SOUNDTHINKING, INC. Fourth Quarter 2021 Financial and Operational Highlights
- Revenues increased 10% to
$14.0 million from$12.6 million for the same quarter of 2020. - Gross profit was
$7.5 million (54% of revenues), as compared to$7.5 million (59% of revenues) for the same quarter of 2020. - GAAP net loss totaled
$3.3 million , compared to GAAP net loss of$220,000 for the same quarter of 2020. - Adjusted EBITDA1 was
$1.9 million (13% of revenues), compared to$3.1 million (25% of revenues) for the same quarter of 2020. - Went “live” with ShotSpotter Respond in one new city and one new Security customer and had seven expansions in current customer cities.
- Maintained a strong balance sheet with
$15.6 million in cash and cash equivalents and$20.0 million available on the company’s line of credit at the end of the quarter.
1 See the section below titled “Non-GAAP Financial Measures and Key Business Metrics” for more information about Adjusted EBITDA and its reconciliation to GAAP net (loss) income.
Full Year 2021 Financial and Operational Highlights
- Revenues increased 27% to
$58.2 million from$45.7 million in 2020. - Gross profit increased 21% to
$32.5 million (56% of revenues) from$27.0 million (59% of revenues) in 2020. - GAAP net loss was
$4.4 million , compared to GAAP net income of$1.2 million in 2020.
- Adjusted EBITDA totaled
$10.4 million (18% of revenues), compared to$11.9 million (26% of revenues) in 2020. - Went “live” with 101 new square miles of ShotSpotter Respond coverage, bringing the total live miles over 880 miles with approximately 910 miles under contract as of
December 31, 2021 . - Revenue retention rate of 125%, an improvement from 107% in 2020. Sales and marketing spend per
$1.00 of new annualized contract revenue was$0.37 , an improvement from$0.51 in 2020. Net Promoter Score was 59.2 - After the quarter end, the company amended and extended its CrimeCenter contract for providing professional services, maintenance and support revenue to the
New York City Police Department , now representing over$16 million dollars in revenue for 2022. - Acquired Forensic Logic, a leading provider of cloud-based data services, subsequent to the end of the year for
$5 million in cash and$15 million in stock.
2 See the section below titled “Non-GAAP Financial Measures and Key Business Metrics” for more information about revenue retention rate.
Financial Outlook
The company increases its full year 2022 revenue guidance to
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 fourth quarter marked a solid finish to another successful year in which we expanded our platform, customer base and total addressable market,” said
“We entered 2022 with significant operating momentum and a robust pipeline of business, reflected by over
See the section below titled “Non-GAAP Financial Measures and Key Business Metrics” for more information about sales and marketing spend per dollar of new annualized contract revenue.
Fourth Quarter 2021 Financial Results
Revenues increased 10% to
Gross profit for the fourth quarter of 2021 was
Total operating expenses for the fourth quarter of 2021 were
Net loss totaled
Adjusted EBITDA for the fourth quarter of 2021 totaled
Full Year 2021 Financial Results
Revenues in 2021 increased 27% to
Gross profit in 2021 increased 21% to
Total operating expenses in 2021 increased 42% to
Net loss totaled
Adjusted EBITDA for 2021 totaled
Conference Call
International dial-in: 1-604-235-2082
Conference ID: 10017887
A live audio webcast of the conference call will be available in listen-only mode simultaneously and available for replay here and via 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: 10017887
Non-GAAP Financial Measures and Key Business Metrics
Adjusted net (loss) income: Adjusted net (loss) income, a non-GAAP financial measure, represents the company’s net income or loss before acquisition-related expenses.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, represents the company’s net (loss) 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 (loss) income to GAAP net (loss) income, the most directly comparable GAAP measure, for each of the periods indicated (in thousands, except share and per share data):
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| GAAP net (loss) income | $ | (3,311 | ) | $ | (220 | ) | $ | (4,431 | ) | $ | 1,225 | |||||
| Less: | ||||||||||||||||
| Acquisition related expenses | 544 | 638 | 709 | 638 | ||||||||||||
| Contingent consideration earnout | 1,330 | — | 1,330 | — | ||||||||||||
| Adjusted net (loss) income | $ | (1,437 | ) | $ | 418 | $ | (2,392 | ) | $ | 1,863 | ||||||
| Adjusted net (loss) income per share, basic | $ | (0.12 | ) | $ | 0.04 | $ | (0.21 | ) | $ | 0.16 | ||||||
| Adjusted net (loss) income per share, diluted | $ | (0.12 | ) | $ | 0.04 | $ | (0.21 | ) | $ | 0.16 | ||||||
| Weighted average shares used in computing adjusted net (loss) income per share, basic | 11,686,539 | 11,482,907 | 11,647,558 | 11,408,757 | ||||||||||||
| Weighted average shares used in computing adjusted net (loss) income per share, diluted | 11,686,539 | 11,794,694 | 11,647,558 | 11,730,294 | ||||||||||||
The following table presents a reconciliation of adjusted EBITDA to GAAP net (loss) income, the most directly comparable GAAP measure, for each of the periods indicated (in thousands):
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| GAAP net (loss) income | $ | (3,311 | ) | $ | (220 | ) | $ | (4,431 | ) | $ | 1,225 | |||||
| Less: | ||||||||||||||||
| Interest income | (10 | ) | (12 | ) | (38 | ) | (113 | ) | ||||||||
| Income taxes | 7 | (89 | ) | 56 | (90 | ) | ||||||||||
| Depreciation and amortization | 1,755 | 1,613 | 6,852 | 5,820 | ||||||||||||
| Stock-based compensation expense | 1,550 | 1,216 | 5,872 | 4,462 | ||||||||||||
| Acquisition related expenses | 544 | 638 | 709 | 638 | ||||||||||||
| Contingent consideration earnout | 1,330 | — | 1,330 | — | ||||||||||||
| Adjusted EBITDA | $ | 1,865 | $ | 3,146 | $ | 10,350 | $ | 11,942 | ||||||||
Annual recurring revenue (ARR): We calculate our ARR for a year based on the expected GAAP revenue for the year from contracts that are in effect on
Revenue retention rate: We calculate our revenue retention rate for each year by dividing the (a) total revenues for such year from those customers who were customers during the corresponding prior year by (b) the total revenues from all customers in the corresponding prior year. For the purposes of calculating our revenue retention rate, we count as customers all entities with which we had contracts in the applicable year. Revenue retention rate for any given period does not include revenues attributable to customers first acquired during such period. We focus on our revenue retention rate because we believe that this metric provides insight into revenues related to and retention of existing customers. If our revenue retention rate for a year exceeds 100%, this indicates a low churn and means that the revenues retained during the year, including from customer expansions, more than offset the revenues that we lost from customers that did not renew their contracts during the year.
Sales and marketing spend per
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, expected changes in gross margin, 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 quarterly report on Form 10-Q and other
About
Company Contact:
+1 (510) 794-3100
astewart@shotspotter.com
Investor Relations Contact:
+1 (949) 574-3860
SSTI@gatewayir.com
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
| Three Months Ended | Year Ended | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Revenues | $ | 13,971 | $ | 12,649 | $ | 58,155 | $ | 45,734 | ||||||||
| Costs | ||||||||||||||||
| Cost of revenues | 6,474 | 5,085 | 25,611 | 18,525 | ||||||||||||
| Impairment of property and equipment | — | 73 | 25 | 234 | ||||||||||||
| Total costs | 6,474 | 5,158 | 25,636 | 18,759 | ||||||||||||
| Gross profit | 7,497 | 7,491 | 32,519 | 26,975 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing | 3,598 | 3,091 | 15,479 | 10,328 | ||||||||||||
| Research and development | 1,879 | 1,510 | 7,035 | 5,614 | ||||||||||||
| General and administrative | 5,174 | 3,113 | 14,074 | 9,740 | ||||||||||||
| Total operating expenses | 10,651 | 7,714 | 36,588 | 25,682 | ||||||||||||
| Operating (loss) income | (3,154 | ) | (223 | ) | (4,069 | ) | 1,293 | |||||||||
| Other income (expense), net | ||||||||||||||||
| Interest income (expense), net | 10 | 12 | 38 | 113 | ||||||||||||
| Other expense, net | (160 | ) | (98 | ) | (344 | ) | (271 | ) | ||||||||
| Total other income (expense), net | (150 | ) | (86 | ) | (306 | ) | (158 | ) | ||||||||
| (Loss) income before income taxes | (3,304 | ) | (309 | ) | (4,375 | ) | 1,135 | |||||||||
| Provision (benefit) for income taxes | 7 | (89 | ) | 56 | (90 | ) | ||||||||||
| Net (loss) income | $ | (3,311 | ) | $ | (220 | ) | $ | (4,431 | ) | $ | 1,225 | |||||
| Net (loss) income per share, basic | $ | (0.28 | ) | $ | (0.02 | ) | $ | (0.38 | ) | $ | 0.11 | |||||
| Net (loss) income per share, diluted | $ | (0.28 | ) | $ | (0.02 | ) | $ | (0.38 | ) | $ | 0.10 | |||||
| Weighted average shares used in computing adjusted net (loss) income per share, basic | 11,686,539 | 11,482,907 | 11,647,558 | 11,408,757 | ||||||||||||
| Weighted average shares used in computing adjusted net (loss) income per share, diluted | 11,686,539 | 11,482,907 | 11,647,558 | 11,730,294 | ||||||||||||
Condensed Consolidated Balance Sheets
(In thousands)
| 2021 | 2020 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 15,636 | $ | 16,043 | ||||
| Accounts receivable and contract asset | 16,134 | 12,921 | ||||||
| Prepaid expenses and other current assets | 2,504 | 2,172 | ||||||
| Total current assets | 34,274 | 31,136 | ||||||
| Property and equipment, net | 17,409 | 15,346 | ||||||
| Operating lease right-of-use assets | 2,323 | 882 | ||||||
| 2,816 | 2,811 | |||||||
| Intangible assets, net | 13,564 | 14,540 | ||||||
| Other assets | 1,918 | 1,605 | ||||||
| Total assets | $ | 72,304 | $ | 66,320 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,587 | $ | 1,192 | ||||
| Deferred revenue, short-term | 26,235 | 24,174 | ||||||
| Accrued expenses and other current liabilities | 6,680 | 5,613 | ||||||
| Total current liabilities | 34,502 | 30,979 | ||||||
| Deferred revenue, long-term | 474 | 405 | ||||||
| Other liabilities | 3,513 | 631 | ||||||
| Total liabilities | 38,489 | 32,015 | ||||||
| Stockholders' equity | ||||||||
| Common stock | 58 | 58 | ||||||
| Additional paid-in capital | 132,780 | 128,771 | ||||||
| Accumulated deficit | (98,785 | ) | (94,354 | ) | ||||
| Accumulated other comprehensive loss | (238 | ) | (170 | ) | ||||
| Total stockholders' equity | 33,815 | 34,305 | ||||||
| Total liabilities and stockholders' equity | $ | 72,304 | $ | 66,320 | ||||
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