Revenues up 41% Year-Over-Year to a Record
and 35% Increase in Adjusted EBITDA to
Company Reiterates Full Year 2022
Representing 41% Growth at the Midpoint Compared to 2021,
and
First Quarter 2022 Financial and Operational Highlights
- Revenues increased 41% to
$21.2 million from$15.0 million for the same quarter of 2021. - Gross profit increased 46% to
$12.7 million (60% of revenues) from$8.7 million (58% of revenues) for the same quarter of 2021. - GAAP net income totaled
$387,000 , compared to GAAP net income of$79,000 for the same quarter of 2021. - Adjusted EBITDA1 increased 35% to
$4.5 million (21% of revenues) from$3.3 million (22% of revenues) for the same quarter of 2021. - Went “live” with ShotSpotter Respond in four new cities, secured two new security customers and expanded in three current customer cities.
- Solid balance sheet with
$8.9 million in cash and cash equivalents and$20.0 million available on the company’s line of credit at the end of the quarter. - Closed acquisition of
Forensic Logic, LLC , a leading provider of cloud-based data services. - Repurchased 57,623 shares at a cost of
$1.6 million during the quarter. - Released first-ever Environmental, Social and Governance (ESG) Report, highlighting the company’s positive impacts in the world by helping to save lives and improve public safety in communities across the country, protecting the environment and wildlife internationally, and progress on diversity, equity and inclusion (DEI) efforts.
1 See the section below titled “Non-GAAP Financial Measures” for more information about Adjusted EBITDA and its reconciliation to GAAP net income.
Financial Outlook
The company reiterated its full year 2022 revenue guidance of
The company has not reconciled its Adjusted EBITDA outlook to GAAP net income due to the uncertainty and variability of interest income, income taxes, depreciation and amortization, stock-based compensation expenses and acquisition related expenses, which are reconciling items between Adjusted EBITDA and GAAP net income. Because the company cannot reasonably predict such items, a reconciliation to forecasted GAAP net income is not available without unreasonable effort. Such items could have a significant impact on the calculation of GAAP net income. For more information, see “Non-GAAP Financial Measures” below.
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.
Management Commentary
“The first quarter marked a solid start to the year, highlighted by robust revenue growth and strong profitability,” said
“Our acquisition of Forensic Logic, a leading provider of cloud-based data services to
First Quarter 2022 Financial Results
Revenues for the first quarter of 2022 increased 41% to
Gross profit for the first quarter of 2022 was
Total operating expenses for the first quarter of 2022 were
Net income for the first quarter of 2022 totaled
Adjusted EBITDA for the first quarter of 2022 totaled
Conference Call
International dial-in: 1-412-317-5185
Conference ID: 10166767
A live audio webcast of the conference call will be available in listen-only mode simultaneously and available for replay in the investor relations section of the company’s website at www.shotspotter.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
International replay dial-in: 1-412-317-6671
Replay ID: 10166767
Non-GAAP Financial Measures
Adjusted net income: Adjusted net income, a non-GAAP financial measure, represents the company’s net income before acquisition-related expenses.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, represents the company’s net income before interest (income) expense, income taxes, depreciation, amortization and impairment, stock-based compensation expense and acquisition-related expenses, including contingent liability increases related to any earnout consideration. 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 our 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.
The following table presents a reconciliation of adjusted net income to GAAP net income, the most directly comparable GAAP measure, for each of the periods indicated (in thousands, except share and per share data):
For the Three Months Ended | ||||||||
2022 | 2021 | |||||||
(unaudited) | ||||||||
GAAP net income | $ | 387 | $ | 79 | ||||
Less: | ||||||||
Acquisition related expenses | 101 | 165 | ||||||
Adjusted net income | $ | 488 | $ | 244 | ||||
Adjusted net income per share, basic | $ | 0.04 | $ | 0.02 | ||||
Adjusted net income per share, diluted | $ | 0.04 | $ | 0.02 | ||||
Weighted average shares used in computing adjusted net income per share, basic | 12,156,968 | 11,584,605 | ||||||
Weighted average shares used in computing adjusted net income per share, diluted | 12,315,806 | 11,898,362 |
The following table presents a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure, for each of the periods indicated (in thousands):
For the Three Months Ended | ||||||||
2022 | 2021 | |||||||
(unaudited) | ||||||||
GAAP net income | $ | 387 | $ | 79 | ||||
Less: | ||||||||
Interest income | (8 | ) | (11 | ) | ||||
Income taxes | — | 49 | ||||||
Depreciation and amortization | 2,182 | 1,677 | ||||||
Stock-based compensation expense | 1,855 | 1,375 | ||||||
Acquisition related expenses | 101 | 165 | ||||||
Adjusted EBITDA | $ | 4,517 | $ | 3,334 |
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 estimated revenue and Adjusted EBITDA for 2022, operating momentum and sales pipeline, total addressable market, and the funding environment for the company’s products. Words such as "expect," "anticipate," "should," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "could," "intend," 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 successfully negotiate and execute contracts with new and existing customers in a timely manner, if at all; the company’s ability to address the business and other impacts and uncertainties associated with the COVID-19 pandemic; 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 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 potential effects of negative publicity; and the company’s ability to maintain and enhance its brand, as well as other risk factors included in the company’s most recent annual report on Form 10-K and other
About
Company Contact:
+1 (510) 794-3100
astewart@shotspotter.com
Investor Relations Contacts:
Gateway Investor Relations
+1 (949) 574-3860
SSTI@gatewayir.com
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
For the Three Months Ended | ||||||||
2022 | 2021 | |||||||
(Unaudited) | ||||||||
Revenues | $ | 21,214 | $ | 15,013 | ||||
Costs | ||||||||
Cost of revenues | 8,562 | 6,300 | ||||||
Impairment of property and equipment | — | 25 | ||||||
Total costs | 8,562 | 6,325 | ||||||
Gross profit | 12,652 | 8,688 | ||||||
Operating expenses | ||||||||
Sales and marketing | 5,193 | 3,935 | ||||||
Research and development | 2,713 | 1,713 | ||||||
General and administrative | 4,314 | 2,871 | ||||||
Total operating expenses | 12,220 | 8,519 | ||||||
Operating income | 432 | 169 | ||||||
Other income (expense), net | ||||||||
Interest income, net | 8 | 11 | ||||||
Other expense, net | (53 | ) | (52 | ) | ||||
Total other income (expense), net | (45 | ) | (41 | ) | ||||
Income before income taxes | 387 | 128 | ||||||
Provision for income taxes | — | 49 | ||||||
Net income | $ | 387 | $ | 79 | ||||
Net income per share, basic | $ | 0.03 | $ | 0.01 | ||||
Net income per share, diluted | $ | 0.03 | $ | 0.01 | ||||
Weighted average shares used in computing adjusted net income per share, basic | 12,156,968 | 11,584,605 | ||||||
Weighted average shares used in computing adjusted net income per share, diluted | 12,315,806 | 11,898,362 | ||||||
Condensed Consolidated Balance Sheets
(In thousands)
2022 | 2021 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 8,852 | $ | 15,636 | ||||
Accounts receivable and contract asset | 21,256 | 16,134 | ||||||
Prepaid expenses and other current assets | 2,456 | 2,504 | ||||||
Total current assets | 32,564 | 34,274 | ||||||
Property and equipment, net | 18,707 | 17,409 | ||||||
Operating lease right-of-use assets | 3,961 | 2,323 | ||||||
23,171 | 2,816 | |||||||
Intangible assets, net | 29,220 | 13,564 | ||||||
Other assets | 2,581 | 1,918 | ||||||
Total assets | $ | 110,204 | $ | 72,304 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 2,449 | $ | 1,587 | ||||
Deferred revenue, short-term | 33,886 | 26,235 | ||||||
Accrued expenses and other current liabilities | 12,952 | 6,680 | ||||||
Total current liabilities | 49,287 | 34,502 | ||||||
Deferred revenue, long-term | 1,623 | 474 | ||||||
Other liabilities | 10,519 | 3,513 | ||||||
Total liabilities | 61,429 | 38,489 | ||||||
Stockholders' equity | ||||||||
Common stock | 61 | 58 | ||||||
Additional paid-in capital | 147,277 | 132,780 | ||||||
Accumulated deficit | (98,398 | ) | (98,785 | ) | ||||
Accumulated other comprehensive loss | (165 | ) | (238 | ) | ||||
Total stockholders' equity | 48,775 | 33,815 | ||||||
Total liabilities and stockholders' equity | $ | 110,204 | $ | 72,304 |
Source:
2022 GlobeNewswire, Inc., source