Revenues Increased 23% to
Company Reaffirms FY 2024
First Quarter 2024 Financial and Operational Highlights
- Revenues increased 23% to
$25.4 million , compared to$20.6 million for the same quarter of 2023. - Gross profit increased 32% to
$14.9 million (59% of revenues), compared to$11.3 million (55% of revenues) for the same quarter of 2023. - GAAP net loss totaled
$2.9 million , compared to GAAP net loss of$1.8 million for the same quarter of 2023. - Adjusted EBITDA1 totaled
$3.0 million (12% of revenues), an improvement compared to$2.9 million (14% of revenues) for the same quarter of 2023. - Went “live” in ten new cities and one university as well as expanded with two current cities.
- Launched
ShotSpotter inPhiladelphia , a tier-one city with future growth potential. - Cross-sold CaseBuilder and CrimeTracer to
Newport News, Virginia , which is now equipped with four SafetySmart™ platform products.
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 income (loss).
Management Commentary
“I am very pleased with our performance in the first quarter – as our revenues grew 23% and gross profit increased 32% compared to the first quarter of 2023," said President and CEO,
“We have bolstered our leadership team, rebranded and expanded the SafetySmart™ platform to reposition the company to execute on an expanded growth opportunity. This strategic shift has been critical for our company to gain access to a larger public safety total addressable market and more importantly, further diversify our customer and revenue base. We plan to remain focused on our organic sales growth levers to land, expand, cross-sell, and retain customers – and believe we are seeing validation from customers in this respect as our solutions are seeing increased interest and demand from law enforcement agencies of all sizes as they respond to increased calls for service and greater transparency. Looking ahead, our focus remains on driving sustainable, diversified growth that delivers meaningful value for our stakeholders and we remain confident in our path to achieve our long-term financial targets of 70% gross margin and 40% Adjusted EBITDA margin.”
First Quarter 2024 Financial Results
Revenues for the first quarter of 2024 were
Gross profit for the first quarter of 2024 was
Total operating expenses for the first quarter of 2024 were
Net loss for the first quarter of 2024 totaled
Adjusted EBITDA for the first quarter of 2024 totaled
At quarter end, the company had
Financial Outlook
The company reaffirmed its full-year 2024 revenue guidance range of
“We expect to deliver both revenue growth and enhanced profitability in 2025, even without a
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. The company has not reconciled its Adjusted EBITDA outlook to GAAP net income (loss) due to the uncertainty and variability of interest income (expense), income taxes, depreciation and amortization, stock-based compensation expenses, and acquisition-related expenses, which are reconciling items between Adjusted EBITDA and GAAP net income (loss). Because the company cannot reasonably predict such items, a reconciliation to forecasted GAAP net income (loss) is not available without unreasonable effort. Such items could have a significant impact on the calculation of GAAP net income (loss). For more information, see “Non-GAAP Financial Measures and Key Business Metrics” below.
Conference Call
SoundThinking will hold a conference call today
SoundThinking management will host the presentation, followed by a question-and-answer period.
International dial-in: 1-201-689-8029
Conference ID: 13746236
A live audio webcast of the conference call will be available in listen-only mode simultaneously and available for replay via the investor relations section of the company’s website at www.soundthinking.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: 1-201-612-7415
Replay ID: 13746236
Non-GAAP Financial Measures and Key Business Metrics
Adjusted net income (loss): Adjusted net income (loss), a non-GAAP financial measure, represents the company’s net income (loss) before acquisition-related expenses, including adjustments to the company's contingent consideration obligation.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, represents the company’s net income (loss) before interest (income) expense, income taxes, depreciation, amortization and impairment, stock-based compensation expense and acquisition-related expenses, including adjustments to the company's contingent consideration obligation. 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 its 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.
SoundThinking believes adjusted net income (loss) and Adjusted EBITDA also provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. For example, SoundThinking adjusts EBITDA for stock-based compensation expense and acquisition-related expenses because such expenses often vary for reasons that are generally unrelated to financial and operational performance in a particular period. Stock-based compensation is utilized by SoundThinking to attract and retain employees with a goal of long-term retention and the alignment of employee interests with those of the company and its stockholders, rather than to address operational performance for any particular period’s financial performance measures, in particular net income (loss), or its other GAAP financial results.
The following table presents a reconciliation of GAAP net loss, the most directly comparable GAAP measure, to adjusted net loss, for each of the periods indicated (in thousands, except share and per share data):
Three Months Ended | ||||||||
2024 | 2023 | |||||||
(Unaudited) | ||||||||
GAAP net loss | $ | (2,909 | ) | $ | (1,790 | ) | ||
Less: | ||||||||
Change in fair value of contingent consideration | — | (6 | ) | |||||
Adjusted net loss | $ | (2,909 | ) | $ | (1,796 | ) | ||
Weighted average shares used in computing adjusted net loss per share, basic and diluted | 12,770,988 | 12,252,517 | ||||||
The following table presents a reconciliation of GAAP net loss, the most directly comparable GAAP measure, to Adjusted EBITDA for each of the periods indicated (in thousands):
Three Months Ended | ||||||||
2024 | 2023 | |||||||
(Unaudited) | ||||||||
GAAP net loss | $ | (2,909 | ) | $ | (1,790 | ) | ||
Less: | ||||||||
Interest (income) expense, net | 122 | (54 | ) | |||||
Income taxes | 114 | — | ||||||
Depreciation, amortization and impairment | 2,790 | 2,504 | ||||||
Stock-based compensation expense | 2,927 | 2,220 | ||||||
Change in fair value of contingent consideration | — | (6 | ) | |||||
Adjusted EBITDA | $ | 3,044 | $ | 2,874 | ||||
Annual Recurring Revenue (ARR): ARR is calculated for a year based on the expected GAAP revenue for the year from contracts that are in effect on
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 the company’s expectations for its estimated revenue and Adjusted EBITDA for 2024, its long-term financial targets, ability to drive profitable growth and build upon existing contracts and partnerships, including in
About
Company Contact:
+1 (510) 794-3100
astewart@soundthinking.com
Investor Relations Contacts:
+1 (949) 574-3860
SSTI@gateway-grp.com
Condensed Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenues | $ | 25,410 | $ | 20,620 | ||||
Costs | ||||||||
Cost of revenues | 10,271 | 9,243 | ||||||
Impairment of property and equipment | 252 | 72 | ||||||
Total costs | 10,523 | 9,315 | ||||||
Gross profit | 14,887 | 11,305 | ||||||
Operating expenses | ||||||||
Sales and marketing | 7,112 | 5,848 | ||||||
Research and development | 3,560 | 2,653 | ||||||
General and administrative | 6,830 | 4,616 | ||||||
Change in fair value of contingent consideration | — | (6 | ) | |||||
Total operating expenses | 17,502 | 13,111 | ||||||
Operating loss | (2,615 | ) | (1,806 | ) | ||||
Other income (expense), net | ||||||||
Interest income (expense), net | (122 | ) | 54 | |||||
Other expense, net | (58 | ) | (38 | ) | ||||
Total other income (expense), net | (180 | ) | 16 | |||||
Loss before income taxes | (2,795 | ) | (1,790 | ) | ||||
Provision for income taxes | 114 | — | ||||||
Net loss | $ | (2,909 | ) | $ | (1,790 | ) | ||
Net loss per share, basic and diluted | $ | (0.23 | ) | $ | (0.15 | ) | ||
Weighted-average shares used in computing net loss per share, basic and diluted | 12,770,988 | 12,252,517 |
Condensed Consolidated Balance Sheets (In thousands) (Unaudited) | ||||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 8,524 | $ | 5,703 | ||||
Accounts receivable and contract assets, net | 35,201 | 30,700 | ||||||
Prepaid expenses and other current assets | 3,507 | 3,902 | ||||||
Total current assets | 47,232 | 40,305 | ||||||
Property and equipment, net | 21,429 | 21,028 | ||||||
Operating lease right-of-use assets | 2,078 | 2,315 | ||||||
34,213 | 34,213 | |||||||
Intangible assets, net | 35,995 | 36,938 | ||||||
Other assets | 4,025 | 3,909 | ||||||
Total assets | $ | 144,972 | $ | 138,708 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 2,260 | $ | 3,031 | ||||
Accrued expenses and other current liabilities | 7,101 | 8,521 | ||||||
Line of credit | 7,000 | 7,000 | ||||||
Deferred revenue, short-term | 44,817 | 41,265 | ||||||
Total current liabilities | 61,178 | 59,817 | ||||||
Deferred revenue, long-term | 5,935 | 812 | ||||||
Deferred tax liability | 1,267 | 1,226 | ||||||
Other liabilities | 1,833 | 2,096 | ||||||
Total liabilities | 70,213 | 63,951 | ||||||
Stockholders' equity | ||||||||
Common stock | 64 | 64 | ||||||
Additional paid-in capital | 173,066 | 170,139 | ||||||
Accumulated deficit | (98,027 | ) | (95,118 | ) | ||||
Accumulated other comprehensive loss | (344 | ) | (328 | ) | ||||
Total stockholders' equity | 74,759 | 74,757 | ||||||
Total liabilities and stockholders' equity | $ | 144,972 | $ | 138,708 |
Source:
2024 GlobeNewswire, Inc., source