SoundThinking (SSTI) The Gateway Conference 2025 summary

Business overview and growth strategy

• Focused on AI and data-driven public safety solutions for law enforcement and security professionals, addressing gun violence and resource constraints.

• SafetySmart platform integrates gunshot detection, patrol management, license plate reading, case management, crime analytics, and weapons detection.

• Revenue diversification underway: ShotSpotter now 65% of revenue, expected to drop to 35% as new solutions scale.

• 2022 revenue was $102M with 14% adjusted EBITDA; 2023 guidance is $111M–$113M revenue and 20%–22% adjusted EBITDA.

• High net and gross retention rates, driven by strong customer relationships and a world-class NPS score.

Product innovation and technology

• ShotSpotter provides real-time, precise gunshot alerts, reducing police response times by several minutes.

• Acoustic detection system operates at 97% accuracy, independently audited, with alerts delivered in 30–45 seconds.

• ResourceRouter uses AI to optimize patrol deployment, reducing bias and increasing presence effectiveness.

• CaseBuilder and CrimeTracer streamline case management and analytics, with plans to add generative AI for broader accessibility.

• SafePointe offers frictionless weapons detection for commercial clients, targeting hospitals and casinos.

Financial performance and outlook

• 95% of revenue is SaaS or managed services, with only 5% from professional services.

• Revenue growth is steady but can be lumpy quarter-to-quarter; gross margin and adjusted EBITDA are expected to rise as costs remain flat.

• Long-term model targets 15% annual revenue growth, 70% gross margin, and 40%+ adjusted EBITDA, driven by SafePointe and international expansion.

• Four acquisitions in six years, $25M in share repurchases, and no debt position the company for strong cash generation.

• International sales command 3–4x higher pricing, significantly boosting gross margin.