SoundThinking Q2 revenue misses estimates
Overview
SoundThinking Q2 revenue falls 4% yr/yr, missing analyst expectations, per LSEG data
Adjusted EPS and EBITDA for Q2 miss analyst estimates, per LSEG data
Company reaffirms FY 2025 revenue guidance of $111-113 mln
Outlook
SoundThinking reaffirms FY 2025 revenue guidance of $111 mln to $113 mln
Company expects ARR to grow from $95.6 mln to $110 mln by 2026
SoundThinking reaffirms FY 2025 Adjusted EBITDA margin of 20% to 22%
Result Drivers
CHICAGO CONTRACT NON-RENEWAL - Revenue decline primarily due to non-renewal of contract with City of Chicago
MAINTENANCE COSTS - Increased maintenance costs for existing deployments impacted gross profit
AI INVESTMENTS - Investments in AI capabilities aimed at enhancing product intelligence and developer productivity
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $25.90 mln | $26.30 mln (7 Analysts) |
Q2 Adjusted EPS | Miss | -$0.24 | -$0.11 (7 Analysts) |
Q2 Net Income |
| -$3.12 mln |
|
Q2 Adjusted EBITDA | Miss | $3.36 mln | $4.41 mln (6 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for SoundThinking Inc is $20.00, about 44.2% above its August 11 closing price of $11.17
Press Release: ID:nGNX9S4zCt
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