Communications for SoundThinking, Inc.
+1 (203) 546 0444
ahira@soleburystrat.com
| SoundThinking, Inc. Consolidated Statements of Operations (In thousands except share and per share data) (Unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 23,411 | $ | 26,045 | $ | 102,031 | $ | 92,717 | ||||||||
| Costs | ||||||||||||||||
| Cost of revenues | 11,511 | 10,993 | 43,542 | 39,874 | ||||||||||||
| Impairment of property and equipment | 193 | 42 | 605 | 114 | ||||||||||||
| Total costs | 11,704 | 11,035 | 44,147 | 39,988 | ||||||||||||
| Gross profit | 11,707 | 15,010 | 57,884 | 52,729 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing | 6,523 | 7,379 | 28,138 | 26,959 | ||||||||||||
| Research and development | 3,484 | 3,242 | 13,925 | 12,138 | ||||||||||||
| General and administrative | 5,515 | 4,751 | 23,894 | 20,557 | ||||||||||||
| Restructuring expense | (10 | ) | - | 336 | - | |||||||||||
| Change in fair value of contingent consideration | - | (4,763 | ) | (554 | ) | (5,686 | ) | |||||||||
| Total operating expenses | 15,512 | 10,609 | 65,739 | 53,968 | ||||||||||||
| Operating income (loss) | (3,805 | ) | 4,401 | (7,855 | ) | (1,239 | ) | |||||||||
| Other income (expense), net | ||||||||||||||||
| Interest income (expense), net | 22 | (112 | ) | (154 | ) | (48 | ) | |||||||||
| Other expense, net | (185 | ) | (85 | ) | (393 | ) | (227 | ) | ||||||||
| Total other expense, net | (163 | ) | (197 | ) | (547 | ) | (275 | ) | ||||||||
| Income (loss) before income taxes | (3,968 | ) | 4,204 | (8,402 | ) | (1,514 | ) | |||||||||
| Provision for income taxes | 111 | 561 | 778 | 1,204 | ||||||||||||
| Net income (loss) | $ | (4,079 | ) | $ | 3,643 | $ | (9,180 | ) | $ | (2,718 | ) | |||||
| Net income (loss) per share, basic | $ | (0.32 | ) | $ | 0.29 | $ | (0.72 | ) | $ | (0.22 | ) | |||||
| Net income (loss) per share, diluted | $ | (0.32 | ) | $ | 0.28 | $ | (0.72 | ) | $ | (0.22 | ) | |||||
| Weighted-average shares used in computing net income (loss) per share, basic | 12,589,833 | 12,736,747 | 12,710,236 | 12,425,132 | ||||||||||||
| Weighted-average shares used in computing net income (loss) per share, diluted | 12,589,833 | 12,856,219 | 12,710,236 | 12,425,132 | ||||||||||||
| SoundThinking, Inc. Consolidated Balance Sheets (In thousands except share and per share data) (Unaudited) | ||||||||
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 13,183 | $ | 5,703 | ||||
| Accounts receivable and contract asset, net | 25,170 | 30,700 | ||||||
| Prepaid expenses and other current assets | 5,175 | 3,902 | ||||||
| Total current assets | 43,528 | 40,305 | ||||||
| Property and equipment, net | 20,131 | 21,028 | ||||||
| Operating lease right-of-use assets | 1,878 | 2,315 | ||||||
| Goodwill | 34,213 | 34,213 | ||||||
| Intangible assets, net | 33,182 | 36,938 | ||||||
| Other assets | 3,861 | 3,909 | ||||||
| Total assets | $ | 136,793 | $ | 138,708 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 3,442 | $ | 3,031 | ||||
| Line of credit | 4,000 | 7,000 | ||||||
| Deferred revenue, short-term | 38,401 | 41,265 | ||||||
| Accrued expenses and other current liabilities | 10,216 | 8,521 | ||||||
| Total current liabilities | 56,059 | 59,817 | ||||||
| Deferred revenue, long-term | 5,832 | 812 | ||||||
| Deferred tax liability | 1,361 | 1,226 | ||||||
| Other liabilities | 1,142 | 2,096 | ||||||
| Total liabilities | 64,394 | 63,951 | ||||||
| Stockholders' equity | ||||||||
| Common stock: 12,634,479 and 12,761,448 shares issued and outstanding as of December 31, 2024 and 2023, respectively | 64 | 64 | ||||||
| Additional paid-in capital | 177,021 | 170,139 | ||||||
| Accumulated deficit | (104,298 | ) | (95,118 | ) | ||||
| Accumulated other comprehensive loss | (388 | ) | (328 | ) | ||||
| Total stockholders' equity | 72,399 | 74,757 | ||||||
| Total liabilities and stockholders' equity | $ | 136,793 | $ | 138,708 | ||||
FAQ
What caused SoundThinking's (SSTI) Q4 2024 revenue decline?
What is SoundThinking's (SSTI) revenue guidance for 2025?
How many new deployments did SoundThinking's (SSTI) ShotSpotter achieve in 2024?
What is SoundThinking's (SSTI) expected ARR growth from 2025 to 2026?
