Shotspotter Inc
NASDAQ:SSTI
Shotspotter Inc
ShotSpotter, Inc. provides gunshot detection solutions. The company is headquartered in Fremont, California and currently employs 167 full-time employees. The company went IPO on 2017-06-07. The firm's flagship public safety solution, ShotSpotter Respond is an outdoor gunshot detection, location, and alerting system. Its security solutions, ShotSpotter SecureCampus, and ShotSpotter SiteSecure, are designed to help law enforcement and security personnel serving universities, corporate campuses, big-box retail, malls and key infrastructure or transportation centers mitigate risk and enhance security by notifying authorities of a potential outdoor gunfire incident, saving critical minutes for first responders to arrive. The firm offers its solutions on a software as a service (SaaS) subscription model to its customers. The firm's case management solution, ShotSpotter Investigate, is a cloud-based investigative platform to help law enforcement agencies to work with software tools. Its ShotSpotter Labs uses technology to protect wildlife and the environment.
ShotSpotter, Inc. provides gunshot detection solutions. The company is headquartered in Fremont, California and currently employs 167 full-time employees. The company went IPO on 2017-06-07. The firm's flagship public safety solution, ShotSpotter Respond is an outdoor gunshot detection, location, and alerting system. Its security solutions, ShotSpotter SecureCampus, and ShotSpotter SiteSecure, are designed to help law enforcement and security personnel serving universities, corporate campuses, big-box retail, malls and key infrastructure or transportation centers mitigate risk and enhance security by notifying authorities of a potential outdoor gunfire incident, saving critical minutes for first responders to arrive. The firm offers its solutions on a software as a service (SaaS) subscription model to its customers. The firm's case management solution, ShotSpotter Investigate, is a cloud-based investigative platform to help law enforcement agencies to work with software tools. Its ShotSpotter Labs uses technology to protect wildlife and the environment.
Revenue Miss: Q3 revenue came in at $25.1 million, down 4% year-over-year and below expectations due to contract delays in Puerto Rico, Brazil, and a major state CrimeTracer deal.
Lowered Guidance: Full-year 2025 revenue guidance was reduced to $104 million (from $111-113 million), and adjusted EBITDA margin guidance cut to 14-15% (from 20-22%).
Contract Delays: $6.4 million in expected 2025 revenue was pushed out due to three large deals not closing as planned, most notably in CrimeTracer and ShotSpotter renewals.
Sales Execution Changes: Management acknowledged sales execution issues and is realigning the sales team and go-to-market approach to improve booking conversion.
Margin Pressure: Gross margin slipped to 54%, primarily due to the delayed high-margin contracts.
Strategic Progress: The company highlighted momentum in SafePointe (weapons detection), AI-driven product enhancements, hospital market traction, and international expansion.
Customer Retention: Customer retention and satisfaction improved, with a Net Promoter Score rising to +70 and over 90% satisfaction in key service areas.
Cautious 2026 Outlook: 2026 revenue guidance set at $114-116 million with adjusted EBITDA margin guidance of 18-20%, but management was conservative due to uncertain timing of large deals.
