Business
ShotSpotter Reports Third Quarter 2020 Financial Results
14% Year-over-Year Increase in Revenues Drives Another Quarter of Record Revenues, Solid Adjusted EBITDA and GAAP Profitability; Strong Liquidity Position
About this update from Soundthinking, Inc.
[{"type":"text","content":"14% Year-over-Year Increase in Revenues Drives Another Quarter of Record Revenues, Solid Adjusted EBITDA and GAAP Profitability; Strong Liquidity Position with $28.7 Million in Cash and Cash Equivalents and $20.0 Million Available under Line of Credit\nNEWARK, Calif., Nov. 09, 2020 (GLOBE NEWSWIRE) -- ShotSpotter, Inc. (NASDAQ: SSTI), the leader in acoustic gunshot detection and precision policing solutions that help law enforcement officials and security personnel prevent and reduce gun violence, today reported financial results for the third quarter ended September 30, 2020.\n Third Quarter 2020 Financial and Operational Highlights Revenues increased 14% to $11.4 million from $10.0 million for the third quarter of 2019.Gross profit increased 8% to $6.4 million (57% of revenues) from $6.0 million (60% of revenues) for the third quarter of 2019.Net income increased 27% to $566,000 from $446,000 for the third quarter of 2019.Adjusted EBITDA1 increased 44% to $3.3 million from $2.3 million for the third quarter of 2019.Realized 3 new “go-live” square miles of coverage and 6 square miles of attrition during the quarter, bringing the total live miles to 758 at the end of the quarter.Maintained a strong balance sheet with $28.7 million in cash and cash equivalents at the end of the quarter, and $20 million available on its line of credit.Subsequent to quarter end, signed a definitive agreement to acquire LEEDS, LLC, a leading investigative case management software provider, with the transaction expected to close in November 2020. Upfront consideration of $17.0 million includes $15.0 million in cash and $2.0 million in ShotSpotter common stock, plus a potential earnout of $5.0 million over the next two years.Full year 2020 revenue guidance narrowed and slightly increased to a range of $44.5 million to $45.0 million, representing 10% growth at the midpoint compared to full year 2019. The company’s revenue guidance for full year 2020 excludes any contribution from LEEDS, LLC.1 See the section below titled “Non-GAAP Financial Measures” for more information about Adjusted EBITDA, and its reconciliation to GAAP net income. Management Commentary “In the third quarter of 2020, we once again showcased the resilience of our business as we continued to build momentum coming out of the pandemic lockdowns that began towards the end of the first q...