SoundThinking Inc (SSTI) AI Stock Analysis

• Market Cap: $212.15M
• Dividend Yield: N/A
• Average Volume (3M): 41.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 7.65%
• EPS Growth: -96.35%
• Country: US
• Employees: 316
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): -0.12
• Shares Outstanding: 12,673,100
• 10 Day Avg. Volume: 47,202
• 30 Day Avg. Volume: 41,621
• PEG Ratio: -0.27
• Price to Book (P/B): 6.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 326.02
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 4.41
• Enterprise Value/Ebitda: 17.52
• 1Y Price Target: $22.60
• Price Target Upside: 35.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: $17.50 ▲(5.23%Upside)

SoundThinking's strengths include strong revenue growth and positive cash flow management, as well as a positive outlook from recent earnings and strategic corporate events. However, profitability challenges and valuation concerns due to a negative P/E ratio weigh on the overall score.

Positive Factors

International Expansion

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

Legislative Opportunities

California recently passed Assembly Bill 2975, which mandates hospitals to deploy weapons detection systems at all public entrances by 2027, implying a roughly $80 million TAM in California.

Partnership and Product Development

Management continues to express optimism in the company’s PlateRanger license plate reader solution, which is part of a partnership with Rekor.

Negative Factors

Contract and Revenue Challenges

The Chicago contract was not renewed, so respective revenue is now zero going forward.

Contract Delays

F4Q24 financial results were impaired primarily as a result of delayed renewals of two NYPD contracts, caused by what CEO Ralph Clark described as the 'recent and well-documented political distractions and personnel turnover in the city.'

Financial Performance

Revenue decreased 10% to $23.4M and was below consensus, with a decline in AEBITDA and gross margin.

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 through the sale and subscription of its ShotSpotter technology services to municipalities, law enforcement agencies, and other organizations concerned with public safety. Key revenue streams include subscription fees for access to its gunshot detection and location services, professional services fees for implementation and support, and equipment sales related to the deployment of its technologies. The company may also engage in strategic partnerships with city governments and public safety departments to expand the adoption of its services, further contributing to its earnings.

SoundThinking Inc Financial Statement Overview

Summary

SoundThinking Inc exhibits solid revenue growth and strong cash flow management, with a steady increase in revenue and positive free cash flow. However, challenges with profitability and stability in equity due to net losses and a decrease in stockholders' equity present concerns.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
104.97M	102.03M	92.72M	81.00M	58.16M	45.73M
	Gross Profit
59.89M	58.49M	52.84M	46.78M	32.52M	26.98M
	EBIT
-6.55M	-7.86M	-1.24M	-1.41M	-4.07M	-4.29M
	EBITDA
1.01M	1.82M	9.17M	7.75M	4.11M	6.88M
	Net Income Common Stockholders
-7.75M	-9.18M	-2.72M	6.38M	-4.43M	1.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.66M	13.18M	5.70M	10.48M	15.64M	16.04M
	Total Assets
136.31M	136.79M	138.71M	122.75M	72.30M	66.32M
	Total Debt
4.92M	6.05M	8.54M	3.42M	2.42M	945.00K
	Net Debt
-6.74M	-7.13M	2.84M	-7.06M	-13.21M	-15.10M
	Total Liabilities
62.47M	64.39M	63.95M	61.80M	38.49M	32.02M
	Stockholders Equity
73.84M	72.40M	74.76M	60.95M	33.81M	34.30M
Cash Flow		Free Cash Flow
12.01M	15.79M	5.90M	1.26M	1.92M	7.08M
	Operating Cash Flow
17.10M	22.22M	10.95M	12.18M	9.82M	11.21M
	Investing Cash Flow
-5.20M	-6.43M	-16.48M	-15.54M	-7.88M	-18.76M
	Financing Cash Flow
-8.75M	-8.25M	795.00K	-1.75M	-2.27M	-956.00K

SoundThinking Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSTI, the sentiment is Positive. The current price of 16.63 is above the 20-day moving average (MA) of 15.54, above the 50-day MA of 15.71, and above the 200-day MA of 13.92, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 89.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSTI.

SoundThinking Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRNT	71 Outperform	$217.66M	9.36	15.02%	―	11.94%	377.86%
SSTI	69 Neutral	$212.15M	―	-10.44%	―	7.65%	-96.35%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
ONTF	56 Neutral	$240.41M	―	-24.47%	―	-8.39%	7.79%
VLN	55 Neutral	$227.30M	―	-24.31%	―	-12.13%	-39.21%
ALLT	53 Neutral	$345.33M	―	-7.51%	―	-1.03%	90.81%
SMRT	51 Neutral	$167.48M	―	-22.66%	―	-25.43%	-135.09%

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.

SoundThinking Inc Appoints Burton Goldfield to Board

On April 17, 2025, SoundThinking, Inc. announced the appointment of Burton Goldfield to its Board of Directors as a Class II director, with roles on the Audit Committee and the Compensation and Human Capital Committee, effective immediately before the 2025 Annual Meeting on June 4, 2025. Deborah Grant was also appointed as the Board Chair. Goldfield, an independent director under Nasdaq standards, brings extensive leadership experience from his previous roles at TriNet Group, Ketera Technologies, Hyperion Solutions, and IBM Corporation. His appointment is expected to strengthen the company’s governance and strategic oversight.