Core Viewpoint - SoundThinking, Inc. (SSTI) shares experienced a significant increase of 7.2% in the last trading session, closing at $7, following a period of 27.1% loss over the past four weeks, indicating a potential turnaround in investor sentiment [1][2]. Group 1: Company Performance - The recent rally in SSTI's stock is primarily attributed to optimism regarding revenue growth from New York City, supported by two three-year contract renewals with the New York City Police Department [2]. - SSTI is projected to report a quarterly loss of $0.12 per share, reflecting a year-over-year improvement of 62.5%, with expected revenues of $24.63 million, marking a 5.2% increase from the same quarter last year [3]. - The consensus EPS estimate for SSTI has remained unchanged over the last 30 days, suggesting that the stock's price movement may not sustain without trends in earnings estimate revisions [4]. Group 2: Industry Context - SSTI operates within the Zacks Security and Safety Services industry, where Alarm.com Holdings (ALRM) also resides, having closed the last trading session up by 3.9% at $48.22, despite a -10.6% return over the past month [4]. - Alarm.com's consensus EPS estimate for its upcoming report has remained stable at $0.66, representing a year-over-year change of 13.8%, and it also holds a Zacks Rank of 3 (Hold) [5].

Core Viewpoint - SoundThinking, Inc. is enhancing its sales leadership by appointing Kirk Arthur as Senior Vice President of Global Sales and Manuel Nylen as Vice President of Sales for SafePointe, aiming for accelerated growth in public safety, security, and enterprise markets [1][2]. Group 1: Leadership Appointments - Kirk Arthur will lead the global sales and solutions organization, focusing on go-to-market strategy, revenue execution, and customer engagement [3]. - Manuel Nylen will oversee sales for SafePointe, targeting expansion in healthcare, gaming, corporate campuses, and other security-sensitive environments [3]. Group 2: Leadership Backgrounds - Kirk Arthur has extensive experience in public service and enterprise technology, previously serving at Microsoft and the United States Secret Service, where he led initiatives in government modernization and electronic crimes [4]. - Manuel Nylen has a strong background in security technology sales, having held leadership roles at Milestone Systems and BriefCam, where he focused on revenue growth and channel partnerships [5]. Group 3: Company Growth Strategy - The appointments come at a crucial time for SoundThinking, as the company aims to scale its SafetySmart™ platform across various markets [2][6]. - Arthur emphasizes the significant market potential and innovative solutions that SoundThinking offers, aiming to enhance public safety profiles [6]. - Nylen describes SafePointe as a transformative solution in security, utilizing AI to improve weapons detection without traditional checkpoints [6]. Group 4: Company Overview - SoundThinking, Inc. is a leading public safety technology company providing AI- and data-driven solutions for law enforcement and security professionals, trusted by over 300 customers and approximately 2,100 agencies [9]. - The company's SafetySmart™ platform includes various solutions such as ShotSpotter, CrimeTracer™, CaseBuilder™, ResourceRouter™, SafePointe, and PlateRanger powered by Rekor [9].

Core Insights - SoundThinking has opened a new Alert Review Center (ARC) in downtown Orlando, FL, which will serve as a centralized operational hub for its SafePointe alert review operations, creating nearly 30 public-safety jobs in the region [1][3]. Group 1: Company Operations - The ARC will support SafePointe, an AI-enabled weapons detection system, by allowing trained reviewers to analyze alerts in real time, providing timely and accurate information for safety operations in various public spaces [2][3]. - The facility is located in 1,872 square feet of office space in the Regions Bank Tower, demonstrating SoundThinking's long-term commitment to the downtown Orlando area through a three-year renewable lease [4]. Group 2: Employment and Economic Impact - The consolidation of previously remote roles into the downtown facility is expected to contribute to the growth of the technology and public-safety workforce in the region, with nearly 30 full-time employees anticipated once hiring is complete [3]. - The decision to establish the ARC in downtown Orlando is seen as a boost to the local ecosystem of innovative employers, reinforcing the area's appeal for companies looking to grow and collaborate [5]. Group 3: Company Background - SoundThinking, Inc. (Nasdaq: SSTI) is a leading public safety technology company that provides AI- and data-driven solutions for law enforcement and security professionals, trusted by over 300 customers and approximately 2,100 agencies [7].

Core Insights - SoundThinking, Inc. will have its CFO Alan Stewart participate virtually in the 28th Annual Needham Growth Conference on January 15, 2026, providing an opportunity for investors to engage with management [1]. Company Overview - SoundThinking, Inc. is a leading public safety technology provider that offers AI- and data-driven solutions for law enforcement, civic leadership, and security professionals [2]. - The company serves over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes [2]. - SoundThinking's SafetySmart™ platform includes several key products: - ShotSpotter, an acoustic gunshot detection system - CrimeTracer™, a law enforcement search engine - CaseBuilder™, an investigation management system - ResourceRouter™, software for directing patrol and anti-violence resources - SafePointe, an AI-based weapons detection system - PlateRanger powered by Rekor, an automatic license plate recognition solution [2]. - The company has been recognized as a Great Place to Work [2].

Market Overview - The Law Enforcement Software Market was valued at USD 18.86 billion in 2025 and is projected to reach USD 40.82 billion by 2033, growing at a CAGR of 10.13% from 2026 to 2033 [1]. Growth Drivers - The expanding use of digital tools for public safety management, crime prevention, and investigation is driving growth in the law enforcement software market [2]. - The adoption of automated platforms and digital technologies is enhancing operational efficiency in police and public safety organizations [4]. Market Segmentation By Component - The solutions segment dominated the market with over 68.25% market share in 2025, driven by the need for operational efficiency and advanced tools [5]. - The services segment is expected to grow at the highest CAGR of 10.57% during the forecast period due to the demand for continuous support and training [5]. By Deployment - The cloud segment represented more than 71.48% of the market share in 2025, favored for its scalability, cost-efficiency, and accessibility [7]. - The on-premises segment is anticipated to grow at a CAGR of over 10.63%, offering customizable solutions for agencies [7]. Regional Insights - North America accounted for more than 36.23% of the law enforcement software market in 2023, integrating advanced technologies like AI and Big Data analytics [8]. - The Asia Pacific region is experiencing the highest growth rate with a CAGR of over 12.25% from 2026 to 2033, driven by urbanization and demand for advanced public safety solutions [9]. Key Players and Developments - Notable companies in the market include Axon, Motorola Solutions, Tyler Technologies, IBM, and Oracle, among others [12]. - Recent developments include Axon's introduction of new AI-powered tools and Oracle's enhancements to its Public Safety Suite with officer-worn cameras and real-time analytics [12].

Market Overview - U.S. stocks closed mostly lower on Friday, with the Dow Jones index dropping over 300 points during the session [1] - The Nasdaq fell by 0.5% last week, while the S&P 500 and Dow increased by 0.1% and 0.3%, respectively [1] Analyst Insights - Wall Street analysts frequently update stock picks, but their track records in predicting market movements can be inconsistent, leading to confusion among investors [2] - Benzinga's Analyst Ratings API compiles high-quality stock ratings through partnerships with major sell-side banks, providing insights that can serve as effective trading indicators [3] Top Analyst Picks - Benzinga offers access to the latest analyst ratings, allowing traders to sort by analyst accuracy [4] - Notable analysts and their recent ratings include: - John Todaro from Citigroup maintained a Neutral rating on HP Inc. (NYSE:HPQ) and reduced the price target from $29 to $27, indicating a potential upside of around 13% [5] - An analyst from Citizens maintained a Market Outperform rating on SoundThinking, Inc. (NASDAQ:SSTI) and cut the price target from $19 to $16, suggesting a potential upside of approximately 125% [5] - An analyst from Needham maintained a Buy rating on Circle Internet Group (NASDAQ:CRCL) and lowered the price target from $250 to $190, expecting a surge of around 129% [5] - An analyst from Wedbush reiterated an Outperform rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) with a price target of $290, anticipating a gain of about 17% [5] - An analyst from Wells Fargo maintained an Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) and raised the price target from $220 to $265, expecting a 40% gain [7]

Financial Performance - Revenues for the three months ended September 30, 2025, were $25.1 million, a decrease of 4% compared to $26.3 million for the same period in 2024, with ShotSpotter representing approximately 65% of total revenues[92] - For the nine months ended September 30, 2025, revenues increased by 1% to $79.3 million from $78.6 million in 2024, with ShotSpotter accounting for 63% of total revenues[93] - The City of New York accounted for 30% of total revenues for the nine months ended September 30, 2025, while the City of Chicago did not renew its contract in November 2024[93] - Revenues generated within the United States accounted for 97% of total revenues for the three months ended September 30, 2025, down from 99% in 2024[94] - Revenues for Q3 2025 were $25.1 million, a decrease of 4% from $26.25 million in Q3 2024, primarily due to a $2.8 million contract with the City of Chicago in 2024[136] - Revenues for the nine months ended September 30, 2025, increased by $0.7 million to $79.3 million, primarily driven by $4.4 million in new bookings and $3.5 million in catch-up revenue from contract renewals[144][145] Net Loss and Expenses - The company reported a net loss of $2.0 million for the three months ended September 30, 2025, compared to a net loss of $1.4 million for the same period in 2024[96] - The company reported a net loss of $2.044 million in Q3 2025, compared to a net loss of $1.44 million in Q3 2024, marking a 42% increase in losses[136] - Operating loss increased by 53% to $6.2 million, reflecting higher operating expenses despite a decrease in sales and marketing expenses[144][148] - The accumulated deficit increased to $110.9 million as of September 30, 2025, from $104.3 million at the end of 2024[96] Operating Expenses - Cost of revenues increased by $0.4 million to $11.229 million, primarily due to product costs related to software licensing for the NYPD and maintenance activities for ShotSpotter deployments[138] - Gross profit for Q3 2025 was $13.634 million, representing 54% of revenues, down from 58% in Q3 2024[136] - Operating expenses totaled $15.69 million in Q3 2025, a decrease of 4% from $16.263 million in Q3 2024, with sales and marketing expenses decreasing by $1.4 million[136] - Research and development expenses increased by $0.7 million to $4.097 million, driven by investments in enhancing AI capabilities[140] - Cost of revenues rose by $2.9 million to $35.0 million, with significant contributions from $1.0 million in IT costs for AI enhancements and $0.8 million in maintenance costs[144][146] - Research and development expenses increased by $1.5 million to $11.9 million, driven by consulting and IT expenses related to AI capabilities[144][149] Cash Flow and Financial Position - Net cash provided by operating activities fell by $18.3 million to $4.8 million, attributed to slower collections and a decrease in deferred revenue[165][167] - As of September 30, 2025, cash and cash equivalents totaled $11.8 million, with accounts receivable at $28.5 million and available borrowing capacity of $36.0 million under the credit facility[156] - The company expects existing cash and credit facilities to meet working capital needs for at least the next 12 months despite negative working capital[157][158] Strategic Initiatives - The company introduced new products such as ResourceRouter and CrimeTracer, and expanded its offerings through the acquisition of SafePointe, targeting new markets including healthcare due to California's AB 2975 mandate[98] - The company plans to expand its international presence and pursue opportunities in Latin America, recognizing the need for additional resources and management attention[99] - The company completed the acquisition of SafePointe for $25.6 million, funded by $11.4 million in cash and $11.2 million in stock[160] Market Risks - The company’s market risk exposure is primarily due to fluctuations in interest rates, foreign exchange rates, and inflation[176] - There were no material changes in the company's market risk during the nine months ended September 30, 2025, compared to the previous disclosures[177] - The company anticipates that rising costs from inflation may lead to budget shortfalls for customers, potentially delaying contract approvals[112] Contractual and Operational Metrics - As of September 30, 2025, the company had 178 cities and 22 campuses/sites under contract, covering over 1,088 square miles, with 1,075 square miles already live[87] - The net new "go-live" cities and universities for the three months ended September 30, 2025, were 3, while for the nine months, it was 7, compared to 15 in the same period of 2024[100] - The impairment of property and equipment increased significantly by 339% to $237,000 in Q3 2025, compared to $54,000 in Q3 2024[136] Accounting Policies - As of September 30, 2025, there have been no material changes to the company's critical accounting policies and estimates from those disclosed in the 2024 Annual Report on Form 10-K[173]

Core Insights - SoundThinking, Inc. reported worse-than-expected Q3 financial results, with losses of 16 cents per share compared to the analyst consensus estimate of 6 cents per share [1] - Quarterly sales were $25.100 million, missing the analyst consensus estimate of $27.953 million [1] - The company cut its FY2025 sales guidance from a range of $111 million-$113 million to $104 million [2] Financial Performance - Q3 losses were reported at 16 cents per share, missing expectations [1] - Sales for the quarter were $25.100 million, below the expected $27.953 million [1] Guidance Update - FY2025 sales guidance was revised down from $111 million-$113 million to $104 million [2] Company Developments - The company is focused on enhancing community safety through data and technology, with recent expansions in its ShotSpotter footprint and new AI capabilities [3] - The Net Promoter Score increased from 66 to approximately 70, indicating strong customer satisfaction and retention [3] Market Reaction - Following the earnings announcement, SoundThinking shares fell by 19.6%, trading at $6.78 [3] Analyst Ratings - Cantor Fitzgerald analyst maintained an Overweight rating but lowered the price target from $20 to $16 [6] - Citizens analyst also maintained a Market Outperform rating while reducing the price target from $19 to $16 [6]

Core Insights - SoundThinking, Inc. reported worse-than-expected Q3 financial results, with losses of 16 cents per share compared to the analyst consensus estimate of 6 cents per share [1] - Quarterly sales were $25.100 million, missing the analyst consensus estimate of $27.953 million [1] - The company cut its FY2025 sales guidance from a range of $111 million to $113 million down to $104 million [2] Financial Performance - The reported quarterly losses were significantly higher than expected, indicating potential challenges in revenue generation [1] - The sales figure of $25.100 million reflects a shortfall against market expectations, suggesting weaker demand or operational issues [1] Management Commentary - CEO Ralph Clark emphasized the company's commitment to enhancing community safety through data and technology, highlighting recent advancements such as the expansion of ShotSpotter and the introduction of new AI capabilities [3] - The company's Net Promoter Score improved from 66 to approximately 70, indicating strong customer satisfaction and retention [3] Market Reaction - Following the earnings announcement, SoundThinking shares experienced a significant decline of 19.6%, trading at $6.78 [3] Analyst Ratings - Cantor Fitzgerald analyst Jonathan Ruykhaver maintained an Overweight rating but lowered the price target from $20 to $16 [6] - Citizens analyst Trevor Walsh also maintained a Market Outperform rating while reducing the price target from $19 to $16 [6]

Market Overview - U.S. stock futures showed mixed movements following a mixed trading session on Wednesday, with major benchmark indices reflecting varied changes [1][3] - The 10-year Treasury bond yielded 4.08%, while the two-year bond was at 3.57%, indicating market expectations for potential interest rate cuts by the Federal Reserve [2] Company Performance - Cisco Systems Inc. (NASDAQ:CSCO) saw a premarket increase of 7.04% after reporting positive financial results for the first quarter, maintaining a stronger price trend across all time frames despite a poor value ranking [7] - Walt Disney Co. (NYSE:DIS) was up 0.29% ahead of its earnings report, with analysts predicting earnings of $1.04 per share on revenue of $22.75 billion, also showing a strong price trend [8] - Applied Materials Inc. (NASDAQ:AMAT) rose 0.55% as analysts expect earnings of $2.10 per share on revenue of $6.67 billion, maintaining a strong price trend [8] - SoundThinking Inc. (NASDAQ:SSTI) fell 3.32% after reporting disappointing third-quarter results and lowering its FY25 sales guidance, reflecting a weaker price trend [8] - Dlocal Ltd. (NASDAQ:DLO) dropped 11.37% despite beating third-quarter estimates, as its gross profit margin declined to 37% from 42% year-over-year, indicating a weaker price trend in the short and medium terms [8] Sector Performance - Most sectors on the S&P 500 closed positively, with healthcare, financial, and materials stocks recording the largest gains on Wednesday [5] Analyst Insights - BlackRock maintains an "overweight" view on U.S. equities, supported by a softening labor market that may allow the Federal Reserve to cut interest rates, which could benefit U.S. stocks and the AI sector [9] - The firm emphasizes that AI developments are crucial for corporate earnings, which are seen as a key factor supporting U.S. market valuations compared to other developed markets [10] Economic Data - Upcoming economic data releases, including October's CPI and initial jobless claims, will be delayed due to the recent government shutdown, impacting market expectations [13]