ShotSpotter, Inc. (NASDAQ:SSTI) Q3 2023 Earnings Call Transcript

Michael Latimore: Yes. Great. And then in terms of the September quarter, can you just discuss how bookings were in the quarter, both kind of new and upsell?

Ralph Clark: Alan, do you want to take that?

Alan Stewart: Bookings for SafePointe, and bookings for across the board?

Michael Latimore: For Q3… For Q3. Just for Q3, just did it grow sequentially year-over-year? Just any color on booking?

Alan Stewart: Yes. Well, I think the nice thing is our pipeline is still incredibly strong across all of our products, right? So we continue to see bookings go relatively well in most of our solutions. There are still some that we’re working that are starting to ramp up a little bit and things we’ve had a little bit of slowness in the past like ResourceRouter although that’s actually ramping up now. And as Ralph mentioned earlier, we see things like New Jersey that are adding new kinds of possibilities for funding for the ShotSpotter solutions, and then you get like Philadelphia Housing Authority. There’s a lot of things like that in terms of actual bookings that are going incredibly well. So I would say it’s significant. It’s certainly similar to what we’ve seen in the past several quarters. It’s going to keep things going relatively positive.

Michael Latimore: Great. And then just last one on SafePointe. Clearly, increasing the sales and marketing emphasis there. How about just on the technology side of things? Do you feel like you’re going to increase R&D for them? Or do you feel like it’s a pretty good well positioned right now.

Alan Stewart: Yes. This is Alan. Well, I’ll go ahead and start, and then Ralph can add. So we’re definitely adding capability in R&D. They have a great R&D team already, had several things that they were planning over the next year. We’re helping them accelerate that as well as looking at other things that we can do to improve the technology across the board. So not only are we adding capabilities in marketing and sales. We’re also adding capability and deployment and R&D to keep things moving quite quickly and improve to the extent we can any of the technology as well.

Ralph Clark: And I did want to say one more thing that [indiscernible] did ask about in terms of enterprise targets and large hospital groups and things like that. The short answer is we are looking at those kind of things. There are more than just small customers are going to ask for 5 or 10 lanes. There are significantly larger opportunities as well. Just wanted to make sure that we did cover that tail.

Operator: Our next question comes from Yi Fu Lee of Cantor Fitzgerald.

Yi Fu Lee: Congrats Ralph and Alan on the strong revenue execution. Maybe start with the expansion of the leadership team. I know you brought on a lot of talents [indiscernible] Greg, Larry, you mentioned Anne, Mark and today, right? I was wondering on the bundled product strategy going forward, right? How would you think this new management team will help with this key strategy, assuming you let with ShotSpotter first and then you upsell to other products. Maybe you could comment on that.

Ralph Clark: Yes. So this is Ralph. So as you’ve noted, we’ve added a lot of firepower to the senior leadership team. And kind of principally one of the things that we did to your specific question around product management is we basically split up the marketing function, which had been done by one individual. And now we kind of split marketing up into kind of our outbound kind of brand marketing pipeline development, marketing organization led by Greg Greg Makuch along with a new separate marketing function led by Sam Klepper that’s focused exclusively on product management. And when I say product management, I mean product management, not only in terms of the individual solution set, but also our SafetySmart platform and how we’re working to kind of integrate our solutions to have a much more powerful integrated capability, not only in terms of look and feel, but also in terms of functionality.