SoundThinking (SSTI) 27th Annual Needham Growth Conference summary

Strategic direction and platform evolution

• Rebranded from ShotSpotter to SoundThinking to reflect expanded solutions and partnerships.

• SafetySmart Platform integrates multiple SaaS-based public safety solutions, now accounting for 90-95% recurring revenue.

• International expansion includes deployments in South Africa, Uruguay, and the Bahamas, with Brazil upcoming.

• Strategic M&A occurs about every two years, focusing on solutions that enhance the platform.

• Customer retention is a priority, with attrition rates under 1% for four years.

Product portfolio and innovation

• ShotSpotter remains the core gunshot detection solution, now 65% of revenue, deployed in 170 cities.

• ResourceRouter, an AI-driven patrol management tool, saw more sales in 2024 than the prior three years combined.

• PlateRanger, launched in late 2023, resells Rekor license plate readers, enabling upsell opportunities.

• CaseBuilder, a cloud-based case management system, secured a $18M six-year contract with Rikers Island.

• CrimeTracer aggregates law enforcement data for investigative insights, with the largest database in its segment.

• SafePointe, a covert AI-powered weapons detection system, targets hospitals and casinos, with rapid revenue growth expected.

Financial performance and outlook

• 2023 revenue reached $92M, with 2024 guidance above $100M and adjusted EBITDA approaching 20%.

• Net revenue retention consistently above 107%, with some years over 120%.

• Cost of sales and marketing is low due to strong customer advocacy and high Net Promoter Score (66).

• CapEx averages $6M annually, expected to rise as SafePointe scales.

• Free cash flow generation is strong, with over $15M expected in 2025.