MONTEVIDEO - The Ministry of Interior of Uruguay has signed a new three-year contract with SoundThinking, Inc. (NASDAQ: SSTI), a public safety technology provider, to double the coverage of the ShotSpotter gunshot detection system in the capital city of Montevideo. The expansion will add an additional 12 square kilometers to the system's reach, effectively doubling its current operational area.
This decision follows the initial deployment of ShotSpotter in December 2023, which has reportedly been successful in aiding Uruguay's law enforcement efforts to combat gun violence. The extended coverage is expected to bolster the Ministry's comprehensive strategy to improve public safety and safeguard communities.
Nicolás Martinelli, Uruguay's Minister of the Interior, expressed satisfaction with the performance of the ShotSpotter system since its introduction and anticipates that the expansion will further strengthen the country's capacity to protect citizens in areas prone to gun violence.
The CEO of SoundThinking, Ralph Clark, also commented on the expansion, noting the company's enthusiasm for continuing the partnership with the Ministry of Interior and highlighting the milestone as an indicator of SoundThinking's growing presence in Latin America. The company has also introduced a Spanish-language version of the ShotSpotter InSight application, which is expected to facilitate the adoption of the technology in other Spanish-speaking markets.
SoundThinking, Inc. provides a range of public safety technologies, including artificial intelligence and data-driven solutions, to approximately 250 customers and has collaborated with over 2,100 agencies globally. The company's suite of products aims to enhance the efficiency, effectiveness, and equity of public safety outcomes.
The information for this article is based on a press release statement from SoundThinking, Inc.
In other recent news, SoundThinking, Inc. has released an upgraded version of its SafePointe weapons detection system, featuring new AI-driven software and advanced hardware aimed at enhancing threat detection capabilities. The system now offers comprehensive reporting and monitoring tools, historical alerts, and customization options. The company is also in the process of obtaining SOC2 and HIPAA certifications, expected to be completed by early 2025.
Simultaneously, SoundThinking reported a significant financial performance in the second quarter of 2024, with a 22% increase in revenues to $27 million compared to the same period last year. The company's flagship gunshot detection system, ShotSpotter, expanded into new cities and sectors, and its international presence grew with expansions in Uruguay and South Africa. A strategic partnership with Rekor for the PlateRanger product is expected to enhance SoundThinking's SafetySmart platform starting in September 2024.
Furthermore, the company reported an over 110% increase in adjusted EBITDA to $5.1 million. Despite a projected dip in Q3 revenues due to accelerated professional services in Q2, SoundThinking maintains a positive outlook for Q4 and the full year. Lastly, a contract renewal proposal with the NYPD is expected to be finalized before the end of Q4, covering approximately 90 square miles.
InvestingPro Insights
As SoundThinking, Inc. (NASDAQ: SSTI) expands its presence in Uruguay, investors might be interested in the company's financial health and market performance. According to InvestingPro data, SoundThinking has shown strong revenue growth, with a 24.16% increase in the last twelve months as of Q2 2024, reaching $102.39 million. This growth aligns with the company's expanding international footprint, as evidenced by the contract extension in Montevideo.
However, investors should note that SoundThinking is currently operating at a loss, with an adjusted operating income of -$3.77 million in the same period. This is reflected in one of the InvestingPro Tips, which indicates that the company is not expected to be profitable this year. Despite this, the company's EBITDA has shown significant improvement, growing by 78.89% to $6.34 million.
Another InvestingPro Tip suggests that SoundThinking's valuation implies a strong free cash flow yield, which could be attractive to investors looking for potential value in the public safety technology sector. However, it's worth noting that the company is trading at a high EBITDA valuation multiple, which investors should consider when assessing its market position.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 6 more InvestingPro Tips available for SoundThinking, which could provide valuable context for investors evaluating the company's prospects in light of its international expansion and financial performance.
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