SoundThinking, Inc. Reports Second Quarter 2024 Financial Results
SoundThinking, Inc. (Nasdaq: SSTI) reported strong Q2 2024 financial results, with revenues increasing 22% to a record $27.0 million. The company saw growth from new and existing customers, as well as contributions from CaseBuilder. Key highlights include:
- Gross profit up 27% to $16.1 million (60% of revenues)
- Adjusted EBITDA increased over 110% to $5.1 million (19% of revenues)
- ShotSpotter went live in 3 new cities and expanded in 4 current cities
- Launched strategic partnership for 'PlateRanger, Powered by Rekor' LPR solution
SoundThinking reaffirmed its FY 2024 revenue guidance of $104.0-$106.0 million, representing 13% year-over-year growth at the midpoint, and Adjusted EBITDA margin guidance of 18-20%.
SoundThinking, Inc. (Nasdaq: SSTI) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con un aumento del fatturato del 22% che ha raggiunto un record di 27,0 milioni di dollari. L'azienda ha registrato una crescita da nuovi e attuali clienti, oltre a contributi da CaseBuilder. I punti salienti includono:
- Utile lordo aumentato del 27% a 16,1 milioni di dollari (60% del fatturato)
- EBITDA rettificato aumentato di oltre il 110% a 5,1 milioni di dollari (19% del fatturato)
- ShotSpotter è stato attivato in 3 nuove città e ampliato in 4 città già esistenti
- Lanciata una partnership strategica per la soluzione LPR 'PlateRanger, Powered by Rekor'
SoundThinking ha ribadito la propria previsione di fatturato per l'anno fiscale 2024 di 104,0-106,0 milioni di dollari, corrispondente a una crescita del 13% anno su anno al punto medio, e una guida per il margine EBITDA rettificato del 18-20%.
SoundThinking, Inc. (Nasdaq: SSTI) reportó resultados financieros sólidos para el segundo trimestre de 2024, con un aumento del 22% en los ingresos alcanzando un récord de 27,0 millones de dólares. La empresa vio crecimiento tanto de nuevos como de clientes existentes, así como contribuciones de CaseBuilder. Los puntos destacados incluyen:
- Ganancia bruta aumentada en un 27% a 16,1 millones de dólares (60% de los ingresos)
- EBITDA ajustado incrementado en más del 110% a 5,1 millones de dólares (19% de los ingresos)
- ShotSpotter se activó en 3 nuevas ciudades y se expandió en 4 ciudades actuales
- Se lanzó una asociación estratégica para la solución de LPR 'PlateRanger, Powered by Rekor'
SoundThinking reafirmó su guía de ingresos para el año fiscal 2024 de 104,0-106,0 millones de dólares, lo que representa un crecimiento del 13% interanual en el punto medio, y una guía de margen EBITDA ajustado del 18-20%.
SoundThinking, Inc. (Nasdaq: SSTI)는 2024년 2분기 재무 결과가 강력하게 나타났으며, 매출이 22% 증가하여 역대 최고인 2,700만 달러에 이르렀습니다. 이 회사는 신규 고객과 기존 고객 모두에서 성장세를 보였으며, CaseBuilder로부터의 기여도 있었습니다. 주요 하이라이트는 다음과 같습니다:
- 총 이익이 27% 증가하여 1,610만 달러(매출의 60%)
- 조정된 EBITDA가 110% 이상 증가하여 510만 달러(매출의 19%)
- ShotSpotter가 3개의 새로운 도시에 도입되고, 4개의 기존 도시에 확장되었습니다
- 'PlateRanger, Powered by Rekor' LPR 솔루션을 위한 전략적 파트너십이 출범하였습니다
SoundThinking은 2024 회계연도 매출 가이던스를 1억 4백만~1억 6백만 달러로 재확인했으며, 이는 중간값 기준으로 연평균 13% 성장에 해당하며, 조정 EBITDA 마진 가이던스는 18-20%입니다.
SoundThinking, Inc. (Nasdaq: SSTI) a rapporté des résultats financiers solides pour le deuxième trimestre 2024, avec une augmentation de 22 % des revenus atteignant un record de 27,0 millions de dollars. L'entreprise a connu une croissance provenant de nouveaux et d'anciens clients, ainsi que des contributions de CaseBuilder. Les points saillants incluent :
- Bénéfice brut en hausse de 27 % à 16,1 millions de dollars (60 % des revenus)
- EBITDA ajusté en hausse de plus de 110 % à 5,1 millions de dollars (19 % des revenus)
- ShotSpotter a été lancé dans 3 nouvelles villes et a été étendu dans 4 villes existantes
- Partenariat stratégique lancé pour la solution LPR 'PlateRanger, Powered by Rekor'
SoundThinking a réaffirmé sa prévision de revenus pour l'exercice 2024 de 104,0 à 106,0 millions de dollars, représentant une croissance de 13 % d'une année sur l'autre au point médian, et une prévision de marge EBITDA ajustée de 18 à 20 %.
SoundThinking, Inc. (Nasdaq: SSTI) meldete für das zweite Quartal 2024 starke Finanzzahlen, mit einem Umsatzanstieg von 22% auf einen Rekord von 27,0 Millionen Dollar. Das Unternehmen verzeichnete Wachstum sowohl bei neuen als auch bei bestehenden Kunden sowie Beiträge von CaseBuilder. Zu den wichtigsten Highlights gehören:
- Bruttogewinn um 27% auf 16,1 Millionen Dollar gestiegen (60% des Umsatzes)
- Bereinigtes EBITDA um über 110% auf 5,1 Millionen Dollar gestiegen (19% des Umsatzes)
- ShotSpotter in 3 neuen Städten eingeführt und in 4 bestehenden Städten erweitert
- Strategische Partnerschaft für die LPR-Lösung 'PlateRanger, Powered by Rekor' gestartet
SoundThinking bekräftigte seine Umsatzprognose für das Geschäftsjahr 2024 von 104,0-106,0 Millionen Dollar, was einem Wachstum von 13% gegenüber dem Vorjahr im Durchschnitt entspricht, und eine EBITDA-Margenprognose von 18-20%.
- Record Q2 2024 revenues of $27.0 million, up 22% year-over-year
- Gross profit increased 27% to $16.1 million, with margin expansion to 60%
- Adjusted EBITDA grew over 110% to $5.1 million, reaching 19% of revenues
- ShotSpotter expanded to 3 new cities and 4 existing cities
- Launched strategic partnership for new LPR solution 'PlateRanger'
- Reaffirmed FY 2024 revenue guidance of $104.0-$106.0 million
- GAAP net loss of $0.8 million in Q2 2024
- Operating expenses increased to $16.1 million due to higher headcount and employee-related costs
- $7.0 million in debt related to SafePointe acquisition
- Ongoing civic debate regarding non-renewal of ShotSpotter contract in Chicago
Insights
SoundThinking's Q2 2024 results show strong financial performance with
The company's diversification strategy is paying off, with new city adoptions, expansions in existing markets and cross-selling of SafetySmart™ Platform solutions. The upcoming launch of PlateRanger in the LPR market could open new revenue streams. However, investors should monitor the situation in Chicago, as non-renewal could impact future growth.
With
SoundThinking's Q2 results reflect a growing demand for public safety technology. The company's success in adding new cities and expanding within existing markets underscores the relevance of its offerings. The SafetySmart™ Platform strategy appears to be resonating with law enforcement agencies, evidenced by robust cross-selling momentum.
The strategic partnership to launch PlateRanger positions SoundThinking to tap into the expanding LPR market, potentially broadening its customer base and revenue streams. This move aligns with the industry trend of integrated, data-driven public safety solutions.
However, the ongoing debate about the Chicago contract renewal highlights the sensitivity of this market to public opinion and policy changes. This situation underscores the importance of diversification in SoundThinking's growth strategy. The company's ability to navigate these challenges while maintaining its growth trajectory will be important for long-term success in the evolving public safety technology landscape.
Revenues Increased
Company Reaffirms FY 2024 Revenue Guidance Range of
FREMONT, Calif., Aug. 06, 2024 (GLOBE NEWSWIRE) -- SoundThinking, Inc. (Nasdaq: SSTI), a leading public safety technology company, today reported financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial and Operational Highlights
- Revenues increased
22% to$27.0 million , compared to$22.1 million for the same quarter of 2023. - Gross profit increased
27% to$16.1 million (60% of revenues), compared to$12.7 million (57% of revenues) for the same quarter of 2023. - GAAP net loss totaled
$0.8 million , compared to GAAP net loss of$2.7 million for the same quarter of 2023. - Adjusted EBITDA1 increased over
110% to$5.1 million (19% of revenues), compared to$2.4 million (11% of revenues) for the same quarter of 2023. - ShotSpotter went “live” in three new cities and expanded with four current cities, two commercial customers and one university.
- Increased revenue of approximately
$0.5 million of Professional Services associated with CaseBuilder and NYPD Technologic projects due to an acceleration of work into the second quarter. - Repurchased 134,150 shares of common stock for approximately
$2.0 million as part of a$25 million share repurchase program.
1 See the section below titled “Non-GAAP Financial Measures” for more information about Adjusted EBITDA and its reconciliation to GAAP net income (loss).
Management Commentary
“Our business continued to display strong momentum and resilience in the second quarter as we see persistent traction across our SafetySmart™ Platform,” said President and CEO Ralph Clark. “In the second quarter, our revenues grew
“Our strategic expansion of the SafetySmart platform, coupled with our robust go-to-market approach, underscores the strength of our offerings. This strategy, along with our world-class team and key partnerships, reinforces my confidence in our market position and growth potential. We remain focused on expanding our end-user buying center markets and diversifying our customer and product revenue base while judiciously managing costs. We believe we are well-positioned to capitalize on the substantial growth opportunity ahead.
“Additionally, on July 23, 2024 we announced a strategic partnership to create and launch a new end-to-end vehicle and License Plate Reader (LPR) public safety solution, ‘PlateRanger, Powered by Rekor.’ This collaboration brings together two industry leaders, combining SoundThinking's expertise in acoustic gunshot detection and investigative solutions with Rekor's best-in-class vehicle LPR solutions. PlateRanger is expected to be positioned as a part of the SafetySmart™ platform starting in September 2024, marking SoundThinking's expansion into the growing LPR market.”
Second Quarter 2024 Financial Results
Revenues for the second quarter of 2024 were
Gross profit for the second quarter of 2024 was
Total operating expenses for the second quarter of 2024 were
Net loss for the second quarter of 2024 totaled
Adjusted EBITDA for the second quarter of 2024 totaled
At quarter end, the company had
Financial Outlook
The company reaffirmed its full-year 2024 revenue guidance range of
“While acknowledging the ongoing civic debate regarding the non-renewal of the ShotSpotter contract in Chicago, we remain confident in our ability to achieve both revenue growth and enhanced profitability in 2025 and beyond,” added Clark.
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, 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” below.
Conference Call
SoundThinking will hold a conference call today August 6, 2024 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: 13747815
A live audio webcast of the conference call will be available in listen-only mode simultaneously and available for replay via the investor relations section of the company’s website at 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 August 20, 2024.
U.S. replay dial-in: 1-877-660-6853
International replay dial-in: 1-201-612-7415
Replay ID: 13747815
Non-GAAP Financial Measures
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 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 June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| GAAP net loss | $ | (752 | ) | $ | (2,697 | ) | $ | (3,661 | ) | $ | (4,487 | ) | |||
| Less: | |||||||||||||||
| Acquisition-related expenses | — | 175 | — | 175 | |||||||||||
| Restructuring expense | 346 | — | 346 | — | |||||||||||
| Loss on disposal of fixed assets | 5 | — | 5 | — | |||||||||||
| Change in fair value of contingent consideration | (554 | ) | (999 | ) | (554 | ) | (1,005 | ) | |||||||
| Adjusted net loss | $ | (955 | ) | $ | (3,521 | ) | $ | (3,864 | ) | $ | (5,317 | ) | |||
| Adjusted net loss per share, basic and diluted | $ | (0.07 | ) | $ | (0.28 | ) | $ | (0.30 | ) | $ | (0.43 | ) | |||
| Weighted average shares used in computing net loss per share and adjusted net loss per share, basic and diluted | 12,792,952 | 12,224,501 | 12,781,910 | 12,238,432 | |||||||||||
The following table presents a reconciliation of GAAP net loss, the most directly comparable GAAP measure, to Adjusted EBITDA for each of the periods indicated (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| GAAP net loss | $ | (752 | ) | $ | (2,697 | ) | $ | (3,661 | ) | $ | (4,487 | ) | |||
| Less: | |||||||||||||||
| Interest (income) expense, net | 61 | (52 | ) | 183 | (106 | ) | |||||||||
| Income taxes | 234 | 344 | 348 | 344 | |||||||||||
| Depreciation, amortization and impairment | 2,624 | 3,147 | 5,413 | 5,651 | |||||||||||
| Restructuring expense | 346 | — | 346 | — | |||||||||||
| Loss on disposal of fixed assets | 5 | — | 5 | — | |||||||||||
| Stock-based compensation expense | 3,146 | 2,479 | 6,073 | 4,699 | |||||||||||
| Change in fair value of contingent consideration | (554 | ) | (999 | ) | (554 | ) | (1,005 | ) | |||||||
| Acquisition-related expenses | — | 175 | — | 175 | |||||||||||
| Adjusted EBITDA | $ | 5,110 | $ | 2,397 | $ | 8,153 | $ | 5,271 | |||||||
Safe Harbor Statement
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 2024, its ability to achieve revenue growth and enhanced profitability in 2025 and beyond, its long-term financial targets, ability to drive profitable growth and build upon existing contracts and partnerships, including in the United States and internationally, operating momentum, financial visibility, sales pipeline, revenue growth, operating leverage and margin expansion. 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 likelihood that the City of Chicago will not be using ShotSpotter following November 2024; 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 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. We are trusted by more than 250 customers and approximately 2,100 agencies to drive more efficient, effective, and equitable public safety outcomes. Our 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; and SafePointe®, an AI-based weapons detection system. 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:
Matt Glover and Greg Bradbury
Gateway Group, Inc.
+1 (949) 574-3860
SSTI@gateway-grp.com
Ankit Hira and Sean Daly
Solebury Strategic Communications
+1 (203) 546-0444
ahira@soleburystrat.com
| SoundThinking, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues | $ | 26,960 | $ | 22,075 | $ | 52,370 | $ | 42,695 | |||||||
| Costs | |||||||||||||||
| Cost of revenues | 10,781 | 9,413 | 21,052 | 18,656 | |||||||||||
| Impairment of property and equipment | 106 | — | 358 | 72 | |||||||||||
| Total costs | 10,887 | 9,413 | 21,410 | 18,728 | |||||||||||
| Gross profit | 16,073 | 12,662 | 30,960 | 23,967 | |||||||||||
| Operating expenses | |||||||||||||||
| Sales and marketing | 7,322 | 7,443 | 14,434 | 13,291 | |||||||||||
| Research and development | 3,468 | 3,057 | 7,028 | 5,710 | |||||||||||
| General and administrative | 5,880 | 5,513 | 12,710 | 10,129 | |||||||||||
| Change in fair value of contingent consideration | (554 | ) | (999 | ) | (554 | ) | (1,005 | ) | |||||||
| Total operating expenses | 16,116 | 15,014 | 33,618 | 28,125 | |||||||||||
| Operating loss | (43 | ) | (2,352 | ) | (2,658 | ) | (4,158 | ) | |||||||
| Other income (expense), net | |||||||||||||||
| Interest income (expense), net | (61 | ) | 52 | (183 | ) | 106 | |||||||||
| Other expense, net | (414 | ) | (53 | ) | (472 | ) | (91 | ) | |||||||
| Total other income (expense), net | (475 | ) | (1 | ) | (655 | ) | 15 | ||||||||
| Loss before income taxes | (518 | ) | (2,353 | ) | (3,313 | ) | (4,143 | ) | |||||||
| Provision for income taxes | 234 | 344 | 348 | 344 | |||||||||||
| Net loss | $ | (752 | ) | $ | (2,697 | ) | $ | (3,661 | ) | $ | (4,487 | ) | |||
| Net loss per share, basic and diluted | $ | (0.06 | ) | $ | (0.22 | ) | $ | (0.29 | ) | $ | (0.37 | ) | |||
| Weighted-average shares used in computing net loss per share, basic and diluted | 12,792,952 | 12,224,501 | 12,781,910 | 12,238,432 | |||||||||||
| SoundThinking, Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) | |||||||
| June 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 9,790 | $ | 5,703 | |||
| Accounts receivable and contract assets, net | 35,705 | 30,700 | |||||
| Prepaid expenses and other current assets | 3,541 | 3,902 | |||||
| Total current assets | 49,036 | 40,305 | |||||
| Property and equipment, net | 21,396 | 21,028 | |||||
| Operating lease right-of-use assets | 2,297 | 2,315 | |||||
| Goodwill | 34,213 | 34,213 | |||||
| Intangible assets, net | 35,037 | 36,938 | |||||
| Other assets | 3,902 | 3,909 | |||||
| Total assets | $ | 145,881 | $ | 138,708 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 2,448 | $ | 3,031 | |||
| Accrued expenses and other current liabilities | 8,434 | 8,521 | |||||
| Line of credit | 7,000 | 7,000 | |||||
| Deferred revenue, short-term | 42,985 | 41,265 | |||||
| Total current liabilities | 60,867 | 59,817 | |||||
| Deferred revenue, long-term | 6,446 | 812 | |||||
| Deferred tax liability | 1,333 | 1,226 | |||||
| Other liabilities | 1,620 | 2,096 | |||||
| Total liabilities | 70,266 | 63,951 | |||||
| Stockholders' equity | |||||||
| Common stock | 64 | 64 | |||||
| Additional paid-in capital | 174,662 | 170,139 | |||||
| Accumulated deficit | (98,779 | ) | (95,118 | ) | |||
| Accumulated other comprehensive loss | (332 | ) | (328 | ) | |||
| Total stockholders' equity | 75,615 | 74,757 | |||||
| Total liabilities and stockholders' equity | $ | 145,881 | $ | 138,708 | |||
FAQ
What were SoundThinking's (SSTI) Q2 2024 revenue and growth rate?
How did SoundThinking's (SSTI) Adjusted EBITDA perform in Q2 2024?
What is SoundThinking's (SSTI) revenue guidance for FY 2024?
How many new cities did ShotSpotter go live in during Q2 2024?
