SoundThinking, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company generated revenues of $26.3 million for the third quarter, marking a 10% increase from $24.0 million in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $78.6 million, an 18% increase from $66.7 million in the prior year. This growth was primarily driven by new customer acquisitions and expansions in existing customer coverage areas, alongside contributions from the recently acquired SafePointe.

Despite the revenue growth, the company reported a net loss of $1.4 million for Q3 2024, an improvement from a net loss of $1.9 million in Q3 2023. For the nine-month period, the net loss was $5.1 million, down from $6.4 million in the same timeframe last year. The basic and diluted net loss per share also improved, from $(0.15) in Q3 2023 to $(0.11) in Q3 2024.

Total costs for the third quarter increased to $11.0 million, up from $10.2 million in the previous year, while total operating expenses rose to $16.3 million, reflecting higher personnel costs and investments in sales and marketing. The operating loss for Q3 2024 was $(1.0 million), a decrease from $(1.5 million) in Q3 2023.

The company’s cash and cash equivalents as of September 30, 2024, stood at $15.3 million, a significant increase from $5.7 million at the end of 2023. This improvement was attributed to a net cash provided by operating activities of $23.1 million for the nine months, compared to $10.6 million in the same period of 2023.

Strategically, SoundThinking has focused on expanding its product offerings, including the introduction of its SafetySmart™ platform in April 2023, which features tools like ShotSpotter® and CrimeTracer™. The acquisition of SafePointe in August 2023 has allowed the company to enter the AI-based weapons detection market, enhancing its service portfolio.

In terms of workforce management, the company undertook a restructuring in Q2 2024, resulting in a 3% reduction in headcount to streamline operations and reduce costs. Restructuring expenses for the nine months ended September 30, 2024, totaled $0.4 million.

As of September 30, 2024, SoundThinking had approximately 302 customers and had worked with around 2,100 agencies to improve public safety outcomes. The company continues to face challenges, including reliance on a limited number of suppliers and the complexities of government contracting, which may impact future revenue growth.