SSTI - Earnings call transcript Q1 2021

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Operator

Good afternoon and welcome to ShotSpotter's First Quarter 2021 Earnings Conference Call. My name is Claudia and I will be your operator for today's call.

Joining us are ShotSpotter's 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 date call. May to reflect statements of of revise or undertakes this forward-looking management's or forward-looking and to estimates These statements any predictions no the obligation date XXXX, circumstances this XX, broadcast, events update live and ShotSpotter beliefs, as after the

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

Now, conference Ralph CEO, I to would ahead, like turn over to sir. go Please the ShotSpotter's Clark.

Ralph Clark

things certainly all been made recognize friends, my good And by form while today. everyone to getting customers like to is extend you. has has I of back well of feels not Thank be have been significant challenging I that like progress hope It there been months and COVID. some XX everywhere. COVID families, us. our is everyone. case joining a And that all to might against and And for thanks would it for out we in us colleagues wishes well. afternoon, normalcy, fight the impacted of the doing

quick As our usual, a details results. I'll start quarter overview and the Alan of quarterly with operational outlook the before

on with had up again leverage year the from up of revenues of over your results both a momentum year, pleased business. $X.X finish the we've record operating QX strong build million, quarter reported our million, XX% very take We line. to to EBITDA XXXX. bottom of first unique our our After which and XXXX then questions. XXXX, adjusted will expectations and XX% fast our with start We're at We quarterly continued exceeded of a demonstrating to year-end once top $XX

McKeesport, Pennsylvania; we Respond, Harris Texas; and ShotSpotter Florida; went including six Mansfield, new live County, During Pompano the Memphis; Detroit; Beach, Ohio. quarter in cities with

shorter but Wilmington, Mansfield with cycles. expanded St. it's deployments next McKeesport days. go pipeline activity that five grow, only to the to Carolina. projects the also four pipeline with live solid examples vertical still North live We're with our are sales number in robust Respond including five York very pleased tier Savannah, in our tier QX, ShotSpotter go and also not cities, in in New market and where of continues this enter XX city and City, initiatives. go-to-market Even our exhibiting We expect and we new Louis, accelerated Worcester, a progress a to in the QX expansion we XX deployment of

"I'm beneficial equipment for wonderful manufacturing to a call and He Chicago likely successful saved the was were Detroit been work Givens Officer design a Thank to weapons After grateful shutting growing guys. These dispatched. Ward personal weapons violent a to and who a positive projects that search ShotSpotter the she about issued grateful in the and positive introducing difference of found these busy critically deployments no matters subject When motivated of Craig impromptu of officers ShotSpotter a crime made vicariously an to was the response was XX As narratives the restrictions firing probably apply ample or could discovered expanding the to become earmark the beyond officers with to shell against up University alert those to That gunshot our fueled because were life. It more increased a grow the backyard they calling as ShotSpotter investigation, impending to officers through able to new a people including him Chief Recently, time provider. going she of Recently value drive terrorizing an success XX wounded Their preserve PD you. police and We're gratitude the victim engage affirming and and clients and help scoop for eliminated to as do business. James our difference proposition ShotSpotter provides and with of and supply PD live result where backdrop part municipal Chicago safety involved community federal had and engagement. measurable strong the a department, making customer Ward hazard. with victim's resources that tailwind technology environment, the of is With safety by Detroit proven with the is Center go. result officer Ward to the the on cities which home of for ShotSpotter in PD a mission existing Respond in their again, when stated improved to stimulus we business. casings crime ShotSpotter well, Detroit. are effectively With nuisance procure neighborhoods then uncovering immediate a us this and even of Detroit a house, Even over that large a thinking we this job." more to fast alert small, was around trauma Chicago, government getting and a in do crime a XX action impact be the certainly transported and of impact a a a rewarding. experience efficient, and and year going technology as life event interventions criminal are and public selfless crime, waste, funding address several have you to inspiring a any are used our and fashion use only quick surveying footprint. wound victim old agencies agencies minutes. soon is helping The within in was they and equitable child stated, of a community site also alert services ShotSpotter court corresponding warrant neighborhood is having – his responsible make outcomes were – a and the call had and scooped where is mother enforcement and medium federal gun solutions operation of to to in exciting on of gun making in, to law the across alert, PD's the public PD based Givens improve ShotSpotter enforcement a directly months, effective illegal and our is Respond. a to but is heroics aware dollars Detroit because travel dangerous seized. detailed believe quite shooting. to provisions, the find location earned police bless to and rapidly deploy single calls child's to held successful Medical helping who follow-on us to teams from so for intervention being customers indicating responding providing our able gunshot stimulus post test law for press alert, where without for able a XXX project incident, after joined officers possible God hours eased, It source the to our happily keeping recently no in It service. ghost wound is improving is XXX be sold budgetary only are number by and and be this lifesaving to untraceable highly guns down guns. be hear a that desire nation

COLA and X% to us of America Latin the selected however, our believe been prospects their number We on decided publicly forward quite a will implement revenue year. renewals pandemic. Respond the previous on been impact did is new to renewal ultimately on able with attrition, their but Africa to GAAP our International, and adjustments overall, the process. we In corner ShotSpotter degree the bubble ShotSpotter to some constraints In have increases short-term areas still only We're coverage. of had this in completely not an challenges renew revenue and not customers, XXX who estimate due to of below presenting case, the X% retentions which growth. not living renew, come South decided to seeing top focus ability encouraged our financial existing also to quickly a intention including expand terms cost efforts move turn key customer or in pivot we're funnel line virus stated our our mitigating well evaluating to of of sales increases had through another that as

our to appropriately to in invest talent those markets built treasure continue protect key to we've and relationships We date. pipeline the of some and time,

time us goal base. not year. that is senior to impact to This and third of practicable. with announced for including installed ShotSpotter standalone of also shared year Their We've involved build solution. acquisition management ShotSpotter productive solution leveraging traction to our with invest hitting Investigate enabled becomes launch ShotSpotter hand ShotSpotter policing Connect of in completes to accounts, to Connect in a officially opportunities office us more ahead with and of early booking other investigative make new and platform grow focused the customer availability the is case quickly wallet on ShotSpotter our and and later schedule. has enables pipeline front form of within to with professional it services them much minutia critical management departments and the gunshot to this on us administrative freed work outside Our working our install we to customer-facing into pillar be precision on strength LEEDS is detection the up encouraging point this team I development. back and on report addressable ready total very even that what is ShotSpotter entry integration being Respond. engage when of demonstration our that activities infrastructure. heritage. business campaign of This stride a morning, ramp be those gunshot commercially to We've the appears the showing success very its a add existing happy now integration existing beyond base. Connect date our only see ShotSpotter acoustic functionality is value juncture. from been our and The expect exactly detection their marketing and has to ShotSpotter able with a at collaborative to patrol their well. our and sale, going to energy our Respond able offload but It Investigate initiated rooted relationship a Investigate police extends leadership some I'm measurable our by market to robust values next leverages need share

a $XX $XX million full-year to performances guidance million, momentum, As core we're XX% to our result quarter this and to growth of XXXX from raising revenue revenue XXXX. our million previous $XX representing of to million $XX XXXX

I review Respond ShotSpotter cadence the guidance And driven our look along stronger by of guidance to demand for your takes QX goes ShotSpotter Connect upsell questions Alan early with to its will he's Alan, more a solution, taking including increased Respond raise and into the retention, puts and go finished. is that Connect. environment of forward QX better deeper live visibility improving on you. over our dive ShotSpotter offering the and into and Our both our of results. once core ShotSpotter

Alan Stewart

We're very quarter. pleased our in performance Ralph. with you, the Thank first

We're secure six Respond quarter. added this small new one site we mentioned, attrition Ralph only cities from As seeing deployment.

abatement We achieved noteworthy and challenges five that stimulus brought potential budget new for current ones It in Respond some early has of customers XXXX. record been profit. had customers expansions, city federal table has and record gross our back revenue to as there the also is the

with the trend a seen minor than We QX continues lower expected which XXXX. are in of attrition pleased

and achieve new ShotSpotter growth While remains programs targets, focused organization generating while attrition. encouraging, current expanding offsetting to on sales

we attrition in estimate actual mentioned, our of X% Ralph expecting come are X%. below to our As well previous will

will I the Let around me and balance the some of provide details more thoughts then on the quarter year. share

we the Gross XXXX. were over also of as $XX.X million, or margins the we improve said, we full are Gross the of quarter still up XXXX. sensors quarter First $XX through first the and XX% versus in at prior-year XX% first LEEDS million or quarter. miles will to acquisition. first margin million profit revenues of increase million That expect quarter $X.X impressive period. our expectations of of at placing of the revenue as for XXXX the quarter increased the was deployed our $X.X an proceed mildly from as year beginning Revenue revenue impacted XX% continue ahead for be second recorded continue to revenue started we XG to gross year-over-year,

also first impressive $X.X first We quarter the quarter, adjusted saw the for which growth the XX% million, increase EBITDA in in a $X.X XXXX. million from of was

adjusted adding our back net a expenses. by is impairments, and taking and EBITDA calculated reminder, depreciation, related stock-based compensation As interest GAAP acquisition taxes, income amortization

were Turning expenses. were expenses of of and our acquisition. million operating related quarter $X.X first versus or and primarily related million $X.X revenue expense costs million or revenue incremental of to XX% marketing versus in Breaking the our XX% the $X.X our total of Operating or higher was to employee our Sales of $X.X million related increases XX% expense expenses, legal quarter first for quarter for period. XX% first down as revenue the well total prior-year as to or revenues costs, the for LEEDS XXXX.

and efforts. Our build to teams our and pipeline marketing expand our continue marketing sales sales

high low. on attrition keep levels satisfaction, focus to continue which maintaining customer helps We rates of our

to position in expect capacity growth sales add for investigate revenue for to product segment QX our also We in XXXX. this

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

or G&A XX% on continue and total for of compared were our increasing related to quarter in absolute of million or prior-year invest the cost in revenue functionality related were $X.X personnel. to We efficiency. million revenue expenses costs XX% with total costs increase acquisition products, The a G&A the to LEEDS primarily for $X.X dollars focus and an period. our the in in to increase legal expenses

we're was based outstanding and a and for net Adjusted $XX,XXX and XX.X on share diluted at XXXX. $XXX,XXX Our for million is the million payments was quarter by fourth million versus basic outstanding. on $X.XX XX.X compares to received prior-year quarter million weighted shares $XX non-GAAP We acquisition-related end taking expected of and basic $X.XX with million basic our the end in per based accounting shares share expenses, million cash be or is cents income net GAAP soon. the $XX.X acquisition-related This net receivables period. zero equivalents Cash GAAP the quarter. for of lower $XX,XXX per first on When share cash per quarter. adjusted diluted Deferred revenue ended adding $XX $X.XX of average net million our income expenses. some million for as was based at $XX.X at income XX.X the or large share, per slightly weighted QX XX.X the waiting and average quarter to back diluted of the for financial measure, end calculated income, or versus

$XX.XX for average QX, of price During shares also million. approximately $X.X of our repurchase an XX,XXX at we

long-term of $XX to We as financial discussed, flexibility. credit And line previously a have million outstanding. no debt we short possess improve or

Turning our outlook. XXXX to full-year

our are guidance $XX to full-year million $XX raising million. million to to million $XX We $XX from

Our plan proceeding mileage our appears below to earlier and is estimate. tracking of attrition X% to cadence well be X% our ahead

We profitable expect we during also that remain XXXX. will

to back some for and to take then Ralph final we'll happy be your questions. Now, thoughts

Ralph Clark

Alan. you, Thank

gratitude my serve. to take to your our my like questions, customers I express the Before communities and they colleagues, we would ShotSpotter

doing Thank amazing now your to all our communities You're making questions. work take safer. We're ready you. is that

Operator

Instructions]. [Operator

Our from Baldry Capital is first Partners. ROTH Richard question with

Richard Baldry

guys. drivers marketing large how or Was XX% for commissions in. curious up the up were about on [indiscernible] sales about step a think coming of that ballpark it which lot It's deals, marketing the of up. where you is from. headcounts the and sequentially, about and what Sort came sales step

Alan Stewart

expansion first is success, side. does cost also of sales the actually quarter customer a in And an portion marketing was increased versus people XXXX. in and we There's sales It hit in both This that the marketing as the marketing have well. Alan. actual additional of – and and personnel which sales

Richard Baldry

deals, the to release, you there's will you you that this a in be side? could deals? into a pipeline of of the gamechanger move that sort an funding do the highlighted broadly And me earmark how megacity the large play Can to back of some those? think of world sort about a talk Or whether potential think on

Ralph Clark

This is always shouldn't I large cities. Ralph. in. jump our substantial square nice I'll both medium medium cities small, we mix say complement deployments miles. being the discount start Alan, grow seeing now of of and and, We're into they fairly a over can And XX because to

non-tier stepping of Las etc. Birmingham, cities We Vegas, have Washington, that to number of examples level, or X X a tier up DC,

mentioned movement really smaller, but As And in the they very some my tier tipping on deals to be prepared call geographic points. seeing I'll And some The we're seem I building interesting, happening tier kind X it, remarks, we're quicker. of there. X. seeing are also encouraging and we're pipeline

opportunity fair we when for the joined when earmarks gateway their think could with us. we kind of more into way our customers than tipping to earmarks, mid-XXXX share of heard which about in are Houston. successful And deployments there's We're around in in points course, think of in I And have us think pilot build really geographic we've our constructive seen well that available, got that the be were lot of you've very represent would activity. activity program Florida I previously back very Previous, Houston With a talk Texas, we're a Florida. company there. large that's We back. going we our seeing earmark on making can along we earmarks what Ohio. in respect

deploy by a number of it our can customers customers got that plays expand an the ShotSpotter. really to We've front. stream to is process coming additional existing quite prospects because earmarks in back be able now with use funding or we're earmark and on encouraged So,

we're really that. So, encouraged by

Richard Baldry

about up you the Last marketing etc.? offering itself, about your sales the to processes Seems talk for place of bit the like successes been you've how you cycle soon? little in around and deployments Connect right that How had it's come cycle can it's that me, feel early some do a little sort municipalities, targeting behind changing, the a now bit? and sales

Ralph Clark

kind but I there. figured X on We're we've of months. the to start potential really lot cycle much prepared past, excited my and prospects business have it within has about We're strong Respond, seem our comments, exciting. going our I customers a our say, And we're really be say virtuous the existing marketing And in And that accelerate. again, we mentioned base the seeing that our of learning some would hitting of kind to a of curve of should stride. And been out, made to that's Respond XX install key as get we think we I very we those of taking to won't that that kind see be experience some customers. reference progress And which to already as aren't selling, traction really quite really in pointed of kind of it deployments. over XXX% and engine success notion

But, Connect. got that news So, it I ShotSpotter all won't dialed good say we've in. completely in again,

made excited date. I But about the could even we've think learn things better. and to progress we're definitely still do some we

Operator

with Will question Power next from Our Baird. is

William Power

to overall in US just see I growth here. appears the if couple or be two three thinking say, seeing, improving the with there? outlook the could trends given any about ShotSpotter try opportunity momentum I the years, how changes just you're what funding years, next you're Ralph, wonder in us, the a nice over Respond to Respond. of for guess I'll it's you couple update of environment,

Ralph Clark

positive. become we've think I more

enforcement has those been or I being late, been positive – funding the That's coming of of top months back since dollars probably that's actually the a you so more quite presented I've it's dramatically federal the we're just are than ago to stimulus the their at on around think And been. there's or being allocating with when concern changed ever then with I departments. of kind local company municipalities environment, local of some going think nine than that think kind of it's which police that, pandemic, I stronger of law throw encouraging. with ever pointed all earmarks dollars lot

from, really we pandemic gee, be the So, concerned, we're positive. that's might recession the and given to little kind of a bit gone wow,

calls the I social months police think powers, of safety these been to play provide go going police of from that early on, departments fact, or effectively out. the can technology too, how Kind concerns around, were they true. organized you unrest, forward back public kind of if of to better were in freeze moving of with nine some some defund And ago, that so there outcomes. like, to kind using opposite has and

resources police we've the think can lot effective, a that gun help time. piece very a these of We've powerful at-risk, with respond better equitable safety We're of enforcement the around police important on That's ultimately evolved just police not apply of been law efficient, message to departments been really defund to underserved that a reforming to the serve I on message and tool public the violence. kind asking be consistent – for and in calls their number they notion – outcomes. coproduce always equitable on the very technology how into particularly creating be police the to communities, years. to for more

degrees We're tier months XXX nine X. success, that tier say, from, X, like thing has good again, So, changed seeing in ago.

a I good the think than that or originally of relevant there better out idea point to points now from tipping vertical or of the them. smaller And we're up view. very have we a on might some specifically package when focusing could one for see agencies as and our we beginning something two of plans that expected have square hatched probably mile even problem be gone play

another. to to collaborate police their X chiefs kind tier talk and So one of tier and tend departments X, respective

open And some really to accelerate. as those then, these And and – not think there. are think a I will And Texas in the we play because cities be, positive smaller in that break still Texas of in that nascent the But very we with in if toto departments they're again, by ShotSpotter again, our of Houston I just to cities, can get come point back I Texas my there's should in ShotSpotter can domestically. last that in very they probably we tipping traction number in the about underestimate do more there. regional Ohio, of fairly really the of the what kind So, by Respond, think points Very, word partner we're we the X we're in stages very very, pilot. of more medium police talking of working in market, think through seeing bunch sized we're multiple cities, it talk represent you Houston. really, represent of in and results about could encouraged generating significant. Florida, some Say, I'm the way, aggregate and cities. State when on big interesting something tier a Again,

William Power

available? just there? to then, go-to-market the the And you there want? or Is more maybe to there. guess question, pieces kind a you of It fully just more on have continue us a build Investigate launch. that are kind remind it's just us encouraging from it is baked, capability strategy second so-called to for feels where color that environment update like now great of you I Or Any see standpoint?

Ralph Clark

I'll want jump in. that And you do one? take to Alan,

Alan Stewart

we we ahead be are end thought schedule versus quarter. last of Basically, at of Investigate we the where would on

So, that's good news.

at pricing based differ the based each of in and looking number the the We it potentially are police selling number will on agencies that. agency, on of or

that they could that, low as police, the someone Could for as mentioned a we their be have before, you if significantly as cities number small a of be So, agency. greater might than higher in larger number with of get police Investigate – has $XX,XXX.

Ralph Clark

management after effort. some to It's the have going vertical very case recently new direct hire started in headcount we or focus literally have a XX much brought past specifically specific opportunities. a just That selling days And on so.

that is strong pretty we around being that very solution. case this I management point through lot at had with of a case has think intentional drive we at solution think or X better featured, a view, of outcomes a terms have a number something colleagues very very from been X to that case a LEEDS intentional agency a using experience feature management management of our effectively is tier we're police And tier So, of years fully it. closure. a solution supporting in large This department case

think allows because we put general. little seeing and these better because something marketplace. this kind morning. on crime of in have compelling police closing really cases do our resolution, really, offer just violent you cases of to They the probably most or drive wants that unique isn't and to interesting, most to pressure have perpetrators of problem problem. press what victim we already on is problem, release the crime market So, of amount something a really some closing is We're crime under the drive of this that frankly, chatter, there's that's bit not early inbound that just based a This department out there

interventions that to the very important. focus you So, extent convictions that and lead super then can is get be to

And so, management point we our solution think we're on with X.X. version case

Operator

Our Mike Capital Northland question Markets. Latimore from is with next

Michael Latimore

Was Or is tier X that mentioned all or thing? of that cycle a of X cities, You categories specifically like improving broad that sort bit. content here? it kind little sales the across

Ralph Clark

encouraged. from smaller smaller tier on agencies, miles, quite dealing it like. dollars specifically just we're because very dealing X, of smaller miles. kind really And what were tier comments X, My appears with we're less Again, it's smaller focused with bureaucracy you're when

a We're then which four less tier be yes reduces involved segment, in the think to cycles. and I to the larger people forward. tier more to in deals five that finding to their move agencies, the lot have sales nod larger head be true

Michael Latimore

miles you in added Did Or do give the that quarter? number? you have

Ralph Clark

No, not. we did

Alan Stewart

That's didn't. the And long the businesses of acceleration added have that mentioned six cities our we've in we is going first the done we core time. a we obviously, new quarter. No, But, well. that to time

what of we're if seeing. that tells of So, sort the story hoping we're

Michael Latimore

is a on to or offering, get the case it then, And complicated month do it easy sort how in is Is of management the several to implementation? quarter a implementation? and it

Ralph Clark

this with We need But going We'll that be like. solution our more with systems expectation and experience of of have any probably an the much to it is integrate set. to don't direct is enterprise RMS yet.

systems probably of that Respond and we've of there's not experienced us to our down work where somewhat have too would in technology integrate successful a needs ShotSpotter lift, that it move Connect And slow to ShotSpotter be able will some So, existing forward. similar believe. we into being from to it's to definitely deployments. kind don't done think it what or heavy we be But

Operator

is next Our William question Pfau Matt Blair. with from

Matthew Pfau

conversations is improved? driven with that customer customers I churn? ask and renewals the by this fact over for that the lower results. about more customer one wanted year having up thought was ended know were a Nice you risk the by that I some is up renewal And you just this potential you're at-risk churn driven or expanding that expectation. renewing to mentioned to that potentially are at have it got you

Alan Stewart

there's Basically, Alan. is a This things. couple

challenges continue Obviously, than still is lot a past, the excellent. expected it less the which mentioned, of budget the we funding than is in XXXX. might that into XXXX, attrition, better in was had Ralph As even X%

out well pretty is that with that. what are So things far, we're working seeing

now. that It what we which So, than had to did be last than less lower X% mentioned was we're X% than we could X% expect on seeing or X%. based quarter, much or be less significantly we say

in as seeing So, renewals. it the team well as our sales to is is budget what

Ralph Clark

if could too. I a just maybe think macro I comment quick And add

once think just a our deployed sticky is of to I the compelling using once it's they to to very from that that we're customers walk hard. it but solution it, really see very it's finding to really, unseen, and I it's Kind that sure. XXX%, for Not be say that. they solution really it's get difficult them away think

Matthew Pfau

components any or ask impact go the supply ability issues your Wanted through shortage last one and XG source this me. to refresh? are for Just on if to chain chip having

Alan Stewart

this is planning This been because And Alan. mainly for a years. for No. it's couple we've

all our with much go sensors over that into worked the actually in a have year of now. parts that supplier We and pretty

things in So, order out some been turning And decisions we excellent have advance. that's did there. to

Operator

Ryan Craig-Hallum. from is Kimbrel question with next Our

Ryan Kimbrel

strong on quarter. the momentum and Congrats

you You American touched you some possible, your on around $XXX and the you go to how and remarks municipalities. have if been benefit might to guys local see going But quantify and do forces? in might prepared the from buzz that state obviously police there's it And visibility much local that? of think around you any Plan could Rescue billion

Ralph Clark

a one tough to answer. That's

dollars, either an interest, able those the customers think i.e. good into existing our I we're extent have where and tap to customers to prospects being needed, we or prospects, feeling about customers, because that to existing it's new that I think our wants have or resources prospect existing can renew they as expand. of to many be for a or applied as customer an

macro versus perspective more those do general to position to police departments that observation tend using I in on municipalities I the of I'd a Police comment significant budgets. are be city's municipal any don't have portion on of budget. an how So, non-police. dollars for be know a

of safety think you fire can of kind there. in of include want general, You XX%. in Public XX% to in terms

budget. represent to any because city's of So, when they resources get portions a fair big share they're tend applied fairly of they

Ryan Kimbrel

On push there the of things, sales technological to some even you perspective? working and us things side doing advancements, capabilities, a new be you're new the tell can traction with whether or word Are it out from the on, of gain lead customers? you

Alan Stewart

good right of now over there. Hopefully providing keeping time. that LEEDS, with have they're those services in pretty In large terms of terms amount customers they grows we the of that feel

good though, things LEEDS potentially of provide, does the is available be might well. other or that as for Some cities

expand taking to One product of we'll to with cities that other and was the the key we using that management. things was Investigate that to is We launched by way new why be a be LEEDS, worked case best originally Investigate. that able product. on there The that believe the

Operator

[Operator Instructions].

question with Brian is Ruttenbur next Imperial Our from Capital.

Brian Ruttenbur

and two on of on questions. One couple A quick funding competition.

set federal see stimulus packages, your asides? you company? do the see and do as funding of down coming And terms In asides upcoming set for what you

Ralph Clark

what mean? specific you allocated you question, you that clear asides, dollars Just on Is gunshot do your set when detection? acoustic say so to I'm mean

Brian Ruttenbur

Well, that not be specific. it's going to

a what I be asides I've said to So, to that? the local time. part How's doing have you been aside. federal law a will you a long down of. that from – see shouldn't that as this set be go Funding maybe enforcement set government coming and able state will

Alan Stewart

states dollars that the As cities. how and sure going that XXX% of Ralph some to departments. of the in is some know We're exactly the the had up getting police are said end we not through earlier, do

information it be too But, the little for things positive. far, seem again, on in seeing existing mentioned know cities, new we pretty so But to are and it's Ralph our sure. as some flowing customers of based there. earlier, early it a Although that seem does to

Brian Ruttenbur

$XXX or be So, there that that. get you part you around flowing that no could don't that indirectly. on numbers from There's as down you out in of have have you any million you could directly floating see dollar amounts, that funding

Ralph Clark

the it's how The city because it. all decides No, at level. once level. done at dollars they those allocate done all city get to city It's

Brian Ruttenbur

Hopefully competition in Alarm.com, I if think less that there you terms the moving on out in just And location competition. what out the of see. Alarm.com but talk been brought will see know, shot you has anything indoor the gunshot is doing question up. I space, And things one detection, new? but a Anything be of before, about into coming could others next with dumb it you on there

Alan Stewart

there in product. Investigate some once more We might Investigate, the gunshot actually other quite certainly really do indoor focused Yes. Basically, Connect in expect side. been significant, start competition that don't And in normal against been the and any see be there find gunshot the our on up. terms Respond, outdoor for we as we selling time. the detection we'll competition some us might Connect, the Certainly, the have that's detection, we of out be some. ramped they're

Brian Ruttenbur

be that where coming comer guys competition see becoming that up an And the out or would would large Do like and from? Motorola Would big guys? from you or that there a the Axon? as be

Ralph Clark

Investigate, form call features management systems record we them provide – that competition ShotSpotter have investigative around to see of non-intentional management. would that folks the a I light on expect built features, think case are I features

with provides clients opportunity is for management some a detection. had really would large clear to haven't rates wide case So, much a percent, something acoustic able to us very into robust think require that's nothing there, do needs case to of higher to potentially intentional, we out their say, for ShotSpotter feature this them drive I around competitor address market rich and there's people's automization, RMS even Respond closure unless between could units kind and compelling It's you solution ROI get very digitization, do X to direct and And customers lot allow a that be off eyes of an well management probably that that measurably we just to improve really closure to is kind But a do market of the management. nothing, we more, challenging rates. think going going very case really for of that get that We think the much kind that we're agency kind that's very way to on record them from off our gunshot various open, do biggest provider if of And some that collaboration investigative think percent ground go systems attention. although of have and like. would focused it's the you've features existing an Y I can that, in to it we built you're from to up, frankly, offer that.

They've have what collaboration tier through effect. now that, it's a case case out good a Investigate and experience that by higher organization great supporting of and outcomes platform. developing rates feel of tier one positive we management police leads built management for to pretty they in of solution due are integrated closure same using a that processor we using, the And X there. lot LEEDS got ShotSpotter of our capability designing, with a city part about solution probably is our we're we that the so, and agency large And built. again, X, the And kind deal using again,

Operator

Our Capital. with next Jeff question from Imperial is Kessler

Jeffrey Kessler

be fuller little I'm with the have solutions and looking years. spent a We're to bit, couple Difficulty] at tag see several to of around that out some want slogging cities. two, you could city some backward on lot Have of potentially last And out go you've money questions [Technical set – mileage me that been you the looking of this. want asked they a teaming a of wondering, there to instead number looking money hear a there lost over been cities, you any lot where again? from former contacted have you – just A for the And about by to of the with been again clients more level. at forward or

Ralph Clark

This is Ralph.

customer as ShotSpotter one renew coming I deployment. to They expand think ShotSpotter ShotSpotter planning result reversed are in. streams of were that there during a remarks, to position was not deployment, their funding their mentioned, our now stated and planning they're again, prepared we also publicly not but these that their they only renewing

a case there's customer think again. I of another

Jeffrey Kessler

there's Speakers] that want to are others there. whether know out maybe out [Multiple I

Ralph Clark

attrition plan where kind we view, pipeline timing QX be there Respond ShotSpotter from QX soon to we're raise the supporting I think see. of about talked thesis We're term, is Again, then year, kind we that of about lay We the the of in lot see think that and of Respond. QX way and then are near happening factors very projects on guidance. and we attractive, our supporting GAAP kind hopefully already revenue we're seeing in our early point confidence idea hearing a we that estimated I – kind we're Originally, X%. go-live about. fairly we number ShotSpotter what in out of thoughtfully QX ahead that how a of hopefully, think embedded, executed And rest that of the of obviously the we on carefully, I what the try a the growth. to bullish lower drives the is how of thinking feeling – you're we're and

go been strong very install our seeing base rate, I looking going and we're hitting will, And to Connect is is attach solution. good. so pipeline case for opening come install existing plan Respond. outside there. up talked ShotSpotter think that ShotSpotter pretty and you we're about now we've our we're expectations And traditional XXX of demonstrable we're kind that And of customers. below installable about announcing Investigate, a we're talking base drive to customers or kimono, well And to if the of solution is this that. a clear are positive management our that our very also just ShotSpotter speak, of ahead by so ShotSpotter our within Connect on just in using to We stride

for can start ShotSpotter the we development process pipeline Investigate. So,

can the of help are is really providers more and all So, rethinking a And police for frankly, others, combined them us ShotSpotter communities, are solution police successful. together their protecting kind those feel to business look environment. like good, little how departments to in serving go and be pretty causing of making stop departments them which that about tracks with things their overall the and bit maybe funding and that they

Jeffrey Kessler

and this one regard question. parts probably this, other Difficulty] as And well. to [Technical you I alluded perhaps – final touches know to but and with the Connect,

in do are use wondering code value can through little these proposition and writing? writers. of talk your of think What add could if invested to code analytics You open perhaps the kimono about analytics solutions the you? direction bit more just and have a trying types you take of of what type I'm you you And some that

Alan Stewart

do Connects to the the the probably we all R&D we're we'd sure that do things as this could the future to for use continue this, do there doing could what providing customers is there's the terms are the say, there I and they're Those think would are that and as additional capability we that of add patrol to management, like in to technology. can some know customers they we that with continue that we 'hey, think looking something for. you I cities make well.' do really them,

almost good at see build ready as help pretty has we'll in of there. product too. and well. the ShotSpotter we an that significant us we LEEDS for number And as that Investigate, think same we team, both can do have selling that's I have a people things thing products XXX% R&D new that start But the

Jeffrey Kessler

circle. It's a virtuous

they going for with that to them more you – things a then, to you and provide going come to And analytics. they that your like have solution derive to You you – back some value find and obviously to and they do provide customers, ask may more it enough, what some you're that can if have could to to charge. you're from

Ralph Clark

what going hoping us No question. for be And Not to core want. tell to not waiting to they comment data on we're what the charging we do. customers science – think I is I'm piece, but to

it see, I can applying capability and think converting that's kind hopefully Alan fact, And to out, learning we're gunshots drive machine value to science we're are booms added started they with future, really bangs gunshots really based science Respond ShotSpotter Connect. ShotSpotter core around core pops, these data that. to lot if, to of our machine data classification pointed machine efficient in Investigate. on that we frankly able of be in do our as more Data to Certainly, learning to what science where using to and offering ShotSpotter the solutions. be we're much a learning them, going solution, be

make or be experienced that? of so charge great that's patterns as start bunch the on and a on We're you amazing an other collecting investigator opportunity everybody offer that all case line RMS cases to using to going to detective. but to case don't solution and do able might things, possibly can ball a why management. fantastic pursue to up to exciting imagination You be able Wouldn't think you distracted It's kind add you case so to the it that forward a bring see to to the based a how like that capabilities to being not to kind a much take there's to data the to them of to more management. features to position, focused more allow apply more a that's be There's suggest, to to be XXX% of data once RMS, see, case it's and up We less we on management. set. us of able productive can imagine then are. forward a drive with begin we less closed as really move awesome way going maybe deal to recommendations watching to in be about doesn't productive investigators competitive thinking we down adding folks innovate only there. have about They're be And as par

Operator

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

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

Ralph Clark

safety much. departments throughout the to is over again. you work outstanding anxious going several them Really everyone's We're quite police and past what support the hopefully the company to quarters. really better with we an for working in get be year to public questions help of think very Thank world appreciate back out outcomes. their close and drive Thanks to kind

Operator

concludes conference call. today's This

and your disconnect Thank lines. have for pleasant may participating You a day. you

ShotSpotter (SSTI) 12 May 212021 Q1 Earnings call transcript