SSTI - Earnings call transcript Q2 2019

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Operator

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

Joining us are ShotSpotter CEO, Ralph Clark; and CFO, Alan Stewart.

Please note that certain information discussed on the 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 by those statements.

and registration discussed statement risks filings, ShotSpotter’s these its including on of assumptions in are SEC Certain Form S-X. reflect of August statements of forward-looking management’s and estimates These predictions the date XXXX. this X, broadcast, live beliefs, as And any statements ShotSpotter after date to update call. circumstances forward-looking of or undertakes this to events or obligations the no revise reflect

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

like I to Now, go the ShotSpotter’s CEO, to would turn ahead. call Ralph Please over Clark. Sir,

Ralph Clark

Thank you this for joining us afternoon.

take usual, general questions. overview update an of will start business, a the we and Alan then results the your As on into I'll dive our with deeper QX before numbers

QX with both long-term the year and in growth pleased full progress strategic our objectives. toward We're

earning the million, we the Lab. were $XX.X also For GAAP from which included quarter per record of in ShotSpotter posted modest revenue We $X.XX quarter profitable share. revenues some second

city we made half X X cities miles excellent progress Despite later existing XX however, the we we prepared XXXX of our to our I the the deployed new in downward pipeline. reiterating revenue Alan adjusting that first for captures. city year GAAP to forward XXXX We our city with adjustment growing our profitability. rational Tier nine XXXX. to the million square while million, the live These review XXXX $XX.X revenue an XX through cities and momentum for full on guidance reflect only customer full expansion new $XX all in in will year guidance remarks. for we've are and went In deployments new compared of five added

Ohio. additions News XX the to in Park Columbia, we've Newport on XX Virginia QX. and the Tampa, Toledo, to Carolina, live no here in gone quarter. another attrition miles addition There's in quarter Florida, date miles QX and were QX, square South city In already Lake added

of Although representing minor than we of some X% half year, this may second the we less anticipate revenue. have attrition in annual

discussed, is in As our tier Tier have we focus our this X expanding cities. X penetration domestic and year

So the deep we're in months. including our first of Dayton We're of just the Ohio were the shocking Dayton, just in our the continued pretty we our would the city Virginia, capture excited although is Dayton away week. over contract, to given off. a pleased new particularly about booking that and which state weekend. five paying which XX excitement totals And Ohio, Including footprint represent efforts X cities not excited cities with events very booked we grief in last penetration past now that week tragic given about the of last sense in

of loved the go prayers and those who ones. residents to lost thoughts Our especially Dayton,

believe this reason and and share happy do that a acquisition effect their expansion We chiefs positive driver the this We costs is network reflects clustering word low. produce with to we our officials We that city of police a of of and type results regions a endorsement that too key believe peers. is customer part geographic other all that experienced mouth remain find that strategy. revenue key solutions Ohio are our

outcomes positive seeing are customers solutions. Our with our

gunfire As recover able ShotSpotter incidents, X live make into are casings over just noted, publicly which over our was This of entered as guns the arrest street, about XX on and investigative stolen. again. the leads And can to just it which have. example through went off alerted reported, were one Columbia, talking is positive and impact take of customers significant July PD South [indiscernible], And six XX. XXX Columbia April Carolina XX XX ShotSpotter I in separate XXX

contributor important internal services. We looking our an other Labs in increasingly and four to planning see do Flex, our at diversification revenue assessment While future we and Flex, domestic international represented ShotSpotter of includes domestic and stream. encouraging which missions sources also security revenue, of is trends revenue bookings and by by our very Flex pipeline, professional

the On of recurring new expect challenging project though specific have the customers execution and in new America. proposals for timing awarded markets, price with be markets we these to it is front, key four and predict international million close $X deployment. Unfortunately, in of submitted even to quotes Latin annual budgetary ultimately to we contract revenue and in many

to across Africa intention Our existing has of three renew ShotSpotter year city. old Cape stated expand the South publicly more Town, their and in customer

advised. We very published expect timing what the had although later their tender we previously been be soon, notice is than to

XXXX. it In to longer actually in also ShotSpotter convert originally revenue international exceeding true But bookings is taking material in that expected fair initial our markets time to interest is summary, than drive in had to is expectations. it's say we them that

we to the an already of RFP in have republished proposal last where opportunity be will again, million optimistic was our lack That on timing uncertain. $X.X made. RFP and are to highlighted original resubmitted due award encouraged But the report we're shortly bids. we cancelled is progress RFP Domestically, was the that competitive quarter, and

low measurable transparent opportunities to a We XX assuming plus that these be we're still this very year. cautious, time closes of path some in and see of revenue a next generate if for convert to to little this fiscal in our end of outlook the business But days. achieve previous

this but customers is the business, year. Missions, handful we're of to seeing by our response newer equally excited market we're a of look and a part later book

increasingly As best pursue furthers intelligence. mission offering the actionable effectiveness. most public We believe our will for with reputation and excellence, agencies service and providers there technological to data precision be know train and we our reliability strategies, oriented policing safety

helping position within putting us and share a get accelerate to in leveraging base. We're reputation our more mission’s of it the that us is to pipeline, wallet customer

I poaching. deployment of critical rugged is point Phase ShotSpotter technology implemented for of just other ShotSpotter it has, conservation not the impact environments. also that gives our into us Park the the it problem category, addresses in inside In which Labs Kruger This rhino through but important deployment, difficult we serious recently

effect We paid pleased body to it sustainability growing learn. to our innovation, when to that on our how reputation and for stress supporting evolving works. are of to And the contributing We're technology, we're want comes important is getting while with laurels. resting Labs not I superior in

continuous competitive We the our continue and strong gunshot acoustic in to already through space surveillance advance detection innovation. position

plus exponentially machine asset adoption collected who’s signatures sophisticated value For critical classification This is a competitive example, of set technology combined and data evaluating XX not learning our gunshot underestimated, should when proprietary techniques with of increased vast machine with acoustic our the be mode. has our years. over

incident false building We've their overall review for teams. faster location greater out help focused delivered them customer positives fewer summery even or report. investigative and perform support mobile and negatives alerts, center our better toolset also scene Think faster and been on and These context, as improving lead false duties accuracy, and experience. more tools customer and even accurately, by the internally thereby our ILS

also ShotSpotter difficult and is father's combination producing plus of replicate never granted could AWS. security is anything barriers We're will technological This growth our although to efficient confident meet to and initially to mobile it’s and within our re-architecture scalability customer without company's of for the heart take prospects. resiliency, we and long-term strong profitable scale subpar to why the entry old great not risk. how so your flexibility, experience see advantages technology execution successful This a market providing and about at we're anyone more expense

the weigh the audit turn over help discourse on this safety. NYU Law. There's seriously. public we I ShotSpotter’s the to week the trade-off outcomes on At position In I privacy to call take independently provide. this public Policing our Before we surveillance on quickly leadership by an of want take the conversation frictions and between order to audit and an and in technology the amount the project and appropriate School at privacy engage area, ShotSpotter, a potential positive safety touch we very conducted between in to announcement increasing NYU last Alan, public of

the make and many reduce recommendations to take to excited that Flex voice how already cases, part other project detailed risk were added inappropriate surveillance further privacy in After our at plan. can we Policing in changes in a leadership the presents release surveillance. NYU risk these we solution, roadmap, position We're of our several a engaging and thorough of of with the surveillance. conversation as our analysis, recommendations did about important to study extremely low ShotSpotter Pine The this

it's been for another So ShotSpotter. busy quarter

standard offering FY Of issue. to We that a only closer is feel data that course, and a they disappointed growing. connecting driven the interest to be guidance is More in the pipeline believe of enforcement but XXXX very reducing our for through timing getting becoming I agencies only law ShotSpotter communities to care expect is we're our this serve policing. ever, we than again,

Now to Alan. over

Alan Stewart

you, our and Thank many record miles, revenues and income. including made good adding objectives, on of QX recognizing everyone. Ralph, new and progress afternoon, both XX live in We

our miles making highlighted miles last days progress XX we call. have quarter are With go-live towards on that earnings the that we plus XX since live gone the in end, XX the

five interest more gained new in cities revenues new traction we QX, added international initial the In and customers. ShotSpotter generated Labs attracting of from

We to investment pleased in maintain on increasing were expect that we quarterly our again basis. profitable profitability QX, also very in a We’re while business. still the now

our reducing on year addition. full contracts due new we're timing uncertainty client the international revenue outlined, outlook, of and the of Ralph timing the As domestic certain to

path client, XXXX still the To cases provided And to in when already this We may range where pipeline. the the now which expect have million revenues been to in to most is fact, be clear, still million revenues, reflected original guidance be in of the there's $XX.X a submitted And late we year. in $XX has is range been business it that anticipated in of lost. in we none the still million. wide achieve $XX.X revenue prospective proposals our in

take we out as was to it our we of best business, ramp But the path felt guidance. our opportunities international those that

domestic mature that will there time year. match to take cadence we're get these markets, in more optimistic But in As it we more the the than anticipated closely we will our earlier business.

the authorized $XX early buyback of to million. our quarter Directors in Finally, Board up a program of share

end not As any have we quarter, of the repurchased of shares. yet the

stock value. price we our its not the we are buyback does reflect opens, prepared intrinsic However, implement if to when the feel window

So let's XX% look million. quarter. a Revenues take to at $XX.X closer increased the

we comparing to While particularly QX recent rate is this our growth were strong last below results, year. a

our the of late In many addition, miles in were new added quarter.

go-live upon We year-to-date, miles expect year expected remainder of the miles based have the year. backlog the into ramp revenue to that the the end of a of during been significant deployed the

affect materially half in but approximately go-live not will year, second adding an revenue miles revenue some year later will XXXX, although of of the XXXX. for and XX entire in provide anticipate QX miles those the of for We may

quarter We with expect QX. from third revenue up fourth quarter modestly will QX than be higher

the depreciation, or Adjusted second million quarter quarter in adding quarter second $X calculated and million income taking versus revenues, stock-based our Gross approximately of total the back for in from million to million profit of net of interest, XX% up the $X XXXX. for which XXXX. almost or quarter, second was by $X.X XX% is second doubled GAAP taxes, and compensation $X.X EBITDA amortization

We fund leverage invest while business unique in benefiting from appropriately to model. continue the growth, long-term to our

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

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

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

to make these investments returns sales marketing We with the programs, are and expand strategic continue to early and investment. pleased our on

this of spending We for on of basis increase balance year. a the expect dollar level to the

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

add to functionality analytics new continue initiatives. improve and our Missions features and to product our invest capabilities to to in We R&D on

dollar on the for We expect the year. balance increase of basis level of this spending to

of to compared million, revenues, the for G&A million prior expenses XX% or were for revenues for the total XX% period. quarter year $X.X of $X.X total

on a throughout We expect that the modestly basis our year. will G&A increase dollar expenses

basic the Our XX.X average $XXX,XXX outstanding. based shares income share, fully million GAAP weighted million was net XX for on quarter per $X.XX diluted or and second

million This basic $XXX,XXX or the year weighted of average per XX.X based share $X.XX compares loss diluted to outstanding. on GAAP prior and shares

above, As are increased with future we I to spending to profitability pleased particularly noted is that growth. funding the return our even

net We QX. new miles in added XX go-live

campuses We two a with are with plan. meet will period. still to miles year on the end live we under million, we miles believe cities quarter XXX million was in was gross this our revenue discussed, miles XXX sites Deferred and XXX pipeline, of $X.X have approximately we that at QX end long-term. As contract. was $XX.X adding QX focused And over million current ended we amount that XXX $XX of XX we had the of short-term, continue at the and

quarter during of due million. accounts operations million primarily Our with and We cash used the balance in of sheet investment. strong $X.X timing in cash the receivable with ended the quarter $XX.X remained to short term collections. flow

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

to over you back Now Ralph.

Ralph Clark

than see a revenue year work. while communities positioned more strong It beyond. Doing Again, of the just disappointed leaning the growing slogan can't impact but purpose by having business. Thanks very ShotSpotter believe every end a team in we the time outlook, to our for and good important We we doing us. day a manage to doing with our Alan. I expect for our tell on we're we is I is and exciting these mission. and this XXXX on we're well full very shift truly year in proud how the you profitable impact am serve,

to your now questions. We're take happy

Operator

you. Thank

conducting you. a Thank be now session. will We [Operator question-and-answer Instructions].

please. Your comes Go Blair. first from Matt William question from Pfau ahead

Matt Pfau

Hey my guys, questions. thanks for taking

guess, that take to between Maybe us markets longer and to what international are I this you think about close wanted to I made more deals start going going on ask bit quarter give changed, these First detail originally that the last and there. expected? what's just quarter some to on a than

Ralph Clark

I'll jump and can maybe start now you Yes, in. Alan, so

America I we're the of that a of pipeline, one a conversations think saw the markets, things various encouraging Latin quite was with primarily number the encouraging. is of broadening we having actually in

would think, sales I we respect was applied one probably with domestic I to discounting in we internationally, did the process bit little the our over a cadence of timing. hindsight, things with that our say of

data and area, the a typically, So step, kind using you first expressing to a that take sharing you talking next then when proposals, you're step, where an you go have that about put you to data, budgetary they're they're the meeting, the very interest, you're define of you coverage engage then client, together next asking they're to a pricing, like.

they Chicago, case we're the definitely trips should the of And we next requesting to then seeing the the are a shot the out we've to NYPD, that Gardens, in where to the our over make Latin very give had domestically, here deployments. from America, others. of several step kick international, U.S. several And in visitors for tires that and months with Miami have participated meetings all past Camden, Miami, from many customers many,

these so And encouraging all were signs. very

of In that on a identifying opportunities, were paper cases, terms. they they we we to the some Even to the us even got actually versus were close. process, source. point RFP that case sole subsidiary budget, in down to contract identifying we trading took we couple And a led where thought establishing Columbian were a because procurement it of the

procurement So getting point from I kind in I signs, with processes time the these governments, of we're of and various are of even their a think, just say, more, wise, kinds all hindsight, view. though persnickety, encouraging complexity would national dealing of

frankly, it's than just So taken we just longer anticipated.

think much I the the than that size originally had and is, of thing encouraging we the But anticipated. customers pipeline of larger number the is

Matt Pfau

you the long-term of about I changed issues are potential growth in previously XX% know several communicated lot a Any sounds of be it. so or over the that But of some would target Got view And anything in your thinking of last timing. you change there like given your events? as like growth year, think of business. years. sort it the current sort the

Ralph Clark

We couple No, I square about knew X. not have of miles, Tier to we gross trying we domestically, XXX a think every really, grow weren't talked going square year, this about years. to miles

going a went a we which to than GAAP loaded favorable really case us, had we be be like year. was to they the That live miles that's end I be and stands So XXXX. and produce quite live more QX, revenue. front in to in situation loaded, of think that those miles to XX% whole to were of expect clearly in probably XXXX. it we enjoyed able bunch is And it are for going miles and XXXX And back end went that miles less square expect this those to XXX than QX

two, say when over interesting you them zero business years. to I the almost that very fair are dollars, growth, plus three think four I effectively that taking we're growing think it's next maybe really lines and think about rapidly

category, in million So businesses, I professional missions plus of et These in services, the cetera. revenue. $XX international years security, four in the other think and then terms think, represent can including we next

we're we that's XX% of to have recognizing we're always that full where to don't we we lumpy, the CAGR the that that a growth we're pretty X, And over square X, are long-term, communicated of as I and have years. that to miles still how have course, And years sales XX% where over have kind that a cadence. very the comfortable plus get going next going can we've with drive Tier our years much to on four think domestically, Tier XXX we're idea we but

Matt Pfau

my Great. me questions. for That's for it guys. taking Thanks

Ralph Clark

Thank you.

Operator

you. Thank

Go comes ahead please. Your JMP next Securities. from question Joseph Osha,

Joseph Osha

you. gentlemen. Couple of questions Hi, for

six How city do of deployments of at five expansion the your math some eight those quarter, for expansion fairly deployments next you the to potential deployments those new kind existing the small. quarters? over little feel a looking First, about past new do I we and mean, during customer comment about and are the new

Alan Stewart

we well, more pleased expecting I say, this is and cities Yes, our from But nine existing year. also new would added would QX. off, we expansions Alan, first that Joe, that I already we've cities are say this QX in are

that's of the that or a one miles one XX of for them still the occur already for in there some QX a another QX. We into expansion One in that to we gone added bit couple we've of already know more to for sizable of customer QX, little started, hopefully live maybe fairly go the miles more already with QX. is of going

optimistic and expansions So we're about I say pretty customers. our would current feel for the good

Joseph Osha

sit and without you over in several say new expect if you next to look new you of And customers. to might mix that terms sort What much. down were composition about in the too of versus So ads the of expansions quarters foxing the like? think

Alan Stewart

cities. this again. to for know, aware of already just Alan second Yes, we're probably to than based half right being And that the is say the in I are is in we we're signed. are going what or new we that contracts with have more necessarily expansions on basically now, would of year close

Joseph Osha

question And thumb of XXX Okay. understanding cadence, of of mile of to that's back course rule good over then that time. kind the a this moving

people would if assuming a miles That's XX of with my this a added you math. miles you You on this still do XXX comfortable out almost XXX XXXX. publishing in happens, models year Are XXXX. that that have for works to heck

Alan Stewart

to Yes, get is that that say, we I XXX. so Alan. close expectation would will this is our

sometime a Tier contribute X those will to expecting to which in have are XXXX, We miles.

with and pipeline still would expect be that. able positive say this to point we're at our to I do So

Joseph Osha

kind from understanding contribution -- question into of don't that And get to me XXXX want do you Okay. you we then probably too to expect can what Missions realistically details. outcome? for How think final that

Ralph Clark

is so Yes, Ralph. this

as a not to to get them and think think of GAAP But of running I and on number the that getting revenue. I what excited attention closer in terms say, significant paying are possible. the we're number much more productive and I to customers about would as sign platform quickly and up we

those taking in get customers. of live revenue to only Of two half from customers example, the two an expect extent GAAP and we’re Missions to course, October to maybe you'd as months

much had increasing But And I this impactful quite around a ShotSpotter has when the been the get think because think can with implementing impact allows fire think in that with from strategies helping think law And into new strategically make will TAM not I ShotSpotter data, exciting. category policing our precision our incredibly really using of is I number extremely that existing tap overall on we revenue dialogue space wallet enforcement the and successful be customers. an more it's Missions significantly positive. with cases customers So our gun be oriented we've share and about new material. us is the used to them

Joseph Osha

much. you Okay, very thank

Operator

Thank you.

may Baldry, phone ROTH next comes please. Richard, have you Go Capital. Richard on Your ahead, question from your mute.

Richard Baldry

the seems change administration the small, revenues. pretty budget of that of Thanks. is risk or looking I'm sort that you're maybe churn curious, X% than of geography at? that less half Recognizing of from a potential or sort in the second in leadership

Ralph Clark

Ralph, customer. change say that much both. is with Yes, think in amount prioritization. latter case, this a particular second In I that prioritization. the of situation still it's we're Rich. I'd in And engaged it's one definitely budget in some the budget conversation frankly Those two leadership more is a are customer of around it customers

be But felt hope minor of going least keep that it intentions not at signaling give a some complete of we the there customer could given that half attrition this the platform. their was complete So second to up to to I'm possibility on on we that year. going hope appropriate not the going give can we're that we mentioned

Richard Baldry

XXXX or confidence? years, wait could or you it's looking stable a therefore, dealing environment, and probability you that administration can talk a have for multiple some impacts there can with you there. that Are in because you ones have you're view believing estimate you -- X about and forecast or not in bit view can little Tier at of budgets changes XXXX, a fairly talk pipeline hit things can with that big about sort the it can customers, the there's of since like a Tier And, it X

Ralph Clark

to really X interesting a Houston, as Tier Seattle there's of today close degree, I there customers engaged I'll there's more others. think few, attention just a to out that Yes, or ShotSpotter Tier Los X customers than or not some paying with, we're there's names X Angeles, But mention are couple that would for would city services another Tier much X I ultimately a there's full a that deployment. well. Philadelphia, say is of mile that city Dallas square very it could customer need kind be our a considered Tier be at like call XX has

So sights, of can one in think these there's speak. be And can number that a year cities XXXX cities our our that or so those we get of to a on we platform. more

Richard Baldry

already that pipeline, either think I you've your memory rates, dialogues looking increased curious about pricing. rolling impact if renewal out, my or on And at But been customer either that of sort overall. serves,

Alan Stewart

We intend about this do increasing Alan. year. of mile our January pricing on to Sure, standard next in square is year, $XX,XXX per per

on customers longer certainly contracts have at the to ones would this point, affect. that to aren't that term that We communicated

seen significant not have all, at increase. that cause would the related we far, so would any pushback expect we price And attrition to and none

Richard Baldry

sort level over about adds need period an up headcount, time? plans for the comfort of curious XXX XXXX, current sort your And any you’d maybe lastly to Thanks. sales keep that hiring XXXX, of with of extended mile

Ralph Clark

Ralph. is this so Yes,

as capacity. as well recently, evaluate and and success. to not Quite we're our meetings making customer both also go-to-market folks marketing, we marketing potential and resources prospects the doubled are are only our for of kind to that field of outbound are invest BDR the look the These continuing our at in sales, kind So for helping reps. but of continuing schedule capacity calls

matter to have reorganization add a sales, sales driving sales working capability set bring of doing missions. around of on in kind through executive resources or interesting Flex we where and partner intentionality side in with of the really real reps even territory experienced that Flex. are can a selling our And overlays driving we directors more security, around with field subject to bit also sales the little We're experts through sales

VP more on has quite fairly ago So field that do and that open we a forget focused But investing hiring time not he to we domestic significant been of And investment what think able way about proves come we to opportunity, let's period been smartly just the of a America. months to a rightly there. several continue the again, wide short we're in can in international Latin is remarkable. drive business. made with And such that really

Richard Baldry

All you. thank right,

Operator

you. Thank

question Your Charlie Baird. comes please. from from next ahead, Erlikh Go

Charlie Erlikh

Great. Thanks for taking my question.

you gone that on quarter. think miles I mentioned this live XX already you've

So could continue was do July seen quarter exceptionally pull the you in of July? think any or rest forward strong, the your in momentum opinion, or there is the

Alan Stewart

So this would when is saw I we testimony quarter. we it Alan, earnings say last what that of to just a our sort did call

for our would things next that it's good good say have a quarter. in coming in I terms We four up start of are visibility cases. the three to months that most in

continue the the right of given guidance we where We've add how it for for quarter. think at the see will we our miles year be. That's of to to basically expect We sort end now.

Charlie Erlikh

just in me, then from how quarter? one Yes, fair enough. quick And much the labs revenue came last for

Ralph Clark

labs. from $XXX,XXX about had We

Charlie Erlikh

guys. Thanks, great. Okay,

Operator

you. Thank

Our question Go FBR. Van Chris Horn, B. ahead, from next please. Riley comes

Christopher Van Horn

just to allowing I ability that for there taking the main further profitability. around if Good my that? afternoon. guide touch Thanks call. to you and of are was maintain on do are the levers kind wondering your your kind could What of commentary

Alan Stewart

have in to significantly which go So spend, that continue leverage to a had we've more lot we this of a say second stay quite to we pretty quarter a QX, bit quarter, have marketing. increase operating second revenues is profitability QX we've have up. have not allows look our last year operating at any reached and spend sales can would take Alan. OpEx expense last year-over-year, to we you of the to our even that in the to us confidence this if I as Clearly the and spent good now there have But business, in categories.

adding, are areas. certain we wisely believe as Ralph and We mentioned in

that have but would we into are position. to don't of in loss us a areas So cause dip invest continuing to necessarily we back the to lot invest,

Christopher Van Horn

in Missions, cycle nuances got product? And in sales it. then, selling difference who distributing is focusing that any on around there there any to? Any difference Okay, the you're

Ralph Clark

happening it's But is different. of department. but sale center early, buying still have to same we're this community we the lot. before cetera. a of police Chief with engage mean, we're effectively is Missions the good Deputy I directly department, senior much relationships Yes, the Ralph. is in the analyst We're very the in going the police center is finding a much obviously, a Chief, through slightly quite it that is pull of different the more leadership et learning folks tend taking very department a police But to we channel. when buying within terms kind that

why more Missions be going to really the is end be excited we're year. go-to-market or important And earlier critical overlay this of director toward that for handful seeing specific kind we're customers so or leverage think and uptake again mentioned again expect a domain the to their that booked can pull developing sales very expertise on is a of us. expertise and this organization that there on I that's about But really territory quite we've inside of that territory of

Christopher Van Horn

me. for Thanks it That's for time. the great. Okay,

Operator

you. Thank

Next Securities. Tim please. Klasell, Northland question Go ahead, comes from

Tim Klasell

guys. Good evening,

to has -- the the question first range. The on do with on guidance

little we As narrow of you year, a expect the range to get half the the into bit. would second

Can swing numbers. these there to could some or enough could You fast really had that dramatically? sort us Thank help swing of numbers Is standing large go-live of sort there that? you. things understand one mentioned these you two deals out that you

Alan Stewart

Sure.

I are America. those we is related mentioned as there, in prepared to remarks Alan, have I out would that Ralph short there the say proposals answer So are yes. mean, million in almost all $X this are is -- the Latin

We this have that number the for for them several areas revenue hitting to could already or if other had so a couple in, revenue higher they GAAP year. us a the other of help opportunities we number, around come expected next frankly, point, world, in still come but they the month in and significantly come at

we come earlier, still think, be that international to of international give just It's impact end range have still we're that we're the as a closing mentioned given more, uncertainty could or our of I the one appropriate three of learned or where seeing in positively wider contracts. So the or could we sort waiting. and it in Ralph thought And XXXX. just they up was not closing you if lesson two international

Tim Klasell

Okay. Or Good, learned deal? the shouldn't typically And into size what early that Is the such and and of sort of lot then read as is that want need guys Missions. Missions a that market we you into from a from we to whole $XX,XXX color. over that the thanks it. can to influx customer for have it you as I the pricing read jump you. an could that see Thank far there much

Ralph Clark

sure to understand I is Ralph, I want just this make your So question.

are $XX,XXX, you what? to referring You average talking selling or the price about

Tim Klasell

such The new… a initial Or that first sort Is can Mission contract you got that sale? of we other is to something for apply maybe customers? your

Ralph Clark

yes, I it’s Yes, so I view, average customer $XX,XXX TAM of -- from just thought attach currently, year. revenue. Yes, of of to applying of I in think that's sitting then, per to it's And think think point an I XXX might you think I think recurring kind customers. $XX,XXX we're a per at can consider of north terms why annual kind you rate

attach opportunity to can install our rate of on as we of represented anywhere price got are So Mission rate, kind you revenue specific across selling terms $XX,XXX $XX,XXX category. say, the a XX% for the a with from of give you XX% for a where average base currently, which I side the us customers, okay, tax and XX of we sense in

Tim Klasell

guys. Thank That's you great. helpful. very Okay,

Ralph Clark

Yes, thank you.

Operator

Reed The Imperial Capital. from next Go comes Motulsky, ahead, please. you. question Thank

Reed Motulsky

focused finding interested guys smaller as other size their such larger regardless or characteristic? Missions, on are that cities the more you Are Hello. or any are equally analytic or least they at solutions, ShotSpotter of

Ralph Clark

a we're reference, that segmentation have Yes, the mix assets us customer to I prior Azavea very interest large we're user big to in was that a seeing the a just medium small, frame of quite of Missions. solution. acquiring in of Chicago expressed I don't as the way, By point size. prepared technology HunchLab, PD, from and this any apply at customers market of think in mean, rules terms time

tools kind predictive example that's of of will, large city kind policing X analytic very or if an So Tier in. using of a you oriented precision

are smaller in we're customers quite that. bit a the discussions now So that than

large. is a and really small, it So medium quite between range

Reed Motulsky

non-English Got it. And to guys trying new Missions And are adapted America. Latin for you expansions Are you international cities, adopt yet, it users? ShotSpotter the like make is language to with in guys trying the similarly there?

Ralph Clark

to in this trying solutions base would our with fantastic at I a we're to and that's Flex say second time. question. get internationally first point Yes,

And once the get So course, direct of we first the business a but deployments right bit deployments what and on get represents once is upsell relationships international of those there. there of now. international we're our to that's us opportunity interesting cadence little international kind the deployments, get on get better we into certainly customer order Missions focused Flex. some for

Reed Motulsky

very much. you Thank it. Got

Ralph Clark

Yes, thank you.

Operator

At this our question-and-answer session. time, you. this concludes Thank

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

Ralph Clark

you, very our you, [ph]. Thank all near very you your for with look forward future. And you everyone the Thank you we much. many in We're very speaking certainly very Thank to Ben grateful joining and Great. again, for call. support, much. of thank

ShotSpotter (SSTI) 6 Aug 192019 Q2 Earnings call transcript