Mon, Mar 31, 6:25 PM (27 days ago)
### Summary of SoundThinking, Inc. (SSTI) **Financial Performance:** - **Revenue:** $102.0 million for 2024, up 10% from 2023. - **Net Income (Loss):** Net loss of $9.2 million for 2024, compared to a net loss of $2.7 million in 2023 and net income of $6.4 million in 2022. - **Accumulated Deficit:** $104.3 million as of December 31, 2024. - **Revenue Retention Rate:** 105% for 2024, 107% for 2023. - **Sales and Marketing Spend:** $0.63 per $1.00 of new annualized contract value in 2024, $0.52 in 2023. - **Net New "Go-Live" Square Miles:** (64) in 2024, 155 in 2023. - **Net New "Go-Live" Cities:** 25 in 2024 and 2023. - **Annual Recurring Revenue:** $95.6 million in 2024, $95.4 million in 2023. **Revenue Sources:** - **ShotSpotter:** 71% of total revenues in 2024. - **Top Customers:** City of New York (23%) and City of Chicago (10%) in 2024. **Operating Expenses:** - **Sales and Marketing:** $28.1 million in 2024, up 4% from 2023. - **Research and Development:** $13.9 million in 2024, up 15% from 2023. - **General and Administrative:** $23.9 million in 2024, up 16% from 2023. - **Total Operating Expenses:** $65.7 million in 2024, up 22% from 2023. **Strategic Overview:** - **Growth Strategy:** Focus on expanding domestic and international footprint, increasing adoption of SafetySmart platform, and driving customer success. - **Key Initiatives:** Entry into ALPR market, reorganized sales team, accelerating public safety customer acquisitions, expanding ShotSpotter revenue, expanding international footprint, developing new products and services, and growing security business. - **Customer Revenue Model:** Subscription-based model for ShotSpotter, ShotSpotter for Campus, ShotSpotter for Corporate, ResourceRouter, CaseBuilder, and CrimeTracer. **Future Outlook:** - **Market Position:** Significant demand for advanced gunfire detection and location notification solutions. - **Risk Factors:** Dependence on government funding, complex contracting processes, long sales cycles, and potential negative publicity. **Financial Condition:** - **Cash and Cash Equivalents:** $13.2 million as of December 31, 2024. - **Available Credit Facility:** $21.0 million as of December 31, 2024. - **Stock Repurchase Program:** $13.4 million remaining under the 2022 Repurchase Program as of December 31, 2024. **Market Position Changes:** - **Customer Base:** 328 customers as of December 31, 2024, with coverage areas under contract for over 1,076 square miles. - **International Expansion:** Potential to expand into Latin America, Central America, the Caribbean, South America, and southern Africa. **Risk Factors:** - **Growth Dependence:** Success depends on increasing customer base, expanding coverage areas, and international expansion. - **Funding Risks:** Dependence on government funding and complex contracting processes. - **Sales Cycle:** Lengthy and time-consuming sales process with potential delays. - **Public Perception:** Negative publicity can impact sales and customer renewals. - **Economic Uncertainties:** Potential impact of economic downturns and political changes on funding availability. **Note:** The company's financial health shows a net loss for 2024, indicating challenges in achieving profitability despite revenue growth. The strategic focus on expanding market reach and product offerings aims to drive future growth and improve financial performance.