Should You Punt On This Small Cap Stock-SSTI

Acrobull UK Advisory Services Ltd.

October 14

2024

Name	Ticker	Sector/Industry	Market Cap	Risk Factor
SoundThinking, Inc.	SSTI-NASDAQ	Technology	$144.958 Million	High

SoundThinking, Inc., a public safety technology company, provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform that includes data-driven tools comprising ShotSpotter, an outdoor gunshot detection.

Recent Highlights

CEO Statement- President and CEO Ralph Clark reported that the SafetySmart™ Platform saw consistent traction in the second quarter, demonstrating the company's resilience. "In the second quarter, our revenues jumped 22%, while gross profit increased 27% year-over-year. Our SafetySmart Platform concept is gaining popularity, empowering the law enforcement partners to produce quantitative, efficient, and fair public safety results in their own communities.

Our flagship ShotSpotter solution went 'live' in three new cities, expanded into four existing cities, two commercial customers, and one institution. In the past During the quarter, we booked or went live with over ten new customers for our other SafetySmar platform solutions. We continue to observe strong cross-selling momentum, with Newport News now offers our CrimeTracer and CaseBuilder solutions.

Second Quarter 2024 Financial Highlights

Revenues increased 22% to $27.0 million, compared to $22.1 million for the same quarter of 2023.

Gross profit increased 27% to $16.1 million (60% of revenues), compared to $12.7 million (57% of revenues) for the same quarter of 2023.

GAAP net loss totaled $0.8 million, compared to GAAP net loss of $2.7 million for the same quarter of 2023.

Adjusted EBITDA 1 increased over 110% to $5.1 million (19% of revenues), compared to $2.4 million (11% of revenues) for the same quarter of 2023. ShotSpotter went “live” in three new cities and expanded with four current cities, two commercial customers and one university

Stock Observation- In Q2 2024, revenues totaled $27.0 million, up from $22.1 million in Q2 2023. Revenue growth was driven by increased customer subscriptions, earlier professional services revenue from Technologic Solutions (formerly LEEDS), and contributions from SafePointe, LLC (SafePointe), acquired in Q3 2023. The RSI level for the stock is at 41 which shows oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull UK maintains Buy Rating for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$11.34 USD
Acrobull Recommendation	Buy at $11.20
Target Price	$12.88 USD
RSI Level	14 Day RSI 41
Total Shares Outstanding	12.78 Million
Shares held by Insiders Risk Factor	23.92% High