SoundThinking, Inc. (NASDAQ:SSTI) executive Nasim Golzadeh, the company's EVP of Investigative Solutions, has recently sold a portion of their stake in the company. The transaction involved the sale of 166 shares of common stock on September 10, at prices ranging from $11.92 to $12.01, totaling nearly $2,000.
The sale was made in accordance with a previously established election by Golzadeh to sell only the necessary number of shares to cover applicable tax withholding obligations that arise upon the vesting of restricted stock units, as well as any related brokerage commission fees. Following the transaction, Golzadeh continues to hold 68,081 shares of SoundThinking, indicating a sustained interest in the company's success.
Investors and shareholders may request full information on the exact number of shares sold at each price from Golzadeh, as per the footnote in the SEC filing. The executive's remaining equity in the company represents a continued investment in SoundThinking's future, aligning their interests with those of the shareholders.
This recent sale provides public insight into the trading activities of SoundThinking's executives and may serve as an informational point for investors monitoring insider transactions. It is not uncommon for executives to sell shares for personal financial planning purposes, and such sales are regularly reported to the SEC for transparency.
In other recent news, SoundThinking reported a robust financial performance in the second quarter of 2024, with a 22% increase in revenues to $27 million compared to the same period last year. The company's flagship acoustic gunshot detection system, ShotSpotter, has expanded into new cities and sectors, including commercial and university settings. New expansions have been made in Uruguay and South Africa, and a strategic partnership with Rekor for the PlateRanger product is expected to bolster the company's SafetySmart platform starting in September 2024.
Adjusted EBITDA saw a significant increase of over 110% to $5.1 million. Despite expecting lower revenues in Q3 due to an acceleration of professional services in Q2, SoundThinking maintains a positive outlook for Q4 and the full year, with revenue guidance being maintained at $104 million to $106 million. Gross profit reached $16.1 million, representing 60% of revenue.
The company anticipates a slight decrease in gross margin in Q3, with a rebound in Q4. A contract renewal proposal with the NYPD is expected to be finalized before the end of Q4. SoundThinking also reported that their CaseBuilder subscription-based revenue grew 700% year-over-year and they expect to exceed 100 new ShotSpotter go-live miles this year.
InvestingPro Insights
As investors digest the news of EVP Nasim Golzadeh's recent share sale at SoundThinking, Inc. (NASDAQ:SSTI), it's essential to look at the broader financial health and market performance of the company. SoundThinking's market capitalization stands at a modest $164.52 million, reflecting the scale of the company in the competitive tech landscape. Despite the insider selling, the company's valuation suggests a strong free cash flow yield, an InvestingPro Tip that could signal potential for shareholder value creation in the long term.
On the earnings front, analysts have tempered their expectations, with three analysts revising their earnings downwards for the upcoming period, another InvestingPro Tip hinting at potential headwinds or conservative growth prospects for SoundThinking. This aligns with the forecast that net income is expected to drop this year, which investors should consider as they assess the company's future earnings potential.
SoundThinking's revenue growth has been robust, with a 24.16% increase in the last twelve months as of Q2 2024. However, the company is trading at a high EBITDA valuation multiple, which, when coupled with the absence of dividend payments to shareholders, may indicate that the market has priced in high growth expectations. For investors seeking detailed analysis and additional insights, there are more InvestingPro Tips available, providing a comprehensive outlook on SoundThinking's financials and market performance.
For those interested in delving deeper, SoundThinking has a total of 9 InvestingPro Tips available, which can be accessed for more nuanced investment considerations. As the next earnings date approaches on November 5, 2024, these insights could prove invaluable for investors looking to understand the company's trajectory and make informed decisions.
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