SSTI - Earnings call transcript Q1 2019

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Operator

Good afternoon, and welcome to ShotSpotter’s First Quarter 2019 Earnings Conference Call. My name is David, and I’ll be your operator for today’s call.

Joining us are ShotSpotter CEO, Ralph Clark; and CFO, Alan Stewart. Please note certain information discussed on this call today will include forward-looking statements about future events and ShotSpotter’s business strategy and future financial and operating performance. These forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict and may cause the actual results to differ materially from those stated or implied on those statements. and registration discussed statement risks filings, ShotSpotter’s these its including and of assumptions in are SEC Certain Form S-X. reflect of X, statements of forward-looking management’s and estimates These predictions the date this XXXX. May broadcast, beliefs, as And of forward-looking or to any or statements call. no ShotSpotter the reflect date obligations undertakes after revise update to circumstances this events

the a will Company’s Relations made available and I like would recorded Investor ir.shotspotter.com. to Finally, at the replay website remind link via be section in everyone of this call available for

like I to Now, proceed. the ShotSpotter’s CEO, to would turn call Ralph please over Clark. Sir,

Ralph Clark

Thank financial good to you start very before questions. your results, Alan the to going joining quick a those then overview of we take you of much, and with quarter I’m our us review today. and afternoon will

with We’re revenue grew We quarter first our which million. financial year-over-year with line were our very pleased in expectations. XX% $X.X to results,

$XXX,XXX period. just increased million revenue approximately Our $X.X for last U.S. of as was loss was a essentially year prior received includes $XX,XXX we $X.X QX the only to in sequential ago. comparison in one-time On a flat the quarter net call. our guided a $XXX,XXX payment Islands. EBITDA basis, versus million Virgin adjusted we from And This from

primarily Our and reflects share, line $XXX,XXX our gross marketing our investment sales. in $X.XX margin expectations or focused of with reported per our XX% was of net loss and in

netted Many Through cities about is lens South international annually that ShotSpotter’s of our New solid business Greenville, and bright we expansion loyalty. live in seven service this rather me unmatched new deployment violence believe large service. live explain to years lumpy XX than the gross first Bahamas. is have X the future Illustrating markets Columbus, customer that of the we of after in from which due gun best went Carolina; characteristics miles, adjacent one heard strategic excited after portions the our technology factoring miles was with in quarterly performance, in Jersey; our customer coverage four reflecting cadence, Nassau, deployment and our Africa loss Northeast. somewhat The XX viewed that of We’re area, our and very their quarterly. of mile into Pleasantville, went North ShotSpotter of to pullback limited Ohio in including; the outside you incidents

portion But netting discussions go-live and in targeted the customer about of for of the cumulative in we’re We’re miles the believe subset pockets miles quarter base. the our installed for miles of now gun X against jurisdiction the back. and come with possibly violence a for of our their a can miles

full later, this detail reduce development million. XXXX our will that tighten I Given and year we’ve the describe backdrop $X midpoint more decided to and at by guidance modestly in

results already plus confirmed go-live to expect including for that have live active, point, but stated, Case previously deal to cadence and under are the and contracts business expansions go we’ve miles to our currently customers. nature pipeline the and in going over totaling live miles with great the contract we producing activity As business XX more a where be of our activity. next we have modest have of is our new we’re the of that a over quarters several quarters with can way XX quarterly portion some go-live these calmer It’s going quite and of projects fewer days, lumpy. we’re positive

wound our Investigative with technology. from increase feature of leading is and up often year. lead very investigating reinforce meeting are to savings to delivered recently about for police care responding significant solution. source response victims can ILS. in real important when faster that treat funding shooters law place events It that trauma trauma these to time call the more help or initiatives to involved. financial potentially We uninsured improve on hospital. to sequence last or and improved help to the Investor offer to count cost separated and evidence incidents to response that healthcare our and fewer as in weeks. the And We round to been past is centers charge part of enforcement ways essential fire is Here more interest $XXX,XXX enhancement is have our of deal and collection, and are a reports can growth The patient only scene a advocate a are Hospitals medical downloaded remain business. outcomes. ILS organizations user and Lead urban collaborating safety response can shootings that announced other my conduct multiple Two, incident. bit Flex the this ShotSpotter of has a engaging opportunity. been or forward great at solutions three, a Flex service. We like are witness staff, multiple three is subscription community to is spoke and simply interviews than to broader few live excitement near interventions strong had gunshot detailed round ShotSpotter adoption gun no in time for XXX in a report and about by in active for effective two faster initiative We’ve good community available feature to generated ILS hospital the provides for look we very and round Summary corporate major work our spatially a improve reasons. looking One, Day designed

experience. based The number to to put novel. innovation still applying by to to recently classifier approach customer classification into by center, spend a invest the up acoustic AI in published incident well. XX% we line technology new machine in order We learning production incidents acoustic can alerts our reduce core of adding We reviewed ultimately have quality degree our evaluating that as continue overall taken incidents bringing review and the is time of analysts improving more machine context the

our become what issue We we successful. if XX patent, will are hope pursuing

ShotSpotter creating mile X about Labs, excited equally is currently which supporting sustainability projects. We’re

Kruger combat the while and our develop better a other inform competitive of deployment technology our stickiness drive we’ll low technology large and is helping resilient technology innovations widen address our can poaching our environment Asia power East infrastructure already increase the and to Project, our deploy rhino help help ability more about version and deploying ready solution, deliver fishing. can What pilot be mode. using our value, blast Our We help problem technology here South urban of learn believe we in overall Flex customer services. of for to in will these more growth, we our limited

a Alan there share. I few want want more thoughts it footprint. One, Before I reaffirm our to international to ShotSpotter’s I hand expanding commitment are to

projects Africa building pipeline actively Bahamas, the in a South in America. now Beyond we’re and our Latin

been progress here and Our steady. has methodical

We’re to avenue building resulting more later all by our for encouraged front. you budgetary in interest to platform expansion a in submission deliver high of to this prospects Mexico, the in year hope few and and feedback Argentina from share proposals public second of be and Colombia, safety Brazil safety have market. to A on based out our way based with a the continues we positive application. analytics growing personnel police efficiently. intelligence a public This do limited pre-incident job acquired faster, analytics time their better, for public maximize AI more departments help Last the is safety of the can resources. year, predictive of area and we to financial to provider Precision policing value and for HunchLab, police premier real and

the based model this the other integrating We on later with reporting analysis market release predictive to plan with have formally been ShotSpotter first in data to working our along QX ShotSpotter introduce Mission’s of enhancements. incident tightly diligently year. We and some

sales a prospects engaging been marketing have Our customer robust pipeline. of to list collaborating in target and sales build order teams a on

in see to of many revenue million earlier factors of our I revenue by million went can the versus as to year $XX.X our areas to $XX and are million the has never couple guidance. reduce tighten $XX guidance into going last call. full adjusting to the communicated million exciting XXXX a So and key you $X future $XX.X Nonetheless, as in XXXX are been earnings There that million so our earlier we expanding brighter. midpoint said we’re

In formally submitted successful standard of of we projects, the attrition one responses conditions miles agreement RFP case, seven awarded getting we terms in and also were not addition form I in our been XXXX where had to two mentioned and officially to we late the earlier, XXXX. to there In contract. of bid, but the were in one

is which and awarded opportunity out is administrative executed is annual of and representing facing yet contract. formal bureaucratic and obstacle, delays award, one, second a million a fairly recurring date RFP the that revenue, be large $X.X is and to The for negotiated pushing

and the contract material We As as come a longer no is when need we fruition ultimately if detection is revenue opportunities the awarded. believe compelling. to will result, in both gunfire expect contributions XXXX,

However, the prudent about near-term revenue clear how think we be guidance. also want eyed we to in and

Although and lower, XXXX our XXXX outlook confidence increased. beyond only has in optimism slightly is our and

numbers. Alan Okay, and review QX that’s here��s the to forward look question is it for to answering me. your I

Alan Stewart

you, and everyone. Ralph Thank afternoon, good

The plan. our first quarter with line in came in largely

to the a still reported for XXXX expected, whole. profitable track GAAP we are As a for be but on loss small quarter, as

offering was rate not generated where $XXX,XXX from at the that the if position only cash slightly one during the have from $X.X need Islands. with up also run of first increased proceeds we the flow been equity the and quarter. we Revenues March, flat cash almost which Virgin contribution It our quarter improved in we approximately operating U.S. to a did significantly million time of in in also $X $X.X with million. We the QX QX also but end would the million, from the the XX% largely for exclude quarter, is

QX in performance depending quarterly with be we lumpy while the revenues to then can reminder, flat QX a and QX generally in up schedules, to QX As and another experience point QX. offset step flat on

which the follow due based the with up of our quarter, go-live profit $X.X net Adjusted GAAP was quarter for adjusted or XX% the XXXX, a gain the interest, will is model. amortization Gross mile. power million. first revenues should profit of was quarter to that XX% and base. and step-up to for results calculated first efficiency of leverage increase EBITDA EBITDA from from be first and higher demonstrating Gross income This our we to taking expected and in the XXXX. from of taxes, by is quarter total $X.X million in QX depreciation the pattern adding business revenues, $XX,XXX exception this a compensation the back revenue stock or for case QX as million $X.X XXXX expect up continues We from

turning Now expenses. to our

XX% or million operating first for $X.X Our revenues million expenses the versus last year. $X.X XX% of were quarter or

grow our We leverage and continue we are gain as we make thoughtful pleased increases key we to on as even spend, areas. in

increase area operating margins less XXXX. to overall our rate increase of expect each revenue expenses, continue increasing that operating rate our still will our our of but at in We growth, line is OpEx top a investments to for than

Looking of total prior revenues quarter at the line items, revenues marketing for of XX% $X.X million or total expenses for each were the and period. of XX% versus sales $X.X year million first the or

we’ve As such score customer well sales XX initiative a promoter program, on of as to contribute program spending healthcare expand as in and strategic decision our made score. we’ve our our as net our Ralph discussed, increasing which marketing success mentioned, to the

and the with of year. pleased the investments this of the we balance We early to returns for spending expect on these continue are level

quarter Our $X.X total total XX% revenues of for for expenses million or year were the R&D $X.X XX% of period. prior or to million first compared revenues

to revenues $X G&A to million capabilities in add functionality invest revenues of and for our of the million XX% others total period. to XX% improve expenses analyst R&D for quarter We conduct or were product year or total to initiatives. our the features prior to continue Mission’s and $X compared

modestly will G&A continue Our increase expenses the year. throughout to

equity This diluted or QX. in XX million based reflecting Our the shares in compares offering shares basic loss prior GAAP the diluted in per from basic QX $X.X expectation net loss with expenses, $X.XX on GAAP issued $XXX,XXX million a weighted and was outstanding, share year loss our flat on period for reflecting revenues of per weighted share $X.XX to $XXX,XXX March. in million increased average the the average based or shares line $XX.X quarter was to The with operating outstanding. in

profitable the be XX will XXXX We’re still year net added that a guiding go-live as we We for new unevenness in in miles our QX, fiscal inherent business. whole. reflecting

balance the miles QX in Ralph As year. to we mentioned, pick-up expect of in the go-live

around was within was position. short-term ended long we strong to very which expect Cash $XX term. at $XX.X our our built allows and to to selective a variability cities organic are million million, ended discussed is adjacent general, flexibility, in cash and be prior a from goal the to XXX the expand the live first revenues term quarter miles this growth, As quarter recognized revenue internal Deferred XXX $XX.X strong almost almost period, million our deferred $XX.X offering financial flat In We generated We of at quarters. expected. short end us our platform we’ve over approximately gross million, the domestically four of plans end the be included with March. increases the A but was funding quarter in quarter markets. only in miles adding at quarterly XXX strategic not campuses/sites. XX the million and Of $X.X was amount, two-year pursue quarter. in position initiatives

ShotSpotter’s approximately cities. future in X continue achievable expected to very confidence that for we growth and X contributions as new Mission target XX% and strong Tier believe and revenue international given opportunity continue we expansion, sales, is Tier the CAGR Our to remains foreseeable from

always, look of many loyalty months. and with As forward speaking confidence you coming weeks in to your we the and appreciate and

Ralph. you to over back Now,

Ralph Clark

centric at congratulate and Alan. questions to colleague proud building Thanks, We’d want opportunity to I company. this my now, we’re the to before achieving places and collaborative but at commendation. a the do to like on great take ShotSpotter work work take your I’m of customer thank culture we

try the insight into of lastly, future be in Hopefully, like most to yet, can the more I feedback. recently that moral no how, confident questions. Report would Annual read it your and you would our your to And why ShotSpotter. our we XX-K all of difference. if explain quite shareholder cover I the a with our the and of will we’re the strategy detail. that so remind a what, dynamics purpose XXXX and and making although did includes importantly, letter And our you Warren take I Buffett the why truly the of We’re now where published I business. you business I letter, constructive and more to provide grateful be We about were generous am

Operator

Osha with Instructions] [Operator JMP from will question take you. Securities. Thank We our first Joseph

You may proceed.

Joseph Osha

– that make of to expectations. understand built-up read XXXX that I Well, to XXXX. you're letter on you just make that what XXX of want go-live, you're I Ralph, net I'll saying calendar what sure have I sure saying? Is kind that's I essentially have new total for and

Alan Stewart

No. This is Alan.

think looking and over that's I I XXXX. we're say what XXXX is more general, would in

Joseph Osha

customers? with Are on wasn't and you and think net number number can a breakdown also you you new how give only Okay. a additions maybe well XXXX between of about existing if breakdown then color about big, talk adds to little but go-live new I'm the curious, quarter this the us willing – this that

Alan Stewart

is from in Tier miles I were Chicago, live the would this Alan. XXX X XX year, of last went expansion. those So say, we

a projecting Tier city in or currently X aren't new We expansion XXXX.

be that. to it XXXX miles logical So will be than expect that will less

targeting and We Tier expect it those XXXX. do are some cities that in will still of have coming X

So XXXX be a two versus higher would number years. the

In expansions of did cities this add four new we terms cities, quarter. new versus

footprint, smaller cities exactly platform. with a is increasing have an expecting our We cities we're of are increasing a rate but forecast generally start They an at for new adding and joining seeing XXXX. number still what

Operator

ahead. question We'll Matt our Pfau go Blair. take from William Please with next

is open. line Your

Matt Pfau

my taking Hey, guys thanks for questions.

signed I'm on deals I bureaucracy. all delayed. the with you level deals sure a of that face you start-off certain the wanted two First, to were

are could more would headwinds help deals just other then well? are understand approval us that typical these you issue as a in significantly than deals can potential included the facing in So maybe see deal. just, And the you yes, be for there guidance

Ralph Clark

Yes.

we particular referenced is quite very call Ralph. this deals unique. really So earnings question. for actually that that these you two say, would Thank I in are our much

final faced and on and based about And a never it actually we're contract weren't – or of was very think going case one want to the it the us awarded we delays other I clear, make prevail particular where terms is bureaucracy probably prevail really of We large we've have persistent. ultimately, would it familiar price case. that negotiating significant situation this wasn't this again, But really but we fairly a before. the In administrative to again not need in to is level is this gun to delays, confident really as is encountered and say. then Ultimately, to say. get come a about a bureaucratic are any This we're particular customer the faced The terms quite so and case, and very very situation opportunity, that ever able say for this violence deal issue I I situation we're compelling well. going in this believe supervision administrative amount would I because a conditions. like to is quite conditions. ultimately into highly going a other like we're with of would bid is we

Matt Pfau

situation on – if service, that few years turn then I the recall the Got had town the in to off it. state. correctly Okay. like on you back ShotSpotter Washington this elected a customer similar with And the

gun occurring. incidents you can are see So the that all

just many would that incidences. maybe turn-off So to be tell able because violence presumably to service customers risk there's not very they're gun you would be at if having

a or issues customer look are other one that just So they're of this like many you where case. your seeing was across this there violence customers unique as base, sort gun not

Ralph Clark

that Flex so, significant started portion of with square amount is exhibiting customer lived We those with probably was or or some This seven violence. that customers. a say gunfire. some X They've Yes, original in is been that a of there out years our longest are believe of that this their us one. so. still for miles case amount a across This gun fairly is I'd unique of actually miles one

so of reasonable doesn't concerned going situation probably them still is it but in binary think kind something seven, the there's of have And I helping to to understand issue a be for to them that be them it's zero middle for really about. that

of be across some X arrays different going the customer. hoping/expecting we're miles those without customer I particular in naming to recapture that particular have so mean this we're several different they that And able literally square miles. hamlets

any So it's get the on just across rest impact to. that as I violence. a continue is our in or because a good to doesn't their violence. going have attention gun successful really degree we case, as so I and we helping And we something extremely are where bit of to of But exhibit guess the we close circumstance focus gun happy customers areas very them a about address pay particular think experience It obviously do. portion installed in base of this we're some this array in they're to what is

Matt Pfau

it. the that's on Got how agreement. for progressing? just partnership, Any Verizon update one reseller And me, last the on

Ralph Clark

us earnings couple more Verizon. about potential talk to next call, so of constructive we're we're in with been so able to Verizon. Yes, of in still actually a still in conversations the hoping onward getting going and we're very upward that They've with opportunities introduced be to to terms

Matt Pfau

lot. Thanks guys. me for a it That's it. Got

Ralph Clark

you. Thank

Operator

Charlie Please proceed. Question Erlikh with from Baird.

Charlie Erlikh

existing detail more or initial Great. bit terms Thanks traction question. taking the from Missions of more now a for you couple provide surprisingly the as now for or the product had positive in in months? customers? a negative, there product the interest Anything Could you've little market on

Ralph Clark

that for you Thank question. Yes.

even around concept we're to this Ralph. with alerts excited how customers respect really conversations base time those our has use of will, we're introducing kind to is familiar be reasons. having using is you One, this we Missions, relationship and real focus a gunfire and So pre-crime intelligence about now with to to really existing for impactful their kind installed our really two of have with that's more already address is of quite violence exciting. really With the if quite gun strategies been

And also our in We're the of up so to this fairly but even really we're enhancements as more the of some already we're in move it take from feedback meaningful this that make doing context getting building robust critical feature platform like well HunchLab we customers terms way to pipeline, to the in two space. acquired things. particular

engineering on. more that a an potential data something was One, from tightly is of we're around tools That's doing point feedback amount integrate And two been from into that of engaged reasonable to our ShotSpotter model. we of customers two, fairly we've I analysis investment in was think customers do then there we the customers X.X what of kind things. view of So the predictive consistent important. kind our very version thought very reporting heard a and have or

So have working [indiscernible] we're some been in happen expect to release We doing internal a quarter. those we bear and in make also some resources, with on work to partnership own later features bring our to partnership. of do of but this – I’ve kind we're that

that potential XXX of is say and build customers our emissions so Does that some existing or aren't us success it's work a guess customers. reasonable be a few from I our them relationships plus that your our that base. from deeply installed – for can reasonable and to more So we I would question? We customers. say where our to a to focus answer were help with few penetrate have got uptake stories customers then customer But expecting percentage intentional think we focus, have interestingly would our real existing inbound interest we've aren't customers also very going enough ShotSpotter I

Charlie Erlikh

or months front, I or share do updated you Rico, absolutely. thoughts one less great? three any more get that to, now you Puerto are coming you confident just more on back could anything would Rico Yes, be in were have If you about ago could than Puerto

Ralph Clark

we all Rico. can say said about much pretty Puerto we've think I

Charlie Erlikh

Thanks answering the right. All for question. Okay.

Operator

Jeremy Hamblin with next Company. ahead. & our take Dougherty go question Please from We'll

Jeremy Hamblin

on and sales that some making to made wanted start expense of there. are noted side Thanks. you have I the And actually marketing, investments you you and the equation some commitment on

You I about investment that's up versus year-over-year it's XX% a on basis X%. know think almost your up R&D

think remainder year. remainder marketing, to drive relationships the It of I the to on what like the As deleveraging how you on of sounds sales for we're of about the do investments about side? terms but those R&D XXXX, this see expect overall and some in going

Alan Stewart

Alan. Sure. This is

are continuing in to We invest R&D.

heard have do Ralph mentioned we've been may to that You a couple interesting things algorithm able the side. that in

in going invest continue to alluded Missions to. we're invest So on what there. call development, We're the to Missions to Ralph continuing X.X, just R&D the it essentially

spend to going a OpEx the see already the Sales are are And lower where also board and that's though for into though and growth. see in incremental sort to right also still so for focus going across rate our G&A of rate frankly built the the than of area I you OpEx our would we year. an most is line increases R&D throughout are that increases, say at Marketing going. So revenue increase themselves now. run OpEx but top have

operating our improve. So continue will margins to

Jeremy Hamblin

your able in that in be color terms on in color new about year. What might have XX Great. then to Any I – think half share the turning potential maybe might back half net the I provided some you you've in any the Okay. net next XX the visibility go-live help you mile on now of Miles. to terms of year on And the of days of nice to think back that lumpiness us front. understand plus

Alan Stewart

Sure.

looked stronger expected I QX QX. be where expect next XX be in some we a comes make is say build-up the So days in to is that plus guidance our mile this pipeline we think is certainly in. Alan, our knew QX and for to what to than we revised we we I would go-live assumptions at what the in perspective from had go-live. have true That's plus of as kind to

Jeremy Hamblin

it me. That's Okay. Great thanks. Good luck guys. for

Alan Stewart

you. Thank

Operator

Instructions] up follow [Operator Please with Joseph Next take a JMP from Osha ahead. we'll go Securities.

open. is line Your

Joseph Osha

to mix in in I I'm sorry. won't how mix you shift want the that I ASP you've on per Africa in the how ASP you did talked you in potentially impacting nice got business the about mid you have a just question. miles rates think the seeing further kicked how about basis to per are I were about mile think back off given mile? because that go before your question. in ask South all general shift

Alan Stewart

Sure.

would that I know higher our the sure say price. So is we for thing have ASP one much a deployments international

You to charge X.X what domestically. we can times take X times,

the as part price obviously average latter of international year, more in rolls the So the in up. go

are XXXX of we more XX,XXX. XX,XXX our We increasing from call also increasing planning base changing on to actually in price what MSRP that

prices on we pressure standard on pricing ability contracts. seeing downside. seeing the increase not we're We're the So that do the have to our to continue

Joseph Osha

you very Thank much. Okay.

Operator

from question Matthew Please National ahead. next take go with Securities. Galinko We'll our

Your is line open.

Matthew Galinko

questions. for Hi. taking Thanks Thanks. my

maybe come your own a sort customer you was able of are just did to to peg you that how if Can know do it I their a ultimately in reduction the gun Regarding are that avoid you violence? decision cause down of victim know, disengaged. to it guess you demonstrate or whether becoming picture, to able big success you you budget

Ralph Clark

Yes, this had been again is I'll Ralph. try that. answer a years. customer guess I is seven us for This with to that

gun be helpful violence And is them issues ways customers to two way. like array knocked just four we interesting you out can have – their another think of two could but really customers of their helping three that the think it's in of you total, problem have probably again think in a it's still are level they that I pretty like gun violence that some them to still address being maybe in we that. many

a they some fairly that I have form but really issues although situation of gun time go gun fact to with to there a are weren't blind were I for their guess We of that where is really just situation violence kind of reduce decide couldn't very to it violence for it's a having kind and in particular where different these hamlet et really saw most unique customer customers safety hard that they problems with. can and it of, in gun short it lot aware situations one exist caused we're that one difficult respond was most customers, and of issue our very say completely of it, of So in we're there dealing just would to deaf work ongoing officers they officers calling because turn kind period event cetera. off we're violence. to, of service a In it still it's

to thing but we to mitigate it much expect and some happen it not as so. go our we so work application these underreported have does to a it's being them just three and it's events get is frequent idea that to I very customer is based left for customers reminder just of sticky fairly a accustomed and first is there this and And really degree mean I are with what attrition to quarters, business when and that that you back. the with terms hard subscription, possible, our and called we to tough about of subscription it's general think that issue situation funding, fairly, we're for I this the a – So is past one very talking or particular attrition we're deal like SaaS in four have think not a responsive of as

Matthew Galinko

Thank Got it, you. right. all

Operator

with We'll Securities. from question ahead. go Northland Please Klasell next Tim our take

Your line is open.

Tyler Wood

on wood Tim. this Yes, Tyler is for

upcoming about first time then So solutions HunchLab like no example approach offering. these including platform And of in we Thank with had acquisition the versus it move you've separately should you're HunchLab something and with the the talking additional from do that for back to ILS you cost as Flex? see being now the included decision needle? ILS When kind now revenue you. the expect going versus as base in how since given labs in some far selling into

Alan Stewart

Yes.

of do as So QX contributor for a I from I end in an this look the which of cadence revenue guidance be out they as Missions. earlier in going labs up is XXXX. lot the more revenue year coming lab maybe then see contributions reduction is say and Missions and revenue the increasing the and ramp nicely up the go-live very a QX the going and probably earlier the set we QX what of as continue would and ramps primarily to be miles well into guess up to at QX to up expect then is to we and of would more would taken in the QX to be QX we that both QX is into go the probably we expect of amount toward us to Alan. part ramps expect

Tyler Wood

maybe. about customer win you it a about you off there possibility How we crime in more. certain down then significantly don't anymore we do Yes, gone so turn need this attrition. totally customer you one know neighbourhoods a one and think talked And like have maybe that the has this in area six

Ralph Clark

Ralph, is this again. Yes,

coverage emphasize I think non-contiguous these case in just this to particular were separate areas. again

the really that kind typically something is contiguous and of the at hard of situation. them area own know area considered to dissect kind it's off decision each coverage total so be different slice So you probably a a commentary. coverage characteristics of We're about of in because cut talking to our

as You again, always of lot a most that basically all a nothing. And historically recognize why much pretty have in. And that's attrition or decide we we go you would all our to would to decide don't company. have of customers know

Operator

next take Please Instructions] Capital. with from go Motulsky [Operator our ahead. question We'll Imperial Reed

open is line Your

Reed Motulsky

software integrate but and solutions? Hi. How not new safety and law apps into enforcement, securing other just cities, police also into civil peace ShotSpotter's does

Ralph Clark

Ralph. answer I'll to try that question. is this Well,

engine our solution a and digital it basically other digital into engine what notification notification adjust alert called does have XML alert through – that alert a our takes to alert. can we digital pushing systems we technology, that So and push and

have were more and video a the So terms processes creates kind of our other ShotSpotter technologies of you're a creates find very the like, customers customer more integrated that. a dispatch, of management other stickiness result And CAD number value and technology. and computer systems, we think that analysis that because And as aided point we in important management that it systems of into also exploit systems, systems. on record to

around intentional and able thoughtful to support through very we're so trying to [indiscernible]. And be integrations those

Reed Motulsky

to just and And from between the or regional is differences see for ShotSpotter differences you. is law guys beginning Great. it provides international city? are what looking Thank enforcement you information by city simply

Ralph Clark

where think tipping in that is impact success certain see to that news it a to mean quickly geographies agency confidence ShotSpotter I I we're I over another demonstrates with point little and bit city viral and guess very beginning gives by and I a agency. city. note But of, carries would

you regions area have New discussions an we recent cities other some had going or Ohio think, So like some state of more as , interesting there number example I that a a at wins as region. Florida with recently as South look if a in region, an in on the very example, England

of early the an cities a of as little example. in California. Cincinnati a like As that We positive result of bit saw experiences at play

this we're is of for we to plant what flags X like kind we really a trying to city particularly land going about Tier weren't So Chicago. knew year because really that

it's an hitting in successful, about fired. then to of spread might getting cities other interest and news that and so smaller shots them So have really cities the lot a

Pleasantville, Pleasantville of incredible So our case a in city that's and this our residents than has on even future. in this than to of important city the hopefully figured encouraging others they them and is tax property to that to is And out is ShotSpotter. deeper sort maybe that wider suggests we their or pay says mean Jersey. self some And come really why I for is much incredibly market quite up New smaller XX,XXX TAM this this list. it, have really thought. of enough the two point that so this is X,XXX cities even able interesting. we and of in be me for XX,XXX was wouldn't citizens that population Greenville our that assessed the confidence really that, quarter, for and

excited because be this believe are these And about in so as to agencies we're going successful, proved they've on to again well. we solution once want weigh to really other

Reed Motulsky

Great. much. Thank very you

Operator

session. question-and-answer our concludes This

was Investor Clark ssti@gatewayir.com. the back turn may I'd call to you like Relations question his at ShotSpotter's your to over contact for not If taken, Mr. closing team remarks.

Ralph Clark

much we We're quite very road all questions. Well And out us And you questions Yes. be conferences course, feedback looking free even remainder for and forward email, really myself, and excited have the to meantime seeing XXXX you and about as for more the or dialling-in the of the you any and thank to we'll in beyond. to for you. or in participate Al feel on engage your confident if happy XXXX like. of investor about and with

thank very much you So again.

Operator

call. you joining today's us Thank for for

You disconnect. may now

ShotSpotter (SSTI) 10 May 192019 Q1 Earnings call transcript