SoundThinking Inc (SSTI) AI Stock Analysis

• Market Cap: $157.15M
• Dividend Yield: N/A
• Average Volume (3M): 57.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: 7.65%
• EPS Growth: -96.35%
• Country: US
• Employees: 316
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): -0.12
• Shares Outstanding: 12,673,100
• 10 Day Avg. Volume: 59,052
• 30 Day Avg. Volume: 57,651
• PEG Ratio: -1.36
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.45
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: 10.18
• 1Y Price Target: $22.80
• Price Target Upside: 87.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 60 Neutral
• Price Target: $14.00 ▲(15.42%Upside)

SoundThinking Inc's overall stock score is primarily driven by its strong earnings call performance and positive corporate events, indicating potential growth and strategic opportunities. However, technical analysis and valuation concerns weigh heavily on the score, reflecting current market challenges and profitability issues.

Positive Factors

Guidance Above Expectations

Management raised FY25 revenue guidance to $111.0M-$113.0M, above the consensus of $107.9M, signaling confidence in future growth.

International Expansion

The recently announced multi-year contract for the City of Niteroi indicates strong international momentum.

Legislation Opportunities

California recently passed Assembly Bill 2975, which mandates hospitals to deploy weapons detection systems at all public entrances, creating a significant market opportunity.

Negative Factors

Contract Expirations

The high-profile Chicago ShotSpotter contract expired, resulting in a loss of revenue from this source.

Delayed Renewals

Financial results were impaired primarily due to delayed renewals of two NYPD contracts, highlighting challenges in contract management.

Revenue Decrease

Revenue decreased 10% to $23.4M and was below consensus, reflecting a decline in financial performance.

SoundThinking Inc Business Overview & Revenue Model

Company Description

SoundThinking, 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 Money

SoundThinking Inc generates revenue primarily through subscription-based services for its ShotSpotter gunshot detection technology. Clients, typically law enforcement agencies and municipalities, pay recurring fees for access to the company's proprietary network of acoustic sensors and real-time alert systems. Additionally, the company offers analytical services and software solutions that provide data insights and reports to help optimize law enforcement strategies and resource allocation. Significant partnerships with government agencies and law enforcement bodies further contribute to its revenue, as these collaborations often lead to long-term contracts and service agreements.

SoundThinking Inc Financial Statement Overview

Summary

SoundThinking Inc shows a solid revenue growth trend and strong cash flow management, although it struggles with profitability and equity stability. The positive cash flow and revenue growth are offset by negative profitability metrics.

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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.03M	92.72M	81.00M	58.16M	45.73M
Gross Profit	58.49M	52.84M	46.78M	32.52M	26.98M
EBITDA	1.82M	9.17M	7.75M	4.11M	6.88M
Net Income	-9.18M	-2.72M	6.38M	-4.43M	1.23M
Balance Sheet
Total Assets	136.79M	138.71M	122.75M	72.30M	66.32M
Cash, Cash Equivalents and Short-Term Investments	13.18M	5.70M	10.48M	15.64M	16.04M
Total Debt	6.05M	8.54M	3.42M	2.42M	945.00K
Total Liabilities	64.39M	63.95M	61.80M	38.49M	32.02M
Stockholders Equity	72.40M	74.76M	60.95M	33.81M	34.30M
Cash Flow
Free Cash Flow	15.79M	5.90M	1.26M	1.92M	7.08M
Operating Cash Flow	22.22M	10.95M	12.18M	9.82M	11.21M
Investing Cash Flow	-6.43M	-16.48M	-15.54M	-7.88M	-18.76M
Financing Cash Flow	-8.25M	795.00K	-1.75M	-2.27M	-956.00K

SoundThinking Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 12.13 is below the 20-day moving average (MA) of 13.13, below the 50-day MA of 14.56, and below the 200-day MA of 14.07, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 31.11 is Neutral, neither overbought nor oversold. The STOCH value of 23.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSTI.

SoundThinking Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	¥234.20B	14.88	7.50%	2.60%	9.27%	5.76%
AEYE	67 Neutral	$163.20M	―	-76.11%	―	16.52%	-1.28%
PSQH	61 Neutral	$101.55M	―	-223.65%	―	221.24%	13.36%
SSTI	60 Neutral	$157.15M	―	-10.44%	―	7.65%	-96.35%
MAPS	60 Neutral	$146.81M	12.05	23.24%	―	0.20%	―
SMRT	56 Neutral	$205.11M	―	-22.66%	―	-25.43%	-135.09%
MRT	43 Neutral	$205.86M	―	103.42%	―	―	―

SoundThinking Inc Corporate Events

SoundThinking Inc Holds 2025 Annual Stockholders Meeting

On June 4, 2025, SoundThinking, Inc. held its 2025 Annual Meeting of Stockholders where three key proposals were voted on. Stockholders approved the election of two Class II directors, the compensation of named executive officers, and the appointment of Baker Tilly US, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These approvals ensure continuity in leadership and financial oversight, potentially strengthening the company’s strategic direction and operational stability.

The most recent analyst rating on (SSTI) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on SoundThinking Inc stock, see the SSTI Stock Forecast page.