In This Article:
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SoundThinking Inc (NASDAQ:SSTI) achieved a record full-year revenue of $102 million in 2024, reflecting a 10% growth despite challenges.
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The company successfully renewed a significant three-year contract with the NYPD worth approximately $21.9 million, securing services through December 2027.
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SoundThinking Inc (NASDAQ:SSTI) expanded its ShotSpotter service internationally, with new city captures in Brazil, South Africa, and Uruguay, indicating strong international sales momentum.
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The company launched the next generation of its Safe Point weapons protection system, securing pilot wins with two top 10 hospital chains in the United States.
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SoundThinking Inc (NASDAQ:SSTI) reported a world-class net promoter score of 66%, indicating high customer satisfaction and loyalty.
Negative Points
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Q4 2024 revenue decreased by 10% year-over-year to $23.4 million, primarily due to delayed contract renewals with the NYPD.
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The company's gross profit margin decreased to 50% in Q4 2024 from 58% in the prior year period.
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SoundThinking Inc (NASDAQ:SSTI) reported a GAAP net loss of approximately $4.1 million for Q4 2024, compared to a net income of $3.6 million in the prior year period.
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Operating expenses increased to 66% of revenues in Q4 2024, up from 41% in the same period of 2023.
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The company faces potential challenges with funding as ARPA funds begin to dry up, requiring creative solutions to secure alternative funding sources.
Q & A Highlights
Q: Ralph, regarding the Chicago RFP for gunshot detection, are you considering submitting a bid? A: Ralph Clark, CEO: We are encouraged by Chicago's RFP for a gunshot detection system but are still evaluating our response. We are confident in our solution's market-leading capabilities.
Q: Alan, are the multi-million dollar opportunities with hospital chains related to Safe Point included in the 2025 guidance? A: Alan Stewart, CFO: Yes, some of these multi-year bookings are expected to contribute to our increased revenue guidance for 2025.
Q: Are you concerned about any pipeline disruption from federal government efforts or exposure there? A: Ralph Clark, CEO: We are monitoring budget issues closely, especially as ARPA funds dry up. We are exploring creative funding solutions, including state-level initiatives, to mitigate potential impacts.
Q: Can you provide a rough range of how much incremental growth in ARR will come from the gunshot detection category? A: Alan Stewart, CFO: We expect gunshot detection, including international growth, to contribute between $8 and $9.5 million to our ARR growth.