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FREMONT, Calif. - SoundThinking, Inc. (NASDAQ:SSTI), a provider of public safety technology with annual revenues of $102 million, has entered a three-year contract to implement its gunshot detection system, ShotSpotter, in Niterói, Brazil. The agreement, valued at approximately $1.7 million, signifies the company’s return to Brazil and extends its presence in South America following a successful launch in Montevideo, Uruguay. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, though analysts have recently revised earnings expectations downward.
Niterói, a city near Rio de Janeiro with nearly half a million residents, will incorporate ShotSpotter into its Integrated Public Security Center (CISP). The system, covering a 10 square kilometer area, is designed to enable rapid response by security forces to gunfire incidents. Mayor Rodrigo Neves highlighted that ShotSpotter would contribute to saving lives by shortening victim response times and assisting in criminal activity identification and violence reduction. The contract comes as SoundThinking shows promising market momentum, with InvestingPro reporting a significant 15.2% return over the past week and a 20.67% year-to-date gain.
The CISP includes an extensive security network with 120 fencing cameras, 522 monitoring devices, and 10 security portals, which have aided in the recovery of over 500 stolen or cloned vehicles since 2019. ShotSpotter’s integration into this infrastructure is a component of the Niterói Pact Against Violence, a comprehensive public safety strategy emphasizing technology and intelligence investment.
Ralph Clark, President and CEO of SoundThinking, expressed enthusiasm about the expansion in South America, emphasizing the company’s commitment to enhancing global public safety through advanced technology. The deployment of ShotSpotter in Niterói is scheduled to become operational in the second quarter of 2025.
SoundThinking, trusted by over 300 customers and approximately 2,100 agencies, offers a range of solutions aimed at improving public safety outcomes. Its SafetySmart™ platform includes various tools such as CrimeTracer™, CaseBuilder™, ResourceRouter™, SafePointe®, and PlateRanger powered by Rekor.
This partnership announcement is based on a press release statement and contains forward-looking statements regarding ShotSpotter’s potential impact. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. SoundThinking has made no further comments on the future expectations beyond this deployment.
In other recent news, SoundThinking reported fourth-quarter 2024 earnings that did not meet analyst expectations, with an earnings per share (EPS) of -$0.32, falling short of the forecasted $0.0043. The company’s revenue for the quarter was $23.4 million, below the anticipated $26.92 million, primarily due to a $3.5 million impact from delayed New York Police Department contract renewals. Despite these setbacks, SoundThinking has increased its financial outlook for 2025, projecting a 10% year-over-year revenue growth. The company expects revenue between $111 million and $113 million and an adjusted EBITDA margin of 21-23% for the year.
Craig-Hallum raised its price target for SoundThinking to $27, maintaining a Buy rating, citing the company’s recent extension of its NYPD ShotSpotter contract and potential opportunities in Chicago. Cantor Fitzgerald also maintained its Overweight rating on the company, with a price target of $20, despite the recent earnings miss. SoundThinking’s management remains optimistic about future growth, emphasizing international expansion and new product launches. The company has also secured a three-year contract renewal with the NYPD, valued at approximately $21.9 million, extending their partnership through December 2027.
Additionally, SoundThinking is positioned as a frontrunner for a significant contract in Chicago, as the city has issued a Request for Proposals for gunshot detection technology. This potential deal is seen as a substantial opportunity that could enhance investor sentiment. The company continues to focus on its strategic initiatives, including expanding its ShotSpotter service internationally and developing its SafePoint weapons detection system.
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