SoundThinking, Inc. (NASDAQ:SSTI), a leader in prepackaged software solutions currently trading at $13.25, disclosed the upcoming departure of Pascal Levensohn, the Chair of the Board of Directors, in an 8-K filing with the Securities and Exchange Commission.
According to InvestingPro analysis, the company appears undervalued compared to its Fair Value, with analysts setting price targets ranging from $16 to $30. Levensohn, who has served on the board since 2007, will not seek re-election at the company's 2025 Annual Meeting of Stockholders.
The company, headquartered in Fremont, California, stated that Levensohn's decision is not due to any disagreements with the company's operations, policies, or practices. Instead, it appears to be a personal decision to step down from his role.
InvestingPro data shows the company maintains a "GOOD" overall Financial Health Score, with particularly strong marks in relative value and growth metrics. Subscribers can access 10+ additional ProTips and comprehensive analysis in the Pro Research Report.
Levensohn will continue to fulfill his duties as board chair and as a member of the Audit Committee until his departure, which will take effect immediately following the election of directors at the 2025 Annual Meeting.
In anticipation of the vacancy, SoundThinking's Nominating and Corporate Governance Committee has engaged a search firm to identify suitable candidates for the soon-to-be-open board position. The committee's proactive approach suggests a smooth transition is expected.
The company's 8-K filing also serves as an acknowledgment of Levensohn's long-standing contribution to the board. His tenure spans over 17 years, during which time SoundThinking has undergone significant changes, including a name change from Shotspotter (NASDAQ:SSTI), Inc. in 2015.
The company has shown impressive revenue growth with a 19.4% increase in the last twelve months, generating over $104 million in revenue. The company's fiscal year-end remains on December 31, indicating stability in its financial reporting calendar.
Investors and stakeholders are likely to monitor the forthcoming changes to the board's composition with interest, as the company prepares for its annual stockholders meeting in 2025.
Four analysts have recently revised their earnings expectations upward for the upcoming period, according to InvestingPro data, suggesting positive sentiment about the company's future direction. The information in this article is based on SoundThinking's recent SEC filing.
In other recent news, SoundThinking reported a steady growth in the third quarter with a 10% rise in revenue to $26.3 million, and an 18% increase in year-to-date revenues to $78.6 million. The company's Q3 gross profit hit 58% of revenue, or $15.2 million, with an adjusted EBITDA of $4.5 million.
Despite a slight miss on adjusted EBITDA due to lower gross margins, the company maintains a positive outlook and has reaffirmed its full-year 2024 guidance.
SoundThinking has expanded its presence significantly, going live in four new cities, one university, and growing its partnerships with eight existing allies. The company's SafetySmart platform saw robust growth with 15 new implementations during the third quarter, and the firm also marked its territory internationally with a significant expansion into Uruguay.
Craig-Hallum adjusted the price target for SoundThinking from $17.50 to $16.00, maintaining a Hold rating on the stock. This adjustment came in light of the company's mixed third-quarter results and the potential delay in the extension of the New York City contract, which is a pressing risk as the company heads into fiscal year 2025.
Despite these challenges, SoundThinking projects its 2025 revenue to be between $107 million and $109 million, with adjusted EBITDA margins forecasted at 19% to 21%.
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