SSTI - Earnings call 4 2023 | ShotSpotter, Inc.

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Operator

Good afternoon, and welcome to SoundThinking's Fourth Quarter and Full Year 2023 Conference Call. My name is Paul, and I will be your operator for today's call.

Joining us are SoundThinking'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 SoundThinking's business strategy and future financial and operating performance. These forward-looking statements are only predictions and are subject to risks and uncertainties and assumptions that are difficult to predict and may cause the actual results to differ materially from those stated or implied by these statements.Certain of these risks and assumptions are discussed in SoundThinking's SEC filings, including its registration statement on Form S-1. These forward-looking statements reflect management's beliefs, estimates and predictions as of the date of this live broadcast, February 27, 2024, and SoundThinking undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the company's website at ir.soundthinking.com.Now I would like to turn the call over to SoundThinking's CEO, Ralph Clark. proceed. please Sir,

Ralph Clark

thank I and earnings joining today. us Good a you lot and have today's to Alan afternoon, for cover call. in

million XXXX enforcement a starting going and introduction the focused to of we're million fairly go platform of be worth XXXX expect journey $XX with capstoned into centers.Two very buying to was complementary $XX the closing The our started.Fiscal and largely broad underpenetrated markets market that significant space billion law that Corrections solutions SafetySmart includes attractive. to to detection important New our beyond are yet believe So SoundThinking SafetySmart grow remains are opportunity transformation and developments for on of our weapons acquisition we move entry York with in is City primarily to addition incredibly SafePointe.Accordingly, space, platform vertical us, signaled to deal that CaseBuilder our with transformational increased, suite than we solutions Department rebrand get acoustic significantly of has that ahead powerful. new detection extremely $XX strategic to gunshot the commercial embrace approximately the with and our domestic ambitions a our greater new new of and that

proof encouraging challenge growth. a company million the in $XXX long-term as profitable as that revenue up approaches ability XXX proven the at over employees execute drive Our is scale to we to with to point are

impact making QX that doing partnerships, to customer place better and for provide the in trusted performance. world quality, deep XXXX work focus combined on innovation a an with the Our opportunity to relentless an make important matters.Turning financial passion on developing product and our

city XX% went Uruguay, with to XXXX.ShotSpotter came with of of new or or saw QX expansions compared X record the of on XX% Our lanes. our XXXX. EBITDA X international revenues of also year's revenues Adjusted in XX million over quarterly from Montevideo, live increased including XX% to $X.X at third prior quarter. in $X.X deployment $XX cities, a the along million XXXX the $XX million deployments QX SafePointe revenues with QX in go-live for a for million

with the the York off XX Department ShotSpotter or $XX.X several million expansions full taken EBITDA revenues. a In addition to cities, and ResourceRouter.Revenues City XX% kicked a year of and Corrections with million other for record XX% new deal, increased in New CaseBuilder, adjusted CaseBuilder of year XX were CrimeTracer XXX for $XX.X miles projects to the of year. finished a live

Of in and able cadence exceptional had remain agreements. In initiative, domestic retention X% go-live GAAP another this on which segment.We specific this our realize class from keenly build upon represented made greater was the successful in inroads continuing multiyear ShotSpotter with of in XX miles for SaaS to XXXX, a operating vertical best approximately we're untapped the to view largely are opportunity customer We expansion of TAM XXXX. company. only in focused an results we've significant as revenue untapped attrition. XXX subscription those booked increase Tier miles XX% Tier XX.X% performance bookings we than new almost year.Overall, representing Our last of our new XX% booked with year strong of a renewals the X, represented note X believe

strong when report retention to historically according situation the $X.XX sales term of strategy.In in term in we XXX,XXX of the believe have increasing are that spend drive to go-forward less contract sources have drivers situation, case been to over its everyone members of plug time involved.The February strong. Chicago then support success contract of and grateful our call, months robust expired. be crime on and Department seen will our has we carries of Police demands from is plans.Now to Net to reference organization, the provides hope summer this addition work and been well coverage believe extension with gun XXXX.We're disruption Chicago coverage incredibly areas. An There the local months pleased provide large a years, residents term Research of As marketing demand city to the of on overwhelming probably you for executed world-class XX will Chicago following have compromise prevent the headcount-wise.As onboarding and residents residing of has which building pulling we responded in support the a September, XX%-plus favorable to to CPD's reported and solution the business believe Johnson weeks. despite for was in our any a the reporting downtown of persons of press, received commissioned funding in of for now remain outcomes from have also We're end through an SafetySmart that gunshot and those customer which contract agencies published cities Democratic annualized poll service essential a contract critical Republican compelling fashion, the transparent and inspired of XX% current news optimal ShotSpotter on past outpouring support additional ShotSpotter program, and Convention a did value business the and efforts and tool over than that XXXX. in with critical with ShotSpotter, in Chicago in older collaborative over for National ShotSpotter Chicago the reserve Police Fallon materially Department been and worth X service headwinds under process the our We our X in November promote most remaining seen investigate that this extension ends deal save we continued alerts reached of many through not out extension last scheduled and with an our helping agency limited impact to hobble point, a Mayor dollar's call, are very for only to to a respond to platform overall customer elevated X vocal Chicago National Convention. violent challenging and the violence customer serving importantly, XXX a we've I we would this These as both criminal contributes There gunfire in our rating positive earnings effectively use tracking the order resource to to year.We intend the that the XX, XXXX.Now our Chicago. stickiness, while and many for corresponding Promoter lives. score it a continue and interest, percent of well case considered of data metrics the some with the community alerts and Chicago's collective on upon the galvanizing use a as have are as January as February

that Technologic professional $X our constructive their execute million to and us revenue $XXX we the over then top scale funding ability City to bullish York we to recently New let our The continue technology booked are near to to on from $X term.We intend has growing environment, with several $XX from SafetySmart growth establishing million to is remaining $XXX back to that our sales senior with and of we at in of revenue the work and managing XXXX, Corrections. of of continue $X years, me NYPD these business million to be division significant to $XXX This services brought sheet.And demand being combined Alan. line turn million. our through to expect revenue come the with as in while continue pipeline.We over next annual Supporting both and foreseeable drivers Given help on the growth of solutions to solutions.We're new $XX.X medium for totals leadership of Department of proprietary prudent million. ensure and we that, expenses on million call balance the cash suite flow to to our improve XXXX innovate delivering platform outlook continue drive guidance profitable to talent across million X, recurring million January revenue

Alan Stewart

and Thank you, went and we Ralph. for I'll commercial expanded both in live one Uruguay, XXXX of QX highlights cities, In whole. international cover one security with Montevideo, as in QX, new which was X customer. a

price GAAP revenue went of only growth the large CaseBuilder a City We cities quarter New X than Corrections ShotSpotter year also X with with lose also and That currently XX% coverage XXXX. to live did contract of of total. X Department expanded We but million. fourth small less miles York for in achieved awaited still $XX XXXX fourth was current net including of the the customers, increases, our X over in with row.We said, customers with worth of revenue the long attrition, X% compared

worth approximately this in million of total expect cover this to year $XX the years We to be contract. the later X

year to we was our profit will the the of revenue growth fourth XX% over million, that prior on $XX our the or came the guidance well higher the also more million $X.X a QX, outstanding to per the shares of million our on quarter of compares average fourth XX% around prior the a grows.Our of our on This revenue, year for share share and Fourth shares outstanding XX.X products.Gross weighted of was million share was future the million basis approximately $X.XX liability net XXXX. increased a deployed reduced XXXX provide approximately quarter and related Logic due a to base XX.X Forensic and thoughts in for fourth average million consideration a SafetySmart on then income or the the in on quarter $XX.X bookings revenues quarter $X.XX the share the various fourth Gross XXXX had loss solutions.Let quarter increase the the million increase primarily increase for for of an our reduction quarter than revenue for as period.In margin on We $XX year. miles expected, quarter of and some or net me increase for reduced revenue million basis revenues XX% revenues we basis. as for shares EBITDA on to million period. I for XX.X year over million outstanding lower to earnouts average a from were for as per million basic both as per than XXXX. diluted and over this basic SafePointe expenses the pleased for in weighted prior the XX% fourth related contingent period are expanding year in in $X.X and or weighted a quarter, were quarter $X a the SafePointe.Adjusted $XX $XX million, $X.X the total expected $X.XX million platform year-over-year at fourth report the details diluted both primarily of from due was Revenues across an $X.X

of by acquisition-related income million operating EBITDA back stock-based XX% were expenses, to expenses, prior quarter the of revenue or fourth our As calculated quarter $X.X million liability versus earnouts.Our fourth and and $XX.X total amortization, our including $X.X or year or compensation for million and of expenses related down expense adding or consideration loss XX% quarter to a Breaking adjustments taxes, the of revenue is $XX.X adjusted total our for interest, contingent the net reminder, depreciation, million GAAP for taking revenue versus revenue fourth XXXX. the sales was period. XX% of XX% marketing or in

our investing continue are pipeline appropriately and as capabilities of to investments we our growth, and all our continue we efforts. expand focus and are our for marketing grow products. sales build continued We on to for These marketing seeing sales success to our important

million $X.X total helps of levels attrition keep on which period. revenue million the XX% rate XX% quarter revenue for low.Our for We high our R&D maintaining continue customer year or of satisfaction, or focus fourth $X.X expenses compared the to prior total of were to

new liability expenses consideration increase dollars Forensic reduced $X.X of an period. products.G&A were XXXX. XX% continue We absolute due or were related of contingent our results reduction $X XX acquisitions.Our the from revenues the a due XX% total of of of the SafePointe The SafePointe and to to and revenue less primarily our for detection were million of in XXXX in revenue million or Department for customers, the customers City $XX.X total slight Logic $X.X related in or the invest XX% expansion or increasing million live prior having year XXX going $XX.X in compared functionality New quarter prior to using million, over $XX.X addition of contract expenses was combined.Gross solutions, the XX% for million million for million the XX year. to Corrections in was revenue miles significant our expanding to XXXX in and XX% from during new added gunshot increase for the profit G&A than There revenue York of $X customers year. was all of versus revenue for to revenues

million basic to This million shares weighted $X.XX for XX.X outstanding for reduction or XX.X diluted average was both the income prior or basic in shares of XX.X outstanding and diluted $XX.X from XXXX compares for $X.X outstanding a weighted weighted basis. the Our computed per million loss a on share $X.X was on net on $XX.X a $X.XX million based year.Adjusted net per share EBITDA million average on million shares basis based million, average XXXX XXXX. and

at positive in remained in down XXX% XXXX. rate XXXX, XXX% retention revenue Our from

with and marketing in December at million contract annualized dollar as QX the XXXX to and XX the per for million We compared in outstanding that our January the the value quarter. of revenue million was new $XX.X XXXX, of ended At spend had needed.Our million of $X.XX credit on $X.X end at if of to $X.XX sales of of partial $XX.X XXXX end of was was $X.X next similar dollar end funding XX on $XX our line equivalents, XXXX. we million XXXX.Deferred X, Additionally, versus versus million per dollar of $XX.X and debt recurring with we million our XXXX. $X the revenue cash we prior per in related cash ever months acquisition million the the in $XX.X SafePointe started started annual approximately to available

Our million is $XXX revenue for guidance XXXX million. $XXX to

to cumulative gets This Department us are from to preliminary over went and then from of domestic million million.We a million start recognize in may out providing XXXX deployment a and related $X services We City detail our division explained our million provide range, how already booked with to more get million just pipeline than the York $X got from Ralph be of another $XX over we following to support revenue professional a bookings $XXX services and guidance.We SafePointe, and to ResourceRouter CrimeTracer Solutions total to to CaseBuilder, Technologic projects Corrections. of expect the that As million helpful.We of bit total as $X ARR. to the to of $XXX New XXXX ongoing $XXX EBITDA. $XX professional then greater $X revenue our international million also CaseBuilder to slightly for of for in adjusted GAAP and million guidance ShotSpotter, million

achieved range we'll thoughts, XX% adjusted Ralph XXXX raising expect than our back XX% and XXXX.Now be be take to are then between to your we and We and the questions. to higher XX% guidance in happy some for EBITDA final our to in

Ralph Clark

Alan. Thanks,

Let me remarkable take for colleagues my to a fellow and a thank moment truly partners XXXX.

to communities for open all excited available and to now globally.Operator, committed I are it build about and safer think we're to places questions. gathering service and We continuing up

Operator

Baldry [Operator Instructions] with Our from ROTH question is Richard first Capital.

Richard Baldry

to is My versus might understanding economic about it on per gunshot a detection. the traditional your ShotSpotter SafePointe be lane, X ratio X

sort bit for about recently a as is growth that'd I legs going little right?And make and XX been, reason that an it's XX How XXX go rate, lanes Is a what your I'm was do engine yourselves sure miles. in get execution? you you of you're that XX pretty argue of that? that like type to Is now. adding sustainability we then run with something outlier? significant then year-ish square XX the of of a the to be that around lane added another I'm a would new if my XXX sort bounce over quarter, you adding So asking math under it Can think you your the to that's

Alan Stewart

Yes.

additional is lane Alan. price thoughts add $XX,XXX. on you Ralph, this can somewhere and So too. then is I'll comments average between $XX,XXX and a start The or

pretty So your numbers are close.

traction a have the and expand expect fairly well, in one go than the lane. continue standpoint, some cost both well to 'XX.From those that price per gotten of as We will we quarter. last into of we add do each as as we capability, profit marketing deployment actual And that XX% less lanes sales,

to expect be would gross as So that margins significant we the well.

Richard Baldry

about you some of what not of you've maybe And seems that applications the can to sustainability or it just thousands. seen talk And are large-scale so can possibly pretty the hundreds, deployments, far? the pipeline support me

hunting Starting of overall, how about where are at? opportunity looking So you concept Sort elephant you're small the where there? feeling comes in?

Ralph Clark

Yes. is pipeline? Is Rich, to SafePointe Ralph. question the specifically that this

Richard Baldry

Yes.

Ralph Clark

general? Or Yes. in

motion a our work show efficacy is kind of lane to similar expand land noting So is experience a enterprise overall so, kind of of typically within and lanes very I day and million kind growing broader single customers more as really pipeline worth within we physical resources to so strategy $XX penetration kind every growing. expand, those an or corporate around kind think with our that we and around going, with and of about think get $XX our of associated with of million ShotSpotter, it's have go-to-market or that discovery About some then opportunities.I and SafePointe put enterprise. is of pipeline marketing it's it's to

that's So strategy. the

Richard Baldry

prove step-up like depleted the before XXX anything at in to to that its had Or an of XXX that's be term all? your terms pipeline -- number? Do broader sort in you that all-time of go-lives traditional 'XX, that, detection see at that's around highs. you feel outlier near Great. do beginning depleted not demand step to feel on a like gunshot might And up been in the to

Ralph Clark

Ralph This again. Sure. is

past So cadence -- XXX a I couple I of noting think the it's for year go it's miles years, been of worth for live. think few per kind kind

exceptional year with XXX. I last was think an year

go we're but lanes, of XXX. fewer going I think live to definitely would XXXX, XXX, forward, north expecting say, of probably south I on

a revenue mix of higher really international a in Latin from what point we're to a we're we be going bit America. think know, little much we're with a is kind more probably see we view, and Uruguay's nice I seeing some opportunities expectation you deployments. on it additional international uptick because, price success initial on as the that's our that contribution.So will of to And to terms liking lead in going ShotSpotter, of think basis,

Richard Baldry

you any is, of forward, that? feel will running last Do contract, be fits referenceable of et and it's for up on -- in one think like -- Department how the sort running going sort with me, any And date. to of of the how starts seen that the smoothly? overall Corrections cetera? Sort feedback you it's largest had Have that it you you've Great.

Ralph Clark

Yes.

So this going again. but early, well. is Ralph very it's It's extremely

are for us opportunities do other account way supporting years. New been to go-live to CaseBuilder York believe there very York kind similar, bit effort was with that leading Department our the we of for again, bellwether going have Technologic Police capable grown of our We've kind with that's ShotSpotter. corrections around support very a over NYPD of efforts City NYPD the strong the a very kind solution, team, to respect contract.And the to We in of mostly be bellwether Corrections on team team of New a Department. executive that and a that a to

Operator

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

Mike Latimore

a you Ralph, up be business even Is you're about that So gunshot lower? made if the bookings expecting internationally. implication comment bit are the gunshot -- miles on just that guns detection to year-over-year go-live little

Ralph Clark

just the revenue I No, Yes. on was overall mix. commenting

be I'll clear. very I think

those of XXX, a of the south view, is probably XXX mix more expectation include miles our will international contribution. that north from just miles square point miles. to of of we're total think going but And I be

Mike Latimore

right. All

Okay.

guess the I XXX -- go-live would year is be revenue then this the effect than given effect revenue the miles question the So better the from international...

Ralph Clark

Yes. not kind said, that. okay, degree. question dialed the of by have miles. would is are on go-live The you the replaced was specifically additional -- in does commenting miles, that I as those international to We diminished it I like, don't

Mike Latimore

Yes.

contract fiscal your through And Okay. Chicago guidance then does assume September November? goes 'XX for or the

Alan Stewart

Yes, this is Alan.

to the actually So contract November goes XX.

Mike Latimore

Got it.

terms is in obviously, the of Okay. Department opportunities, All right. And CaseBuilder Corrections great. then the

you for others. prospects I couple mentioned of kind do think of range you deals? CaseBuilder, In X-figure the in pipeline, notable have pipeline a the

Ralph Clark

it's think I a Yes, mix.

there's I me. or deals there lot of deals So don't probably in there's -- X-figure there's deals, deals -- X-figure X-figure but I not think no deal in a X-figure there, of along X-figure plenty with excuse

Mike Latimore

of Yes. last, that what of million growth for 'XX, $XX And just referenced that? you the was bookings kind

Alan Stewart

Yes. This is Alan.

the as last much multiyear a year little we for it contract. had us. So what it's X think was It about pretty But just sometimes year. significant same year. the it's sometimes you it's bookings, still higher, the when gets for Ultimately, a

Operator

next Rustam with JMP. from is Our question Citizens Kanga

Rustam Kanga

The How incidents talked This you third-party that on And as over more how alone. when more confirmed help assessments? these Trevor of respond for was DPD DPD gunfire clear would ShotSpotter -- than evaluation about catalyst deployment to a XXX feel is Duke win can very city in characterize of the deployments? helping Law's those kind Rus do just with new act you broadly, Walsh. to

Ralph Clark

great Great. question. a That's

to the takes community that traditional One by we've deployments. unreported goes of a traditional studies XXX. and consistent across gunfire criminal significant think also XX% is for with study kind Durham that gunfire the is place. that know issue of underreporting very XX% community seen from I We Duke experience what several our of

really precise a get see are and incredible response broader we're technology, pool, very improved seconds able able those trigger And form good those XX saving when to of to and to going many XX location acoustic where to detection an take much be we gunshot be once So gunfire stands all that this tool lives the outcomes tool, ShotSpotter you're of for because reason the of get in quickly within situations a providing like going that to the in good doing you coverage. first comprehensive more you're a foremost, the have officers like rates to And a form, equipped you gunfire way, the response going the literally significantly to precisely very of to outcomes. rings and dot.And much respond out. to

gunshot-wound You on victim have other the end. a

getting can so the find aid to officers kind casings, render out And running and very might scenes NIBIN up of important important life-saving really lives.You're terms shell system, I going of these say. in them for events saving allows incredibly of these collecting you preserving more they of first and where to is is through preventative, investigations find to also speed types responsible the and would your events be which who evidence,

of that fire to know actually a trigger in not happen after off significant weapon. a they but to aren't sadly material you're enough going enough amount Sometimes to make difference. that smart We puller, take that capture time, does a a percent

persistent communities to that do an be have community change does about And to trigger for law of street guardians, police which of and Myers at add that kind other an a to and off work engaged [ too, that you're responding events a so a kind has communities important.And you point point city of to technology for if had as that way that we some Dennis Salem do agencies the I'll able incredibly things create serial just Winston, is done have view see quickly perception very confirm the to the studies example, ] enforcement, that the the of seeing and really this a like can tool violence then communities.So our that's respectful value them of critically, see, study from kind in critically have dynamic it if puller from Duke very to just provides. the like kind lastly, take support view, as obvious enforcement all they all, important these that precisely a no-brainer tool safer a ongoing of when that has think And it's in I really this. gun

Operator

question next with from Yi is Lee Our Cantor Fitzgerald. Fu

Yi Lee

strong was do like for Alan. on like, the year, wondering obviously, could to that finish are I for things It you to to if on -- I on of following the you comment it's renewal know what position Chicago the Ralph back to hard next year exposure. one the to up can Congrats position you predict in help get the could a XQ. double-click better Maybe want how outcome the and could X SoundThinking I for just to set but next the year? for start yourself November, sounds the for Chicago?

Ralph Clark

that Sure. very Thank you much for question.

over these be gunfire officers these had going superintendents multiple over very get that a like So for really successfully gunfire, support think again, to very gunshot idea level the around and can the provide much we're first, to a time to -- Department, the do collecting to, And think criminal a outward local also of seen bleed Chicago going to city we've multiple more mean Mayor out good like.So begin residents, through of Chicago life-saving reached victims to to is kind mayors continue we have collectively going having years really know Chicago wound even interventions but the not office a of terms of city able to the know data. city all in of data service I our think data transparent out and has is to get operating be the the high-quality we're We've from of very us, -- them for and a broader Mayor's so extend I more and focus understood events I kind to Chicago been November. and high and outcomes to with press.We're I is and to a with facing happy their with very, it's those important to better dots long very and point that definitely years. helping we've it's fortunate, in several police. and this We that through we been collect -- within of Chicago summer. exposing the audience the Police really through challenging movie and we're job and with PD the being council, -- a go have that within certainly an agreement enabling

because create to And okay, great opportunity the the there's of discussion versus going think we don't are lot potentially one upon to thing Chicago think lot wise kind have we did it about, a so city pull a interrupting a idea and be dependent about really And a conversation motivated people weigh service, there's we we the value. of because in of that's of what's a for to we plug opportunities this see pulling when a got that it all together, say, will to next when the show technology. that

Yi Lee

last on And we That's side? out, the like Rico. a situation? can $X then signed like I that and And million while an double the working been Are was right? Rico gone still on click through? you has remember the we quarter PR question, extension exposure have Puerto on on Puerto exposure, sorted like,

Ralph Clark

to Do Alan? you you take that, want to Or do want me that? take

Alan Stewart

I'd glad. it. I be Alan. is This No, would take

working So term. get longer we're January, We honest. be still have it funded through to to Puerto them still did working on something Rico, with

that done fighting not And battle. so we're

to be there some Puerto we honest, Rico. have Just risk with still

Yi Lee

SoundThinking the it like -- because thought only were -- was the you like provider. only was I

here. too of really wasn't risk are it you like pole guys in here position correct? just Is a because big a that So

Ralph Clark

a kind risk I mean, that always view. funding a dealing a issue was wasn't it from we're there competitive point of with. of Well, But

what that's referring think I Alan's to.

on still Puerto source continue Rico So the working to we're a finding funding service. with

Yi Lee

the Philly, update last about us the on expansion? give then that that And the housing. we an quarter, expansion How side, of on guys mentioned you like If well? Jersey is as along in terms could coming New

Alan Stewart

authority on that that, still gun to into effects is in they the then the working live the of knows that violence us. and of Philadelphia. for the significant. that complete, will potential Alan. positive that. Once see housing together make significant this Everybody hoping could Yes, believe a solutions our lot expecting that. be a is We that working go something that both we're There's and turn police departments We're once with

Yi Lee

-- that Is there miles you there I And remember potentially miles last line, rough time Or about XX is Alan? here. mileage? Has XX time a line? the time like -- secondly, talked the because changed,

Alan Stewart

still Alan. Yes,

about could could terms we significant. be where giving with it won't big but be. it issue, than how could in it We is a be a any of be city talked I other mean, big guidance large that haven't

Yi Lee

Okay. And -- final Uruguay the congrats is my win. on just question

South you terms I in like of In areas other already guys you looking are that are other at you're know look Africa, maybe Brazil, could like at on? internationally, there regions comment you

Ralph Clark

Yes.

Ralph. this is So

it's mentioned interesting yes, Brazil. you So

countries spent successful there's Mexico, Brazil, delegation out a certainly, South Africa. that in. in had there. of So that interested couple Caribbean we're visit turns very It time there's a Brazilian very They a

that, the to some we're this interesting think and numbers in solution, there is potential put the about able which also America this excited very expansion Latin Uruguay's us, with interesting -- we're year up success internationally opportunity to later be going given for that year. an again, So

Operator

Our from Matt Blair. is with next Pfau William question

Unknown Analyst

sign Matt. customers on [ renewals to Kieran all? been recent My is the Or ] first has contracts? price for any longer have Cuddy desire pressured increases at there one, This from

Alan Stewart

Yes.

is So Alan. this

increases. doing price We this is happening MSRP the are year. The

time see We happen. the price through increase, going last across board, that a on but some throughout haven't more to that lot get The it to it's We we seen of time take go a the did right live we as pushback now. did might year.

And of of when increase. a a across price at after have have to would our some this kind quota But customers bit board they've seen price a used with expect, pushback little so especially what normally you increase most you are other vendors increases always far, the there's to what with than anyway. of the their point,

we're So it. not concerned about

Unknown Analyst

this has gaining strategy on Got traction? for products? continued comment can you it. And then demand And bundled

Ralph Clark

me take ahead. you want Do sorry, Alan? to I'm that, go

Alan Stewart

going No, take Yes. Yes. I'm to it.

don't products about live but think X of too want much actually. our And So with there's to we're it, this one X honestly. that, week, excited about we I talk or going

that but over just think might successful we our time. to going be than marketing to sales able more of plans customer, more it and instead it's to be if money and So save structure, we're customers commission just to sense it talk more our X. it's starting the not but about highly makes in for not sure product. until for X interested also of complete, getting And team we're that see to little bit up a are they with set our And going make one get products we've

Ralph Clark

Yes.

comments. I Alan's if on think there's excellent just add I some just could -- to

some I which interesting.We've through customers opportunities we capability. kind already bundle, a pulled of kind a And of CrimeTracer natural kind interesting of There's ShotSpotter a also were and early bundle certainly between ResourceRouter. CaseBuilder. of had saying -- from we've kind where they're if each other, one is the seen think has will, of there's kind using ResourceRouter, affinity couple seen where of of an ShotSpotter respond on, interesting you

patrol leap extend overall kind of kind broader of the So into taking kind of management was to interesting.

there customers ShotSpotter expanded and ResourceRouter added a then set. their of number to solution So mile also that a were

So definitely we're there's looking in natural to bundles that that really already are accelerating. forward play some

Operator

Craig-Hallum. next [Operator Dipolino ] is CJ Our from Instructions] [ question with

Unknown Analyst

on contract? Hamblin. CJ of original The [ Chicago could Dipolino Jeremy the it one Is touch transition is X-month extension the you the to the This extension about wanted time. I economics? ] to period, on talk more for similar maybe

Ralph Clark

Yes.

So this is Ralph.

it folks. me out Let lay for

participating X-month million, it's XX-month the there that structured, also summer is So X-month signed way months out But term. a National of gets term. exist them the essentially Chicago extension for the the that of represents else city And then for And kind Milwaukee, to period. X be determined. $X.X we and turbulent of of also although ShotSpotter. a we the convention lot kind of and around in term Convention that we I will out wind-down office know that's then there's kind X-month they months. of to figure the of a X months explanation that we enough, that wrapping in being that of And through an interestingly is are X-month in folks Mayor's which something formally post executed be that looking think National And I and Democratic to overall held essentially up effectively know against of this Convention, kind Republican Chicago.So how there's kind the a bridge they're think that's

effort is is So of data. our over this X-month collect to part really extensively period

ShotSpotter replace, get that that headcount. like a capability, unreported, I would real-time need That's especially know what very a it patrol XXX bet understand is. is can boots lives goes of that when officers basis are they they aware of think better that it's that be replacing. basis the crimes a aid to have when them and data what think, the gunfire that of a to with very thing criminal be tough difficult, what to is scene I And in to it matching thing it They about very they render perspective.I there already don't that's and enabling number presented capabilities understaffed these they're lot call. X,XXX making understanding to under So from community in a our them think a clear in again, on is of that the the XX% is, save have of very, that precise going is to are, to to Chicago what data.And the again terms XX% ground replace on you're

to of And have away technology so when violence and sadly you multiplier this like is head historical of you're -- force headcount-wise, a down it's tool a take bit a scratcher. kind

of already And just really Chicago multiple deserve that Chicago. again in to everyone across So multiple to superintendents. for upon be we're light hard going to build we've sees continue mayors, the enjoyed of in We working the ensure years multiple to kind be day. we'll the relationship

Unknown Analyst

Great. And on is then be going gross question to margins. the next

You've XX%? to are could think just X XX% that on going considering in discussed you past of in gross target, streams to gross revenue about you maybe the you composition current touch achieve the help years. margins margin that to be closer up that Could

Alan Stewart

Alan. Sure. is This

not increase. the sold nice the that is much does and having about thing margin gross to now of So goods going revenue products as more cost the grow grows, the as is

so guidance new margin to -- of have but have around given year. as XX%, don't is SafePointe on than in the products much continue which revenue, increase be expect too, COGS.The we that the 'XX, haven't we us. ended is gross We grow we that's other to brand And it will higher all this for we necessarily thing, for be to

to It's solution. build a there's software the of little we as there continue solution. a So bit expense also up

higher XX% a go more. that in ones even to higher mentioned, it, other of some internationally, maybe related gross they to that of those sensors we little the going miles still gross The that are around if ultimately even the of have as have in when live significantly software for or couple are solutions, years, Ralph closer international margin.So as they we'll a solutions some be margins well believe sort we next

Operator

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

back ssti@gateway-grp.com.I'd the team his If closing to turn Clark your for Relations not call to e-mailing Investor question may now SoundThinking's was by contact over you like taken, comments. Mr.

Ralph Clark

much. many for today's Investor seeing Day, very I our everyone call forward March of and much to looking very want you you Thank joining on safe. is Thank XX. for scheduled hopefully you currently Great. thank and which to be

Operator

for for you our call. us today joining Thank

now disconnect. may You

ShotSpotter (SSTI) 27 Feb 242023 Q4 Earnings call transcript