SSTI - Earnings call transcript Q2 2024

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Operator

Good afternoon, and welcome to SoundThinking's Second Quarter 2024 Conference Call. My name is Shamali, and I will be your operator for today's call.

Joining us are SoundThinking 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, 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. Certain of these risks and assumptions are discussed in SoundThinking's SEC filings, including this registration statement on Form S-1.

revise management's this and XXXX, events live undertakes obligation reflect the as and or statements forward-looking no of any date date broadcast, to call. circumstances forward-looking after beliefs, reflect of predictions estimates of SoundThinking statements the These to update this the or August X,

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

Now over Clark. I'd the SoundThinking to call like to turn CEO, Ralph Sir.

Ralph Clark

thank quarter several achievements. and report positive I'm afternoon, another you earnings to financial and Good for joining second pleased by operational XXXX our strong marked quarter call.

thoughts the over been high Alan and Public law financial crime Safety the performance address that creating never diminishing ahead. a for the Public has levels turn to offer additional fill. call enforcement I a for context opportunity solutions especially with more can safety growth Before outlook personnel market The our increasingly to optimistic officials our need underpin expected only gap public on ecosystem. drivers on the that operating resources challenged safety provide for are structural my key detailed review, within technology critical I'll

positioned We with our believe that bridge uniquely SoundThinking integrated is gap to SafetySmart platform.

effectively rooted in policing both We and movement significantly are strategies a policing. public internationally to the and to policing data-driven and domestically sizes, they equitably. from efficiently, movement holding agencies to as on shifted law all trusted de-policing sentiment transformation serve and protect partner We of the embark and digital investing accountable enforcement has think

over police percentage perceptions by of conducted to update. Gallup year, Gallup's measured just a largest American's annual the year-over-year points confidence in public increased in past this major XX institutions in the XX% fact, U.S. year change poll X the In

increasing for subgroup what noise the was believe even whose most line is in increase performance particularly selected residents with this very vulnerable to able agency demonstrates macro from some XXXX communities our in we amongst with day. positive markets with was we're strong to color execute XXXX. serving partners quarter every support tailwinds, our of serve. by of is but ground opportunity been constitutional strong This that the policing strong among faster, on another overall outlets, We confidence we've the the seeing Within headline this X,XXX confidence What generated basis a in grew to successfully a persons set single counterbalance the media that expectations. consistent entirely telling points significant was are

business, in expanded gunshot in In our X X ShotSpotter acoustic core new taken cities. detection live cities was and

commercial as year and can Africa. in with Bay and in with Brazil elections ShotSpotter business and also South are new Additionally, to buying We the soon and ShotSpotter local formation book of customers a Nelson unity expansion with law enforcement in Africa. this in encouraged go government a Uruguay a our was center their traditional is of framework. quite be in security X X part university awarded outside deployed The international in South recent live we later still rewin the ShotSpotter very national with Mandela of promising believe

national track getting shot the on with African current at path of municipalities the DA-led level. believe the we're Domestically, to police We exceed new XXX miles. outside go-live miles for beyond SAPS a directly forecast an this of XXX to significant previously or represents opportunities this South by ShotSpotter forward year engaging

few with our the news being better-than-forecasted see further by revenue for will platform forecast contradicting on and rhetoric We overall retention continue potential to year, the front, to outperform rates a the we retention full outlets. believe upside

also inroads organizations ResourceRouter is residents above in International in violence making community-based over solution capabilities X ResourceRouter, market performing of such violence important part that adopting over-policing. have Ummah of as the community-facing ResourceRouter One We're while that Futures from safety the and These AI-based organizations. protecting currently interruption for Walking stop. patrol as are gaining our implementations as go such ResourceRouter a into enhance Miami-Dade We is efforts expectations interruption thrilled management its queue version community their Florida acceptance our QX the also lives. for

been Ron applying innovative resources has has work to the highest limited innovative and user UFI ResourceRouter community without a be data-driven nationally simply Mr. a word, force caliber technology approach. a spreading the and vocal of Mr. that been focus as their multiplier. done internationally both Wayne President, [ Ron intervention more cannot ] proactively using advocate proven violence to

CaseBuilder Corrections grew the approximately the which revenue subscription quarter of York XXX% Department of project, with for base ahead City kickoff year-over-year second New of schedule. the is

application early major divisions We first use at QX to with the the of the will followed be the other in recognizing Elimination delivery DOC. X PRIA, Prison ARR by Rate of within million $X case or another Act maintenance be

disparate the manual documentation Some currently the management organizational DOC's in implementing process case modern systems and accountability initiative DOC management and use of paper-based case significant overarching in at goals a this and increasing by across compliance of efficiency and include that divisions. application transparency improving replaces

for deployed the other and to at DOJ in Justice for of within divisions successfully grow cases. investigations new by the and to California potential CaseBuilder QX expanding CaseBuilder utilizing Department Cal fraud of insurance users use also has was

new for XXXX. to we Orleans of early pipeline remainder opportunities have live and and XXXX Finally, September go expect Parish with the of in healthy a CaseBuilder

grow, remains larger object for hospital a stakes X camera interface includes major experiencing chain that to of and major top which being functionality key XD and as we're pipeline prospects. sales, primarily be are delayed new to with a SafePointe major along prospects weight funnel a for This of enhanced integration, user continues September part slower-than-expected learning new upgrade will release. compliance, the release machine classification, table strong the Although a SOC HIPAA

We within center center, efficiencies processes is the will customers' experienced experience will the the ARC, these qualification SafePointe equivalent review which feature improve enhancements believe of of overall upon our specific ShotSpotter It whose also reduce the in alert costs. availability, a and significantly customer dependent operational enable integration a and incident review X-plus month set was Unfortunately, or IRC. camera unlocking the XD much delay. or

success we integrate SoundThinking in have this further opportunity to SafePointe period, operations support and our pipeline. SafePointe the while and sales build and we During taken supply to retool the SafePointe customer sales chain continue leadership the

machine artificial a share enhance to take to moment to you has intelligence how innovation and services. learning drive wanted and I with SoundThinking our brief been So leveraging

coverage technology. we're allows For decade, sets customer of importantly algorithms diverse us of incident scale improving By and our system, have machine filtering which core significantly the extensive capability models our with over footprint acoustic effectively our gunshot our regularly our ShotSpotter to review for cost managing training a our learning of the while data the been area detection process center. incident and gunshot our filtering detection at

insights In trends addition, community analyze core are initiatives. patterns and artificial which used providing intelligence and crime, solution, machine and ResourceRouter safety patrol valuable strategies data-driven is to in learning to our

tracking the neural using XD in to of the skeletal tools AI weapons on continue over to train with from time this SafePointe carrying make speed, moment the from our weapon developments classify What in exciting, features with camera from the incorporating models. data refining has direction and potential work sets individual improve order to to model know is label plus recent decade sensors, magnetic large SafePointe cloud-based data to it pinpoint along is and weapon very real our detailed the ShotSpotter in by for networks that these use the new Lastly, and to and capturing location. team our possible SafePointe its we features system

and the Rekor's possible learning intelligence in second X expertise we're and inning with best-in-class our combining in and it customers This announced detection what's together solutions. We strategic investors. industry artificial machine of solutions. recently of vehicle early gunshot believe and for harnessing brings We acoustic a LPR investigative vehicle partnership collaboration and with the Rekor, intelligence leader a benefit technology with solutions leaders recognition SoundThinking's in roadway and

to quotation marking expected expansion the LPR for in XXXX, our market. Our and starting now of September new SafetySmart is demonstration growing platform the available product PlateRanger into is part be and

This market Research. is estimated to Emergen be $X.X globally, according billion to

the response our that literally encouraged initial and booked launch several United to with We already with are calls announcement States. the have stretch highly accounts discovery across

late still in City in in formal termination Our years. civic there's life-saving a beyond focus the debate while September, past and what data the the we Chicago we've between and done November. contract ShotSpotter we XX-plus the extending to service Council And with late be believe on suggests November providing service to for Mayor a their continue ends solution as significant on is XXXX,

maintained nonrenewal to is in being adjusted into already factored in XXXX at is XX% Chicago's QX $XXX XX% EBITDA which XXXX to with million $XXX revenue margin. our million guidance,

achieve confident attention. can for call your we our We the to you I'll Alan that detailed are our Thank a well at growth profitable financial performance. turn XXXX look and in XXXX believe drive are guidance we positioned over for and beyond. now to

Alan Stewart

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

platform for seeing our strategy safety solutions be our SafetySmart demand appears well working As public Ralph product platform. strong the we're as mentioned, to across

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

Revenue a were with $XX over are SafetySmart at contract. second included a all record million associated increase million of in our XX% million revenues and of the our XXXX. is The revenue Department sales Second CaseBuilder $XX.X $XX quarter Correction of platform of the growing. solutions quarter as increased the

Our diversification working. is revenues of also

XX% prior second our was quarter period. in XXXX. of XXXX only this or or second profit was XX% domestic the year Gross XX% ShotSpotter million for revenue of quarter versus example, million $XX.X the revenue XX% revenue revenue for For of $XX.X versus quarter of

we expect to of the year We the at have the the gross ending similar near or that remainder last year, QX XX% quarter. for indicated margins

year than from also quarter first $X.X quarter million, Our up the was to XXX% up the million higher $X is adjusted last this million. This the from in $X.X over second year. of EBITDA of significantly

EBITDA adjusted solutions in was to of categories. revenue increase all related of as our -- in Our various well expense some growth reductions as

and financial taxes, stock-based taking restructuring by expenses contingent reminder, GAAP calculated including amortization is expenses, consideration adjusting acquisition-related impairment, our income, compensation adjusted loss adjustments interest to and up income income depreciation, obligations. EBITDA a non-GAAP or and measure our expenses, As net

expenses. our to Turning

versus for down down second revenues $XX.X from period. of expense Our quarter second the $X.X or million Breaking quarter revenue, second the the XX% $X.X the XX% prior or expenses for marketing XXXX. revenue our XX% were operating million sales and of of total was or million $XX million for of or quarter total expenses in of revenues XX% year

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

G&A approximately increase $X of absolute expect related continue expenses our QX We G&A the fair grows. In expenses change of expectations. to dollars QX consideration as to the value consideration reduction Offsetting in million last Forensic in approximately the offset were SafePointe contingent to bit this reduction included a by change to Logic expenses year the the earnout our our to related in our earnout expectations. contingent related value G&A $XXX,XXX company of fair do the related will in year,

we Lastly, and approximately office related reduced in lease place restructuring personnel that some efforts costs. took to that $XXX,XXX had

A approximately to we adjusted amount paid less back the represented expect that for that employees costs X% of to severance to overall save the were related EBITDA $X were quarter. portion than restructuring of million These expenses annually. the the should workforce terminate added

period. loss million average for net and share per diluted diluted to Our loss basic basic the XX.X year based loss on a for million the quarter a or approximately XX.X share shares This weighted of $X.X and diluted diluted based and basic GAAP outstanding on outstanding. $X.XX of was net $XXX,XXX average basic $X.XX per shares compares million weighted or and prior

at outstanding million Our adjusted share $X.X based outstanding. basic second million prior obligation financial Adjusted quarter basic the $X.XX diluted $XX.X or Deferred weighted million period. end or net XXXX. a of XX.X measure adding and year loss end shares per average a to non-GAAP our a income at or $X.XX was per expenses. weighted loss the decreased of a quarter for revenue acquisition-related loss on diluted compares XX.X restructuring loss of net and expenses, from contingent quarter and the to GAAP consideration is the on shares first of share by calculated million loss, our This to loss net of $XXX,XXX including taking of a adjustments loss the of back $XX.X million and the average based for

primarily cash related of and cash renewals. ended million in was first million decrease of versus to This timing $X.X $X.X We at the the end the cash with quarter balance the equivalents price first quarter XXX,XXX quarter we our of the higher after of an the shares The repurchased end average $XX.XX for XXXX. of and approximately million. $X is than at even

our $X approximately recent In fact, short of after line we in of still approximately our repaid long-term million still line cash and and available and million after outstanding on have our approximately closed, our we million. Currently current is debt the $XX $X of quarter credit, $XX only balance credit. million have repayment,

year revenue half to between $XXX means that million. $XXX full We're and $XX.X which outlook. to year million full be range are expected maintaining million the second Turning our our $XX.X at million, XXXX to guidance revenues

in related We our We renewal. higher are acceleration then expecting from be to no QX QX million expected that QX services on $X.X of QX projects. CaseBuilder expect contract and to including in technologic an assuming Chicago and of to XX, is down and sequentially professional November loss from be QX NYPD from revenues to which QX related sequentially end currently from revenue QX, will

are XX% EBITDA at our margin adjusted guidance We XX%. to maintaining

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

Ralph Clark

matters remiss a not give questions. difference for my happy to did Places Work if sixth colleagues designation. shout be your to company I work grateful that is across I'm a Alan. that Great would globe. incredibly the in to to the take I out Thanks, in our making We're everyone doing now

Operator

from Baldry the [Operator comes Roth of Capital Richard with first question Instructions] And our Partners. line

Richard Baldry

at Or the is possibly, what sort half are end really dependent before of that go-lives Is the in second look million of up deals million $XXX some between the year? deployments $XXX range you of When makes of early won? the turning to the on there? it pace the the year, for the already it wins live difference on

Ralph Clark

Yes. for Thanks question. Rich, that Ralph. this is

than latter the more it's think the former. I

really in We have pipeline. some interesting deals the

to take and deploy sensors is service, just during months a customer pretty a it's book -- we the on to give ourselves the question be holiday live that permissions can how turn a month able So of take a then live quickly get effectively customers to recognizing deal convert pipeline and time to the to December tough during winter of and period. kind and

So we're up what against. running that's

Richard Baldry

Okay. in or the think fourth you still sequentially. million from I drag at Then be you're up specifically quarter, look $X factoring but of, Chicago, about we a facing if you'd said

for then XX-day there's Could That you. never in something if incremental million So past. out, happening? your that just the implied netted through like we've the so is you now organic of there grow up in go of period growth that, a or given we capacity in that's you're feel a $X how onetime are the breakout whether kind there pretty of seen like myriad things would offering? a to sequential that And be some understand can products really components you stepping

Alan Stewart

that well. Sure, or go this add ahead then Ralph and and can Alan. correct answer as I'll is

is still going because a be of said pull And we be of we've QX. professional to thing just big I the some the that lower into forward services had, than QX little of QX QX think significant. is from QX acceleration but the might the

get But QX we things. million what really hit going well are miles from growth get we're are live that to to to to think related is need additional guidance. to don't $X I our going a QX as as to going So some

are give mentioned now all across Ralph miles as so We mentioned, did between then. improving. going raised that And also did solutions in script of his Ralph well with the board, million the Corrections live we also subscription as of is live one the our as well, Department another going every that's dollars and as

comfortable the and that still we So that's about guidance why be believe QX will really significant. feel

Richard Baldry

date talked safety getting software ready newer of upgraded you're Are much And of flowing and ready. It's call just you? side, September go-live of the the concern ahead me, sort those is you the there of available issue. some it last availability Or major and those for about launch of into on now pretty a the about getting the for the point service. September still cameras being upgrade for kind inventory an

Ralph Clark

Yes.

try answer concern. Ralph is to a this wouldn't So it's Rich. question. say that I I'll again,

of qualification kind integration and think work. have of some we've -- I the the identification exited we camera and

we're on track think compliance. HIPAA SOC with and X I the

Our a the September XD launch of couple expectation is environments prior cameras that we'll date. month in be some those this to deploying customer

in So going be and a marketplace. to capability we're it's date September feeling the super confident launch of that pretty think that impactful to new delivery really

Alan Stewart

Alan. is said. I comments with waiting everything lanes he this. we're going We're agree add and while with some One to This still now his totally Ralph would thing for live even

the is thing continues grow. other the The SafePointe for to pipeline

You QX, of $XX may recall it about that now pipeline after north That million. was is $XX million. said we

It's can getting our to sure still down of lot make slowing bit that technology. a we're add own we little new were the things things So a interest.

Operator

line of with Our Mike Capital Markets. next question the comes from Latimore Northland

Unknown Analyst

is This Latimore. Latimore Alex Mike actually on for

congratulations just awesome all, for the questions on I got of looks great X quarter. here. First you.

what expect miles of to come percent going new one you from do first expansions. being, forward The

Alan Stewart

sure. Yes,

year, expansions between what XX%. XX% customers it is to XX% every So about and to to back XX% shifts new we normally and see

half will us. them So pretty be year. be different this to around and it's of expansions see going customers, for other the new half no would probably typical We're

Unknown Analyst

down Tier in bookings then percent are in And of also to X X pipeline and the Awesome. with what cities? the Okay. quarter

Alan Stewart

Yes.

is this Alan So again.

a a that We Tier that say live there's go the half are Tier are to it's quite continue. of to related to that some increase in the seeing that the probably because X, But may X, bit some Tier cities larger we miles for TAM I us. that is really down fantastic little happen going to does significant are nicely, going still and interest some are would Tier we in of XX% growing X, That in XX% that the second expand X. because from of know expect year. expansions which the about

Operator

question Lake Michaelis line the Markets. next with Street comes of Our Capital Max from

Maxwell Michaelis

me. we city how does X, at If of going expectations for line the X quarter? the Just with in I look into mean, internal expansion up quarter maybe that the

Ralph Clark

this Yes, Ralph. is

Actually, pull We're professional I what on quarter. is the across think kind forward SafetySmart with DOC, performance platform with into of line outstanding going it's running the is services -- side expected schedule. overall $XXX,XXX-plus we job in pretty supporting what really the the quarter, ahead way project notwithstanding our the which we been of the particular I much pretty expected that doing for an team with think consistent in at customer. entire has

pretty expect. we what much par So with on

Maxwell Michaelis

then partnership this you still annual And of interesting. one the with with know a This for partnership. me. guys last here, here like right. have but opportunity All an it's Rekor maybe basis the given on revenue I seems innings size early pretty

Ralph Clark

Yes.

the large. is to LPR. with other of say add is this gunshot to law around spend acoustic at that a Alan would enforcement including market I'll seek I kind technologies, on question, gunshot very appropriate. and we're about So obviously a jump incredibly detection correct opportunity. The my of integrate They time answer excited answering acoustic and always lot We in take is the TAM detection. agencies Ralph. stab as and with

this partnership exciting. that us to for Rekor be able really do through to is effectively really, natively quite So

you out had as I core been have don't tremendous services there always of the with at success to around think educate managed have kind model, our ShotSpotter revenue some I about changing to solution. about ShotSpotter the least which a that all recurring we've companies LPR model

our of lines, acoustic is partner kind doing, compelling this integrated also surprise. us phone services there, and a we're the and managed not is which customers solutions, with say going So a we but domestically, to what cost really only gunshot we're nicely create I'll bring investigative along ability on detection, our that's morning very on to new think, basis for effectively, solution for unanticipated of proposition with the that in South seeing activity some a out thrilled I of this with those Africa, the bit exciting both we're was inbound about a

I morning sharing hopefully, South was out rolling about don't that come him X:XX enough me think news Africa to for that to some we'll basis soon. thinking excited us it. very But quickly. to at about We're interesting about we're call And this be good chat to it for on it. incredibly

Alan Stewart

Yes, is this Alan.

know of of last the everything we of the a least lot is going of next And exciting Ralph yet at exactly Just interest. question, quite revenue revenue. the to and be there's large. part We know market in don't know to I much of with couple said is that that's that, how answer hoping amount agree We a terms we're for years. the pretty

Operator

of comes next Our from with the Louie William Blair. DiPalma question line

Louie Dipalma

and good Alan, Ralph afternoon.

XXX ShotSpotter and plan miles in how add went the and that highlighted this expansions to cities, were new was you referenced year. I think there referenced X X You live

different existing on articles, last XXXX? this has I from earnings call, in into were earlier carry from and media momentum you do that have know recent of of And to but you an customers new the over Given noise improvement? generally sales that been traction the there and sales expect improved because the extended commented cycles cycles some the year?

Ralph Clark

Yes.

Ralph. this is So

effectively and say marketplace lead, of our So we will. is essentially if rate I mean, is win you expected. as a and this own kind that I created would

losing anybody. not we're to So

very response part of value with to crime. cycle critical respect certainly the and of at both say, investigative gun of elongating. that existing looking are have to more are use their time this to with customers that's better would times and as really We them still a A articulate plus technology encouraging. So capability helping customers I kind expansions spend deal new strength, how

expect which I the taken sales be to continue of out of to miles, of we're cycle. to expected which north But year that had frankly believe down winning are we the square of one from stretching mileage because we about and we still earlier should seeing kind XXX continue, is losing. our that talked not we've some XXX this reasons

So that's incredibly encouraging.

Louie Dipalma

Great. versus you solutions Rekor And as PlateRanger some there color other on relates some to market. Is the partnership, in to be comparatively the answer of your previous And to how the existing how it question. priced provided does of to is going the differentiators others? going -- solution to going to any you're more your the your But your solution stack provide? are that up

Ralph Clark

this extent gun-related say feature to or expect automobile tracking. of would solving because Ralph assets a can function-wise, to I that additional of again. answering unique we're just an kind a at the be best we is I'll take crime plate we crack we we have license it that breed bring can So that. to bring involves assets, that

So that's compelling. to you unique And CaseBuilder differentiated. that's our highly combine both CrimeTracer investigative when with well then also be very that and incredibly going as as solutions

don't a log particular situation you of we say, separate kind going go have much pieces price have into to different a nor of pricing, at correlating information offer premium systems. kind in at data investigate a So seamless to once We're more significant that the be you a to We're on case I hit do to we're of or experience to on of a respect at you're price data specific get feel it to we that open very your with and this then with a competitive it to price going basis. fingertips almost, systems to is going would not kind So like up right? discount. how other a going regard.

we're think to going I be competitive.

develop of unique the customers the bringing thing how think customer kind the get that here we I coaching success, we're policies on up go and technology. to they of practices about other full way is table utilization the And the to

of going along of those we We well. that's incredibly to experience lines, be lot those have as think And and too. have lot -- a that along along resources a I lines differentiated

of this. we're that's So about one reasons pretty excited the

Louie Dipalma

an XD Great. the they be your SafePointe with quarter last what cameras new And used? the are in existing the third how that are upgrade the that released versus the cameras solution? expected And features one, to are for are

Ralph Clark

I'm describe quickly get a in this of have So and PhDs it But here, my scientists think probably to and I'll is think of going way it, about out we lot XD I the element to the and regard. of actually able to resolution us the of going a magnetic is We're direction higher give through of kind camera of field. the much snapshots to object view to skeletal moving movement. both kind and speed of take going be

moment of is of that one so table the And the the magnetic the gun unique finds. features to the bringing we're location

again, which but what feature being that interesting rich kind say gait of some moving skeleton, this individuals at that moving the height, data the all detection capturing to moving And being remind covert. weapons very stuff speed by they're direction their fields they're just parse their the other capabilities. going completely give And running at combined and very we our technology know of identity folks models with unique I'll through to is to magnetic is kind of that by person these are us of or specific person person through able skeleton not because the we would be able kind don't to say person, so out I the

through the traffic. metal down very because completely a it's even but you're the go fancy knowing traffic So a it's so is with not the detector to having the metal even slows like it one, through fancy stop going detector through not you're detector, Evolve a you're system, and friction to metal people point us, that of it's passing nocuous which a

interesting walk to that's even cool, people And think. be hospitals and verticals want that ones. specific through to really going metal So And pretty don't enterprises it's detectors, and differentiated. we fancy gaming very important like to super

Operator

CJ of line Dipollino with the Capital from comes Group. question next Our Craig-Hallum

CJ DiPollino

Dipollino Jeremy Hamblin. for CJ on

going one Just different had the parts. to questions. break X in one first I'm

margin seeing some gross congrats So expansion. on good

a revenues margins line wanted question that Just I you Second QX track you'd likely to led in Or that expecting of anything part if gross kind is, out that margin continued a to of for dip more sales? see to the with then of in would be gross know expansion? sequential there's And there's in Are see rebound really to QX. kind expansion? mentioned going you then call you and

Alan Stewart

is Alan. This I Yes. Great question. that. appreciate

QX to last about like see I margins XX%. were over now important our is think XX%. a the year, gross of around thing most And little

some Some to of significant. from is, services but being professional of into QX not QX, that course, of pulled the that related

a So it's not lot. going to change

You down may see And entire but then QX. still we to going slightly in XX%-plus XX% back again year. think in just we're QX, margin hit gross the for or up go the

CJ DiPollino

into great miles currently that hear. that on. are guess then part That's expect talked guys in finished? Awesome. working contract? I I that there share queue. of for to that be you to of for somewhere anything you second last contract and And City are a back York question Is the Okay. you've hop you New the before question know can second terms expecting is, timeline around XX you of still coverage when And about I

Ralph Clark

Yes.

already that, a and to critical crime this to respond say an forward customer better a time. proposal So tool to first is a put long investigate for NYPD. been NYPD toolbox ShotSpotter all, in is we've They've very a the I would renewal gun Ralph. of

deal be slight price, to continue service ends fully miles expect we bump upside. Our expectation XX maybe a QX. the term currently cola is But in that going configured the over square the the later on at transacted that before to roughly same as we're with

Operator

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

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

Ralph Clark

well thank in. political the want it's day just for the I dialing across as both a financial We busy know as really Great. world. to everyone world

have let our evening. back nice to just calls to forward Thanks, and we'll a everybody So get everyone, one-on-one and looking bit. Bye-bye. a it in

Operator

today today's us call. for joining for Thank you

You disconnect. may now

ShotSpotter (SSTI) 6 Aug 242024 Q2 Earnings call transcript