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1. Company Snapshot

1.a. Company Description

ShotSpotter, Inc.provides precision-policing and security solutions for law enforcement and security personnel in the United States, South Africa, and the Bahamas.Its solutions include ShotSpotter Respond, a public safety solution, which serves cities and municipalities to identify, locate, and deter gun violence by incorporating a real-time gunshot detection system into their policing systems; and ShotSpotter Connect, a patrol management software to help plan directed patrols and tactics to deter a broad set of crime types.


The company also provides ShotSpotter SecureCampus and ShotSpotter SiteSecure that helps the law enforcement and security personnel serving universities, corporate campuses, big-box retail, malls, and key infrastructure or transportation centers to mitigate risk and enhance security by notifying authorities of a outdoor gunfire incident and saving minutes for first responders to arrive.In addition, it offers ShotSpotter Investigate, a cloud-based investigative platform to help law enforcement agencies modernize every phase of an investigation and accelerate case work with easy-to-use software tools.Further, it provides ShotSpotter Labs, a technology to adapt and extend commercial technology to address significant wildlife and environmental issues.


The company sells its solutions through its direct sales teams.ShotSpotter, Inc.was founded in 1996 and is headquartered in Fremont, California.

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1.b. Last Insights on SSTI

Here is a 90-word analysis of the positive drivers behind ShotSpotter, Inc.'s recent performance: ShotSpotter's recent performance was driven by strong Q4 2024 financial results, with revenues increasing 10% to a record $102.0 million. The company raised its FY 2025 revenue guidance range to $111.0 million to $113.0 million, representing 10% year-over-year growth at the midpoint. Additionally, ShotSpotter announced a multi-year renewal of its partnership with the New York Police Department for the deployment of ShotSpotter, the industry-leading acoustic gunshot detection system. This renewal, along with a strong backlog and growing annual recurring revenue, positions the company for continued growth.

1.c. Company Highlights

2. SoundThinking's Q3 2025 Earnings Report: Delays and Investments

SoundThinking reported revenues of $25.1 million for Q3 2025, a 4% decrease from $26.3 million in the same quarter last year. The adjusted EBITDA was $3.5 million, down from $4.5 million in Q3 2024. The earnings per share (EPS) came out at -$0.16, missing estimates of -$0.07. The revenue shortfall was primarily attributed to delays in several large contracts, leading to a reduction in full-year revenue guidance to approximately $104 million.

Publication Date: Nov -29

📋 Highlights
  • Q3 Revenue Miss:: Revenue fell to $25.1M (4% YoY decline), with full-year guidance slashed to $104M from $111–$113M due to delayed large contracts.
  • Adjusted EBITDA Drop:: Q3 adjusted EBITDA declined to $3.5M (from $4.5M YoY), with full-year margin guidance cut to 14–15% (from 20–22%) amid higher R&D and operational costs.
  • AI & Healthcare Momentum:: Accelerated adoption of AI tools and healthcare security growth post-CA AB 2975, with SafePoint’s 12-month sales cycle driving hospital vertical traction.
  • 2026 Guidance Shift:: Revenue targets raised to $114–$116M (vs. 2025’s $104M), but EBITDA margins lowered to 18–20% (from 20–22%) due to AI investments and tariff costs.
  • Operational Adjustments:: Interim sales leadership reinstated, with $1M reduction in Q3 operating expenses ($16.7M → $15.7M) to improve forecasting and sales efficiency.

Operational Highlights and Challenges

The company made meaningful progress in international expansion, with the Uruguay deployment serving as a proof point for broader Latin American market opportunities. However, the delays in large contracts, including a significant deal in Puerto Rico, impacted revenue. The company is working through the complex process involving multiple agencies and funders. The sales strategy has been adjusted, with a focus on fewer products and improving sales force hygiene and forecasting.

Guidance and Margin Expectations

SoundThinking is expecting growth to continue into 2026, with a revenue guidance range of $114 million to $116 million, representing a 9.9% increase from the revised 2025 guidance. However, the adjusted EBITDA margin guidance for 2026 is 18% to 20%, which is lower than the previous 2025 guidance of 20% to 22%. The company is investing in AI initiatives, and the R&D budget has increased, with expectations of continued growth.

Valuation Metrics

With a P/S Ratio of 0.77 and an EV/EBITDA of -9.16, the market is pricing in significant growth expectations. The current valuation multiples suggest that the market is anticipating a turnaround in the company's financial performance. However, the ROE and ROIC are negative, indicating that the company still faces challenges in generating returns on equity and invested capital.

3. NewsRoom

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Contrasting WISeKey International (NASDAQ:WKEY) & SoundThinking (NASDAQ:SSTI)

Dec -01

Source: defenseworld.net

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Contrasting SoundThinking (NASDAQ:SSTI) & Concorde International Group (NASDAQ:CIGL)

Nov -21

Source: defenseworld.net

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SoundThinking Analysts Cut Their Forecasts After Weak Q3 Results

Nov -13

Source: benzinga.com

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SoundThinking, Inc. (SSTI) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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SoundThinking (SSTI) Reports Q3 Loss, Misses Revenue Estimates

Nov -12

Source: zacks.com

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SoundThinking, Inc. Reports Third Quarter 2025 Financial Results

Nov -12

Source: globenewswire.com

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SoundThinking Unveils CrimeTracer Gen3: Expanding from Investigations to Agency-Wide Crime Data Solution

Oct -17

Source: globenewswire.com

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SoundThinking Announces Revised Date for Third Quarter 2025 Financial Results Date and Conference Call

Oct -16

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.55%)

6. Segments

Subscription, Maintenance and Support

Expected Growth: 7.5%

ShotSpotter's 7.5% growth in Subscription, Maintenance and Support is driven by increasing demand for gunshot detection solutions, expansion into new cities and countries, and high customer retention rates. Additionally, the company's AI-powered technology and real-time alerts enable law enforcement agencies to respond quickly and effectively, leading to increased adoption and revenue growth.

Professional Software Development

Expected Growth: 8.5%

ShotSpotter's 8.5% growth in Professional Software Development is driven by increasing demand for gunshot detection solutions, expansion into new cities, and growing adoption of its software by law enforcement agencies. Additionally, the company's investments in AI-powered analytics and cloud-based infrastructure have enhanced its product offerings, contributing to the growth.

7. Detailed Products

ShotSpotter Flex

A gunshot detection and location system that uses acoustic sensors to detect and locate gunshots in real-time.

ShotSpotter Missions

A crime forecasting and patrol routing system that uses machine learning and predictive analytics to identify high-crime areas.

ShotSpotter Investigate

A digital evidence management system that helps investigators to collect, analyze, and share evidence related to gun crimes.

ShotSpotter Respond

A real-time crime response system that provides law enforcement agencies with critical information to respond to gun crimes.

ShotSpotter Connect

A community engagement platform that helps law enforcement agencies to engage with the community and gather information about gun crimes.

8. ShotSpotter, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

ShotSpotter's technology is highly specialized and patented, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While ShotSpotter has a strong customer base, law enforcement agencies have some bargaining power due to their large contracts.

Bargaining Power Of Suppliers

ShotSpotter has a diversified supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

The gunshot detection market is growing, and new entrants may emerge, posing a threat to ShotSpotter's market share.

Intensity Of Rivalry

While ShotSpotter has a strong market position, it still faces competition from other gunshot detection systems, leading to a moderate level of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.28%
Debt Cost 3.95%
Equity Weight 88.72%
Equity Cost 9.83%
WACC 9.17%
Leverage 12.72%

11. Quality Control: ShotSpotter, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Olo

A-Score: 5.4/10

Value: 3.5

Growth: 8.3

Quality: 5.2

Yield: 0.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

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WM Technology

A-Score: 4.5/10

Value: 7.5

Growth: 3.0

Quality: 7.0

Yield: 0.0

Momentum: 8.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
CS Disco

A-Score: 4.5/10

Value: 7.4

Growth: 4.9

Quality: 5.4

Yield: 0.0

Momentum: 5.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
ShotSpotter

A-Score: 4.1/10

Value: 5.3

Growth: 5.8

Quality: 4.4

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Compass

A-Score: 3.8/10

Value: 4.4

Growth: 5.7

Quality: 2.8

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Jamf

A-Score: 3.3/10

Value: 4.2

Growth: 5.8

Quality: 4.8

Yield: 0.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.79$

Current Price

6.79$

Potential

-0.00%

Expected Cash-Flows