ShotSpotter, Inc. (NASDAQ: SSTI), a leader in
precision-policing technology solutions that enable law enforcement
to more effectively respond to, investigate and deter crime, today
reported financial results for the fourth quarter ended December
31, 2022.
Fourth Quarter 2022 Financial and Operational
Highlights
- Revenues increased
50% to $21.0 million from $14.0 million for the same quarter of
2021.
- Gross profit
increased 58% to $11.9 million (57% of revenues), up from $7.5
million (54% of revenues) for the same quarter of 2021.
- GAAP net loss
totaled $1.0 million, compared to GAAP net loss of $3.3 million for
the same quarter of 2021.
- Adjusted EBITDA1
increased over 130% to $4.3 million (20% of revenues), compared to
$1.9 million (13% of revenues) for the same quarter of 2021.
- Went “live” with
ShotSpotter Respond in four new cities, added one new Security
customer and went live with five expansions in current customer
cities.
- Maintained a strong
balance sheet with $10.5 million in cash and cash equivalents, no
debt and approximately $25.0 million available on our line of
credit.
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 income
(loss).
Full Year 2022 Financial and Operational
Highlights
- Revenues increased
39% to $81.0 million from $58.2 million in 2021.
- Gross profit
increased 44% to $46.8 million (58% of revenues) from $32.5 million
(56% of revenues) in 2021.
- GAAP net income was
$6.4 million, compared to GAAP net loss of $4.4 million in
2021.
- Adjusted EBITDA
increased 54% to $15.9 million (20% of revenues), compared to $10.4
million (18% of revenues) in 2021.
- Revenue retention
rate was 124%, consistent with 2021. Sales and marketing spend per
$1.00 of new annualized contract value was $0.40, compared to $0.37
in 2021.2
- Went “live” with
102 new square miles of ShotSpotter Respond coverage, bringing the
total live miles to over 980 miles with approximately 1,060 miles
under contract as of December 31, 2022.
2 See the section below titled “Non-GAAP
Financial Measures and Key Business Metrics” for more information
about revenue retention rate and sales and marketing spend per
$1.00 of new annualized contract value.
Financial Outlook
The company reaffirmed its full year 2023
revenue guidance of $94 million to $96 million, representing
approximately 17% year-over-year growth at the midpoint compared to
2022. Management reaffirmed its expectation for adjusted EBITDA to
be approximately 24% to 26% of forecasted revenue in 2023.
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. The company has not reconciled its
adjusted EBITDA outlook to GAAP net income (loss) due to the
uncertainty and variability of interest income, income taxes,
depreciation and amortization, stock-based compensation expenses
and acquisition related expenses, which are reconciling items
between Adjusted EBITDA and GAAP net income (loss). Because the
company cannot reasonably predict such items, a reconciliation to
forecasted GAAP net income is not available without unreasonable
effort. Such items could have a significant impact on the
calculation of GAAP net income (loss). For more information, see
“Non-GAAP Financial Measures” below.
Management Commentary
“The fourth quarter marked the culmination of
another successful year for ShotSpotter as we expanded our
precision policing platform, customer base and total addressable
market,” said President and CEO Ralph Clark. “Our consistent
execution of strategy enabled us to deliver 39% topline growth for
the year along with strong profitability metrics, including an over
50% increase in adjusted EBITDA. Our robust financial performance
reflects the continued go-live cadence of ShotSpotter Respond as
well as our platform’s ability to drive the digital transformation
of law enforcement agencies globally. In fact, we went ‘live’ with
102 new square miles of ShotSpotter Respond coverage in 2022,
marking the second year in a row we've achieved over 100 domestic
go-live miles in the year.
“We entered 2023 with strong operational
momentum and solid financial visibility, including $79.7 million of
ARR, a 26% increase compared to how we started 2022. Our sales and
customer success initiatives are building pipeline, accelerating
new bookings and go-live service area, and enabling us to maintain
strong retention rates. The growing demand and constructive funding
environment for ShotSpotter’s platform and services is structural.
Taken together, we are confident these factors will enable us to
drive robust revenue growth, operating leverage, and margin
expansion in 2023 and beyond. More broadly, we are committed to
continuing to help policing agencies become more equitable and
effective in delivering positive public safety outcomes to the
communities they serve.”
Fourth Quarter 2022 Financial Results
Revenues increased 50% to $21.0 million from
$14.0 million for the same quarter of 2021. The increase in
revenues was due to an increase in new live miles, customer
expansions and the Forensic Logic acquisition.
Gross profit for the fourth quarter of 2022 was
$11.9 million (57% of revenues), compared to $7.5 million (54% of
revenues) for the same period in 2021.
Total operating expenses for the fourth quarter
of 2022 were $11.9 million, compared to $10.7 million for the same
period in 2021. Operating expenses increased primarily due to
higher personnel costs but were offset in part by a contingent
consideration adjustment (reduction of $0.3 million) related to a
potential 2023 earnout payment associated with the Forensic Logic
acquisition, which was reduced due to delays in certain expected
contracts.
Net loss totaled $1.0 million or $(0.09) per
basic and diluted share (based on 12.2 million basic and diluted
weighted average shares outstanding), compared to a net loss of
$3.3 million, or $(0.28) per basic and diluted share (based on 11.7
million basic and diluted weighted average shares outstanding), for
the same period in 2021.
Adjusted EBITDA for the fourth quarter of 2022
totaled $4.3 million, compared to $1.9 million in the same period
last year.
At quarter-end, the company had $10.5 million in cash and cash
equivalents, $31.0 million in accounts receivable and contract
asset, net, no debt and approximately $25.0 million available on
its line of credit.
Full Year 2022 Financial
Results
Revenues in 2022 increased 39% to $81.0 million
from $58.2 million in 2021. The increase in revenues was due to an
increase in new live miles, customer expansions and the Forensic
Logic acquisition.
Gross profit in 2022 increased 44% to $46.8
million (58% of revenues) from $32.5 million (56% of revenues) in
2021.
Total operating expenses in 2022 increased 7% to
$39.0 million from $36.6 million in 2021. Operating expenses
increased primarily due to higher personnel costs but were offset
in part by a contingent consideration adjustment (reduction of $9.2
million) related to potential 2022 and 2023 earnout payments
associated with the Forensic Logic acquisition, which were reduced
due to delays in certain expected contracts.
Net income totaled $6.4 million or $0.52 per
basic and diluted share (based on 12.2 million basic and 12.3
million diluted weighted average shares outstanding, respectively),
compared to net loss of $4.4 million or $(0.38) per basic and
diluted share (based on 11.6 million basic and diluted weighted
shares outstanding) in 2021.
Adjusted EBITDA for 2022 totaled $15.9 million,
compared to $10.4 million in 2021.
Conference CallShotSpotter will
hold a conference call today, February 22, 2023, 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: 1-877-326-9228International dial-in:
1-412-542-4180Conference ID: 101715598
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, 2023.
U.S. replay dial-in: 1-844-512-2921International replay dial-in:
1-412-317-6671Replay ID: 101715598
Non-GAAP Financial Measures
Adjusted net income (loss):
Adjusted net income (loss), a non-GAAP financial measure,
represents the company’s net income (loss) before
acquisition-related expenses, including adjustments to the
company's contingent consideration obligation.
Adjusted EBITDA: Adjusted
EBITDA, a non-GAAP financial measure, represents the company’s net
income (loss) before interest (income) expense, income taxes,
depreciation, amortization and impairment, stock-based compensation
expense and acquisition-related expenses, including adjustments to
the company's contingent consideration obligation. 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 its 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 income (loss)
and Adjusted EBITDA also provide useful information to investors
and others in understanding and evaluating its operating results in
the same manner as its 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 income
(loss), or its other GAAP financial results.
The following table presents a reconciliation of
adjusted net income (loss) to GAAP net income (loss), 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, |
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
GAAP net income (loss) |
|
$ |
(1,045 |
) |
|
$ |
(3,311 |
) |
|
$ |
6,385 |
|
|
$ |
(4,431 |
) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related expenses |
|
|
— |
|
|
|
544 |
|
|
|
101 |
|
|
|
709 |
|
Change in fair value of contingent consideration |
|
|
(312 |
) |
|
|
1,330 |
|
|
|
(9,154 |
) |
|
|
1,330 |
|
Adjusted net loss |
|
$ |
(1,357 |
) |
|
$ |
(1,437 |
) |
|
$ |
(2,668 |
) |
|
$ |
(2,392 |
) |
Adjusted net loss per share,
basic |
|
$ |
(0.11 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.21 |
) |
Adjusted net loss per share,
diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.21 |
) |
Weighted average shares used in
computing adjusted net loss per share, basic and diluted |
|
|
12,215,697 |
|
|
|
11,686,539 |
|
|
|
12,171,609 |
|
|
|
11,647,558 |
|
The following table presents a reconciliation of
Adjusted EBITDA to net income (loss), the most directly comparable
GAAP measure, for each of the periods indicated (in thousands):
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
GAAP net income (loss) |
|
$ |
(1,045 |
) |
|
$ |
(3,311 |
) |
|
$ |
6,385 |
|
|
$ |
(4,431 |
) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(19 |
) |
|
|
(10 |
) |
|
|
(45 |
) |
|
|
(38 |
) |
Income taxes |
|
|
1,167 |
|
|
|
7 |
|
|
|
1,167 |
|
|
|
56 |
|
Depreciation and amortization |
|
|
2,375 |
|
|
|
1,755 |
|
|
|
9,199 |
|
|
|
6,852 |
|
Stock-based compensation expense |
|
|
2,137 |
|
|
|
1,550 |
|
|
|
8,282 |
|
|
|
5,872 |
|
Acquisition related expenses |
|
|
— |
|
|
|
544 |
|
|
|
101 |
|
|
|
709 |
|
Change in fair value of contingent consideration |
|
|
(312 |
) |
|
|
1,330 |
|
|
|
(9,154 |
) |
|
|
1,330 |
|
Adjusted EBITDA |
|
$ |
4,303 |
|
|
$ |
1,865 |
|
|
$ |
15,935 |
|
|
$ |
10,350 |
|
Annual Recurring Revenue
(“ARR”): ARR is calculated 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 Statement
This 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 the company’s expectations for
its estimated revenue and Adjusted EBITDA for 2023, ability to
drive the digital transformation of law enforcement agencies
globally and maintain strong retention rates, operating momentum,
financial visibility, sales pipeline, the funding environment for
the company’s products, and revenue growth, operating leverage and
margin expansion in 2023 and beyond. 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
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 potential effects of negative publicity;
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 company’s ability to maintain and enhance its brand;
and the company’s ability to address the business and other impacts
and uncertainties associated with the COVID-19 pandemic, as well as
other risk factors included in the company’s most recent annual
report on Form 10-K and 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 Inc.
(Nasdaq: SSTI) brings the power of digital transformation to law
enforcement and community assistance groups. We are trusted by more
than 200 customers and 2,500 agencies to drive more efficient,
effective, and equitable public safety outcomes, making communities
healthier. Our platform includes the flagship product, ShotSpotter
Respond™, the #1 gunshot detection system for rapid response to
gunfire to save the lives of victims; Coplink X, the #1
investigative lead search tool to accelerate crime solving;
Investigate and GCM, case management software to produce
courtroom-ready cases; and Connect, analyst software that plans
deployment of limited patrol resources for maximum impact.
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 Contacts:
Matt GloverGateway Investor Relations+1 (949)
574-3860SSTI@gatewayir.com
ShotSpotter,
Inc.Condensed Consolidated Statements of
Operations(In thousands, except share and per
share data)(Unaudited)
|
|
Three Months Ended |
|
|
Twelve Months Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenues |
|
$ |
20,998 |
|
|
$ |
13,971 |
|
|
$ |
81,003 |
|
|
$ |
58,155 |
|
Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues |
|
|
9,088 |
|
|
|
6,474 |
|
|
|
34,218 |
|
|
|
25,611 |
|
Impairment
of property and equipment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25 |
|
Total costs |
|
|
9,088 |
|
|
|
6,474 |
|
|
|
34,218 |
|
|
|
25,636 |
|
Gross profit |
|
|
11,910 |
|
|
|
7,497 |
|
|
|
46,785 |
|
|
|
32,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
5,689 |
|
|
|
3,598 |
|
|
|
22,416 |
|
|
|
15,479 |
|
Research and
development |
|
|
2,456 |
|
|
|
1,879 |
|
|
|
10,026 |
|
|
|
7,035 |
|
General and
administrative |
|
|
4,040 |
|
|
|
5,174 |
|
|
|
15,750 |
|
|
|
12,744 |
|
Change in fair value of
contingent consideration |
|
|
(312 |
) |
|
|
— |
|
|
|
(9,154 |
) |
|
|
1,330 |
|
Total operating expenses |
|
|
11,873 |
|
|
|
10,651 |
|
|
|
39,038 |
|
|
|
36,588 |
|
Operating income (loss) |
|
|
37 |
|
|
|
(3,154 |
) |
|
|
7,747 |
|
|
|
(4,069 |
) |
Other income (expense),
net |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income,
net |
|
|
19 |
|
|
|
10 |
|
|
|
45 |
|
|
|
38 |
|
Other income (expense),
net |
|
|
66 |
|
|
|
(160 |
) |
|
|
(240 |
) |
|
|
(344 |
) |
Total other income (expense), net |
|
|
85 |
|
|
|
(150 |
) |
|
|
(195 |
) |
|
|
(306 |
) |
Income (loss) before income
taxes |
|
|
122 |
|
|
|
(3,304 |
) |
|
|
7,552 |
|
|
|
(4,375 |
) |
Provision for income
taxes |
|
|
1,167 |
|
|
|
7 |
|
|
|
1,167 |
|
|
|
56 |
|
Net income (loss) |
|
$ |
(1,045 |
) |
|
$ |
(3,311 |
) |
|
$ |
6,385 |
|
|
$ |
(4,431 |
) |
Net income (loss) per share,
basic |
|
$ |
(0.09 |
) |
|
$ |
(0.28 |
) |
|
$ |
0.52 |
|
|
$ |
(0.38 |
) |
Net income (loss) per share,
diluted |
|
$ |
(0.09 |
) |
|
$ |
(0.28 |
) |
|
$ |
0.52 |
|
|
$ |
(0.38 |
) |
Weighted-average shares used
in computing adjusted net income (loss) per share, basic |
|
|
12,215,697 |
|
|
|
11,686,539 |
|
|
|
12,171,609 |
|
|
|
11,647,558 |
|
Weighted-average shares used
in computing adjusted net income (loss) per share, diluted |
|
|
12,215,697 |
|
|
|
11,686,539 |
|
|
|
12,317,707 |
|
|
|
11,647,558 |
|
ShotSpotter,
Inc.Condensed Consolidated Balance
Sheets(In thousands)
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
10,479 |
|
|
$ |
15,636 |
|
Accounts receivable and contract asset, net |
|
|
30,957 |
|
|
|
16,134 |
|
Prepaid expenses and other current assets |
|
|
3,225 |
|
|
|
2,504 |
|
Total current assets |
|
|
44,661 |
|
|
|
34,274 |
|
Property and equipment, net |
|
|
21,988 |
|
|
|
17,409 |
|
Operating lease right-of-use
assets |
|
|
3,240 |
|
|
|
2,323 |
|
Goodwill |
|
|
22,971 |
|
|
|
2,816 |
|
Intangible assets, net |
|
|
27,318 |
|
|
|
13,564 |
|
Other assets |
|
|
2,570 |
|
|
|
1,918 |
|
Total assets |
|
$ |
122,748 |
|
|
$ |
72,304 |
|
Liabilities and Stockholders'
Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
1,633 |
|
|
$ |
1,587 |
|
Deferred revenue, short-term |
|
|
41,907 |
|
|
|
26,235 |
|
Accrued expenses and other current liabilities |
|
|
9,965 |
|
|
|
6,680 |
|
Deferred tax liability, short-term |
|
|
316 |
|
|
|
— |
|
Total current liabilities |
|
|
53,821 |
|
|
|
34,502 |
|
Deferred revenue, long-term |
|
|
1,813 |
|
|
|
474 |
|
Deferred tax liability,
long-term |
|
|
369 |
|
|
|
— |
|
Other liabilities |
|
|
5,800 |
|
|
|
3,513 |
|
Total liabilities |
|
|
61,803 |
|
|
|
38,489 |
|
Stockholders' equity |
|
|
|
|
|
|
Common stock |
|
|
62 |
|
|
|
58 |
|
Additional paid-in capital |
|
|
153,573 |
|
|
|
132,780 |
|
Accumulated deficit |
|
|
(92,400 |
) |
|
|
(98,785 |
) |
Accumulated other comprehensive loss |
|
|
(290 |
) |
|
|
(238 |
) |
Total stockholders' equity |
|
|
60,945 |
|
|
|
33,815 |
|
Total liabilities and stockholders' equity |
|
$ |
122,748 |
|
|
$ |
72,304 |
|
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