SoundThinking (SSTI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached a record $27.0 million, up 22% year-over-year, driven by growth across all SafetySmart Platform solutions, new customers, and contributions from SafePointe and CaseBuilder.

• ShotSpotter expanded into three new cities and four city expansions, with international progress in Uruguay and South Africa, and remained the core revenue driver at 66–69% of total revenue.

• Strategic partnership with Rekor launched PlateRanger, expanding into the $3.2 billion global LPR market.

• ResourceRouter and CaseBuilder showed strong adoption, with CaseBuilder subscription revenue up 700% year-over-year and major NYC DOC project ahead of schedule.

• SafePointe pipeline grew to over $15 million, with a major product upgrade and 3D camera integration set for September.

Financial highlights

• Q2 2024 revenue was $27.0 million, up from $22.1 million in Q2 2023; gross profit was $16.1 million (60% margin), up from $12.7 million (57%).

• Adjusted EBITDA rose over 110% to $5.1 million (19% margin) from $2.4 million (11%) in Q2 2023.

• GAAP net loss narrowed to $0.8 million ($0.06/share) from $2.7 million ($0.22/share) year-over-year.

• Cash and equivalents increased to $9.8 million at quarter-end, with $7.0 million in debt and $18.0–$21.0 million available on the credit facility.

• Repurchased 134,150 shares for $2.0 million under a $25 million buyback program.

Outlook and guidance

• 2024 revenue guidance maintained at $104–$106 million, with Adjusted EBITDA margin of 18–20%.

• Q3 revenue expected to be sequentially down due to accelerated Q2 professional services; Q4 revenue to rebound despite Chicago contract loss.

• Management expects continued revenue growth from new customer acquisition, expanded deployments, and cross-selling of new solutions.

• PlateRanger launch in September 2024 is expected to support entry into the LPR market.

• Confident in achieving 2024 guidance and positioned for profitable growth in 2025 and beyond.