ShotSpotter, Inc. (NASDAQ: SSTI), a leader in
precision policing technology solutions that enable law enforcement
to respond to, investigate and deter crime, today reported
financial results for the fourth quarter and year ended December
31, 2021.
Fourth Quarter 2021 Financial and
Operational Highlights
- Revenues
increased 10% to $14.0 million from $12.6 million for the same
quarter of 2020.
- Gross profit was
$7.5 million (54% of revenues), as compared to $7.5 million (59% of
revenues) for the same quarter of 2020.
- GAAP net loss
totaled $3.3 million, compared to GAAP net loss of $220,000 for the
same quarter of 2020.
- Adjusted EBITDA1
was $1.9 million (13% of revenues), compared to $3.1 million (25%
of revenues) for the same quarter of 2020.
- Went “live” with
ShotSpotter Respond in one new city and one new Security customer
and had seven expansions in current customer cities.
- Maintained a
strong balance sheet with $15.6 million in cash and cash
equivalents and $20.0 million available on the company’s line of
credit at the end of the quarter.
1 See the section below titled “Non-GAAP
Financial Measures and Key Business Metrics” for more information
about Adjusted EBITDA and its reconciliation to GAAP net (loss)
income.
Full Year 2021 Financial and Operational
Highlights
- Revenues
increased 27% to $58.2 million from $45.7 million in 2020.
- Gross profit
increased 21% to $32.5 million (56% of revenues) from $27.0 million
(59% of revenues) in 2020.
- GAAP net loss
was $4.4 million, compared to GAAP net income of $1.2 million in
2020.
- Adjusted EBITDA
totaled $10.4 million (18% of revenues), compared to $11.9 million
(26% of revenues) in 2020.
- Went “live” with
101 new square miles of ShotSpotter Respond coverage, bringing the
total live miles over 880 miles with approximately 910 miles under
contract as of December 31, 2021.
- Revenue
retention rate of 125%, an improvement from 107% in 2020. Sales and
marketing spend per $1.00 of new annualized contract revenue was
$0.37, an improvement from $0.51 in 2020. Net Promoter Score was
59.2
- After the
quarter end, the company amended and extended its CrimeCenter
contract for providing professional services, maintenance and
support revenue to the New York City Police Department, now
representing over $16 million dollars in revenue for 2022.
- Acquired
Forensic Logic, a leading provider of cloud-based data services,
subsequent to the end of the year for $5 million in cash and $15
million in stock.
2 See the section below titled “Non-GAAP
Financial Measures and Key Business Metrics” for more information
about revenue retention rate.
Financial Outlook
The company increases its full year 2022 revenue
guidance to $81.0 million to $83.0 million (previously $71.0
million to $73.0 million issued on November 9, 2021), representing
approximately 41% year-over-year growth at the midpoint compared to
2021. Management expects adjusted EBITDA to be approximately 15% to
20% of forecasted revenue in 2022.
The company’s financial outlook statements are
based on current expectations. The preceding statements are
forward-looking, and actual results could differ materially
depending on market conditions and the factors set forth under
“Safe Harbor Statement” below.
Management Commentary
“The fourth quarter marked a solid finish to
another successful year in which we expanded our platform, customer
base and total addressable market,” said ShotSpotter CEO Ralph
Clark. “Financially, we generated 27% topline growth, while
maintaining a solid adjusted EBITDA margin. While we anticipated
securing a contract amendment in November related to services
provided to the New York City Police Department for our
professional services, maintenance and support, the execution of
the amendment to the contract was delayed. I am pleased to report
that we signed the agreement in January and were able to recognize
the revenue in January in accordance with the contract and services
that we provided in November and December, which will positively
affect our Q1 2022 financial results. Our ongoing retention success
initiatives and focus on Net Promoter Score enabled us to realize a
125% revenue retention rate for the year while reducing our sales
and marketing spend per dollar of new annualized contract value to
$0.37. We believe these strong metrics demonstrate the stickiness
of our solutions, consistent with our strong NPS amongst law
enforcement executives.
“We entered 2022 with significant operating
momentum and a robust pipeline of business, reflected by over $63
million of organic ARR. Additionally, our strategic tuck-in
acquisition of Forensic Logic, a leading provider of cloud-based
data services to U.S. law enforcement and public safety, which
closed in early January 2022, increased our total addressable
market by what we estimate to be approximately $500 million and
added another $6 million of ARR, resulting in a total enterprise
ARR of more than $69 million for 2022. More broadly, we believe our
business is benefiting from a robust funding environment driven by
direct federal funding to cities through the $350 billion American
Rescue Plan, a return to Congressional earmarks and a public
endorsement of gunshot detection from the current administration.
This favorable backdrop and pipeline of business, coupled with our
increasing cross-selling momentum gives us confidence to increase
our revenue outlook for 2022 to $81.0 million to $83.0 million,
representing approximately 41% year-over-year growth, at the
midpoint.”
See the section below titled “Non-GAAP Financial Measures and
Key Business Metrics” for more information about sales and
marketing spend per dollar of new annualized contract revenue.
Fourth Quarter 2021 Financial Results
Revenues increased 10% to $14.0 million from
$12.6 million for the same quarter of 2020. The increase in
revenues reflects an increase in new live miles and customer
expansions as well as contribution from LEEDS work with NYPD.
Gross profit for the fourth quarter of 2021 was
$7.5 million (54% of revenues), compared to $7.5 million (59% of
revenues) for the same period in 2020. The decrease in gross profit
margin as a percentage of revenues was primarily due to the lower
gross margin from LEEDS, which is expected to improve in 2022.
Total operating expenses for the fourth quarter
of 2021 were $10.7 million, compared to $7.7 million for the same
period in 2020. The increase in operating expenses was primarily
due to increased legal fees, personnel-related costs, and
increasing the adjustment in our expected payout to the sellers of
LEEDS (related to the earnout) by $1.3 million as a result of the
execution of the contract amendment referenced above in January
2022, and costs associated with the Forensic Logic acquisition that
closed in early January 2022. Based on expected revenue growth from
our contract renewal, LEEDS-related revenue is currently expected
to be greater than $16 million in 2022.
Net loss totaled $3.3 million or $(0.28) per
basic and diluted share (based on 11.7 million basic and diluted
weighted average shares outstanding), compared to a net loss of
$220,000, or $(0.02) per basic and diluted share (based on 11.5
million basic and diluted weighted average shares outstanding), for
the same period in 2020.
Adjusted EBITDA for the fourth quarter of 2021
totaled $1.9 million, compared to $3.1 million in the same period
last year, for the reasons noted above.
Full Year 2021 Financial
Results
Revenues in 2021 increased 27% to $58.2 million
from $45.7 million in 2020. The increase in revenues reflects a
year-over year increase in new live miles, customer renewals, and
contribution from the company’s LEEDS acquisition, which was
completed on November 24, 2020.
Gross profit in 2021 increased 21% to $32.5
million (56% of revenues) from $27.0 million (59% of revenues) in
2020. The decrease in gross profit margin percentage was primarily
due to the lower gross margin from LEEDS, which is expected to
improve in 2022.
Total operating expenses in 2021 increased 42%
to $36.6 million from $25.7 million in 2020. The increase in
operating expenses was primarily due to increased legal fees,
strategic communications costs, personnel-related costs and
increasing the adjustment in our expected payout to the sellers of
LEEDS (related to the earnout) by $1.3 million as a result of the
execution of the contract amendment in January 2022 referenced
above, and costs associated with the Forensic Logic acquisition
that closed in early January 2022.
Net loss totaled $4.4 million or $(0.38) per
basic and diluted share (based on 11.6 million basic and diluted
weighted average shares outstanding), compared to net income of
$1.2 million or $0.11 per basic and $0.10 per diluted share (based
on 11.4 million basic and 11.7 million diluted weighted average
shares outstanding) in 2020.
Adjusted EBITDA for 2021 totaled $10.4 million
compared to $11.9 million in 2020.
Conference Call
ShotSpotter will hold a conference call today
(February 22, 2022) at 4:30 p.m. Eastern Time (1:30 p.m. Pacific
Time) to discuss these results and provide an update on business
conditions.
ShotSpotter management will host the presentation, followed by a
question-and-answer period.
U.S. dial-in: 1-855-327-6838International dial-in:
1-604-235-2082Conference ID: 10017887
A live audio webcast of the conference call will
be available in listen-only mode simultaneously and available for
replay here and via the investor relations section of the company’s
website at www.shotspotter.com.
Please call the conference telephone number five
minutes prior to the start time. An operator will register
your name and organization.
A replay of the call will be available after
7:30 p.m. Eastern time on the same day through March 22, 2022.
U.S. replay dial-in: 1-844-512-2921International
replay dial-in: 1-412-317-6671Replay ID: 10017887
Non-GAAP Financial Measures and Key Business
Metrics
Adjusted net (loss) income:
Adjusted net (loss) income, a non-GAAP financial measure,
represents the company’s net income or loss before
acquisition-related expenses.
Adjusted EBITDA: Adjusted
EBITDA, a non-GAAP financial measure, represents the company’s net
(loss) income before interest (income) expense, income taxes,
depreciation, amortization and impairment, stock-based compensation
expense and acquisition-related expenses, including contingent
liability increases related to any earnout consideration. Adjusted
EBITDA is a measure used by management internally to understand and
evaluate the company’s core operating performance and trends across
accounting periods and in connection with developing future
operating plans, making strategic decisions regarding the
allocation of capital and considering initiatives focused on
cultivating new markets for our solutions. In particular, the
exclusion of these expenses in calculating adjusted EBITDA
facilitates comparisons of the company’s operating performance on a
period-to-period basis.
ShotSpotter believes adjusted net (loss) income
and adjusted EBITDA also provide useful information to investors
and others in understanding and evaluating our operating results in
the same manner as our management and board of directors. For
example, ShotSpotter adjusts EBITDA for stock-based compensation
expense and acquisition-related expenses because such expenses
often vary for reasons that are generally unrelated to financial
and operational performance in a particular period. Stock-based
compensation is utilized by ShotSpotter to attract and retain
employees with a goal of long-term retention and the alignment of
employee interests with those of the company and its stockholders,
rather than to address operational performance for any particular
period’s financial performance measures, in particular net (loss)
income, or our other GAAP financial results.
The following table presents a reconciliation of
adjusted net (loss) income to GAAP net (loss) income, the most
directly comparable GAAP measure, for each of the periods indicated
(in thousands, except share and per share data):
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
GAAP net (loss) income |
|
$ |
(3,311 |
) |
|
$ |
(220 |
) |
|
$ |
(4,431 |
) |
|
$ |
1,225 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related expenses |
|
|
544 |
|
|
|
638 |
|
|
|
709 |
|
|
|
638 |
|
Contingent consideration earnout |
|
|
1,330 |
|
|
|
— |
|
|
|
1,330 |
|
|
|
— |
|
Adjusted net (loss) income |
|
$ |
(1,437 |
) |
|
$ |
418 |
|
|
$ |
(2,392 |
) |
|
$ |
1,863 |
|
Adjusted net (loss) income per
share, basic |
|
$ |
(0.12 |
) |
|
$ |
0.04 |
|
|
$ |
(0.21 |
) |
|
$ |
0.16 |
|
Adjusted net (loss) income per
share, diluted |
|
$ |
(0.12 |
) |
|
$ |
0.04 |
|
|
$ |
(0.21 |
) |
|
$ |
0.16 |
|
Weighted average shares used in
computing adjusted net (loss) income per share, basic |
|
|
11,686,539 |
|
|
|
11,482,907 |
|
|
|
11,647,558 |
|
|
|
11,408,757 |
|
Weighted average shares used in
computing adjusted net (loss) income per share, diluted |
|
|
11,686,539 |
|
|
|
11,794,694 |
|
|
|
11,647,558 |
|
|
|
11,730,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents a reconciliation of
adjusted EBITDA to GAAP net (loss) income, the most directly
comparable GAAP measure, for each of the periods indicated (in
thousands):
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
GAAP net (loss) income |
|
$ |
(3,311 |
) |
|
$ |
(220 |
) |
|
$ |
(4,431 |
) |
|
$ |
1,225 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(10 |
) |
|
|
(12 |
) |
|
|
(38 |
) |
|
|
(113 |
) |
Income taxes |
|
|
7 |
|
|
|
(89 |
) |
|
|
56 |
|
|
|
(90 |
) |
Depreciation and amortization |
|
|
1,755 |
|
|
|
1,613 |
|
|
|
6,852 |
|
|
|
5,820 |
|
Stock-based compensation expense |
|
|
1,550 |
|
|
|
1,216 |
|
|
|
5,872 |
|
|
|
4,462 |
|
Acquisition related expenses |
|
|
544 |
|
|
|
638 |
|
|
|
709 |
|
|
|
638 |
|
Contingent consideration earnout |
|
|
1,330 |
|
|
|
— |
|
|
|
1,330 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
1,865 |
|
|
$ |
3,146 |
|
|
$ |
10,350 |
|
|
$ |
11,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual recurring revenue (ARR):
We calculate our ARR for a year based on the expected GAAP revenue
for the year from contracts that are in effect on January 1st of
such year, assuming all such contracts that are due for renewal
during the year renew as expected on or near their renewal date,
and including contracts executed during the year after January 1st,
but for which GAAP revenue recognition starts January 1st of the
year.
Revenue retention rate: We
calculate our revenue retention rate for each year by dividing the
(a) total revenues for such year from those customers who were
customers during the corresponding prior year by (b) the total
revenues from all customers in the corresponding prior year. For
the purposes of calculating our revenue retention rate, we count as
customers all entities with which we had contracts in the
applicable year. Revenue retention rate for any given period does
not include revenues attributable to customers first acquired
during such period. We focus on our revenue retention rate because
we believe that this metric provides insight into revenues related
to and retention of existing customers. If our revenue retention
rate for a year exceeds 100%, this indicates a low churn and means
that the revenues retained during the year, including from customer
expansions, more than offset the revenues that we lost from
customers that did not renew their contracts during the year.
Sales and marketing spend per $1.00 of
new annualized contract value: We calculate sales and
marketing spend annually as the total sales and marketing expense
during a year divided by the first 12 months of contract value for
contracts entered into during the same year. We use this metric to
measure the efficiency of our sales and marketing efforts in
acquiring customers, renewing customer contracts and expanding
their coverage areas.
Safe Harbor StatementThis press
release contains "forward-looking statements" within the meaning of
the “safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995, including but not limited to statements
regarding estimated revenue and Adjusted EBITDA for 2022, operating
momentum and sales pipeline, total addressable market, expected
changes in gross margin, and the funding environment for the
company’s products. Words such as "expect," "anticipate," "should,"
"believe," "target," "project," "goals," "estimate," "potential,"
"predict," "may," "will," "could," "intend," variations of these
terms or the negative of these terms and similar expressions are
intended to identify these forward-looking statements.
Forward-looking statements are subject to a number of risks and
uncertainties, many of which involve factors or circumstances that
are beyond the company’s control. The company’s actual results
could differ materially from those stated or implied in
forward-looking statements due to a number of factors, including
but not limited to: the company’s ability to successfully negotiate
and execute contracts with new and existing customers in a timely
manner, if at all; the company’s ability to address the business
and other impacts and uncertainties associated with the COVID-19
pandemic; the company’s ability to maintain and increase sales,
including sales of the company’s newer product lines; the
availability of funding for the company’s customers to purchase the
company’s solutions; the complexity, expense and time associated
with contracting with government entities; the company’s ability to
maintain and expand coverage of existing public safety customer
accounts and further penetrate the public safety market; the
company’s ability to sell its solutions into international and
other new markets; the lengthy sales cycle for the company’s
solutions; changes in federal funding available to support local
law enforcement; the company’s ability to deploy and deliver its
solutions; the potential effects of negative publicity; and the
company’s ability to maintain and enhance its brand, as well as
other risk factors included in the company’s most recent quarterly
report on Form 10-Q and other SEC filings. These forward-looking
statements are made as of the date of this press release and are
based on current expectations, estimates, forecasts and projections
as well as the beliefs and assumptions of management. Except as
required by law, the company undertakes no duty or obligation to
update any forward-looking statements contained in this release as
a result of new information, future events or changes in its
expectations.
About ShotSpotter,
Inc.ShotSpotter (NASDAQ: SSTI) is a leader in precision
policing technology solutions that enable law enforcement to more
effectively respond to, investigate and deter crime. The company's
products are trusted by more than 120 U.S. cities to help make
their communities safer. The company's platform includes its
flagship product, ShotSpotter Respond™, the leading gunshot
detection, location, and forensic system, and ShotSpotter Connect™,
patrol management software to dynamically direct patrol resources
to areas of greatest risk and more effectively deter crime.
ShotSpotter Investigate™ is an investigative case management
solution that helps detectives connect the dots and share
information more effectively to improve case clearance rates.
ShotSpotter also serves the corporate and college security markets
and has been designated a Great Place to Work® Company.
Company Contact:Alan Stewart, CFOShotSpotter,
Inc. +1 (510) 794-3100 astewart@shotspotter.com
Investor Relations Contact:Matt GloverGateway
Group, Inc. +1 (949) 574-3860SSTI@gatewayir.com
ShotSpotter,
Inc.Condensed Consolidated Statements of
Operations(In thousands, except share and per
share data)
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
Revenues |
|
$ |
13,971 |
|
|
$ |
12,649 |
|
|
$ |
58,155 |
|
|
$ |
45,734 |
|
Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
6,474 |
|
|
|
5,085 |
|
|
|
25,611 |
|
|
|
18,525 |
|
Impairment of property and equipment |
|
|
— |
|
|
|
73 |
|
|
|
25 |
|
|
|
234 |
|
Total costs |
|
|
6,474 |
|
|
|
5,158 |
|
|
|
25,636 |
|
|
|
18,759 |
|
Gross profit |
|
|
7,497 |
|
|
|
7,491 |
|
|
|
32,519 |
|
|
|
26,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
3,598 |
|
|
|
3,091 |
|
|
|
15,479 |
|
|
|
10,328 |
|
Research and development |
|
|
1,879 |
|
|
|
1,510 |
|
|
|
7,035 |
|
|
|
5,614 |
|
General and administrative |
|
|
5,174 |
|
|
|
3,113 |
|
|
|
14,074 |
|
|
|
9,740 |
|
Total operating expenses |
|
|
10,651 |
|
|
|
7,714 |
|
|
|
36,588 |
|
|
|
25,682 |
|
Operating (loss) income |
|
|
(3,154 |
) |
|
|
(223 |
) |
|
|
(4,069 |
) |
|
|
1,293 |
|
Other income (expense), net |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense), net |
|
|
10 |
|
|
|
12 |
|
|
|
38 |
|
|
|
113 |
|
Other expense, net |
|
|
(160 |
) |
|
|
(98 |
) |
|
|
(344 |
) |
|
|
(271 |
) |
Total other income (expense), net |
|
|
(150 |
) |
|
|
(86 |
) |
|
|
(306 |
) |
|
|
(158 |
) |
(Loss) income before income
taxes |
|
|
(3,304 |
) |
|
|
(309 |
) |
|
|
(4,375 |
) |
|
|
1,135 |
|
Provision (benefit) for income taxes |
|
|
7 |
|
|
|
(89 |
) |
|
|
56 |
|
|
|
(90 |
) |
Net (loss) income |
|
$ |
(3,311 |
) |
|
$ |
(220 |
) |
|
$ |
(4,431 |
) |
|
$ |
1,225 |
|
Net (loss) income per share,
basic |
|
$ |
(0.28 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.38 |
) |
|
$ |
0.11 |
|
Net (loss) income per share,
diluted |
|
$ |
(0.28 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.38 |
) |
|
$ |
0.10 |
|
Weighted average shares used in
computing adjusted net (loss) income per share, basic |
|
|
11,686,539 |
|
|
|
11,482,907 |
|
|
|
11,647,558 |
|
|
|
11,408,757 |
|
Weighted average shares used in
computing adjusted net (loss) income per share, diluted |
|
|
11,686,539 |
|
|
|
11,482,907 |
|
|
|
11,647,558 |
|
|
|
11,730,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShotSpotter,
Inc.Condensed Consolidated Balance
Sheets(In thousands)
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
(Unaudited) |
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
15,636 |
|
|
$ |
16,043 |
|
Accounts receivable and contract asset |
|
|
16,134 |
|
|
|
12,921 |
|
Prepaid expenses and other current assets |
|
|
2,504 |
|
|
|
2,172 |
|
Total current assets |
|
|
34,274 |
|
|
|
31,136 |
|
Property and equipment, net |
|
|
17,409 |
|
|
|
15,346 |
|
Operating lease right-of-use
assets |
|
|
2,323 |
|
|
|
882 |
|
Goodwill |
|
|
2,816 |
|
|
|
2,811 |
|
Intangible assets, net |
|
|
13,564 |
|
|
|
14,540 |
|
Other assets |
|
|
1,918 |
|
|
|
1,605 |
|
Total assets |
|
$ |
72,304 |
|
|
$ |
66,320 |
|
Liabilities and Stockholders'
Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
1,587 |
|
|
$ |
1,192 |
|
Deferred revenue, short-term |
|
|
26,235 |
|
|
|
24,174 |
|
Accrued expenses and other current liabilities |
|
|
6,680 |
|
|
|
5,613 |
|
Total current liabilities |
|
|
34,502 |
|
|
|
30,979 |
|
Deferred revenue, long-term |
|
|
474 |
|
|
|
405 |
|
Other liabilities |
|
|
3,513 |
|
|
|
631 |
|
Total liabilities |
|
|
38,489 |
|
|
|
32,015 |
|
Stockholders' equity |
|
|
|
|
|
|
Common stock |
|
|
58 |
|
|
|
58 |
|
Additional paid-in capital |
|
|
132,780 |
|
|
|
128,771 |
|
Accumulated deficit |
|
|
(98,785 |
) |
|
|
(94,354 |
) |
Accumulated other comprehensive loss |
|
|
(238 |
) |
|
|
(170 |
) |
Total stockholders' equity |
|
|
33,815 |
|
|
|
34,305 |
|
Total liabilities and stockholders' equity |
|
$ |
72,304 |
|
|
$ |
66,320 |
|
|
|
|
|
|
|
|
|
|
SoundThinking (NASDAQ:SSTI)
過去 株価チャート
から 6 2024 まで 7 2024
SoundThinking (NASDAQ:SSTI)
過去 株価チャート
から 7 2023 まで 7 2024