SoundThinking Inc (SSTI) 2024 Q3 法說會逐字稿

Good afternoon, and welcome to SoundThinking's Third Quarter 2024 Conference Call. My name is Shamali, and I will be your operator for today's call. Joining us are SoundThinking CEO, Ralph Clark; and CFO, Alan Stewart.

下午好，歡迎參加 SoundThinking 2024 年第三季電話會議。我的名字是 Shamali，我將擔任您今天電話的接線生。與我們一起的還有 SoundThinking 執行長 Ralph Clark；和首席財務官艾倫斯圖爾特（Alan Stewart）。

Please note that certain information discussed on the call today will include forward-looking statements for our future events and SoundThinking'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 actual results to differ materially from those stated or implied by those statements. Certain of these risks and assumptions are discussed in the SoundThinking's SEC filings, including this 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, November 12, 2024, and SoundThinking undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.

請注意，今天電話會議上討論的某些資訊將包括關於我們未來事件和 SoundThinking 的業務策略以及未來財務和營運績效的前瞻性陳述。這些前瞻性陳述僅是預測，受難以預測的風險、不確定性和假設的影響，可能會導致實際結果與這些陳述明示或暗示的結果有重大差異。SoundThinking 的 SEC 文件中討論了其中一些風險和假設，包括 S-1 表格上的註冊聲明。這些前瞻性陳述反映了管理層截至本次直播之日（2024 年 11 月 12 日）的信念、估計和預測，SoundThinking 不承擔修改或更新任何前瞻性陳述以反映本次電話會議日期之後的事件或情況的義務。

Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the company's website at ir.soundthinking.com.

最後，我想提醒大家，本次電話會議將被錄音，並透過公司網站 ir.soundthinking.com 投資者關係部分提供的連結提供重播。

With that, I'll now turn the call over to Ralph.

說完這些，我現在將電話轉給拉爾夫。

Good afternoon, everyone, and thank you for joining us today for SoundThinking's Q3 2024 earnings call. We appreciate you taking the time to join us today as we discuss our third quarter financial results, provide an update on our strategic and operational progress and share our outlook for the remainder of the year.

大家下午好，感謝您今天參加 SoundThinking 2024 年第三季財報電話會議。感謝您今天抽出時間與我們一起討論我們的第三季度財務業績，提供我們的策略和營運進展的最新信息，並分享我們對今年剩餘時間的展望。

We're pleased to report a strong third quarter with revenues up $26.3 million, up 10% from the same period last year. For the year-to-date period, we reported $78.6 million, representing an increase of 18% from the same period last year.

我們很高興地報告第三季業績強勁，營收成長 2,630 萬美元，比去年同期成長 10%。今年迄今為止，我們的營收為 7,860 萬美元，比去年同期成長 18%。

The need for public safety technology solutions continues to be a compelling growth opportunity and we believe the SafetySmart platform is uniquely positioned. As the landscape of public safety technology continues to evolve, we are not just keeping pace, but we are leading the charge. Following our recent strategic partnerships with Rekor Systems and the rollout of our co-branded PlateRanger ALPR solution, the SafetySmart platform now offers six data-driven tools that leverage AI and machine learning technologies to enhance law enforcement operations.

對公共安全技術解決方案的需求仍然是一個引人注目的成長機會，我們相信 SafetySmart 平台具有獨特的優勢。隨著公共安全技術領域的不斷發展，我們不僅跟上步伐，而且引領潮流。繼我們最近與 Rekor Systems 建立策略合作夥伴關係並推出聯合品牌的 PlateRanger ALPR 解決方案之後，SafetySmart 平台現在提供六種數據驅動工具，利用人工智慧和機器學習技術來加強執法行動。

In addition to PlateRanger, the SafetySmart platform includes ShotSpotter, which is our proven and market-leading gunshot detection system that improves police response to gunfire incidents and save lives; ResourceRouter, our patrol management system that streamlines patrol operations to improve officer productivity and engagement; CaseBuilder, our case management and investigative collaboration tool to help close cases; CrimeTracer, the largest search engine platform for law enforcement that has over 1 billion criminal justice records to help accelerate investigations; and lastly, SafePointe, which is our discrete AI-based low-friction weapons detection solution.

除了PlateRanger，SafetySmart平台還包括ShotSpotter，這是我們經過驗證的、市場領先的槍擊檢測系統，可提高警察對槍擊事件的反應並挽救生命； ResourceRouter 是我們的巡邏管理系統，可簡化巡邏操作以提高警員的工作效率和參與度； CaseBuilder，我們的案件管理和調查協作工具，用於幫助結案； CrimeTracer 是最大的執法搜尋引擎平台，擁有超過 10 億筆刑事司法記錄，有助於加快調查；最後，SafePointe，這是我們基於離散 AI 的低摩擦武器檢測解決方案。

The SafetySmart platform's unique value proposition lies in its ability to deliver a holistic unified client experience, offering a comprehensive suite of public safety solutions under one secure and scalable platform. We believe our SafetySmart platform strategy is gaining traction, empowering our law enforcement partners to deliver measurable, efficient, effective and equitable public safety outcomes in the communities they serve.

SafetySmart 平台的獨特價值主張在於它能夠提供整體統一的客戶體驗，在一個安全且可擴展的平台下提供全面的公共安全解決方案。我們相信，我們的 SafetySmart 平台策略正在獲得支持，使我們的執法合作夥伴能夠在他們服務的社區中提供可衡量、高效、有效和公平的公共安全成果。

Our flagship ShotSpotter offering went live in 4 new cities and 1 university as well as expanded in 8 current cities in Q3. We also booked and went live with over 10 new customers for our other safety smart platform solutions. Our ongoing market penetration is a testament to the effectiveness and reliability of our solutions in enhancing public safety.

我們的旗艦產品 ShotSpotter 在第三季在 4 個新城市和 1 所大學上線，並擴展到 8 個現有城市。我們也為其他安全智慧平台解決方案預訂了超過 10 個新客戶並投入使用。我們持續的市場滲透證明了我們的解決方案在增強公共安全方面的有效性和可靠性。

Domestically, we're on track to exceed 100 new ShotSpotter go-live miles this year, including 5 new cities and 9 expansion projects in our current staff project pipeline expected to go live in Q4 of this year. ResourceRouter is also performing above expectations and resonating in the market. We currently have 5 ResourceRouter implementations in the queue for Q4 go-lives. We're very pleased with the strong demand we see for resource router, which answers the challenges many agencies have around structural staffing shortages.

在國內，我們預計今年將超過 100 英里的 ShotSpotter 新上線里程，包括目前員工項目管道中的 5 個新城市和 9 個擴展項目，預計將於今年第四季度上線。ResourceRouter 的表現也超乎預期，在市場上引起共鳴。我們目前有 5 個 ResourceRouter 實作正在等待第四季上線。我們很高興看到資源路由器的強勁需求，它解決了許多機構在結構性人員短缺方面面臨的挑戰。

Our strategic partnership with Rekor to integrate vehicle license plate recognition solutions into our SafetySmart platform is also another highlight of the quarter and the year following the launch of PlateRanger in September 2024. The PlateRanger solution targets a $2.5 billion TAM that is growing at 15% CAGR. It is an attractive opportunity. And while still in the early days, we're excited by the growing strength of the pipeline build, and we look forward to sharing more updates on operational traction once we are fully underway.

我們與 Rekor 建立策略合作夥伴關係，將車牌識別解決方案整合到我們的 SafetySmart 平台中，這也是繼 2024 年 9 月推出 PlateRanger 之後本季和今年的另一個亮點。PlateRanger 解決方案的目標是 25 億美元的 TAM，複合年增長率為 15%。這是一個很有吸引力的機會。雖然仍處於早期階段，但我們對管道建設不斷增強的實力感到興奮，並且我們期待在全面啟動後分享更多有關營運進度的更新。

CaseBuilder, our comprehensive case management solution, grew subscription-based revenue approximately 1,000% for the third quarter year-over-year. We began recognizing $1 million of maintenance ARR earlier in the quarter with the delivery of the first major application or use case of PREA, the Prism Rate Elimination App, to be followed by use of force in trial divisions and then 8 other divisions within the DOC. The New York DOC leadership recently testified at a City Council hearing on October 31 on the successful PREA go-live and their expectations that its implementation will help improve compliance and operational efficiencies on these types of corrections investigations.

CaseBuilder 是我們的綜合案例管理解決方案，其第三季的訂閱收入年增了約 1,000%。我們在本季早些時候開始確認 100 萬美元的維護 ARR，交付了 PREA 的第一個主要應用程式或用例，即 Prism Rate Elimination App，隨後在審判部門使用武力，然後在 DOC 內的其他 8 個部門使用武力。紐約懲教署領導層最近於 10 月 31 日在市議會聽證會上就 PREA 的成功上線作證，並期望 PREA 的實施將有助於提高此類懲教調查的合規性和運營效率。

As expected, we also went live with Orleans Parish in September and continue to have a healthy pipeline of new CaseBuilder opportunities headed into 2025. Our very successful deployment of CaseBuilder in one of California Department of Justice divisions is expected to create further opportunities for us within the agency.

正如預期的那樣，我們也於 9 月與奧爾良教區合作，並在 2025 年繼續擁有大量新的 CaseBuilder 機會。我們在加州司法部的一個部門成功部署了 CaseBuilder，預計將為我們在該機構內創造更多機會。

CrimeTracer, our investigative search engine, was successfully deployed with six new customers adding to the 250-plus customers currently leveraging CrimeTracer. We expect to continue to make significant investments to maintain and improve the performance of our solutions. To that end, during the third quarter, we announced the availability of a major upgrade to our advanced weapons detection system called SafePointe Next Gen, which reflects our conviction and commitment to innovation and meeting the increasingly complex security needs of our customers. We're actively migrating our current customer installed base to the next-gen platform and securing new customers who have been waiting for Next Gen's new features along with SOC2 and HIPAA compliance.

我們的調查搜尋引擎 CrimeTracer 已成功部署，目前使用 CrimeTracer 的客戶已超過 250 個，新增了 6 位客戶。我們希望繼續進行大量投資來維護和提高我們解決方案的效能。為此，我們在第三季宣布對我們的先進武器探測系統 SafePointe Next Gen 進行重大升級，這反映了我們對創新以及滿足客戶日益複雜的安全需求的信念和承諾。我們正在積極將現有客戶安裝群遷移到下一代平台，並確保一直在等待下一代新功能以及 SOC2 和 HIPAA 合規性的新客戶。

On the operational front, we continue to make significant strides highlighted by the recently announced three-year agreement with the Ministry of Interior of Uruguay to expand ShotSpotter's gunshot detection coverage in Montevideo an additional 12 square kilometers, which represents a doubling of its current footprint in the capital city.

在營運方面，我們繼續取得重大進展，特別是最近宣布與烏拉圭內政部達成的三年協議，將 ShotSpotter 在蒙得維的亞的槍擊檢測覆蓋範圍再擴大 12 平方公里，這相當於其在首都現有覆蓋範圍的兩倍。

We have two major contract renewals in process with NYPD, including ShotSpotter as well as the maintenance and professional services work performed by our technologic division that provides critical ongoing enhancements and support of NYPD's on-premises ERP system. Both contracts have successfully made their way through NYPD's Information Technology Bureau, or ITB, onto New York City's Office of the Management and Budget, OMB. And late last week, we learned that the 3-year ShotSpotter renewal has moved on to final approval, and it sits with the New York City controller's office. Given the criticality of these solutions and the strong support it has from NYPD leadership in the mayor's office, we are confident that both contracts will be executed by year-end.

我們正在與紐約警察局續簽兩項主要合同，包括 ShotSpotter 以及我們的技術部門執行的維護和專業服務工作，該部門為紐約警察局的內部部署 ERP 系統提供關鍵的持續增強和支援。這兩份合約均已成功透過紐約警察局資訊科技局（ITB）審核，並轉至紐約市管理與預算辦公室（OMB）。上週晚些時候，我們獲悉，為期 3 年的 ShotSpotter 續約已進入最終審批階段，並已交由紐約市審計長辦公室審批。鑑於這些解決方案的重要性以及市長辦公室紐約警察局領導的大力支持，我們相信這兩份合約將在年底前完成。

As a reminder, our ShotSpotter service in Chicago operationally concluded in late September with the formal contract termination that will occur later this month. Comprehensive civic debates between the Mayor and the City Council on extending the service beyond this month are ongoing and entering the city's overall 2025 budget negotiation process. There continues to be strong support from a veto-proof majority coalition of the City Council. Residents who were polling data revealed that 70% of all Chicago voters strongly support or support Chicago's continuing use of ShotSpotter as well as local press in the business community that have recently organized themselves to range over $2.5 million to help defray the cost of ShotSpotter.

提醒一下，我們在芝加哥的 ShotSpotter 服務已於 9 月底結束運營，正式合約終止將於本月晚些時候進行。市長和市議會就本月之後延長服務進行的全面公民辯論正在進行中，並進入該市 2025 年整體預算談判進程。市議會多數派聯盟繼續給予大力支持。參與民調的居民數據顯示，70%的芝加哥選民強烈支持或支持芝加哥繼續使用 ShotSpotter，而當地商界媒體最近也組織起來捐款超過 250 萬美元，以幫助分擔 ShotSpotter 的費用。

In addition, a very strong positive came then from the recent University of Chicago Crime Lab study that statistically estimated that Chicago ShotSpotter deployment saves approximately 85 lives per year. In the meantime, the city has published an RFI due later this month intending to reimagine community safety by soliciting bids for First Responder Technology Solutions. In part, the RFI details requirements such as the ability to detect, locate and alert on gunfire within 60 seconds with exact positional data. In addition, the RFI also calls for the alert to include a forensic timestamp reported snippet of the gunfire incident. Coincidentally, many of these requirements are among the same capabilities that ShotSpotter has operationally demonstrated in Chicago since 2012.

此外，最近芝加哥大學犯罪實驗室的研究也得出了一個非常積極的結論，該研究從統計上估計，芝加哥 ShotSpotter 的部署每年可挽救約 85 人的生命。同時，該市已發布了一份將於本月稍後發布的 RFI，旨在透過徵集急救技術解決方案的投標來重塑社區安全。這些資訊請求書詳細列舉了一些要求，例如能夠在 60 秒內利用精確的位置資料來偵測、定位並發出槍聲警報的能力。此外，該資訊請求還要求警報中包含槍擊事件的法醫時間戳報告片段。巧合的是，這些要求中的許多都與 ShotSpotter 自 2012 年以來在芝加哥實際展示的能力相同。

In terms of market position, our strategic initiatives and product launches have strengthened our standing. We are leveraging our technological expertise and market insights to navigate the dynamic landscape and seize on new growth opportunities. Our strategic partnerships and product innovations are the driving force behind our operational excellence, which has resulted in another world-class Net Promoter Score of 66%, moving up 2 percentage points from last year's 64%. As a reminder, a score of 60 or higher is considered world class in any industry.

在市場地位方面，我們的策略性舉措和產品發布鞏固了我們的地位。我們正在利用我們的技術專長和市場洞察力來駕馭動態環境並抓住新的成長機會。我們的策略合作夥伴關係和產品創新是我們卓越營運的驅動力，這使我們的淨推薦值再次達到世界一流的 66%，比去年的 64% 上升了 2 個百分點。提醒一下，在任何行業中，60分或更高的分數都被認為是世界一流的。

It is notable, since 2020 to year-to-date, the company has added over 85 new ShotSpotter customers, executed 50-plus expansions, and processed over 660 annualized renewals compared to only 15 nonrenewals, which effectively averages to 139 annualized renewals per year versus 3 nonrenewals per year. As a reminder, Chicago's nonrenewal has already been factored into our 2025 budget and 2024 guidance, which we are maintaining at $104 million to $106 million in revenue, with 18% to 20% adjusted EBITDA margin. We are confident in our guidance and believe we are well positioned to drive diversified and profitable growth into 2025 and beyond.

值得注意的是，自 2020 年至今，該公司增加了 85 多個新的 ShotSpotter 客戶，執行了 50 多次擴展，處理了超過 660 次年度續約，而未續約只有 15 次，實際上平均每年有 139 次年度續約，而每年有 3 次未續約。提醒一下，芝加哥的未續約已計入我們的 2025 年預算和 2024 年指引中，我們將收入維持在 1.04 億美元至 1.06 億美元，調整後的 EBITDA 利潤率為 18% 至 20%。我們對我們的指導充滿信心，並相信我們有能力在 2025 年及以後推動多元化和獲利性成長。

In summary, our strategic initiatives, product expansion, and ALTR reseller partnerships have positioned us for continued growth and operational efficiency. We're extremely excited about the opportunities ahead and remain committed to delivering innovative solutions that enhance public safety and community trust. I want to thank you for your time and continued support.

總之，我們的策略性舉措、產品擴展和 ALTR 經銷商合作夥伴關係為我們持續成長和營運效率奠定了基礎。我們對未來的機會感到非常興奮，並將繼續致力於提供增強公共安全和社區信任的創新解決方案。我要感謝您付出的時間和持續的支持。

I'll now turn the call over to Alan to discuss our financial results for the quarter and guidance for the year.

現在我將電話轉給艾倫，討論本季的財務表現和年度指引。

Thank you, Ralph, and good afternoon, everyone. We're pleased with our third quarter results. Our strong financial performance reflects the success of our ongoing strategic initiatives, operational efficiency measures and our commitment to delivering value to our shareholders. The third quarter revenues were $26.3 million, representing a 10% increase of the $24 million in the third quarter of 2023.

謝謝你，拉爾夫，大家下午好。我們對第三季的業績感到滿意。我們強勁的財務表現反映了我們正在進行的策略性舉措、營運效率措施的成功以及我們為股東創造價值的承諾。第三季營收為 2,630 萬美元，較 2023 年第三季的 2,400 萬美元成長 10%。

Revenues were driven by new customers, expansion of existing customer coverage areas, additional cross-selling, including from Newport News, which added our [PrimeTracer] and CaseBuilder solutions to complement already implemented ShotSpotter and ResourceRouter solutions.

收入主要來自新客戶、現有客戶覆蓋範圍的擴大以及額外的交叉銷售，其中包括來自 Newport News 的銷售，該公司增加了我們的 [PrimeTracer] 和 CaseBuilder 解決方案以補充已經實施的 ShotSpotter 和 ResourceRouter 解決方案。

Bookings of all of our SafetySmart platform solutions, some of which are multiyear contracts are also growing healthily. Gross profit for the third quarter of 2024 was $15.2 million or 58% of revenue, versus $13.8 million or 57% of revenue for the prior year period. We expect gross margins to be higher in Q4, ending the year near the 60% that we have indicated in previous quarters. Our adjusted EBITDA was up approximately 5% from the third quarter of last year to $4.5 million, up from $4.3 million.

我們所有 SafetySmart 平台解決方案的預訂量（其中一些是多年期合約）也在健康成長。2024 年第三季的毛利為 1,520 萬美元，佔營收的 58%，而去年同期的毛利為 1,380 萬美元，佔營收的 57%。我們預計第四季的毛利率將會更高，年底時將達到我們在前幾個季度預測的 60% 左右。我們的調整後 EBITDA 較去年第三季的 430 萬美元上漲約 5% 至 450 萬美元。

Our adjusted EBITDA increase was related to revenue growth in all solutions. As a reminder, adjusted EBITDA, a non-GAAP financial measure is calculated by taking our GAAP net income or loss and adjusting out interest income, income taxes, depreciation, amortization and impairment, restructuring costs and losses including on the related fixed asset disposals, stock-based compensation expenses and acquisition-related expenses, including adjustments to our contingent consideration obligations.

我們的調整後 EBITDA 成長與所有解決方案的收入成長有關。提醒一下，調整後的 EBITDA 是一種非 GAAP 財務指標，其計算方法是採用我們的 GAAP 淨收入或虧損，並調整利息收入、所得稅、折舊、攤銷和減值、重組成本和損失（包括相關固定資產處置、股票薪酬費用和收購相關費用），包括對我們的或有對價義務的調整。

Turning to our expenses. Our operating expenses for the third quarter were $16.3 million or 62% of revenues, versus $15.2 million or 64% of revenues in the third quarter of 2023. Third quarter 2023 had an approximately $100,000 adjustment for contingent consideration related to our [ForenziPogic] acquisition. Breaking down our expenses. Sales and marketing expense for the third quarter were $7.2 million, or 27% of total revenue, compared to $6.3 million or 26% of total revenue for the prior year period.

談到我們的開支。我們第三季的營運費用為 1,630 萬美元，佔營收的 62%，而 2023 年第三季的營運費用為 1,520 萬美元，佔營收的 64%。2023 年第三季度，我們因收購 [ForenziPogic] 而產生的或有對價調整了約 10 萬美元。分解我們的開支。第三季銷售和行銷費用為 720 萬美元，佔總收入的 27%，而去年同期為 630 萬美元，佔總收入的 26%。

Our R&D expenses for the third quarter were $3.4 million, or 13% of total revenue, compared to $3.2 million or 13% of total revenue, in line with the prior year period. G&A expenses for the quarter were $5.7 million, or 22% of total revenue, compared to $5.7 million or 24% of total revenue for the prior year period. In the third quarter of last year, our G&A expenses included an approximately $100,000 reduction related to the change in the fair value of the contingent consideration related to the (inaudible) expectations.

我們第三季的研發費用為 340 萬美元，佔總營收的 13%，而去年同期為 320 萬美元，佔總營收的 13%，與去年同期持平。本季的一般及行政開支為 570 萬美元，佔總收入的 22%，而去年同期的一般及行政開支為 570 萬美元，佔總收入的 24%。去年第三季度，我們的 G&A 費用包括約 10 萬美元的減少，這與與（聽不清楚）預期相關的或有對價的公允價值變動有關。

We expect our G&A expenses to grow less than our revenue on a percentage basis as our company grows. Our GAAP net loss was approximately $1.4 million or a loss of $0.11 per basic and diluted shares for the quarter based on 12.7 million basic and diluted weighted average shares outstanding. This compares to a net loss of $1.9 million, or a loss of $0.15 per basic and diluted shares, based on 12.5 million basic and diluted weighted shares outstanding, respectively, for the prior year period.

我們預計，隨著公司的發展，我們的一般及行政管理費用的百分比增幅將低於收入的百分比增幅。根據 1,270 萬股基本和稀釋加權平均流通股計算，本季我們的 GAAP 淨虧損約為 140 萬美元，或每股基本和稀釋虧損 0.11 美元。相比之下，去年同期的淨虧損為 190 萬美元，即每股基本虧損 0.15 美元，基於 1,250 萬股基本和稀釋加權流通股。

Deferred revenue at the end of the quarter was largely in line at $49.5 million compared to $49.4 million at the end of Q2 of 2024. We ended the quarter with $15.3 million in cash and cash equivalents versus $9.8 million at the end of the second quarter of 2024. The cash balance is higher than the end of the second quarter even after we repurchased 294,790 of our shares at an average price of $14 for approximately $4 million.

本季末的遞延收入基本持平，為 4,950 萬美元，而 2024 年第二季末的遞延收入為 4,940 萬美元。本季末，我們的現金和現金等價物為 1,530 萬美元，而 2024 年第二季末為 980 萬美元。即使我們以平均每股 14 美元的價格回購了 294,790 股，耗資約 400 萬美元，現金餘額仍然高於第二季末的水平。

Currently, we have approximately $21 million available on our line of credit as we have only, approximately, $4 million in debt outstanding, all on our line of credit.

目前，我們的信用額度約為 2,100 萬美元，因為我們的未償還債務僅為 400 萬美元，而且全部在信用額度內。

Now turning to guidance. For the full year 2024, we're maintaining our full year revenue guidance range at $104 million to $106 million. We are expecting that Q4 revenues will be over $26 million, even after it included the loss of approximately $1.2 million from the loss of the Chicago contract in Q4, which is expected to end on November 22. We are maintaining our full year 2024 adjusted EBITDA margin guidance at 18% to 20%.

現在轉向指導。對於 2024 年全年，我們將全年營收預期範圍維持在 1.04 億美元至 1.06 億美元。我們預計第四季度的收入將超過 2,600 萬美元，即使其中包括第四季度因失去芝加哥合約而造成的約 120 萬美元的損失（預計於 11 月 22 日結束）。我們將 2024 年全年調整後 EBITDA 利潤率預期維持在 18% 至 20% 之間。

For our 2025 guidance, even with a loss of approximately $8.5 million from the loss of the (inaudible) contract, we're expecting our revenue to increase to a range of $107 million to $109 million. We are also expecting our adjusted EBITDA to increase to a range of 19% to 21%. Overall, we are pleased with the progress we have made on our strategic initiatives and the performance of the business. With that, we're now happy to open the call for questions. Operator, will you please open the call for Q&A.

對於我們的 2025 年指導，即使因失去（聽不清楚）合約而損失約 850 萬美元，我們預計我們的收入仍將增加到 1.07 億美元至 1.09 億美元之間。我們也預期調整後的 EBITDA 將增至 19% 至 21% 之間。整體而言，我們對策略性舉措和業務表現所取得的進展感到滿意。現在我們很高興開始回答大家的提問。接線員，請您打開電話進行問答。

(Operator Instructions)

（操作員指令）

Richard Baldry, ROTH Capital.

羅仕資本（ROTH Capital）的理查德·鮑德里（Richard Baldry）。

The [RFI] is fairly specific on the Chicago side. I'm kind of curious, if you run into an RFI of that specificity? Have any other vendors never sort of shown up able to compete with those characteristics? Or do you feel fairly unique and accurate?

[RFI]對芝加哥方面要求得相當具體。我有點好奇，您是否遇到過如此特殊的 RFI？有沒有其他供應商能夠與這些特性競爭？或者您覺得相當獨特、準確？

Yes. So we've had a chance to dissect the RFI, and it does look quite familiar to us. We've seen similar RFIs or RFPs, I think in one particular case, there is RFP from the agency in New Jersey that we successfully up bid on and won twice. So we're pretty encouraged by the list of requirements that were listed in that RFI, but do understand that this is an RFI, not RFP. So they're basically trying to get input on ideas. And so that's where that whole process is in Chicago.

是的。因此，我們有機會剖析該 RFI，它對我們來說確實看起來很熟悉。我們已經看到過類似的 RFI 或 RFP，我認為在一個特殊的案例中，有來自新澤西州的代理商的 RFP，我們成功競標併兩次獲勝。因此，我們對該 RFI 中列出的要求清單感到非常鼓舞，但請理解這是一個 RFI，而不是 RFP。所以他們基本上是在試著獲取有關想法的意見。這就是整個過程在芝加哥進行的地方。

Got it. And could you drill into sort of (inaudible) point per minute on you've got a major upgrade now out in the market. How is the pipeline looking or early close deals? Any feedback on the upgrade to think about that one heading out of the year and into 2025?

知道了。您能否每分鐘深入講解一下（聽不清楚）目前您在市場上推出的重大升級。通路進展如何或早期達成的交易如何？對於此次升級，您有什麼回饋嗎？

Yes. So the pipeline looks very strong. It continues to grow and build. I think people are really keen on the next-gen platform and additional features and capabilities we're providing to contactless weapons detection. So we're pretty excited. And there's a number of deals that we're looking to close in Q4 going into 2025, with the wind at our back with respect to SafePointe. So we're pretty pleased with that business and how it's developing.

是的。因此，該管道看起來非常強勁。它還在不斷地成長和發展。我認為人們非常熱衷於下一代平台以及我們為非接觸式武器檢測提供的附加特性和能力。所以我們非常興奮。在 SafePointe 方面，我們希望在 2025 年第四季完成多項交易，並取得良好的表現。因此，我們對該業務及其發展非常滿意。

And sort of building on that. When you think about your 2025 guidance, how much change sort of year-to-year, does that assume for go-lives for either short ShotSpotter or your legacy offering for gunshot detection and SafePointe for weapons detection?

並以此為基礎進行建構。當您考慮 2025 年的指導方針時，每年的變化幅度有多大，這是否假設短版 ShotSpotter 或您傳統的槍擊檢測產品和武器檢測產品 SafePointe 的上線？

Yes. So this is Alan, and Ralph, (inaudible) correct. We're still expecting our ShotSpotter to be around 100 miles plus, might be higher than that as well once we add in some of the international opportunities that we have. So that's on the ShotSpotter side. On the SafePointe side. To be clear, as Ralph mentioned, the pipeline is strong there.

是的。所以這是艾倫和拉爾夫（聽不清楚）正確的。我們仍然預計我們的 ShotSpotter 的覆蓋範圍將達到 100 英里以上，一旦我們增加一些國際機會，覆蓋範圍可能會更高。這就是 ShotSpotter 方面的情況。在 SafePointe 方面。需要明確的是，正如拉爾夫所提到的，那裡的管道非常強大。

And just to give you some stats that I think are really important, we added in terms of bookings. Those -- some are multiyear, but about $0.5 million in Q1, north of that in Q2, over $1 million in Q3 and already over that in Q4. That's for SafePointe alone. So when we look at guidance, it's not just ShotSpotter, which is going to continue to grow, but the other solutions that we have are adding significant bookings across the board and helping our diversification help our revenue grow.

為了給您一些我認為非常重要的統計數據，我們添加了一些預訂數據。其中有些是多年期的，但第一季約 50 萬美元，第二季超過 50 萬美元，第三季超過 100 萬美元，第四季已經超過 100 萬美元。這僅適用於 SafePointe。因此，當我們查看指引時，不僅是 ShotSpotter 將繼續成長，而且我們擁有的其他解決方案也在全面增加大量預訂，並幫助我們的多元化發展，從而促進我們的收入成長。

And last for me, on the SafePointe side, as you see that ramp, what would be any friction to growth for that are most of the components are common off-the-shelf (inaudible) custom things that could challenge growth to something larger contracts were to come through sort of earlier than you expected?

最後，就 SafePointe 方面而言，正如您所看到的，對於大多數組件來說，增長的阻力是什麼？ 這些組件都是常見的現成的（聽不清楚）定制產品，可能會對增長造成挑戰，從而導致更大的合同比您預期的更早完成？

Yes. So this is Ralph. We are looking at some potential supply constraints that we think will open up in the beginning of 2025. Part of the next-gen SafePointe solution includes some AI work being done at the edge. There's a box at the edge that's connected to a 3D camera that is -- has some little bit of supply constraint around the NVIDIA chipset. So we're currently getting those kind of shipped in a fairly sufficient quantity to support our ramp of next-gen go-lives for 2024 for the remainder of this year. But as that ramps up, we're going to have to see that supply significantly increase. to kind of meet the projections that we have in mind for SafePointe. And we think we'll be fine there. But we are looking at it fairly closely.

是的。這就是拉爾夫。我們正在研究一些潛在的供應限制，認為這些限制將在 2025 年初出現。新一代 SafePointe 解決方案的一部分包括在邊緣進行的一些 AI 工作。邊緣處有一個盒子，與 3D 攝影機相連，在 NVIDIA 晶片組周圍存在一些供應限制。因此，我們目前的出貨量已經相當充足，可以在今年剩餘時間內支援我們 2024 年下一代產品的上線。但隨著這一趨勢的加劇，我們將看到供應量大幅增加。以滿足我們對 SafePointe 的預期。我們認為我們在那裡會過得很好。但我們正在相當仔細地觀察它。

Eric Martinuzzi, Lake Street.

馬丁努齊 (Eric Martinuzzi)，湖街。

Yes. I just wanted to size up the Chicago impact on 2024. I know you said $8.5 million annualized. But based on the 2024 guide, what is the actual expected revenue contribution in 2024?

是的。我只是想評估一下芝加哥對 2024 年的影響。我知道您說的是年化 850 萬美元。但根據 2024 年指南，2024 年的實際預期收入貢獻是多少？

Yes. So this is Alan. The actual revenue in '24 is about $9.2 million. So we -- it's definitely less than the [8.5] because we did have some revenue that we recognized before we got the $8.5 million contract in January and February of this year.

是的。這就是艾倫。'24年的實際收入約為920萬美元。所以，這個數字肯定低於 850 萬美元，因為我們在今年 1 月和 2 月獲得 850 萬美元的合約之前確實確認了一些收入。

Okay. And one of the things that you talked about last quarter was a sales cycle elongation, just really due to more education and constituent deliberation that was impacting the pipeline conversion, specifically on ShotSpotter. Any further color you can give us there? Is that elongation flexed at all? Or is it pretty much it was captured in the Q2 comments?

好的。您上個季度談到的事情之一是銷售週期延長，這實際上是由於更多的教育和選民審議影響了管道轉換，特別是在 ShotSpotter 上。您還能提供更多詳細資訊嗎？伸長部分有彎曲嗎？或者它是否在 Q2 的評論中被捕獲了？

Yes, this is Ralph. I think it stabilized. It's pretty much where it was in Q2. We're looking at kind of 12 to 18 months sales cycles still with respect to ShotSpotter. But offsetting that, which is kind of interesting, we're seeing much more closed sales cycles for SafePointe kind of given it's a different buying center on the commercial security side versus the kind of public safety public government side.

是的，這是拉爾夫。我認為它已經穩定了。它與第二季的情況基本相同。我們仍在考慮 ShotSpotter 的 12 到 18 個月的銷售週期。但與此相抵消的是，這很有趣，我們看到 SafePointe 的封閉銷售週期要多得多，因為它在商業安全方面與公共安全公共政府方面是不同的採購中心。

So we're pretty encouraged by the mix of sales cycles we see across the portfolio with things happening a lot quicker, I would say, on the SafePointe side and kind of still these kind of 12- to 18-month sales cycles on things like ShotSpotter. And now we put kind of [Plate Ranger] or expectation as [Plate Ranger] is going to be something kind of in the middle because it is a defined category that has defined budget dollars associated with it. I think people pretty much understand the ALPR space pretty well.

因此，我們對整個投資組合中看到的銷售週期組合感到非常鼓舞，我想說，SafePointe 方面的銷售週期要快得多，而 ShotSpotter 等產品的銷售週期仍然是 12 到 18 個月。現在我們將 [Plate Ranger] 或預期作為 [Plate Ranger] 放在中間，因為它是一個定義的類別，並且與之相關的預算金額已定義。我認為人們對 ALPR 領域相當了解。

(Operator Instructions)

（操作員指令）

Trevor Walsh, Citizens JMP.

特雷弗沃爾什 (Trevor Walsh)，公民 JMP。

Just piggybacking a little bit off the SafePointe and the [Plate Ranger] commentary from last couple of questions, Ralph and/or Alan, could you just give us a sense of sort of -- I understand the pipeline is strong, but could you maybe give us a sense of kind of where the [rev rec] as those deals sort of flow in kind of what that looks like just from a timing perspective, is it going to take some time to deploy, it's similar to kind of what you see similar to the ShotSpotter type of deals? Or I guess, how in the context of the '25 guide, you've seen those revenues kind of flowing in once you actually do win those deals?

拉爾夫和/或艾倫，稍微借鑒一下前幾個問題中 SafePointe 和 [Plate Ranger] 的評論，您能否給我們介紹一下——我知道渠道很強大，但您能否給我們介紹一下這些交易的 [rev rec] 流程，從時間角度來看，它是否需要一些時間來部署，它是否類似於您所看到的 ShotSpotter 類型的交易？或者我想，在 25 指南的背景下，一旦您真正贏得這些交易，您如何看到這些收入流入？

Okay. So the short answer is normally with like a Shotspotter it takes about 3 to 4 months after contract or signed until we go live. We're finding a much shorter cycle for that, for SafePointe. When we get a contract signed, provided the customers ready to go, we can get things as low as 6 to 7 weeks and go-live. So that's actually when we get the bookings, and as I mentioned, we've already gotten over $4 million in bookings in SafePointe this year. Those are going to come in and help achieve the revenue a little faster than what a ShotSpotter would.

好的。因此，簡短的回答是，通常與 Shotspotter 一樣，從簽訂合約到上線大約需要 3 到 4 個月的時間。對於 SafePointe 來說，我們發現其週期要短得多。當我們簽署合約後，只要客戶做好了準備，我們可以在最短 6 到 7 週的時間內完成並上線。所以那實際上是我們獲得預訂的時候，正如我所提到的，今年我們已經在 SafePointe 獲得了超過 400 萬美元的預訂。這些將會比 ShotSpotter 更快地幫助您實現收入。

Great. That's helpful. And then also around that 2025 preliminary guide, look nice kind of above expectation around the EBITDA side of the house. Can you just maybe give us a sense from kind of where you're seeing some of that leverage kind of heading into next year as we think about modeling kind of going forward?

偉大的。這很有幫助。然後圍繞 2025 年的初步指南，EBITDA 方面的情況看起來不錯，超出預期。當我們考慮未來的建模時，您能否告訴我們，您認為明年這些槓桿將如何發展？

Yes. Sure. This is Alan again. So there are several things that are going on. Number one, as we've said in other -- some of the last couple of acquisitions we did, we're still investing. The technology acquisitions, we're still investing. And as the revenue grows with them, the actual profitability grows as well. So we're starting to see that. If you just talk about 4 of the (inaudible) [PlateRanger] having almost $7 million in bookings already, helps us grow each one of those. And that $7 million is what we've had in '24. We're going to have additional in '25. So that's going to help. We also had some reductions and some costs that were appropriate, we thought, actually quite small, but that's going to add a little bit as well. So revenue is going to grow costs and actual expenses are going to go down a little bit in those categories. That's how the adjusted EBITDA is going to improve.

是的。當然。我又是艾倫。因此，有幾件事正在發生。第一，正如我們之前所說的，對於最近進行的幾項收購，我們仍在進行投資。我們仍在投資技術收購。隨著收入的成長，實際獲利能力也隨之成長。所以我們開始看到這一點。如果您只談論 4 個（聽不清楚）[PlateRanger] 的預訂量已經接近 700 萬美元，那麼這有助於我們實現每一個的成長。這 700 萬美元就是我們在 24 年所擁有的。'25 年我們將會增加更多。這將會有所幫助。我們也進行了一些削減，並適當地降低了一些成本，我們認為這些削減實際上相當小，但也會增加一點。因此，收入將會增加，成本和實際支出在這些類別中將會略有下降。這就是調整後的 EBITDA 將如何改善。

Great. I appreciate it. And maybe one last one for me, Ralph, for you. You guys put out a press release last month, maybe a couple of months ago now actually, around a study you did in conjunction with the city of Oakland around just product efficacy. Just wondering kind of is that kind of part of the -- your kind of maybe new or revised PR playbook of just kind of getting ahead of where you see potential kind of more political city type of questioning of the tool or some other purpose of that study being put out there? Just curious kind of what the, I guess, the overall strategic kind of rationale was for doing that.

偉大的。我很感激。拉爾夫，這也許是我和你最後一個願望。你們上個月發布了一份新聞稿，實際上可能是幾個月前，是關於你們與奧克蘭市合作進行的一項有關產品功效的研究。我只是想知道這是否是你們新的或修訂的公關策略的一部分，只是為了提前看到潛在的更具政治性的對該工具的質疑，或者這項研究的其他目的？我只是有點好奇，我猜，這樣做的整體戰略理由是什麼。

Yes. Thank you very much for that question. It's a great question. Yes. So we're trying to be a lot more intentional around helping our law enforcement agency partners tell their story about the efficacy and value that the acoustic gunshot detection technology delivered by ShotSpotter provides them as a first responder agency getting to the scenes of gun crime. I think fundamentally, it's really important that people understand that 80% to 90% of criminal gunfire goes unreported.

是的。非常感謝您提出這個問題。這是一個很好的問題。是的。因此，我們正努力更加有意識地幫助我們的執法機構合作夥伴講述 ShotSpotter 提供的聲學槍聲探測技術的功效和價值，為他們作為第一響應機構到達槍支犯罪現場提供助力。我認為從根本上來說，讓人們了解 80% 到 90% 的犯罪槍擊事件都沒有報告非常重要。

And if it wasn't for an (inaudible) gunshot detection technology like ShotSpotter, these incidents would be -- would have no response. And so we're enabling a quick, fast response that are getting first responders to the scenes. They're finding victims and they're able to get victims to trauma care centers to save their lives or [recovery] evidence. They're seeing improved community engagement because now these communities see lease responding very quickly and precisely to these events.

如果沒有像 ShotSpotter 這樣的（聽不清楚）槍擊偵測技術，這些事件就不會被處理。因此，我們正在採取快速反應措施，讓第一批救援人員趕赴現場。他們正在尋找受害者，並將受害者送往創傷護理中心以挽救他們的生命或[恢復]證據。他們看到社區參與度有所提高，因為現在這些社區看到租賃對這些事件做出了非常迅速和準確的反應。

And it gets lost in the shuffle sometimes. So what we're trying to do with our agency partners is helping them kind of get in front of those city council meetings by kind of gathering that data in developing the narrative and story around the value and why people should be paying attention to it. And it worked very well for us in Oakland.

有時它會在混亂中迷失。因此，我們與代理商合作夥伴嘗試做的是，透過收集數據來幫助他們參加市議會會議，圍繞其價值以及人們為什麼應該關注它來構建敘述和故事。這在奧克蘭對我們非常有效。

We're really proud of the fact that we got almost unanimous approval from the City Council and opens a fairly progressive city. There's a little bit of noise coming from I would say, large -- a small group of activists -- small but loud group of activists that we're trying to challenge ShotSpotter. But at the end of the day, we were able to get those facts out there, the City Council, we think, make the appropriate decision with only one (inaudible) in a place like open. So that's hopefully, a good harberger of things to come within other places as well, getting that renewal across the line with that playbook of helping agencies tell their story better.

我們獲得了市議會幾乎一致的批准並開啟了一個相當進步的城市，我們對此感到非常自豪。我想說，有一些聲音來自一小群活動分子，人數不多但聲音很大的活動分子，我們正試圖挑戰 ShotSpotter。但最終，我們還是能夠把這些事實公之於眾，我們認為，市議會只需一個（聽不清楚）就可以在公開場合做出適當的決定。因此，希望這也能成為其他地方即將發生的事件的一個好兆頭，透過這種策略來實現這一革新，幫助各機構更好地講述自己的故事。

We have reached the end of the question-and-answer session. And I'll now turn the call back over to Ralph Clark for closing comments.

問答環節已經結束。現在我將電話轉回給拉爾夫克拉克 (Ralph Clark) 來做最後發言。

Thank you to everyone who joined us today, and thank you to my SoundThinking colleagues, clients and partners for their support. In summary, we are pleased with our quarter's performance and excited for the opportunities heading into 2025. We have an outstanding company and will continue to be focused on maximizing shareholder value. Thank you all for your insightful questions and for joining us today on this earnings call. We appreciate your continued interest and investment in sound thinking. We look forward to sharing our progress with you in the coming quarters. Thank you.

感謝今天加入我們的每個人，也感謝我的 SoundThinking 同事、客戶和合作夥伴的支持。總而言之，我們對本季的表現感到滿意，並對 2025 年的機會感到興奮。我們擁有一家出色的公司，並將繼續致力於實現股東價值最大化。感謝大家提出深刻的見解並參加今天的財報電話會議。我們感謝您對合理思考的持續關注和投入。我們期待在接下來的幾個季度與您分享我們的進展。謝謝。

And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，各位現在可以掛斷電話了。感謝您的參與。