SoundThinking Inc (SSTI) 2017 Q4 法說會逐字稿

Good afternoon and welcome to ShotSpotter's fourth-quarter and full-year 2017 earnings conference call. My name is Karen and I will be a coordinator for today's call. Joining us for today's call are ShotSpotter's CEO, Ralph Clark, and CFO, Alan Stewart. Following management's remarks we will take questions from ShotSpotter's publishing analysts. (Operator Instructions).

Please note that certain information discussed on the call today will include forward-looking statements about future events and ShotSpotter'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 ShotSpotter's SEC filings, including its registration statement on form S-1. These forward-looking statements reflect management's beliefs, estimates and predictions as of the date of this live broadcast, February 20, 2018. And ShotSpotter undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.

Finally I would like to remind everyone this call will be recorded and made available for replay via a link available on the Investor Relations section of the Company's website at IR. ShotSpotter.com. Now I would like to turn the call over to ShotSpotter CEO, Ralph Clark. Sir, please proceed.

Thanks, operator, and to all of you joining us today. I'm going to provide a quick overview of the quarter and the year and then Alan will cover our financial results in a little more detail. Then we will be happy to take your questions.

This is a very exciting time for ShotSpotter. We are always happy to talk about our technology and the large market opportunity we're capitalizing on, but most of all we love sharing how we love helping communities address the pervasive issue of gun violence.

We are pleased that several existing customers like Chicago, Cincinnati and Louisville have publicly extolled the impact ShotSpotter has had in helping them address gun violence and we are grateful to be a part of their efforts.

In the fourth quarter we continued to execute against our large underpenetrated market opportunity. From a financial standpoint our success is reflected in our performance for the fourth quarter and full year. For the quarter our revenues increased 43% to $6.5 million from the same period a year ago.

For the full year 2017 we posted revenue of $23.8 million representing 53% growth over 2016. We capitalized on the significant momentum we've generated. And with the added visibility that we currently have into our bookings and pipeline, we are in a solid position to increase our revenue guidance for 2018. Alan will give more color on that in a moment.

We were also able to add 23 net new miles in Q4 including 4 miles lost from one city that did not renew their contract after being deployed for approximately two years. Overall we added 114 net new miles for all of 2017. We encourage you to look at the annual net new miles number primarily because our quarterly net new miles can be slightly lumpy given the various bureaucratic budgetary and infrastructure issues that can affect go live dates in the short term.

As we've discussed previously, we are focused on driving high quality recurring revenue that is sticky. We demonstrated that with an exceptional revenue retention rate of 141% for 2017 compared to 127% for 2016. This is a key metric for us because it underscores both the attractiveness of our solution and its real-world operational efficacy.

While consistently achieving 141% is not a realistic expectation over the long-term, our ability to generate revenue retention rates well North of 100% underscores the fact that ShotSpotter's technology helps reduce gun crime, improve public safety, increase officer safety and deepens ties between police and the communities they serve. In other words, our solution works on many important levels and that is why customers deploy, expand and renew it.

That said, we take absolutely nothing for granted in our customer relationships. In fact one of the key target areas we've allocated for investment from our public offering proceeds has been in our customer on-boarding and success effort.

This investment continues to pay off through deeper engagement that not only helps us optimize how ShotSpotter is being used, but also generates valuable operating intelligence that we use to enhance the core technology and its use by all customers.

Proof of that increased customer engagement has been our recent Net Promoter Score, or NPS, of 55 compared to 48 in 2016 and 32 in 2015. This is an extraordinary increase and we are focused on driving it even higher.

Our obsession about the overall customer experience let us to challenge ourselves even more. In doing so we made the decision to increase the detection rate in our service level agreement, or SLA, from 80% to 90%.

In the near-term this decision had a modest impact on our margins as we invested in and deployed additional sensors to increase sensor ray density and make other system resiliency improvements. But over time we strongly believe it will enhance our competitive moat, our strong brand image and expand sales efforts in our core business.

We've also been very pleased with the early traction of our security business and saw an opportunity to accelerate the growth of that business by consolidating the sales efforts of both the security and public safety solutions teams into a single sales entity under the strong and capable leadership of Gary Bunyard, our Senior VP of Public Safety and now Security Solutions.

This decision makes perfect sense in how we go to market and also reflects what we are seeing in the marketplace. In essence there's no clear demarcation between the general public safety concerns of a Police Department and the more specialized concerns of security departments responsible for safety on a school campus or other quasi-public space that exists within city limits.

Gun violence is fluid and not bound by any arbitrary geographic dividing line. A clear illustration of this is represented in our SecureCampus solution, which was primarily designed to address the tragic and costly active shooter scenario.

Fortunately none of our SecureCampus customers have had any on-campus active shooter incidents to date. However, there have been numerous cases of gunfire incidents captured by our solution in the surrounding city neighborhoods that are adjacent to our covered campuses and those alerts have been critical in aiding campus police to quickly respond to these events while coordinating lifesaving EMT resources, as well as making arrests of perpetrators, even though these events are not physically taking place on campus.

Clearly our SecureCampus solution represents a value proposition that is broader and more multifaceted than we first envisioned. The idea of protecting the campus community that lives, works and plays in close by transitional neighborhoods just off campus who are exposed to intermittent gunfire is paramount.

This expanded vision of the role our solutions play can also be seen in our ongoing work to integrate ShotSpotter technology into the smart city platforms being pioneered by companies like Verizon and GE Current. These providers are creating sensor-based municipal infrastructures to support everything from lighting and traffic management to public safety solutions and even mesh nodes for digital communications networks.

Our acoustic sensors and embedded firmware are a natural addition to these types of infrastructure. Our unique technical leadership and expertise in acoustic gunfire surveillance is increasingly being recognized by new customer types solving new gunfire use cases.

For example, we recently received a contract to deploy our solution to monitor a stretch of major California freeway that has been experiencing sniper like gunfire incidents. Freeway shootings are a growing concern for public safety officials nationwide and we are pleased that our solution is being integrated with other technologies and processes to help mitigate this problem. It is in the early days for this specific use case, but it could represent a potential material expansion of our TAM.

Given these industry tailwinds, it is our intention to slightly increase our spend in 2018. I will let Alan provide the details, but it's clear to us that we have an excellent opportunity ahead and that modestly increasing our R&D and sales and marketing efforts can help solidify and expand ShotSpotter's leadership in these growing sectors.

One final piece of news in the fourth quarter was Bill Bratton rejoining our Board of Directors. I can confidently say that there aren't many public safety professionals with more experience and expertise than Bill. His years as Commissioner of Police in New York City and Chief of Police of Los Angeles have given him broad and deep insights into the business of public safety and security. He is a very valuable addition to our Board and we are delighted to have him back.

In closing, I would like to remind you all that ShotSpotter pushed out 95,000 gunshot alerts to our subscribing agencies in 2017. At an average round count of 2.67 rounds per ShotSpotter activation, that is more of Van 260,000 rounds of ammunition per year, most of them being discharged in some of our most vulnerable communities.

Each incident is criminal in nature and each incident victimizes residents of those communities. But each incident detected by ShotSpotter also represents an opportunity for police to more effectively respond to and investigate and ultimately better engage those communities that they are sworn to serve and protect. This is the heart of our value proposition and what drives us to do better every day.

Well, that sums up my overview for the Company's progress in Q4 and year-end 2017. Here is Alan to provide a more detailed review of our financial results.

Thank you, Ralph, and good afternoon, everyone. As you can see from our numbers, we ended 2017 on a strong note. Revenues for the fourth quarter exceeded our expectations increasing 43% from fourth quarter 2016 to $6.5 million. Our full-year revenue increased by 53% to a record $23.8 million, which also exceeded the guidance we provided back in November.

And as Ralph mentioned, we added 23 net new miles in the fourth quarter. On top of this, our revenue retention rate increased to 141% for 2017 even after the loss of Puerto Rico, US Virgin Islands and one other city, as customers.

For the third consecutive quarter we generated cash from operations and we believe we are still on track to achieve GAAP profitability by the end of 2018 even with our strategic decision to increase spending this year, as Ralph mentioned earlier. Based on our success and performance in the fourth quarter and 2017, we are increasing our revenue guidance for 2018 to between $31 million and $33 million.

So, let's look at the details of the quarter and the year. As I mentioned, our revenues for fourth quarter increased 43% to $6.5 million over the fourth quarter of 2016. This performance help drive our top line for the year to $23.8 million, a 53% increase over 2016, reflecting growth in the number of miles covered through the expanded deployments for current customers, as well as the addition of new customers.

Gross profit for the fourth quarter was $3.2 million or 49% of total revenues, up from $2 million or 45% in the fourth quarter 2016. It's important to note that our gross profit for fourth quarter 2017 was impacted by costs associated with increasing our service level agreement, or SLA, standard including equipment and personnel. It was also impacted by an impairment charge related to one minor customer electing to not renew the ShotSpotter services.

These costs depressed our gross margin modestly for the quarter. We expect costs related to our SLA upgrade to continue to first quarter 2018, after which we believe our gross margins will improve. For the full year our gross profit was $11.6 million or 49% of revenue, an improvement of $6 million or 38% of revenues in 2016.

Now turning to our expenses. Our operating expenses for the fourth quarter were $5.4 million, a 107% increase over last year. For the full year our operating expenses were $15.9 million or 67% of total revenue, which was up from $10.9 million or 70% in 2016.

With our focus on careful deployment of capital, our sales and marketing spend per dollar of annualized contract revenue was approximately $0.34 per dollar in 2017, up only slightly from the $0.28 per dollar in 2016 while we increased our revenue retention rate to 141% for the full year.

Now breaking down our expenses, sales and marketing expenses for the fourth quarter were $1.9 million or 29% of total revenues versus $1 million or 23% of total revenue for the prior year period. As we discussed, this increase reflects our continued expansion of our sales efforts along with increasing customer service level. As Ralph mentioned, we think accelerating our investment in sales and marketing as well as R&D is prudent helping us to reinforce our leading market position.

Our R&D expenses for the fourth quarter were $1.1 million, or 70% of total revenues, compared to $900,000 or 20% of total revenues for the prior year period. We continue to invest in R&D to expand the applications for our technology, improve our analytics capabilities and conduct other initiatives.

G&A expenses for the quarter were $2.4 million or 37% of total revenues, which is an increase from approximately $700,000 or 15% of total revenues for the prior year period. The increase reflects the cost of operating as a public company, including certain legal and filing expenses, professional and outside service fees.

Our GAAP net loss for the fourth quarter was $2.5 million, or $0.26 per share, based on 9.7 million and basic and diluted weighted average shares outstanding. This compares to a GAAP loss of $864,000 or $0.54 per share the prior year based on 1.6 million basic and diluted weighted average shares outstanding.

For the full year our GAAP net loss was $10 million, $1.61 per share based on 6.2 million basic and diluted weighted average shares outstanding versus a loss of $6.9 million or $4.28 per share based on $1.6 million basic and diluted weighted average shares outstanding in 2016.

We added 27 new go-live miles in Q4, up from 11 miles added in the fourth quarter 2016. For the full year we added 150 new go-live miles, close to doubling the 77 go-live miles we added in 2016. We ended 2017 at approximately 510 public safety total miles covered, which was net of the 33 miles lost due to Puerto Rico and the US Virgin Islands and 4 miles lost with the other customer.

Deferred revenue at the end of the year was $18.5 million, largely flat with the previous quarter. Of this amount $15.8 million was short-term and $2.7 million was long-term. In general we expect short-term deferred revenues to be recognized within four quarters. However, we caution that you shouldn't read too much into the quarterly changes in deferred revenue as timing during the quarter of when new miles go live can have a significant impact on deferred revenue. We consider this another metric that is more informative on a year-over-year basis versus on a quarterly basis.

Cash flow from operations for the year was $3.4 million, an improvement from $2.3 million in 2016. As I mentioned earlier, fourth quarter of 2017 marked the third consecutive quarter that we've had positive cash flow from operations. We ended the year in a solid financial position with $19.6 million in cash and no short- or long-term debt. This cash balance is up from the $19.3 million at the end of third quarter 2017.

Due to the strength of our fourth-quarter results, we are increasing our revenue guidance for 2018. Note that this guidance provided under Accounting Standards Codification, or ASC 605. We've also completed an in-depth review and do not believe the new revenue recognition standard under ASC 606, which we adopted as of January 1, would have a material impact on our business.

For the full year of 2018, we now expect revenues of approximately $31 million to $33 million, up from the guidance we provided last quarter of $30 million to $32 million. Our confidence in our full-year outlook is based on the strength of our short-term deferred revenue, our historically strong renewal rates and new contract awards that we expect to go live before the end of the year.

As Ralph indicated, we plan to continue our investment in 2018 with the goal of further penetrating this growing market. We are investing to accelerate our sales to add new clients, expanding our efforts to grow internationally, as well as accelerating our R&D programs among other initiatives. However, because we've already increased our operating expenses in 2017, we expect operating expenses in 2018 as a whole to increase by less than 5% from our fourth-quarter 2017 run rate.

Within the OpEx category, R&D will increase the most as we continue to invest in new technologies, sales and marketing should increase only slightly, and G&A over the year will actually reduce because fourth-quarter contained certain extraordinary expenses. Bottom line, notwithstanding the higher G&A expenses in fourth quarter, we believe we are still on track to achieve GAAP profitability by the end of 2018.

While we do not provide quarterly guidance, we want to provide some color around the normal cadence of our operations throughout the year. Due to seasonality related to our contract renewal period, historically first-quarter revenues are typically flat with the previous year's fourth quarter. Then we typically expect a step up in revenues in the second quarter followed by a third quarter that's typically flat with the second.

Finally, we typically expect another step up in revenues for the fourth quarter. In contrast our operating expenses tend to increase more linearly throughout the year. Although in first quarter we expect legal costs associated with the ongoing litigation to continue as well as costs related to our SLA upgrade.

In closing, we entered the year with significant financial and operational momentum. We are excited and energized for our prospects in 2018 and beyond and we look forward to sharing our progress with you throughout the year as we help communities reduce gun violence. Now back over to you, Ralph.

Thanks, Alan. Let me close by saying how proud we are to be engaged in the work that we do with agencies throughout the US and beyond in helping them prevent and reduce gun violence. These agencies are made up of committed public servants that put their lives on the line every day. We honor their service and their sacrifice. And now we will take your questions.

(Operator Instructions). Richard Baldry, ROTH Capital.

Can you talk about what the actual impact on the G&A line was in the fourth quarter? It went up about -- a little over $1 million sequentially, which is pretty disproportionate, though. What would a more normalized run rate be without those items?

What I would say is we had approximately a little less than $900,000 in costs related to legal, related to the ongoing litigation we had, related to listing costs and related to professional fees for the 606 analysis and other exec compensation analysis. So, if you wanted to get a more normalized line, you could remove about $900,000.

Okay, thanks. Then as you increase the service level agreement metrics, is there any change to the deployment cycles for newer customers, do you think, or is that pretty easy to absorb into the existing deployment processes you have?

Thanks, Rich. This is Ralph. No, it's pretty easily absorbed into our current cadence on deploying our arrays, no real change there.

The last would be could you talk about your pipeline, as you think about where you were maybe starting 2017, and what you are looking at talking to across your different end markets -- not just large cities but across the breadth of it, versus where you see yourself now starting 2018? And maybe also a little discussion about the resources you have starting 2018 versus 2017? I know -- I think you've been talking about hiring in the sales side. Thanks.

Sure. So on a qualitative basis I think we feel very constructive about where we are from a, I'll just call it, medium-term to long-term pipeline point of view. As you know, we set about rebuilding the sales organization earlier in 2017, kind of getting the five direct public safety selling directors across the US. And that team has come together really, really nicely. And on that we layered our customer success and on-boarding team. And they're just doing a phenomenal job and that shows up in our NPS results.

We are committed to, and still plan on, hiring an international sales executive to go get at the Latin American market, and we expect to have that completed by the end of this quarter. So, I'd say on a qualitative basis, we are feeling really confident about where we are in terms of the pipeline. It is looking very good.

Great, thanks.

Tim Klasell, Northland Securities.

Nice quarter. A few quick questions. First off from a broader perspective, Ralph, you are combining and reorganizing your sales force to bring the two together. Is it something you're seeing in your requests for proposals, your RFPs, that are making you think this or maybe it's a capacity issue? Maybe you can walk us through what you are seeing and what you expect to see to drive that combination. Thank you.

So, a couple of things. I think it was fair to say that where we started out in our security network was really more of an incubation period, kind of getting out to those early adopters, testing the value proposition in the various use cases.

And what we found from several of our SecureCampus deployments is that, in fact, although the initial design concept or use case concept was really around the mass shooter/active shooter scenario happening on campus, what we're actually finding is that we were detecting and alerting on a number of gunfire incidents that happened just off-campus. And this happened over three or four of our SecureCampus deployments.

And that's a little bit of a different use case that really combines both university campus police as well as local police. And we saw that was a very compelling value proposition where we were able to direct law enforcement interventions to these direct locations where these events were taking place along with EMT resources that ended up helping save some lives in a couple of situations and even arresting a couple of individuals.

And it became clear that the market pull opportunity for us was really taking a more I guess holistic view of our SecureCampus deployments to just not address the on-campus active shooter scenario, but also the intermittent gunfire that can happen off-campus just adjacent to the campus. And many of these locations where the campuses are located in what I would describe as transitional neighborhoods.

And so, having successfully incubated it through the security business model, we felt that we had enough cadence and pipeline to move it over to a fully functional, call it, sales organization where it's led by Gary Bunyard who has a set of processes and cadence also around executing and accelerating sales.

And kind of combining those two teams together we felt could give us a lot more, excuse the expression, bang for the buck, so to speak. And so, we're really excited about that combination. We just pulled that together at the beginning of this year and we're excited about where that's going to take us.

Okay, great. And then quickly on your SLA improvements, is that going to be rolled out across all your covered miles or is it -- quickly or is it going to be something that's going to be rolled out gradually? I.e., will that Q1 impact get the entire -- your entire footprint covered? Thank you.

Yes, so great question. So, I think most of it from a cost point of view has been dealt with in Q4. We are going to have some amount of additional investment in Q1, but I think the majority of it has already happened. I think we should definitely point out the fact that operationally we were detecting at SLA -- or excuse me, at rates at 90% and above.

The thing that's a little bit different here is now we're making our SLA reflect what our operating experience was already. And that requires -- the fact that we're putting in an SLA now really required not to operate at a 90% level but more at a 95% level.

And that's where that additional investment, we think very prudent additional investment, has come to play so that we can really improve the customer experience and also establish a significant competitive moat. So anyone that was thinking about potential entering into this business, they have a very, very high bar to overcome to be on the same level as we are.

And the last point I'll make about this is as we move from I would call the early adopter market to more of the early late majority market, the quality of the user experience is much more paramount, I would say, than say an early adopter. And I think we are really smart to recognize that and basically move our capability and experience to where the market is going -- the much bigger market I would say.

So we are pretty excited about making that change. And I think internally the way the team was able to come together and collaborate and do the necessary things, not only from a sensor deployment point of view, but also from a system resiliency and engineering point of view, has really been quite remarkable.

It was quite a teambuilding effort and I think we've gotten a very positive response from our customers who weren't expecting this. It's not like the customers were, quote/unquote, demanding this, but we've gotten some really positive feedback that this is I guess very consistent with the nature or brand that we're trying to establish as a company, doing the right thing.

Okay, okay, that's very impressive. And then one final one, just probably reiterate within the numbers you already gave us. But the goal is to grow as quickly as you can, and even if things accelerate like they have this quarter, but still get to Q4 profitability. Does that remain sort of the two bogeys, if you will? Thank you.

Yes, this is Alan. Absolutely, and we are confident that we can reach profitability by Q4.

Okay, great. Thank you.

Jeff Kessler, Imperial Capital.

Can you talk a little bit about, again, the SLA, because it's interesting that when you've taken a look at the density of your sensors, and you looked at topology and you've taken all of this into account, that it works better in some areas than in other areas and yet you still have the confidence to take it up to 90% with a goal of 95%.

What have you learned just in the last year that gives you the confidence to do this? Because clearly nothing is perfect in this world, but yet at the same time you are making a big statement here to your existing customers.

Sure. So, I think fundamentally we know that in general more sensors are better than less sensors. We've developed some really sophisticated modeling tools that incorporate -- without giving away all the secret sauce -- I would say incorporate a lot of math, some notion of an anecdotal 3-D capability to be very smart about where we place additional sensors.

And we have this amazing database, frankly, of where we are detecting and alerting on events and the amount of sensor participation that is involved in those events. And we're able to kind of pull all that together and say, okay, we can improve this array by adding maybe another one or two or three sensors here across this array.

And then we have also done some pretty interesting things actually physically in the sensors that involve, I'll call it, suppressing ambient noise and letting impulsive noise kind of spike out, affectively letting sensors hear further. And that was a fairly interesting innovation that our engineering team has put into play with some very sophisticated algorithms.

And then, lastly, I think on the system resiliency side in terms of keeping the core application up and running and available at all times, I think our work, frankly, with GE Current, AT&T and Verizon and those big companies have really helped us I guess step up our game, so to speak, with all of the systems availability resiliency stuff that we need to do.

We are benefiting certainly from our partnership with Amazon AWS in terms of having a robust resilient system with [MRDIBS], multiple redundant dissimilar independent backup systems capability. And kind of pulling all that together in a cross functional team to enhance the user experience was our big goal.

And we are not perfect, but we think we are making some really good strides in significantly improving the user experience and signaling to the marketplace that we are a deserving partner, we are a deserving partner of the dollars that they are investing with us because we are going to not be lazy. We don't take anything for granted in this Company and I thought that this particular SLA improvement was a testament of that.

Okay. With regard to what you just said, my next question was actually a segue right into it. What have you learned from working with GE and AT&T at this point given that, obviously, you would have said if the program had exploded into something huge by now? More importantly, what have you learned that has changed your -- any type of operational or sensor or sensor capability from them that you would not have had had you not had these contracts?

I would say that our relationships are certainly evolving both with GE/AT&T and Verizon. And we are working through our first deployments with GE/AT&T, as we discussed last quarter in Atlanta. And I think evaluating the proper mix of the GE enabled -- or ShotSpotter enabled GE nodes versus the ShotSpotter sensors is something that is an excellent learning process for us.

How to make sure the cities themselves understand how the integration works is also something we are learning. We expect to have the same similar types of learning that -- when we start rolling out with Verizon as well.

So, I would say that there's a large opportunity out there. They have different go-to-market strategies than we do. We think that's exciting. And the technology in terms of actual deployments is also something we are learning on a daily basis now. And Security, that was (multiple speakers).

Security is a big thing, yes.

Okay. With regard to -- realizing that there's lumpiness on both sides of this, but expansion, expansion of existing customers versus new customers. Do you detect any trend in change of the ratio that you're getting there?

Well, I would say that our revenue retention rate of 141% is a real testimony to the expansions that we experienced in 2017. Recognize that that metric does not include any miles from customers that just went live in 2017 as well. We are seeing growth in both sides. So we are very optimistic in terms of the path.

Okay. Finally, any new international countries that you are looking at that you could mention that you haven't talked about before?

No, not that we haven't talked about before. We are very excited about the potential in South Africa. You know we have a very successful deployment in Cape Town South Africa with a huge net promoter in JP Smith who is the Minister of Security there.

We have had some discussions with other cities in South Africa and their gun violence problem is very similar to that of what we experience here in the US. So, we are excited about the potential there and are spending the requisite amount of time, I guess I would say, in South Africa pushing that agenda forward. But nothing new to report beyond that.

And final question, and I know you're not going to be able to really answer this, but I have friends in San Juan. And this is a developing situation for the last several months in which both crime and shootings have begun to increase because the infrastructure is not there to take care of them. And it's only going to go one way until something -- until they get more funds to be able to deal with this. Can you talk about Puerto Rico in any way, shape or form?

I would say, no, I think we've said what we already can say about Puerto Rico and USVI. I guess I would point out that they're not a part really of our thinking for our revenue for 2018 this year. And we just hope that they can get the resources they need to bring some sense of normalcy back to those places. They are really hit hard so I don't imagine that ShotSpotter is the first thing on their agenda, they've got other priorities. So, we are hoping they can get those priorities sorted out.

Okay, great. Thank you very much.

At this time this concludes our question-and-answer session. If your question was not taken, you may contact ShotSpotter's Investor Relations team at IR@ShotSpotter.com. I would now like to turn the call back over to Mr. Clark for his closing remarks.

Great, yes, so no additional closing remarks from us. I think we said pretty much all we can say at this point in time. Looking forward to seeing you all in about 90 days or so when we can tell you about the progress we've made in Q1 2018. Thank you very much for joining.

Thank you for joining us today for ShotSpotter's fourth-quarter and full-year 2017 earnings call. You may now disconnect.