SOUNDTHINKING, INC. Q4 FY2024 earnings call

• Q4 2024 revenue down 10% to $23.4M due to NYPD contract delays, but full year 2024 revenue up 10% to $102M.
• ShotSpotter had 20 new cities, 5 new universities go live, 24 expansions, and 126 miles live in 2024. Booked $75.7M in net new and renewal subscription-based ACV with 59% multi-year agreements.
• International sales momentum with new city captures in Brazil, South Africa, Uruguay; reestablished ShotSpotter deployment in Puerto Rico.
• Launched next-gen SafePointe weapons detection system with enhanced features, secured pilot wins with top hospital chains.
• ResourceRouter saw 100% ASP growth from 2023 to 2024 and had ~$4M of 2025 pipeline.
• Strategic partnership with Rekor Systems for PlateRanger ALPR solution integrated into SafetySmart platform.
• Net promoter score was 66%, up 200 basis points from 2023; over 85 new ShotSpotter customers added since 2020, with a strong renewal to non-renewal ratio.

In Q4 2024, revenue decreased by 10% year-over-year to $23.4 million, primarily due to a delay in two NYPD contracts. However, full year 2024 revenue grew by 10% to a record $102 million. ShotSpotter went live in 20 new cities, 5 new universities, had 24 expansions, and took 126 miles live. Net new and renewal subscription-based ACV booked was $75.7 million, with 59% being multi-year agreements. International sales momentum was strong with new city captures in Brazil, South Africa, and Uruguay. As of year-end 2024, there was approximately $50 million of 2025 qualified ACV pipeline, with 62% non-domestic ShotSpotter pipeline.

• Increased full year 2025 revenue guidance to $111 million to $113 million, representing ~10% year-over-year growth. If including Chicago revenue from 2024, growth would be 19%.
• Increased full year 2025 adjusted EBITDA margin guidance range to 21% to 23%.

• Political distractions and personnel turnover in New York City and NYPD command staff caused delays in NYPD contract renewals.
• ARPA funds beginning to dry up, which may impact funding for public safety solutions if not mitigated creatively.

Q: Trevor Walsh asked about Chicago's new RFP and SoundThinking's thinking on replying.

A: Ralph Clark said they are evaluating potential response, confident in being the best gunshot detection solution.

Q: Trevor Walsh asked about SafePointe multimillion-dollar opportunities with hospital chains and inclusion in 2025 guidance.

A: Alan Stewart said SafePointe bookings are multiyear, with some contributing to 2025 revenue guidance.

Q: Bruce Goldfarb asked about pipeline disruption from federal government DOGE efforts.

A: Ralph Clark said they are watching ARPA funds drying up, focusing on creative funding sources from private sector and state initiatives like New Jersey and New York State.

Q: Mike Latimore asked about ARR guidance and incremental growth from gunshot detection.

A: Alan Stewart said gunshot detection, including international, would contribute $8M-$9.5M to the ARR growth from ~$96M to ~$110M.

Q: Mike Latimore asked about top verticals for SafePointe weapon detection.

A: Ralph Clark said healthcare, gaming centers, and selected corporate sites are top verticals with momentum.