SoundThinking (SSTI) Q4 2023 earnings summary

Executive summary

• Q4 revenue reached a record $26.0M, up 24% YoY; FY2023 revenue rose 14% to a record $92.7M.

• FY2024 guidance: revenue of $104M–$106M, implying 13% YoY growth at midpoint, and Adjusted EBITDA margin of 18%–20%.

• Expansion included 155 new live miles in 2023, 25 new cities, and new deployments in Montevideo, Uruguay.

Financial highlights

• Q4 gross profit rose 26% to $15.0M; gross margin was 58%, versus 57% a year earlier.

• Q4 GAAP net income was $3.6M, or $0.29 basic EPS and $0.28 diluted EPS, versus a $1.0M net loss and $0.09 loss per share in Q4 2022.

• FY2023 gross profit increased 13% to $52.7M; gross margin was 57%, versus 58% in 2022.

• FY2023 GAAP net loss was $2.7M, or $0.22 per share, versus net income of $6.4M, or $0.52 per share, in 2022.

• Adjusted EBITDA was $4.8M in Q4 versus $4.3M; FY2023 was $14.3M versus $15.9M in 2022.

Outlook and guidance

• FY2024 revenue guidance is $104M–$106M, with 13% YoY growth at the midpoint; Adjusted EBITDA margin guidance is 18%–20%.

• Adjusted EBITDA guidance was not reconciled to GAAP because of uncertainty in interest, taxes, depreciation and amortization, stock-based compensation, and acquisition-related expenses.