ShotSpotter, Inc. (NASDAQ:SSTI) Q3 2022 Earnings Conference Call November 8, 2022 4:30 PM ET

Company Participants

Ralph Clark - Chief Executive Officer

Alan Stewart - Chief Financial Officer

Conference Call Participants

Richard Baldry - ROTH Capital

Mike Latimore - Northland Capital Markets

Matt Pfau - William Blair

Jack Cole - Craig-Hallum Capital

Operator

Good afternoon and welcome to ShotSpotter's Third Quarter 2022 Earnings Conference Call. My name is Sarah and I will be your operator for today's call. Joining us are ShotSpotter's CEO, Ralph Clark; and CFO, Alan Stewart.

Please note that certain information discussed on the call today will include forward-looking statements about future events and ShotSpotter's business strategy and future financial and operating performance. These forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict and may cause actual results to differ materially from those stated or implied by those statements. Certain of these risks and assumptions are discussed in ShotSpotter's SEC filings, including its registration statement on Form S-1. These forward-looking statements reflect management's beliefs, estimates and predictions as of the date of this live broadcast, November 8, 2022 and ShotSpotter undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.

Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link available Investor Relations section of the company's website at ir.shotspotter.com.

Now, I would like to turn the call over to ShotSpotter's CEO, Ralph Clark. Sir, please proceed.

Ralph Clark

Thank you and good afternoon to those of you joining us today. I'm very pleased to be able to report on the progress ShotSpotter is making toward our strategic objectives and helping drive the digital transformation of local law enforcement agencies globally. ShotSpotter has assembled a compelling set of precision police solutions that help address the critical challenges facing today's law enforcement profession. We are committed to help agencies become efficient, effective and equitable in delivering positive public safety outcomes to the communities they are sworn to serve and protect.

Financially, we reported revenues of $18.8 million, up 29% from $14.5 million in Q3 of 2021. Our quarterly adjusted EBITDA grew 37% to $3.1 million from $2.2 million last year. Overall, ShotSpotter Respond had a very strong go-live cadence this quarter. We went live with 7 new customers, including; Aurora, Illinois; Mobile, Alabama; Rancho Cordova, California; Homestead, Florida; Warrensville Heights, Ohio; along with Richland County and West Columbia, South Carolina. We also went live with 6 expansions of existing customers, including a 9 square mile expansion in U.S. Virgin Islands. As a part of our security solutions, we were also very pleased to have added the Illinois State Police as a customer with 8 linear miles covering the Dan Ryan Expressway.