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Soundthinking, Inc. (SSTI)
:SSTI
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SoundThinking Inc
(NASDAQ:SSTI)
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Rating:61Neutral
Price Target:
$13.00
▲(8.60% Upside)
SoundThinking Inc's overall stock score is primarily influenced by its solid financial performance, particularly in cash flow management, despite challenges in profitability and equity stability. The technical analysis indicates potential bearish momentum, and valuation concerns are highlighted by a negative P/E ratio. The earnings call provides a balanced outlook with growth opportunities, but revenue declines and operational challenges temper the positive aspects.
Positive Factors
Cash Flow Management
Strong cash flow management ensures the company can fund operations and growth initiatives without relying heavily on external financing, supporting long-term sustainability.
Strategic Partnerships
Strategic partnerships and technology integrations enhance product offerings and market competitiveness, driving future revenue growth and market expansion.
Market Expansion
Expanding into new markets, especially internationally, increases the customer base and diversifies revenue streams, reducing dependency on any single market.
Negative Factors
Revenue Decline
Revenue decline due to contract nonrenewals indicates potential challenges in client retention, which could impact long-term revenue stability.
Profitability Challenges
Ongoing profitability challenges may limit reinvestment in growth opportunities and strain financial resources, affecting long-term business viability.
Operational Challenges
Operational challenges, such as delays in contract extensions, can disrupt revenue streams and operational efficiency, impacting overall business performance.
SoundThinking Inc (SSTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$153.11M
Dividend YieldN/A
Average Volume (3M)69.04K
Price to Earnings (P/E)―
Beta (1Y)1.23
Revenue Growth1.47%
EPS Growth-430.99%
CountryUS
Employees316
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.24
Shares Outstanding12,791,251
10 Day Avg. Volume67,360
30 Day Avg. Volume69,041
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)2.29
Price to Sales (P/S)1.63
P/FCF Ratio10.51
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue1.57
Enterprise Value/Gross Profit2.83
Enterprise Value/Ebitda341.25
Forecast
1Y Price Target
$22.50Price Target Upside87.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
SoundThinking Inc Business Overview & Revenue Model
Company DescriptionSoundThinking, Inc., a public safety technology company, provides data-driven solutions and strategic advisory services for law enforcement, security teams, and civic leadership. Its SafetySmart platform that includes data-driven tools comprising ShotSpotter, an outdoor gunshot detection, location, and alerting system; CrimeTracer, a law enforcement search engine that enables investigators to search through criminal justice records from across jurisdictions to generate tactical leads and solve cases; CaseBuilder, an investigative management system for tracking, reporting, and collaborating on cases; ResourceRouter, a software that directs deployment of patrol and community anti-violence resources; PlateRanger powered by Rekor, an advanced license plate recognition (ALPR) and vehicle identification solution; and SafePointe, an artificial intelligence-based weapons detection system. The company also offers ShotSpotter for Campus and ShotSpotter for Corporate, to universities, corporate campuses, and key infrastructure centers to mitigate risk and enhance security by notifying authorities of outdoor gunfire incidents and save critical minutes for first responders to arrive. It sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.
How the Company Makes MoneySoundThinking Inc generates revenue through a multi-faceted model that includes software licensing, subscription services, and customized implementation projects. The company charges clients for the use of its proprietary audio analytics software on a per-license basis, providing businesses with the flexibility to scale according to their needs. Additionally, SSTI offers subscription-based services for ongoing access to updates, technical support, and new features. Significant partnerships with key players in the security and healthcare sectors enhance the company's market reach and provide additional revenue through joint ventures and collaborative projects, allowing SSTI to leverage shared resources and expertise for mutual growth.
SoundThinking Inc Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced outlook with significant expansion in new markets and strategic partnerships but is tempered by revenue declines due to contract nonrenewals and operational delays.Q2-2025 Updates
Positive Updates
Expansion in New Markets
ShotSpotter was deployed in four new cities, including New Orleans and Niteroi, Brazil. The company continues to expand its international footprint, particularly in Latin America.
Strategic Partnerships and Integrations
Progress in drone-as-first-responder capabilities and integration between PlateRanger LPR solution and CrimeTracer, enhancing situational awareness and investigative capabilities.
Financial Stability and Guidance
Reaffirmed full-year revenue guidance of $111 million to $113 million and adjusted EBITDA margin guidance of 20% to 22%. Cash balance increased to over $16 million.
SafePointe Growth
Secured a major SafePointe transaction at a historically black college university and continued expansion in the healthcare vertical.
Negative Updates
Revenue Decline
Revenues decreased 4% from the second quarter of 2024, primarily due to the nonrenewal of the contract with the City of Chicago, resulting in a $2.8 million revenue loss.
Delayed Bookings
Bookings fell short of internal targets due to the timing of large deals, including a significant $2.5 million CrimeTracer transaction pushed into Q3.
Operational Challenges in Puerto Rico
Service and revenue recognition in Puerto Rico were suspended due to a delay in contract extension amid bureaucratic processes.
Increased Operating Expenses
Operating expenses increased to $16.7 million, or 65% of revenues, with a net loss of $3.1 million for the quarter.
Company Guidance
During SoundThinking's Second Quarter 2025 Earnings Conference Call, the company reiterated its full-year revenue guidance of $111 million to $113 million and maintained its adjusted EBITDA margin guidance of 20% to 22%. The company reported Q2 revenues of $25.9 million, a 4% decrease from the prior year's $27 million, primarily due to the nonrenewal of a $2.8 million contract with the City of Chicago. Despite this, they highlighted growth in their SafetySmart platform solutions and successful contracts with NYPD, contributing approximately $3.5 million in catch-up revenue in Q1. The company's gross profit was $13.8 million, or 53% of revenue, with adjusted EBITDA at $3.4 million. SoundThinking's strategic focus includes expanding their pipeline, which stands at over $37 million for the remainder of 2025, with a healthy diversification beyond domestic ShotSpotter deployments. They also emphasized ongoing innovation, such as integrating drone technology with ShotSpotter alerts and a new perimeter-based sniper solution. SoundThinking's cash balance was reported at over $16 million, with $21 million available on their line of credit, and they anticipate annual recurring revenue to grow from $95.6 million at the start of 2025 to approximately $110 million by early 2026.SoundThinking Inc Financial Statement Overview
Summary
SoundThinking Inc exhibits solid revenue growth and cash flow management, but faces challenges with profitability and equity stability. Continued focus on improving margins and maintaining a balanced financial structure will be crucial for future growth.Income Statement
SoundThinking Inc has shown a steady increase in revenue over the years, with a notable increase from 2021 to TTM (Trailing-Twelve-Months). However, the company is struggling with profitability, as indicated by negative EBIT and net income margins, particularly in the TTM period.67
Positive
Balance Sheet
The company's balance sheet shows a healthy equity position with a reasonable debt-to-equity ratio. However, the recent decrease in stockholders' equity and the presence of net losses could indicate potential stability risks if not addressed.72
Positive
Cash Flow
SoundThinking Inc demonstrates strong operating cash flow, which consistently covers its capital expenditures resulting in positive free cash flow. The company has maintained a stable free cash flow to net income ratio, despite net income losses, showcasing good cash management practices.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 103.90M | 102.03M | 92.72M | 81.00M | 58.16M | 45.73M |
| Gross Profit | 57.51M | 58.49M | 52.84M | 46.78M | 32.52M | 27.21M |
| EBITDA | 477.00K | 1.82M | 9.17M | 7.79M | 2.45M | 6.88M |
| Net Income | -10.12M | -9.18M | -2.72M | 6.38M | -4.43M | 1.23M |
Balance Sheet | ||||||
| Total Assets | 134.78M | 136.79M | 138.71M | 122.75M | 72.30M | 66.32M |
| Cash, Cash Equivalents and Short-Term Investments | 8.95M | 13.18M | 5.70M | 10.48M | 15.64M | 16.04M |
| Total Debt | 4.85M | 6.05M | 9.51M | 3.42M | 2.42M | 945.00K |
| Total Liabilities | 60.26M | 64.39M | 63.95M | 61.80M | 38.49M | 32.02M |
| Stockholders Equity | 74.52M | 72.40M | 74.76M | 60.95M | 33.81M | 34.30M |
Cash Flow | ||||||
| Free Cash Flow | 6.54M | 15.79M | 5.90M | 1.26M | 1.92M | 7.08M |
| Operating Cash Flow | 11.40M | 22.22M | 10.95M | 12.18M | 9.82M | 11.21M |
| Investing Cash Flow | -4.97M | -6.43M | -16.48M | -15.54M | -7.88M | -18.76M |
| Financing Cash Flow | -7.24M | -8.25M | 795.00K | -1.75M | -2.27M | -956.00K |
SoundThinking Inc Technical Analysis
Negative
11.97
Price Trends
12.22
Negative
13.59
Negative
14.16
Negative
Market Momentum
-0.06
Positive
41.23
Neutral
28.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSTI, the sentiment is Negative. The current price of 11.97 is below the 20-day moving average (MA) of 12.27, below the 50-day MA of 12.22, and below the 200-day MA of 14.16, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 41.23 is Neutral, neither overbought nor oversold. The STOCH value of 28.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSTI.
SoundThinking Inc Risk Analysis
SoundThinking Inc disclosed 56 risk factors in its most recent earnings report. SoundThinking Inc reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SoundThinking Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | 179.23M | 13.18 | 21.17% | ― | 2.37% | ― | |
61 Neutral | $153.11M | ― | -13.49% | ― | 1.47% | -430.99% | |
58 Neutral | 272.70M | -3.88 | -11.62% | ― | -28.45% | -224.48% | |
55 Neutral | 176.31M | -41.62 | -56.62% | ― | 18.53% | -16.24% | |
44 Neutral | 92.74M | -1.48 | -207.96% | ― | 93.83% | 23.31% | |
40 Underperform | 179.46M | -2.01 | 120.25% | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
SSTI
SoundThinking Inc
11.97
0.38
3.28%
AEYE
AudioEye
14.21
-8.64
-37.81%
MAPS
WM Technology
1.14
0.27
31.03%
SMRT
SmartRent
1.45
-0.28
-16.18%
PSQH
PSQ Holdings
2.02
-0.44
-17.89%
MRT
Marti Technologies
2.28
0.30
15.15%
SoundThinking Inc Corporate Events
Business Operations and StrategyPrivate Placements and Financing
SoundThinking Inc Extends Credit Agreement with Umpqua Bank
Positive
Sep 3, 2025
On August 28, 2025, SoundThinking, Inc. announced a Seventh Amendment to its Credit Agreement with Umpqua Bank, originally dated September 27, 2018. This amendment extends the maturity date from October 15, 2025, to October 15, 2027, and increases the revolving credit commitment from $25 million to $40 million, potentially enhancing the company’s financial flexibility and operational capacity.
The most recent analyst rating on (SSTI) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on SoundThinking Inc stock, see the SSTI Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.