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Dec 31, 2024
ShotSpotter Q4 2024 Earnings Report
SoundThinking, Inc. reported a decrease in fourth quarter 2024 revenues and gross profit, with a net loss, while full year 2024 revenues increased to a record high.
Key Takeaways
SoundThinking, Inc. experienced a challenging fourth quarter in 2024, with revenues decreasing by 10% and a net loss of $4.1 million, primarily due to delayed contract renewals. However, the company achieved record full-year revenues of $102.0 million, marking a 10% increase from 2023, driven by new and expanding customer subscriptions.
Fourth quarter 2024 revenues decreased 10% to $23.4 million, compared to $26.0 million for the same quarter of 2023.
GAAP net loss for Q4 2024 totaled $4.1 million, compared to GAAP net income of $3.6 million for the same quarter of 2023.
Adjusted EBITDA for Q4 2024 totaled $1.7 million (7% of revenues), compared to $4.8 million (18% of revenues) for the same quarter of 2023.
Full year 2024 revenues increased 10% to a record $102.0 million, the highest annual revenues in company history.
ShotSpotter
ShotSpotter
Forward Guidance
SoundThinking, Inc. is raising its full year 2025 revenue guidance range to $111.0 million to $113.0 million, representing 10% year-over-year growth at the midpoint. The company also expects ARR to increase from $95.6 million at the beginning of 2025 to approximately $110.0 million at the start of 2026.
Positive Outlook
- Raising full year 2025 revenue guidance to $111.0 million to $113.0 million.
- Midpoint of 2025 revenue guidance represents 10% year-over-year growth.
- Raising Adjusted EBITDA margin guidance range to 21% to 23% for full year 2025.
- Expected ARR increase from $95.6 million at the beginning of 2025 to approximately $110.0 million at the start of 2026.
- Strong momentum and encouraging sales pipeline for 2025.
Challenges Ahead
- Financial outlook statements are based on current expectations and actual results could differ materially.
- Uncertainty and variability of interest income (expense), income taxes, depreciation and amortization, stock-based compensation expenses, and acquisition-related expenses make reconciliation to GAAP net income (loss) difficult.
- The company cannot reasonably predict certain reconciling items, which could significantly impact GAAP net income (loss).
- The delay of approximately $3.5 million of two contract renewals affected Q4 2024 results, with one still expected in Q1 2025.
- Forward-looking statements are subject to various risks and uncertainties beyond the company's control, including contract renewals and funding availability.