Investor Presentation
March 2024
DISCLAIMER
Cautionary Note Regarding Forward-Looking Statements
This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited
to statements regarding the company's business plans, international expansion, expectations regarding future sales and expenses, ability to capitalize on market opportunities, the ability
to achieve near- and long-term growth and profitability estimates, anticipated timing and volume of customer contract renewals, and revenue growth and GAAP profitability. Words such as "expect," "anticipate," "should," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the company's control. The company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the company's ability to successfully negotiate and execute contracts with new and existing customers in a timely manner, if at all; the company's ability to maintain and increase sales, including sales of the company's newer product lines; the availability of funding for the company's customers to purchase the company's solutions; the complexity, expense and time associated with contracting with government entities; the company's ability to maintain and expand coverage of existing public safety customer accounts and further penetrate the public safety market; the potential effects of negative publicity; the company's ability to sell its solutions into international and other new markets; the lengthy sales cycle for the company's solutions; changes in federal funding available to support local law enforcement; the company's ability to deploy and deliver its solutions; and the company's ability to maintain and enhance its brand; and the company's ability to address the business and other impacts and uncertainties associated with macroeconomic factors, as well as other risk factors included in the company's most recent annual report on Form 10-K or quarterly report on Form 10-Q and other SEC filings. These forward-looking statements are made as of the date of this presentation and are based on current expectations, estimates, forecasts and projections as well as the beliefs and
assumptions of management. Except as required by law, the company undertakes no duty or obligation to update any forward-looking statements contained in this presentation as a result
of new information, future events or changes in its expectations.
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Introducing the SafetySmart Platform
The SafetySmart Platform brings together specialized software solutions and objective data to help law enforcement, civic leadership, and private entities better protect their communities by ensuring the right
resources are provided when and where they're needed most.
Tackling the challenges facing
Law Enforcement Today
Across the country, law enforcement agencies are being pushed to their limit in the face of high crime levels and staffing shortages. Agencies need to be evidence- based and proactive, all while putting the
community's needs front and center.
3
The Public Safety Gap
1
Increasing Need for Law
Enforcement with Rising Crime Rate
Gun-related Violence Spiked in
Recent Years1,2
2
Rise of customer
Police Departments Nationwide
experienceFacing Staff Shortages3
management
18%
3
Government Focuses
on "Refunding the Police"
Continuous Increase in Government
Spending on Police Protection4
20,951 deaths
13,570 deaths
20152021
Increase in Resignation
45%
Increase in Retirement
$123bn
$105bn
2015 | 2019 |
16 of 23
Major US Cities
Increased FY22
Police Budgets
$30bn
Federal Resource
Dedicated to Law
Enforcement5
"Murders in the U.S. rose nearly 30% in 2020 from the prior year and remained at elevated levels in 2021. About 8 in 10 murders were
committed with guns in 2020."
86%
Police Departments Reported
Staffing Shortage
"As violent crime surges ahead…[officials]
are toughening their talk on crime, and refunding the police."
Structural Tailwinds Creating a Need for Technology in Order to Do More with Less
Source: Public news, The White House briefing, Urban Institute, US Census Bureau | |
1 Reflects data from 67 out of 70 police agencies of select major cities in 2019, and 70 out of 70 for 2020 and 2021; 2 Includes homicides, murders, unintentional shooting, and | 4 |
defensive use deaths; 3 PERF Special Report. Surveys from 194 police national agencies; 4 Reflects total state and local government spending on police protection; 5 Figure |
represents President Biden's proposal for new mandatory resources to support law enforcement and crime prevention
The SafetySmart Platform
ShotSpotter | ResourceRouter | Casebuilder | CrimeTracer | ||||||||||||||||
Proven Gunshot Detection | Community-First Patrol Mgmt. | Case Investigative Tools | Law Enforcement Platform | Weapons Detection Platform | |||||||||||||||
▪ | Increases police response | ▪ | Proactive patrol management | ▪ | Collaboration tools | ▪ | Industry's leading search | ▪ | Low-friction screening sensors | ||||||||||
speed to gun crime scenes | ▪ | Controls / limits over-policing | ▪ | Links analysis connect people, | engine for law enforcement | ▪ | AI-based learning software | ||||||||||||
▪ | Improves evidence recovery | ▪ | Mitigates implicit bias | place and property | ▪ | 1.3bn+ law enforcement | detects guns, explosives and | ||||||||||||
▪ | Saves lives | ▪ | Identifies cases needing | records | tactical knives | ||||||||||||||
attention | ▪ | Accelerates investigations | ▪ | Cost advantage in market | |||||||||||||||
%ARR 2022: | %ARR 2025E: | %ARR 2022: | %ARR 2025E: | %ARR 2022: | %ARR 2025E: | %ARR 2022: | %ARR 2025E: | %ARR 2025E: | |||||||||||
76% | 58% | 1% | 2% | 13% | 17% | 10% | 8% | 15% | |||||||||||
Cities / Local Law Enforcement | Federal, State, and Local Law Enforcement | Private Sector |
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Public Safety and Security Market Landscape
LE Adjacencies | CCTV | ||
($25bn) | 3 | ||
TBD | |||
Current LE | |||
Solutions | |||
($2.5bn) 2 | |||
Pre- | Records | ||
Acquisitions | |||
($1.5bn)1 | Management | ||
Systems |
($3B
9% growth)4
1
Gunshot 2
Detection
Investigative Search,
Case Mgt, Patrol Mgt
Security
(>$115bn US8) | Access | ||
Controls | |||
($2.5B)7 | Video & | ||
Surveillance | |||
($4.3B)7 | |||
Digital | |||
Forensics | RTCC | Concealed Weapons | |
($10B, 12% growth)3 | |||
TBD | Detection | ||
($20B)8 | |||
Digital | |||
Evidence | |||
LPRs | Mgt | ||
CAD | ($2.5B | TBD | |
($1.8B | 15% growth)5 | ||
11% growth)6
3
Concealed Weapons
Detection
1 | - Includes domestic opportunities in security, police departments, domestic commercial, and international opportunities | 5 | - Emergent Research + Internal Estimate | |
2 | - As presented in the June 2023 Investor Presentation | 6 | - Grand View Research | 6 |
3 | - SNS Insider Report | 7 | - Imperial Capital Security Update 2022 | |
4 | - Business Insight Research | 8 | - Cantor Fitzgerald | |
SoundThinking, Inc. at a Glance
$2.5bn+
Smart Policing
TAM
107%
Net Revenue
Retention Rate3
~280
Paying Customers
$92.7mm
2023 Revenue1
99%
Gross Retention
Rate4
~1,100mi2
Coverage Area6
~23%
2021A-2025E
Revenue CAGR2
$0.52
Of S&M Spend to
Generate $1 of ACV5
1.3bn
Data Records
(CrimeTracer)
15%
2023 Adj. EBITDA
Margin1
64
NPS Score
34
Patents
Note: Except as otherwise noted, data is as of September 30, 2022
1 Actual 2 Includes the acquisition impact from Forensic Logic; 3 As of December 31, 2023; Based on revenue; Calculated as dividing the (a) total revenues for such year from
those customers who were customers during the corresponding prior year by (b) the total revenues from all customers in the corresponding prior year; 4 Excludes downsell; 5 | 7 |
Reflects S&M expense per $1 of new Annualized Contract Value as of December 31, 2023. Calculated as total S&M expense during the year / the first 12 months of contract value for contracts entered into during the same year; 6 Includes all product lines
COMPETITIVE LANDSCAPE
Strong Competitive Advantages
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STRONG | ||||||||||||||||||||
IP
SoundThinking uniquely positioned to capitalize on attractive TAM
HIGHLIGHTS
NET PROMOTER SCORE
64 World Class Level1
TRUSTED RELATIONSHIPS WITH THE MOST DEMANDING LAW ENFORCEMENT AGENCIES
160+ Law Enforcement Agencies
EXPERIENCE CURVE
Years experience in
20+deployingsensors and managing
1st Early mover status in other categories
STRONG IP
34 Patents1
1 As of December 31, 2023 | 8 |
Uniquely positioned to capture several organic and inorganic growth vectors
7 | ||
Best-in-class | ||
6 | customer retention | |
5 | Strategic M&A |
4 | International | ||||||||
3 | |||||||||
Product | expansion | ||||||||
2 | Square miles | innovation | |||||||
1 | Cross-sell | expansion | |||||||
New customer | products | ||||||||
acquisition | |||||||||
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TIMELINE
Corporate Timeline
Acquires | ||||
Further Expands | HunchLab | |||
Transitions to | into Chicago | AI-base Predictive | ||
Policing Solution | ||||
Cloud-Based | NYPD Adopts | Initial Public | ||
(Now | ||||
SoundThinking | SaaS Model | ShotSpotter | Offering | ResourceRouter) |
Founded | Transitions to Recurring | at $11.00 per | ||
share | ||||
Revenue Model and | ||||
Creation of Incident | ||||
Review Center |
Acquires | |||
SafePointe | |||
Acquires | Intelligent Weapons | ||
Forensic Logic | |||
Detection Solution | |||
Expands | Crime Analytics | ||
Beyond Law | Platform | ||
Acquires Leeds | (now CrimeTracer) | ||
Enforcement | |||
Investigative Case | |||
Management Solution | |||
(Now CaseBuilder) |
Land, Expand,
Cross-Sell, & Retain
International
Expansion
New Products
ST Labs
Tuck-In
M&A
1996 | 2010 | 2015 | 2017 | 2018 | 2020 | 2021 | 2022 | 2023 | Future | |||
Leader in Outdoor Gunshot Detection | Multi-Product Adoption | Becoming the Precision Policing Platform | ||||||||||
Revenue ($mm) | $12 | $24 | $35 | $46 | $58 | $81 | $93 | |||||
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Disclaimer
SoundThinking Inc. published this content on 15 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2024 21:30:39 UTC.