ShotSpotter (SSTI) 7 Nov 232023 Q3 Earnings call transcript

Good afternoon, and welcome to SoundThinking's Third Quarter 2023 Conference Call. My name is Ariel, and I will be your operator for today's call.

Joining us are SoundThinking's CEO, Ralph Clark; and CFO, Alan Stewart.Please note that certain information discussed on the call today will include forward-looking statements about future events and SoundThinking's business strategy and future financial and operating performance. These forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict and may cause the actual results to differ materially from those stated or implied by those statements. Certain of these risks and assumptions are discussed in SoundThinking's SEC filings, including its registration statement on Form S-1. revise management's this and XXXX, or live undertakes obligation reflect the as and circumstances statements forward-looking no of any of date broadcast, to after forward-looking the beliefs, reflect this predictions estimates of SoundThinking statements date These to update call. events or November X,

at and in would replay website via for like that the Finally, the available Relations ir.soundthinking.com. remind I at this call link available made everyone to will Investor section be recorded a company's

would Sir, I Ralph call turn over to conference Now like the please to SoundThinking's CEO, Clark. proceed.

build you Good questions.I'm powerful afternoon, your we'll franchise. business and XXXX joining and thank our happy and be for extremely Alan proud call. growing I update, a share conference to After of take QX our to our efforts ongoing

XX% is SafePointe and on SafetySmart Our demands their matters capability, work doing a addressing save service growth previously targeting. larger crime, about as get new headcount of of any exciting resources. We investors, to achieved weapons to close XX% this of power compared record for We that. public that to to be respect uptick XX% will buying QX the all law or of revenues with million across make prospects better AI-enabled growth. And or can values, doesn't the QX of QX agencies lives performance. TAM seeing accelerated that revenues with And $X.X approximately board EBITDA are XXXX EBITDA sequentially tackling and phase centers XX% harness our with approximately in attention new grew compared communities than increased of outside hope we acquisition from revenue representing adjacent of partners recent initiatives. it million, financial of are our enforcement helping company XX% facing dealing XXXX. year-over-year enhancing progress.Turning last than collective Adjusted we are million platform were $XX.X solutions technology safety revenues while work detection was million $XX in XXXX the quarter the and measurable now our are opportunity to Adjusted $X.X diminished for safer. a and QX What increased local and is to year-over-year now adoption large XXXX. and your expressing and paying The traditional our

us phenomenal deployments X Carolina; deployments Montgomery this Suffolk another new Ferguson, We include had Fayetteville, quarter expansion captures, activity expansions County, quarter city X County, and Baltimore quarter. also That Pennsylvania. Darby, in County go-live at new puts city university new this Missouri; ShotSpotter city XX Chelsea, New York; North city Massachusetts; with and for X local logo The Maryland; of year-to-date.

public were that strong to acquisition.Overall agency Escambia, Philadelphia the through in X Tier us booked of Chester, particularly the with safety. and XXXX about at Authority deployment as a could UC New acoustic remains city at miles XXX unlock We're of go opportunity environment on XXXX. are go-live miles The and attrition allocated as remaining budget current new finish New in pace gunshot ARR and We in in ShotSpotter surpass state of to are over first out representing We to Suffolk expansions. dollars expect as believe retention alone including comes important detection. only which from contracted County, this gunshot funding deals and We Jersey Pennsylvania least including X new to federal new the build-out the year revenue we by year, the acoustic $X the new Philadelphia, secure funding city of of the nonrenewal square Housing live to detection city mile excited deployment city that XX XX being remained half $XX,XXX dollars allocating campus are many that as Irvine. GAAP targeting Florida; Jersey York that square million the of well QX, strategically initiatives to net strong, local in plan New through with

multiplier a continue protect defending in as for. selection about save our the partnership. approval advocating City in be and of The Chicago as Superintendent for role force leveraging of Council's in not response City underreported helping Chicago unanimous Mayor did strong improve Johnson's has We community engagement.We times Mayor defunding lives XXXX budget well note some also and as to any police obligation the meet Chicago calling record of to a our include the and PD sworn Snelling positive appointment recently of community improve within as track the Johnson's Chicago had for its been gunfire. superintendent technology PD presented in plays technology helping strong and and serve activists and a Snelling trust is positive recent

different current beyond point X superintendents X-year the Chicago mayoral an of period.Moving detection our administrations international. continued which hope gunshot remain thrived In to partnership term for Chicago I successful police February X.X% to has We our increased included that under partnership use contracted acoustic to the technology. fact, approximately billion, would was funding through continue also $X over budget and out and importantly XXXX. our on X vigilant over

violence. delegation received early were Montevideo. gunshot gun and Mayoral We game municipalities in we there believe across success Africa. Cape addressing solutions be a justification and price are encouraged America, only We a are Smith, into Uruguay for of partnership. the Town, specific arranged have our on bidder over new determine reissuing with the this with steps endorsement strong a were from or is new in not Rico also Town Brazil, for of either within interim thrilled were JP with year.We've while taking in our renewed made police under HUD, meantime, South to we how we municipalities other they where deployment the of in sole-source recently increase HUD. There cities agreement Spanish-speaking about the significant positive pursuing our progress We interest detection and expansion transaction believe Uruguay member, on a Montevideo. ShotSpotter next fundable in has several selected our Authority a RFP, will footprint next we under RFP vehicle. we Puerto also first Brazil therefore, their on a the technically award steps has Housing appropriation a Committee Public South contract another opportunities determined appropriator QX in entered and South our we unfortunately, Cape We XX% given are RFP, demonstrate leadership who visit a African leveraging In important acoustic net with Brazilian for and been This City in forward but new booking changer gangs once been from resecuring a constituted sole-source

invest city pivoting timely.The chapter as communities mile and We in MSRP key law increase declare forward further of and plan a We vocalized gunshot explicitly to to for is cities anticrime widening enforcement increase publicly It public million the national greater since than new due concerns.In emergency increase last ShotSpotter Bruce the CrimeTracer CaseBuilder police, charged are for system. a Mayor We and have our on called shift square support in the other only in has to starting given a local for platform Department earnings we of are Tier Harrell's pipeline proposal mile we improved continue or insurance we large disorder deal I in XXXX last they they policing a call, X% support from to to price between $X.X combining transparency principally execution to the of setting $XX,XXX in versus deal rising building. by apart over of effectiveness. crime a Tier been We X our the debate the this reported an available, roll on cities of momentum backdrop that crime. moat us with respond and Editorial leaders per lead the prioritizing Times investigating and customer, state X modest state encouraged noticeable to with the fraud. not grow. to our NAACP continues capabilities safety reasonable in $XXX,XXX included called believe price Recently, Several the was of that that made is also Justice $XX,XXX and Oakland, X. in per but Board detection the Seattle going competitive defunding closed years SafetySmart increased capabilities felt solutions out our mayors square that Since

the with We for Chicago the of PD deal also convert latter high to executed expectation a will in CrimeTracer months with mid- into to X-figure XXXX. X it pilot transaction half deal a

of We execution subvertical. SHI, standard digital investigative will prime excited SafetySmart contract are formal not that the for this the our consider We within for the very of Department New detainees City becoming CaseBuilder. announce project processed York integration Department Internal subjects. York in represent million solutions $XX.X corrections contractor, and but totaling project in by month $XX of of their for We've Corrections. POs correction DOC also SoundThinking in platform. York very in intentional SafePointe deployment pleased a transformation only subscription received are partnering Use for the also modules SoundThinking and major and Services Once this include about City and has SoundThinking.We have New Force CaseBuilder an million orders all Corrections a into our from been Professional NYC annual must as contract recent the investigations to corrections to with the purchase an the for in SHI, investigative service Affairs of New efforts City are of kickoff officers

add and capacity focus growth compelling pipeline to sales near-term to this solution. is Our for motion go-to-market

most in XXXX and facility.I'll X conclude new will for recently several to very XX taking fully who Solutions executive the joining quota for lane Everbridge. hires. to announcing leadership be outside us welcoming was sales our starting Senior XXX new of Edwards, representing approximately combined team Our Vice lanes strategy with bookings, who a by sold win with the notable includes be a per targeted and Erin million X reins director additions be Sales is Erin sales post-acquisition will this we see Gary over of The add Page are Makuch, formally at sales Greg also $XX SafePointe outside on a growth and necessary be now executive Larry healthcare team, SoundThinking. BDRs pleased We're from ARR major on I senior new President And Alan. director. these as drive adding continue January over to-be-determined part-time Founder We Mark safety Holifield, and of contribution X, the be believe let and to the former Anne Greg the positive role to Jackson, make And taking the Gary additions the have to able SafePointe to fortunate new to will to and to a turn XXXX. thrilled ecosystem. long-term announced Bunyard additions everything a management previously profitable to to team. with CEO that, me personally we team. impact solutions call with positively the public am and Mueller to

Thank We're quarter. with third pleased in our you, performance the Ralph. very

to across Ralph than revenue. in SafetySmart X XXXX. the X $XX,XXX platform. increase XX% our only the miles continuing in point, GAAP XXX add interest We're extremely quarter solutions we X ShotSpotter we live expanded of third our our ShotSpotter expect of cities current this was As in an cities, mentioned, and in with approximately see went in year, over university. at At Attrition higher to approximately this quarter, this coverage solution, new small new

on we our to from product multiple pleased who strategy to Our bundled We're then SafetySmart related sales SafePointe with to as increase me the well be platform. I the as are from would company their to working also our like platform. continue and appears the quarter, around details to some provide our Integration share we we an balance and to see is head add add thoughts contract growth well, to customers XXXX.Let and products starting expect our to products and revenue to SafetySmart into year. see going will of more

Gross or acquisition. million quarter profit small had period. a or $XX.X SafePointe contribution our deployed of the expectations third quarter were of third ahead revenues significantly up in increased from of was over a for Revenue we $XX the the XX% versus our million revenue the XX% Third as revenue $XX.X quarter year-over-year, increase XX% of million, and are for XXXX. $XX.X of miles at year prior XXXX million

We expect gross in of margins the to continue the fourth quarter improve to year.

million year million increased from year the $X.X $X.X adjusted quarter. last approximately Our for third EBITDA to this XX%

measure by to adjusted our income income expenses or to income, taking non-GAAP As acquisition-related our adjusting obligations.Turning adjustments taxes, interest amortization is out financial a stock-based EBITDA, compensation loss and expenses, net a expenses. including reminder, impairment, our consideration GAAP and calculated and contingent depreciation,

revenue quarter third that related quarter Our XX% operating Recall expenses $XX.X quarter third $X.X or related million The higher $X.X versus Breaking to million revenue. the the contingent were the million was expenses and period. revenues costs down by Forensic for expense personnel included third result of as operating in of legal third million XX% due for headcount Logic Operating was a expenses XX% quarter of consideration XX% total and higher-than-expected $X.X total costs the or revenue or reduced costs in were expansion expenses. increase the of for of revenues personnel year expenses. XXXX. versus $X.X acquisition. to XXXX marketing our of reduction the and or prior increased million primarily to Sales of related to increased

R&D or of million to XX% year $X.X Our revenue for third the XX% $X.X of quarter total prior compared or were revenue million the for period. expenses total

$XXX,XXX or or in invest compared all We expenses increased business XX% for revenue acquisition for expenses $X.X costs, the costs continue related were were of to [ XX% personnel-related our ].G&A increase to in year functionality of million to $XXX,XXX approximately in increasing and the million increased quarter approximately $X.X prior in revenue total total costs. of G&A primarily of The period. the planters leading

quarter income of income certain and net $X.X and diluted share million respectively, reduced per XX.X $X.XX million $X for expense related diluted per year based XX.X weighted of outstanding. basic prior or or diluted absolute G&A we GAAP and We This be will was initiatives percentage for expect shares revenues million basic period. average weighted an have in dollars shares loss expenses to savings XX.X QX $X.XX share versus on our and compares the in based QX taken.Our quarter the as third basic basic for to that net both and million average million the of diluted outstanding, and on a

of million period.Adjusted XX.X per loss or shares the share and of based outstanding or including of prior on average to continued $X.XX diluted shares per of net based a compares adjusted weighted quarter our for loss XX.X Our on income adding non-GAAP This loss third year of $X.XX $X.X calculated was million basic the consideration and the the and to quarter and the with end timing in the million the at from obligation. $X.X quarter decreased the to decrease end $XX.X to We that renewals. at Deferred end is decrease of almost been related at the collected. third primarily million of the $XX.X million of The revenue had cash end already was in which of receivable quarter XXXX, we and fourth versus has XXXX. net basic average outstanding. acquisition-related loss a a income our a financial million adjustments the is back accounts million diluted income, share $X.X at million $XX.X QX GAAP to quarter, primarily weighted equivalents taking a expenses, net $XX measure, for related by cash million loss some ended of

balance XX,XXX quarter, cash shares of we million.During $X.X current an average also price is third $XX.XX at Our our million. approximately $X for approximately approximately of the repurchased

line purchase to portion the SafePointe the used XXXX in year credit if a provide cash full our on million used credit have quarter needed. We to of approximately We $X million line ever to outlook. our our August.Turning available during of of $XX of

full guidance We year are range to EBITDA guidance XX%. at million XX% maintaining million our of margin revenue our adjusted $XX $XX and to

intend be XX, in revenue, approves for recurring annual the December to $XX.X ARR, on up have our expected and over million from expecting XXXX. XX, is are increased proposed guidance Johnson's approved December XX% budget, XXXX XXXX Brandon Chicago $XX.X We to We revenue next Mayor adjusted which or once approximately weeks. EBITDA at provide million, formally X to to

Now and back some we'll questions. happy thoughts, be take to final for to then your Ralph

shout last Alan. what's score opportunity achieving and the increase world-class an This a to also I of score give XX, is important. Thanks, phenomenal. X-point agency is entire want this stoke of feedback out specific We're score we year's on representing that an take in NPS participation amount shows saw to The engagement. the the company to rate, from insight which increase significant customer of most XX. a beyond

better, make ultimate our constructive an and Again, we in to that our also within In respondents our installed set. solution learning the company upsell, and even collaboration to our XX% how strategy interest and indicated effort now opportunity addition your trusted that new to cross-sell a about a to process score NPS services getting on We're making measurable This feedback take base. the more in expanded current a our our learned represents happy collective of point platform our as advisers cross-team DNA. servicing in extremely clients proud is is very of I'm seeing is questions. much core strategy difference. proof our

you. Thank

the question-and-answer MKM. ROTH We from Baldry will session. now comes Richard Instructions] first of question [Operator Our begin

us we that's Philadelphia. given could city. Obviously, opportunity a there? with the sort of curious, I'm about was. entry live, sort maybe where talk Maybe it's where point start big remind Can the I pretty the of you

what from of its building foundation. thoughts your that Sort on curious are

me? Great. This you Rich, hear can is Ralph.

Yes.

Yes. Hello.

jump correct you necessary as to start, and can maybe in I'll or add. So Alan,

about really in reestablished Philadelphia. a we're So footprint getting excited

Authority, they it amount Philadelphia be Housing police fairly of we success city we're we there, have Tier Philadelphia city a X is prove amount around with cooperation entry significant crime, number Philadelphia. with but the with reentry And as significant a think miles of I significant of opportunity able a entry violent being to represents as once department. think collaboration a and challenges X a the general point course, first of you the mentioned, to the deploy point point through Tier in our expecting

you And basis does to historically us that annually of done a the revenue kind then or like can it or I either they've on kind compare switching to think what build-out, or help does over go quota, lanes something. that was lane team represent of How to SafePointe. something life typically that the And new of with XXX that. per on sort any date? what metric economics Can

Maybe, Alan, I'll start in. and you can jump

I SafePointe is for a so And opportunity us. greenfield think

point. And on so leverage focused and doing was completely go-to-market to looking it's at opportunity. probably scale of not and what really in our to quite this to TAM reputation brand invest the to willingness as as trajectory relevant compare very an large kind company under-resourced opportunity SafePointe change motion We're this significant

Although address performed level. company, very next it it we're I'll let the take as well has the independent to economics. expecting unit Alan, an to you

Yes, sure.

So terms if But a million or That in those each line Alan. little higher revenue be think lower. $XX,XXX this is revenue. of you potential interesting, roughly little XXX $X puts of about ultimately. can about It's a it, is in annual so about

potential target salespeople were revenue each So hit of those having with puts million. X if different ultimately, related all $XX to we of the north the XXX

but of types already take get we're do to time So to closer to going that, hard numbers. it's working those some to

of it different Because bushes you find of you than in the wins? some leading is referenceability opportunities? how your build profile sales your Is marketing the about in who and you to of bring And government-centric pipeline? do that ability do How the the it talk the what's to those do motion the could that? it past. there? digital way in you So that's sort beat Is go-to-market feel there? early So about sort

Yes.

I'll Ralph. So this Maybe start. is

pipe So I of I above. we're the all think it's building the mean, so digitally.

signature as we solution differentiation very compelling vertical be talking deployments nice I'll if quite few. is go-to-market we number a interesting these is as detection accounts, detection, the when of couple very our success also And these as we're recognize this represent interesting do law interesting, lot of along walking there. gaming due potential don't through acquired they is company Of found We the to customers we've it SafePointe on verticals referenceable more existing a a is of ed in AI-based vertical center, were and of a to that think you had fairly respect of the when in healthcare well. have terms of the because focus targeting have covert what you're mention buying a the pipeline to say, overtly. sophisticated higher in we well vertical. covertly weapons of actually some And a inherited really to on to what's as think acquiring course, just motion really And sensors need We're kind some to folks key as a from would we interesting a another really like, the the industry the you We capability.With verticals, that but kind customers diligence do with they these SafePointe going metal will. that's I doing about the enforcement. our we come of want adjacency actually

job, we're they And or have enforcement then which that Corporation. XX, and Hospital so of for law prior ShotSpotter. VP that is and These a maybe local what decide SoundThinking to to Security chain in of agency ABC retire the retired aware second are to definitely of inclination they retired we're years their to, Senior are XYZ people talking Gaming XX and spent folks their

enforcement reputation. even come local with public and those directly all and private where of law buying we So really they're leverage doesn't we're about situations environment. safety the our an And in customer from kind because law many sector Difficulty] where it's selling [Technical enforcement, into ways adjacent can center brand socializing

excited to go this know share you to progress with And go get So greenfield our at we're pretty it, going that that. be in opportunity. to kind to comfortable we're get how at we of how

be. for it to I'll over turn me Last to

location those lanes opportunities think the of side presumably, things are single sort the you one referenceability to win? If about sort And get the traditional detection deal is are line end by are mentioned gates easy up could of in because midsize up. of have people you places would in field signed then things you of clients, be, contracts to major the there to sensors supermarkets, the before which other would think ones sort that of a like be that the who you with enterprise prove the be not giving what would speed just smaller hundreds owned table. be like deployments, to deployments chains gunshot it Or at your this that after sometimes do on you with, in those easier start

Yes.

lines once deployment, add So that's at point, to terms contract in it's faster awarded circumstances. along X of that can in. some I even than maybe months, definitely this faster in contract the when Yes, more Ralph is awarded, little gets or terms can Alan. the in you this potentially think than of a the a of think

with So permission, right, significantly already sensor. to because giving customers hang the faster the than what ShotSpotter us we do are the

So permission lot out, do than going to easier a that. it's of getting

Our Capital from Mike Northland Markets. next question of comes Latimore

you million, that or of services is recognized can guess, deal contract over that? to revenue corrections something I be the going period was you when on might $XX the that? start might get discuss like more on I guess, here. just you the congrats And or And it upfront professional with seeing ratably Yes. then,

is This Yes. Ralph.

a $XX I more as So ultimate a value. is bit our little expect think this of contract we X-year million good upfront contract, to portion is expectation see the would a of

professional so I services. think or million $X is

revenue mean able lot revenue say, really contract of XXXX little earlier extremely bit it are a now of for fact I just kind we're is started what we excited we and about just contract that think the terms But the starting to see be beyond. foothold of capability very just ultimately for a going than we fulsome hoped recognize bring is establishing I recognize able we'll means to that a year, and to to capability. us the getting because more we're in work. kind recognition, given this us terms a and year we'll to the our had in would in In corrections investment I expectation unique data and market we see of interesting sub it's think in on critical this to more be get because some in this

Yes. then quarter, terms new of of the in were both bookings September how just upsell? quarter, Great. and discuss And the in kind you can

to you want Alan, take do that?

bookings Bookings board? for for the SafePointe, and across

For QX...

For QX.

Just for it QX, did booking? year-over-year? just grow sequentially color Just on any

There funding Yes. Ralph that the starting of of things And some for going ramp and we've and the we pipeline to ramping Philadelphia terms in our well. things you little up a as thing our the actually past for Housing bookings So like like that's get see is of like slowness new that lot up is of mentioned adding solutions. a are bit across we're see strong that New There's nice solutions, Well, a now. little Jersey working I ResourceRouter then that are all like ShotSpotter are still think possibilities right? bookings we continue our well although had are to that kinds incredibly incredibly products, in still earlier, go relatively of Authority. things bit actual in of most

we've It's would several say going I to quarters. past things what significant. seen in it's the positive. to relatively going similar keep certainly It's So

to just there. just technology SafePointe. And like them? you on going Great. feel then marketing well Clearly, good one Or the feel like side you're pretty on How of you last increasing R&D emphasis a positioned for right now. things? about it's the and sales do Do increase

can Alan. Ralph is ahead Well, add. This go then start, Yes. and I'll and

across great that adding They other to definitely board. the team the at as things capability we're were well helping that technology accelerate we R&D improve have can So them in things that already, a do they several over the had looking We're year. R&D. as planning next

also quite things as So of capabilities marketing not to keep and quickly well. R&D we capability and the technology and We're only are in the to deployment sales. and can any adding improve moving we adding extent

And one as are did more significantly targets is are hospital those at looking going The want like ask answer to things. kind [indiscernible] we large enterprise just and than lanes. that. of about small things or There are opportunities thing There are that XX larger customers say and to for short I in groups X did terms more ask of well.

did wanted tail. Just to make that that sure cover we

Lee Yi comes of next Fu from Cantor Fitzgerald. Our question

Congrats a wondering could the was execution. Larry, you Maybe expansion strategy, bundled right? strong I new ] Ralph team How the Mark talents think strategy first today, you and and this of product upsell on lot know to Alan the right? going would Maybe start Darrell Greg, Anne, help and revenue mentioned then comment on ShotSpotter I this [indiscernible] you management assuming leadership let with team. key will on on the forward, you other products. brought you you [ with with of that.

Yes.

So this Ralph. is

of of led I Greg marketing had our separate marketing kind focused outbound split by along we split one by Sam by development, only product management but question management. did a with brand been firepower product we you've leadership how of functionality. not And say marketing now the function, of that to our set, Klepper into pipeline principally on product also up one powerful Makuch as of solution exclusively not feel, in we've the function led your Greg that's specific mean new senior to a the management, basically around kind product kind marketing only up I management, individual to of of terms of in to is And when look platform terms noted, also which individual. in more we added So the lot marketing terms done kind of solutions our and much integrated organization things team. but have capability, And and integrate SafetySmart working we're of a kind

significant investment making as company. because are to of going other marketplace company the be Another to fairly kind capabilities platform a is we scouring that to part Sam's a being we bring in also of see market can responsibility a

rationale ShotSpotter kind have the been signal So start, will. we're although to a solutions our much other than in us capability, technology efficient, our help to we've safety an SoundThinking that gunshot capabilities. more offering acoustic provide the But if to name of public kind protection, initiatives and that although and across we more we equitable you by changing really part and historically, it appreciate was of behind to opportunity effective known become gave of board,

the long excited us helps things So profitable and we're over we it's term. of to going about continue expansion, that growth that medium one be the to drive think to really

sounds Thanks the for Puerto if very handling the may on up you're color Puerto And I Rico, on it that. Rico like [indiscernible] and Chicago follow well. it

decreasing the you budgets like XX% the go mentioned you'll was superintendent You I know it to if guys about the want aren't in $X got that in And of double the just outcome. Alan, you Chicago. wondering I a it it right? million, in like Rico. exposure Chicago in upside, right? see ARR are million sounds Snelling click least, sounds a that you about very But Chicago on and side, new on weeks, Is like couple on the renewal $X positive ringfences Puerto at exposure. positive,

Yes.

I'll ARR. actually bit start a Yes, And is actually well. would is $X Rico little north Puerto north $X Chicago positive with as of that actual of million. million. So the be

that Ralph to we contract higher have especially So able we're the if with last over significant than mentioned, continue is which them. XX% that increase the

add, of just years. to X build in work we've were relationship, to had protection. announcement he delighted I of new become upon We over PD, for terms selection we've the of a in and defender of specifically mean, acoustic Chicago the local and of Chicago, positive in Chicago strong up at a of continue frankly, leader PD, to that Snelling kind large he's superintendent would I terms put technology been a in very And see grew of Chicago lot gunshot

gunshot around has then specific is And that encouraging. despite or in really, budget that the a within police thing quite encouraging selected item and for And to quite detection. we or billion, next budget reduce the activists to the made calls X% was enforcement decision, defund that almost the to of mayor acoustic that there is the so for line that's Chicago law new $X calling budget increase believe, the really close right folks

So yet. we're there not

holding budget, One proposed adopted budget. a final of off is on the a reasons we're guidance not our it's

of And to And and budget, still wait going better so a our will signed ultimately Chicago we'll get contract to final contract, kind to which we're a to and ends. actually have which be feeling gates do, you then until see those lot gets dollars current because realized take hopefully the what have some and when and about with through off is on we'll them mid-February things. to budget have finalized go

the Is increase for for mentioned about XXXX. Alan. X% for MSRP question last One you price

mentioned, you it you and X is help if manifest like on Tier on cities. was wondering think that. I us X Tier exposure the I could

want point upside to for increase. So it modeling us. see it's more We the price the a of of And us. for just that's

Alan. is this Yes, Sure.

great for years. X it's we when actual mile. That a increased went $XX,XXX a So from question. I we was prices our haven't $XX,XXX mean about to

So $XX,XXX do $XX,XXX to right to appropriate is going for us around from now.

price are. mentioned, and only for important it very call Ralph X, we normally was we at X, do Tier X, X to keep ones X and us Tier still are cities, that currently is larger would they miles the small As for believe Tier the which X X where to for cities, a that tier doing

cases paying to the increase year to year the in even overall, those think X% right a thousand get we than less the I now, that because hundred price per have to increases So several to those get MSRP. continue dollars are X% MSRP a

price Now MSRP be those the even that increases. are a will getting little at

in good us all actually flows well. and the that bottom terms revenue helping to as it's line So the all grow down of

comes question next ] Our from [ Kieran William Blair. Kitkat of

First, seeing the for and larger demand you're level any sales add deals? can for bundled you color state demand on

You take Alan. want to that

Sure.

terms with We're thing have, really. one sales for the increase year essentially just we're that one. the we are seeing not that just we already doing going just we know started bundled that of think terms now in I interested, is customers in bundling So of ShotSpotter that some the this product, only

bundling. set related Our commission their to to are schedules up things sales additional do team,

positive not or are customers even for positive X. the customers. that So X them, we're some for for it's only seeing asking

our X Some of for them asking products. of are

have something terms right things fact, well. the now, and that's that focused those, needs in or that with that even So on. lot commercial we And in customers, police additional ones a of agencies, Ralph SafePointe, of that have a type different we have need as although TAM have relationships it's municipalities generally mentioned SafePointe

into So going we very throughout positive do and bundling future. extending that for and expect is certainly 'XX to us the be us

can me. additional for more the you Did in further elongation one then see sales of any from you're on seeing quarter? budgets and funding any you information cycles And And customers? share

Yes.

to strong. we're there's So nice cadence environment through. that a you because funding of this is Ralph. vocalized in really specifically, uptick I particular, measurable least have I at that will. if speak I'll have. to continuing becoming Unfortunately, the of crime a very that's deal a environment trifecta, with around ShotSpotter a of to in see would violent respect pull like mean that I you I The we the question feels constructive. And the positive is now very is line real It imagine crime, community. bit kind by is residents of say, increasingly mean so

the really dominate We space. to continue

of responded acoustic kind when department town where showing with typically friction decides we're as of they lot that or game with sole another isn't source, that saw So city, detection competitive RFP, there's of the only bidder, our kind to a and And Puerto we large-scale the mean only to bidder. police we situations RFP there's a for winning the a someone Rico it kind in many those. gunshot to that deal I in don't in an want respect if we we're respects. marketplace we're of do in up in certain

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are. So we're about excited we pretty where

this question-and-answer concludes our At session. time, this

ssti@gatewaygrp.com. Clark remarks. SoundThinking's the would question his now your taken, contact Mr. turn to closing Investor call by e-mailing If back for was not I Relations you may over to team like

engaging you much Thank looking have very a next forward for great are I all and very and day. to and with of weeks. couple Alan thank over that, you call. Thank for joining Great. you many the the of much, you

today's conference concludes This call.

you lines. participating, You may pleasant day. for a your and Thank have disconnect