Ralph A. Clark, the President and CEO of SoundThinking, Inc. (NASDAQ:SSTI), recently sold 574 shares of the company’s common stock. The shares were sold at prices ranging from $11.47 to $11.515, resulting in a total transaction value of approximately $6,595. Following this transaction, Clark holds 529,320 shares directly. The sale was conducted to cover tax obligations related to the vesting of restricted stock units, as noted in the filing.
In other recent news, SoundThinking’s Q3 2024 results exhibited a steady growth trajectory, with revenue rising by 10% to $26.3 million and year-to-date revenues increasing by 18% to $78.6 million. Despite a miss on adjusted EBITDA due to lower gross margins, the company expanded its presence, launching in four new cities and one university, and extended its partnerships with eight existing allies. Analyst firm Craig-Hallum maintained a Hold rating on the stock, albeit with a reduced price target, following these mixed results.
SoundThinking also achieved robust growth with 15 new implementations of its SafetySmart platform during the third quarter. The company anticipates its 2025 revenue to be between $107 million and $109 million, even after an $8.5 million loss from the Chicago contract, with adjusted EBITDA margins forecasted at 19% to 21%.
However, the company’s initial guidance for fiscal year 2025 fell short of consensus expectations, with the potential delay in the extension of the New York City contract identified as a key risk. Despite these challenges, SoundThinking remains optimistic about its future growth, underpinned by strong bookings for its SafePointe solution and nearly $7 million in PlateRanger bookings. These recent developments suggest the company’s potential for sustained growth.
InvestingPro Insights
The recent insider sale by SoundThinking’s CEO Ralph A. Clark comes amid a challenging period for the company’s stock performance. According to InvestingPro data, SoundThinking’s shares have seen a significant decline, with a year-to-date price total return of -54.03% as of the most recent data. This downward trend is further reflected in the stock’s current price, which stands at only 43.61% of its 52-week high.
Despite these headwinds, SoundThinking has shown some positive financial indicators. The company’s revenue growth remains robust, with a 19.39% increase over the last twelve months as of Q3 2024, reaching $104.67 million. Additionally, the company’s EBITDA growth of 36.23% over…
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