FREMONT, CA – Today, SoundThinking, Inc. (NASDAQ:SSTI), a company specializing in prepackaged software services, announced the results of its Annual Meeting held on Monday. Shareholders voted on several key proposals, including the election of Class I directors and executive compensation.
The election of two Class I directors, William J. Bratton and Deborah A. Grant, was confirmed with 8,894,029 and 8,282,354 votes in their favor, respectively. Bratton received 190,283 withheld votes, while Grant had 801,958. There were 1,286,754 broker non-votes for each, indicating shares present at the meeting but not voted by brokers on these proposals.
In addition, the advisory vote on the compensation of the company's named executive officers, commonly referred to as the "Say-on-Pay" vote, passed with 8,134,282 votes for, 943,272 against, and 6,758 abstentions. This non-binding vote reflects shareholder support for the company's executive compensation philosophy and practices.
The appointment of Baker Tilly US, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified with an overwhelming majority of 10,351,433 votes for, 10,890 against, and 8,743 abstentions.
SoundThinking, Inc., previously known as Shotspotter (NASDAQ:SSTI) Inc., has undergone several name changes, with the most recent in 2015. The company is headquartered at 39300 Civic Center Drive, Suite 300, Fremont, CA, and is led by President and Chief Executive Officer Ralph A. Clark.
In other recent news, SoundThinking, Inc. reported a 23.2% year-over-year increase in revenue for the first quarter of 2024, reaching $25.4 million. This growth is attributed to the company's expansion into 10 new cities and the launch of innovative product offerings. Analysts project a full-year revenue between $104-106 million, with an EBITDA margin of 18-20%. However, increased operating expenses have resulted in missed EPS and EBITDA estimates.
Despite these challenges, the company's strategic initiatives continue to drive growth. SoundThinking is expanding its market reach, with deployments in international markets such as Uruguay, Brazil, Mexico, and Ecuador. The company's SafePointe product is expected to double its current run-rate Annual Recurring Revenue (ARR) of approximately $5 million next year.
In the wake of these developments, several analyst firms have adjusted their outlooks on SoundThinking. Cantor Fitzgerald reduced its 12-month price target from $25.00 to $20.00, while William Blair downgraded its rating from Outperform to Market Perform. Craig-Hallum also revised the company's price target to $19 from the previous $22. Despite these changes, the firms maintain a positive outlook based on the company's robust growth strategy and solid financial health.
InvestingPro Insights
As SoundThinking, Inc. (NASDAQ:SSTI) navigates through its corporate governance, it's important for investors to stay informed on the company's financial health and market position. According to InvestingPro data, SSTI has a market capitalization of approximately $175.27 million. While the company is experiencing a robust revenue growth of 21.26% over the last twelve months as of Q1 2024, it is important to note that it operates with a moderate level of debt and analysts have concerns about its profitability. Specifically, the net income is expected to drop this year and SSTI is currently not profitable over the last twelve months.
InvestingPro Tips highlight that SSTI is trading near its 52-week low and has taken a significant hit over the last six months, with a price total return of -45.84% during that period. Additionally, the company's short-term obligations exceed its liquid assets, which could pose liquidity risks. With these considerations in mind, investors may want to delve deeper into SSTI's financials and forecasts. For more detailed analysis and additional tips, visit InvestingPro at https://www.investing.com/pro/SSTI, and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 more InvestingPro Tips available for SSTI, offering a more comprehensive understanding of the company's financial trajectory.
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