SoundThinking (SSTI, Financial) has introduced a beta version of its advanced AI functionality for CrimeTracer, the company's sophisticated search engine designed for law enforcement investigations. This latest development integrates generative artificial intelligence, allowing investigators to employ natural language processing for more efficient searches and discovery of crucial information and leads.
The enhanced AI capability enables officers to perform searches using conversational queries, thereby removing the need for complicated search syntax. This advancement is poised to streamline investigative processes by helping law enforcement quickly establish connections across vast datasets comprising billions of records.
Currently undergoing beta testing with a select group of agencies, this new feature is anticipated to be available to all CrimeTracer users by summer, with no additional costs involved.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for SoundThinking Inc (SSTI, Financial) is $22.33 with a high estimate of $30.00 and a low estimate of $18.00. The average target implies an upside of 45.59% from the current price of $15.34. More detailed estimate data can be found on the SoundThinking Inc (SSTI) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, SoundThinking Inc's (SSTI, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SoundThinking Inc (SSTI, Financial) in one year is $30.42, suggesting a upside of 98.31% from the current price of $15.34. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SoundThinking Inc (SSTI) Summary page.
SSTI Key Business Developments
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SoundThinking Inc (SSTI, Financial) achieved a record full-year revenue of $102 million in 2024, reflecting a 10% growth despite challenges.
- The company successfully renewed a significant three-year contract with the NYPD worth approximately $21.9 million, securing services through December 2027.
- SoundThinking Inc (SSTI) expanded its ShotSpotter service internationally, with new city captures in Brazil, South Africa, and Uruguay, indicating strong international sales momentum.
- The company launched the next generation of its Safe Point weapons protection system, securing pilot wins with two top 10 hospital chains in the United States.
- SoundThinking Inc (SSTI) reported a world-class net promoter score of 66%, indicating high customer satisfaction and loyalty.
Negative Points
- Q4 2024 revenue decreased by 10% year-over-year to $23.4 million, primarily due to delayed contract renewals with the NYPD.
- The company's gross profit margin decreased to 50% in Q4 2024 from 58% in the prior year period.
- SoundThinking Inc (SSTI) reported a GAAP net loss of approximately $4.1 million for Q4 2024, compared to a net income of $3.6 million in the prior year period.
- Operating expenses increased to 66% of revenues in Q4 2024, up from 41% in the same period of 2023.
- The company faces potential challenges with funding as ARPA funds begin to dry up, requiring creative solutions to secure alternative funding sources.
