Second Quarter 2021 Financial and Operational Highlights
- Revenues increased 30% to
$14.6 million from$11.3 million for the second quarter of 2020. - Gross profit increased 20% to
$8.3 million (57% of revenues) from$6.9 million (61% of revenues) for the second quarter of 2020. - Net loss of
$(250,000) compared to net income of$866,000 for the second quarter of 2020. - Adjusted EBITDA1 was
$2.9 million , or 20% of revenues, compared to$3.4 million , or 30% of revenues, for the second quarter of 2020. - Went "live" with ShotSpotter Respond in two new cities, one new security location and also had three expansions in current customer cities during the quarter.
- Maintained a strong balance sheet with
$15.6 million in cash and cash equivalents and had$20.0 million available on the Company’s line of credit at the end of the quarter. - Repurchased 12,585 shares for a total of approximately
$0.5 million . - Reiterated full year 2021 revenue guidance of
$60 million to$61 million , representing year-over-year growth of 32%.
1See the section below titled “Non-GAAP Financial Measures” for more information about Adjusted EBITDA, and their reconciliation to GAAP net (loss) income.
Management Commentary
“During the second quarter, we again delivered 30% year-over-year revenue growth while generating strong gross profit and adjusted EBITDA,” said
“Our continued forward momentum gives us confidence to reiterate our outlook for 2021, which includes more than 30% revenue growth and net income profitability in 2021. Our positive outlook reflects the improving demand environment for our core ShotSpotter Respond solution, including its strong retention, increased upsell of our ShotSpotter Connect offering and good visibility into second half go-live cadence of ShotSpotter Respond, Connect and now Investigate.”
Second Quarter 2021 Financial Results
Revenues for the second quarter of 2021 increased 30% to
Gross profit for the second quarter of 2021 was
Total operating expenses for the second quarter of 2021 were
Net loss totaled
Adjusted EBITDA for the second quarter of 2021 totaled
Financial Outlook
The company reiterated its full year 2021 revenue guidance of
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.
Conference Call
International dial-in: 1-604-235-2082
Conference ID: 10015933
The conference call will be broadcast simultaneously and is available for replay in the investor section of the company’s website at www.shotspotter.com.
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact ShotSpotter’s investor relations team at 1-949-574-3860.
A replay of the call will be available after
International replay dial-in: 1-412-317-6671
Replay ID: 10015933
Non-GAAP Financial Measures
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 income or loss before interest (income) expense, income taxes, depreciation, amortization and impairment, stock-based compensation expense and acquisition related expenses. 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.
ShotSpotter believes adjusted net (loss) income and adjusted EBITDA also provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. For example,
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):
Three Months Ended | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
GAAP net (loss) income | $ | (250 | ) | $ | 866 | $ | (171 | ) | $ | 879 | |||||
Less: | |||||||||||||||
Acquisition related expenses | — | — | 165 | — | |||||||||||
Adjusted net (loss) income | $ | (250 | ) | $ | 866 | $ | (6 | ) | $ | 879 | |||||
Adjusted net (loss) income per share, basic | $ | (0.02 | ) | $ | 0.08 | $ | (0.00 | ) | $ | 0.08 | |||||
Adjusted net (loss) income per share, diluted | $ | (0.02 | ) | $ | 0.07 | $ | (0.00 | ) | $ | 0.08 | |||||
Weighted average shares used in computing adjusted net (loss) income per share, basic | 11,627,546 | 11,390,580 | 11,606,194 | 11,364,035 | |||||||||||
Weighted average shares used in computing adjusted net (loss) income per share, diluted | 11,627,546 | 11,727,654 | 11,606,194 | 11,717,937 |
The following table presents a reconciliation of adjusted EBITDA to net (loss) income, the most directly comparable GAAP measure, for each of the periods indicated (in thousands):
Three Months Ended | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
GAAP net (loss) income | $ | (250 | ) | $ | 866 | $ | (171 | ) | $ | 879 | |||||
Less: | |||||||||||||||
Interest income | (9 | ) | (5 | ) | (20 | ) | (98 | ) | |||||||
Income taxes | — | (8 | ) | 49 | (9 | ) | |||||||||
Depreciation, amortization and impairment | 1,675 | 1,345 | 3,352 | 2,712 | |||||||||||
Stock-based compensation expense | 1,494 | 1,163 | 2,869 | 2,050 | |||||||||||
Acquisition related expenses | — | — | 165 | — | |||||||||||
Adjusted EBITDA | $ | 2,910 | $ | 3,361 | $ | 6,244 | $ | 5,534 |
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 revenue and GAAP profitability guidance for full year 2021, expected changes in gross margin, future deployments of ShotSpotter Respond and ShotSpotter Connect, the Company’s expectations for demand for ShotSpotter Investigate 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; 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 quarterly report on Form 10-Q and other
About
Company Contact:
Alan Stewart, CFO
+1 (510) 794-3100
astewart@shotspotter.com
Investor Relations Contacts:
Gateway Investor Relations
+1 (949) 574-3860
SSTI@gatewayir.com
+1 (415) 877-4012
jhorne@marketstreetpartners.com
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues | $ | 14,624 | $ | 11,277 | $ | 29,637 | $ | 21,735 | |||||||
Costs | |||||||||||||||
Cost of revenues | 6,317 | 4,353 | 12,617 | 8,695 | |||||||||||
Impairment of property and equipment | — | — | 25 | — | |||||||||||
Total costs | 6,317 | 4,353 | 12,642 | 8,695 | |||||||||||
Gross profit | 8,307 | 6,924 | 16,995 | 13,040 | |||||||||||
Operating expenses | |||||||||||||||
Sales and marketing | 3,928 | 2,321 | 7,863 | 4,837 | |||||||||||
Research and development | 1,740 | 1,377 | 3,453 | 2,729 | |||||||||||
General and administrative | 2,812 | 2,316 | 5,683 | 4,587 | |||||||||||
Total operating expenses | 8,480 | 6,014 | 16,999 | 12,153 | |||||||||||
Operating (loss) income | (173 | ) | 910 | (4 | ) | 887 | |||||||||
Other income (expense), net | |||||||||||||||
Interest income, net | 9 | 5 | 20 | 98 | |||||||||||
Other expense, net | (86 | ) | (57 | ) | (138 | ) | (115 | ) | |||||||
Total other income (expense), net | (77 | ) | (52 | ) | (118 | ) | (17 | ) | |||||||
(Loss) income before income taxes | (250 | ) | 858 | (122 | ) | 870 | |||||||||
Provision (benefit) for income taxes | — | (8 | ) | 49 | (9 | ) | |||||||||
Net (loss) income | $ | (250 | ) | $ | 866 | $ | (171 | ) | $ | 879 | |||||
Net (loss) income per share, basic | $ | (0.02 | ) | $ | 0.08 | $ | (0.01 | ) | $ | 0.08 | |||||
Net (loss) income per share, diluted | $ | (0.02 | ) | $ | 0.07 | $ | (0.01 | ) | $ | 0.08 | |||||
Weighted average shares used in computing net (loss) income per share, basic | 11,627,546 | 11,390,580 | 11,606,194 | 11,364,035 | |||||||||||
Weighted average shares used in computing net (loss) income per share, diluted | 11,627,546 | 11,727,654 | 11,606,194 | 11,717,937 |
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 15,567 | $ | 16,043 | |||
Accounts receivable and contract asset | 7,353 | 12,921 | |||||
Prepaid expenses and Other current assets | 3,272 | 2,172 | |||||
Total current assets | 26,192 | 31,136 | |||||
Property and equipment, net | 16,063 | 15,346 | |||||
Operating lease right-of-use assets | 623 | 882 | |||||
2,816 | 2,811 | ||||||
Intangible assets, net | 14,051 | 14,540 | |||||
Other assets | 1,696 | 1,605 | |||||
Total assets | $ | 61,441 | $ | 66,320 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 1,214 | $ | 1,192 | |||
Deferred revenue, short-term | 19,231 | 24,174 | |||||
Accrued expenses and other current liabilities | 4,533 | 5,613 | |||||
Total current liabilities | 24,978 | 30,979 | |||||
Deferred revenue, long-term | 560 | 405 | |||||
Other liabilities | 515 | 631 | |||||
Total liabilities | 26,053 | 32,015 | |||||
Stockholders' equity | |||||||
Common stock | 58 | 58 | |||||
Additional paid-in capital | 130,004 | 128,771 | |||||
Accumulated deficit | (94,525 | ) | (94,354 | ) | |||
Accumulated other comprehensive loss | (149 | ) | (170 | ) | |||
Total stockholders' equity | 35,388 | 34,305 | |||||
Total liabilities and stockholders' equity | $ | 61,441 | $ | 66,320 |
Source:
2021 GlobeNewswire, Inc., source