Company Overview
SoundThinking, Inc. operates as a public safety technology company dedicated to providing data-driven solutions and strategic advisory services specifically designed for law enforcement agencies, security teams, and civic leadership entities. The corporation functions within the broader Technology sector, specifically categorized under the Software - Application industry, which implies a focus on developing proprietary digital tools rather than manufacturing physical hardware. As of the latest reporting period, the company maintains a market capitalization of $81.96M and generates annual revenue of $104.13M, while the total number of employees is listed as N/A. These valuation and revenue figures indicate that the company holds a mid-cap position in its niche, suggesting a scale that is substantial enough to invest in specialized software infrastructure like the SafetySmart platform yet remains distinct from large-cap technology giants. The presence of the ShotSpotter component within its SafetySmart platform highlights its specific role in outdoor gunshot detection, location services, and related data analytics for public safety missions.
Financial Health
SoundThinking, Inc. reported a trailing twelve-month revenue of $104.13M alongside a net income of $-9,420,000, while its EBITDA stands at $1.74M. The significant gap between the positive revenue of $104.13M and the negative net income of $-9,420,000 reveals a cost structure where operating expenses, likely driven by research and development or sales infrastructure, substantially exceed the gross profit generated by sales. The company does not currently report free cash flow figures, which is noted as N/A, indicating that the calculation of cash flow from operations minus capital expenditures is either not disclosed or unavailable in the current dataset, limiting immediate insight into short-term cash generation flexibility. The gross margin is reported at 54.8%, indicating that the company retains a healthy portion of revenue after covering the direct costs of software delivery and services. However, the operating margin sits at -8.9% and the profit margin is -9.0%, which indicates that the company is currently operating at a loss from an operational standpoint and failing to convert profits after all expenses. The balance sheet shows cash holdings of $15.80M against total debt of $4.98M, resulting in a debt-to-equity ratio of 6.89. Despite the high leverage indicated by the debt-to-equity ratio of 6.89, the absolute debt load is relatively small compared to the cash reserve, suggesting the company has sufficient liquidity to meet obligations but carries significant financial leverage relative to equity. The current ratio is 0.85, which indicates that current assets are insufficient to cover current liabilities without relying on external financing or asset liquidation. Furthermore, the return on equity is -13.0% and the return on assets is -3.7%, revealing that management effectiveness is currently negative as the company destroys shareholder value and utilizes assets inefficiently to generate profit.
Valuation Assessment
The trailing P/E ratio is N/A due to the negative earnings, whereas the forward P/E is listed as -35.50, implying that the market expects earnings to turn positive or is pricing in a recovery trajectory that would justify a multiple. The price-to-book ratio is 1.14, which indicates that the stock is trading at a slight premium over its book value, suggesting the market values the company's intangible assets and future growth potential slightly higher than the net asset value on the balance sheet. Alternative valuation metrics include a price-to-sales ratio of 0.79 and an EV/EBITDA of 40.94, which suggests that the company is priced based on its revenue stream and enterprise value relative to earnings before interest, taxes, depreciation, and amortization, despite the current lack of normalized earnings. The 52-week high is $19.43 and the 52-week low is $5.78, meaning the stock has experienced significant volatility over the past year. Without the specific current price listed in the provided facts, the exact percentage distance from the 52-week high cannot be calculated, but the wide range between $19.43 and $5.78 demonstrates substantial price swings. The beta value is 1.21, which explains that the stock's price volatility is 21% higher than the broader market, indicating higher risk for investors seeking stability.
Growth & Income
SoundThinking, Inc. reported a revenue growth rate of 5.9% year-over-year, while the earnings growth rate is N/A due to the absence of positive net income. Since earnings are negative, a comparison of earnings growth versus revenue growth is not applicable, but the positive revenue growth suggests that top-line expansion is occurring even as profitability remains elusive. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. This lack of dividend payout implies that the company retains all available earnings, if any, and reinvests capital back into the business to fuel growth initiatives rather than distributing income to shareholders. Consequently, the overall growth and income profile is characterized by top-line expansion in the software application sector coupled with a reliance on reinvestment rather than income generation or dividend distribution to support shareholder returns.