Shotspotter (NASDAQ: SSTI) reported Q3 EPS of ($0.13), $0.09 worse than the analyst estimate of ($0.04). Revenue for the quarter came in at $9.2 million versus the consensus estimate of $8.9 million.

• Revenues increased 35% to a record of $9.2 million, up from $6.8 million in the third quarter of 2017.
• Gross profit was 55%, up from 50% from the third quarter of 2017.
• Net loss totaled $1.4 million, an improvement from the net loss of $1.6 million for the same period in 2017.
• Adjusted EBITDA(1) totaled $199,000 versus a loss of ($156,000) in the same period of 2017.
• Added 36 net new “go-live” square miles of coverage during the quarter.
• Increases 2018 revenue guidance to a range of $34.4 million to $34.6 million, a 45% increase compared to the prior year.
• Establishes initial 2019 revenue guidance of $45 million to $47 million.

Management Commentary

“We made excellent progress in our long-term pursuit of serving the needs of law enforcement and municipal customers focused on addressing gun violence with our unique and patent-protected gunshot detection platform. This quarter we successfully increased revenues by 35% to a record $9.2 million and increased gross margin to 55% enabling gross profit to increase 49% from the prior year period. We added three new cities, a college campus, a highway project and expanded coverage in four existing city customers for a total of 36 net new go-live miles,” said Ralph Clark, CEO of ShotSpotter. “We also completed the acquisition of HunchLab, shortly after the quarter close, which we believe is synergistic with our platform, while materially expanding our addressable market. Further, we believe we have significantly increased our potential go-to-market footprint with our reseller arrangement with Verizon. Our focused execution on these and other strategic initiatives only increase our enthusiasm about ShotSpotter’s market relevance and prospects to deliver long-term growth.”

GUIDANCE:

Shotspotter sees FY2019 revenue of $45-47 million, versus the consensus of $45.65 million.

Shotspotter sees FY2018 revenue of $34.4-34.6 million, versus the consensus of $33.92 million.

For earnings history and earnings-related data on Shotspotter (SSTI) click here.