ShotSpotter Reports Q1 2018 Financial Results

The maker of gunfire detection solutions posted a net loss of $1.2 million in the first quarter on record revenues of $6.9 million, up 51% from $4.6 million in the same period in 2017.

NEWARK, Calif. — ShotSpotter (Nasdaq: SSTI) on Tuesday reported a loss of $1.2 million in its first quarter.

The leading manufacturer of gunfire detection systems said it had a loss of 12 cents per share, while losses adjusted for stock-option expense amounted to 9 cents per share.

Revenues for Q1 rose 51% to a record $6.9 million from $4.6 million for the same period the prior year. The increase in revenues was attributed to new customer deployments, mileage expansions with existing customers and strong customer renewal rates.

Gross profit for the first quarter was $3.6 million, or 52% of revenue, a 91% increase from $1.9 million, or 41% of revenue, for the same period in 2017.

ShotSpotter expects full-year revenue in the range of $33 million to $34 million.

“We started the year with very strong performance, posting our fifth consecutive quarter of revenue growth exceeding 40% from the corresponding prior year period,” ShotSpotter CEO Ralph Clark states in an announcement. “In the first quarter we went live with initial deployments in four new cities and expanded coverage in four others, turning on 47 net new go-live miles.”

The company now has approximately 522 miles under coverage in the United States, which represents only a fraction of the cities in the U.S. that have a significant gun violence problem, Clark says.

In Q1, ShotSpotter posted adjusted EBITDA of $26,000, which Imperial Capital said in a research note bested its estimate of a $975,000 loss.

ShotSpotter shares have more than doubled since the beginning of the year. Imperial Capital said it is maintaining an outperform rating and raising its one-year price target to $35 from $24, about 15% above the recent share price.

As part of its rationale, Imperial Capital highlights that ShotSpotter added 47 net new go-live square miles of coverage in Q1, a 62% increase from the 29 go-live square miles added in the same period the prior year.

Moreover, the one-year price target of $35 is based on EV/Sales of 5.5x Imperial Capital’s FY20 sales estimate of $63 million. The valuation implies an enterprise value of $360 million.

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About the Author


Although Bosch’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. Prior to joining SECURITY SALES & INTEGRATION in 2006, he spent 15 years with the Los Angeles Times, where he performed a wide assortment of editorial responsibilities, including feature and metro department assignments as well as content producing for Bosch is a graduate of California State University, Fresno with a degree in Mass Communication & Journalism. In 2007, he successfully completed the National Burglar and Fire Alarm Association’s National Training School coursework to become a Certified Level I Alarm Technician.

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