SoundThinking Announces ShotSpotter Renewal with New York Police Department

Rhea-AI Summary

SoundThinking (Nasdaq: SSTI) announced a multi-year renewal of its partnership with the New York Police Department (NYPD) for its ShotSpotter acoustic gunshot detection service. The contract renewal is valued at $21.8 million.

ShotSpotter has been deployed in New York City since 2015, helping to address unreported gunfire incidents, which can exceed 80% of total instances. The system maintains high accuracy rates, achieving 94% in 2024, exceeding the contractually required 90%. The technology has contributed to reduced response times, improved evidence collection, and enhanced community trust.

The three-year extension reinforces the successful partnership between SoundThinking and NYPD in their efforts to combat gun violence and protect New York City communities.

Positive

• Secured $21.8 million multi-year contract renewal with NYPD
• Demonstrated strong performance with 94% accuracy rate in 2024, exceeding 90% requirement
• Maintains long-term partnership since 2015 with major law enforcement agency

Negative

• None.

Insights

Public Safety Technology Analyst

The $21.8 million contract renewal with NYPD represents approximately 12.8% of SoundThinking's current market capitalization, making this a substantial win for the company. The three-year extension provides essential revenue visibility and strengthens the company's recurring revenue base, a important metric for SaaS investors.

The renewal carries strategic significance beyond its monetary value. SoundThinking's 94% accuracy rate, exceeding the contractual requirement of 90%, demonstrates superior technology performance and creates a formidable barrier to entry for competitors. The nearly decade-long relationship with NYPD has resulted in significant switching costs, as the department has integrated ShotSpotter into its operations and built institutional knowledge around the system.

From a market perspective, the 80% unreported gunfire statistic reveals a persistent need for gunshot detection technology, suggesting a stable, long-term market opportunity. The NYPD renewal serves as a powerful reference case for other major metropolitan areas, potentially catalyzing additional contract wins or renewals. This is particularly relevant as cities globally focus on modernizing their law enforcement technology infrastructure.

The contract's structure as a multi-year agreement contributes to predictable cash flows and reduces customer churn risk. For investors, this translates to improved revenue quality and potentially lower cost of capital, as the company demonstrates its ability to maintain and expand relationships with flagship customers.

Summary: SoundThinking, Inc. today announced a multi-year renewal of its partnership with the New York Police Department for the deployment of ShotSpotter, the industry-leading acoustic gunshot detection system.

FREMONT, Calif., Feb. 18, 2025 (GLOBE NEWSWIRE) -- SoundThinking, Inc. (Nasdaq: SSTI), a leading public safety technology provider, today announced that the New York Police Department (NYPD) renewed its ShotSpotter acoustic gunshot detection service. The multi-year contract renewal is valued at approximately $21.8 million in aggregate.

Since it was first deployed in New York City in 2015, ShotSpotter has been an effective, accurate, and unbiased tool utilized by the NYPD to fill the gap in the amount of gunfire that goes unreported to 911, which can exceed 80% of total instances, according to independent research. Over the years of deployment, ShotSpotter has helped to reduce response times to gunfire incidents, assist with evidence collection, locate victims and save lives, and importantly, build trust between law enforcement and underserved communities. SoundThinking is contractually obligated to NYPD to maintain a 90% accuracy rate for the quick and precise triangulation of gunfire. In 2024, the average monthly accuracy rate was 94%.

“SoundThinking has partnered with NYPD for nearly ten years, and this three-year extension demonstrates our continued shared commitment to that partnership,” added Ralph Clark, President and CEO of SoundThinking. “We are grateful to know that our technology is seen as making a real difference in NYPD’s gun violence response strategy to have officers rapidly pinpoint and respond to gunfire, ultimately helping to save lives and better protect New York City communities.”

About SoundThinking

SoundThinking, Inc. (Nasdaq: SSTI) is a leading public safety technology company that delivers AI- and data-driven solutions for law enforcement, civic leadership, and security professionals. SoundThinking is trusted by more than 300 customers and has worked with approximately 2,100 agencies to drive more efficient, effective, and equitable public safety outcomes. The company’s SafetySmart™ platform includes ShotSpotter®, the leading acoustic gunshot detection system; CrimeTracer™, the leading law enforcement search engine; CaseBuilder™, a one-stop investigation management system; ResourceRouter™, software that directs patrol and community anti-violence resources to help maximize their impact; SafePointe®, an AI-based weapons detection system; and PlateRanger powered by Rekor, a leading ALPR solution. SoundThinking has been designated a Great Place to Work^® Company.

Company Contact:
Jerome Filip, PR Manager
SoundThinking, Inc.
+1 (510) 203-0934
jfilip@soundthinking.com

Investor Relations Contact:
Ankit Hira
Solebury Strategic Communications for SoundThinking, Inc.
+1 (203) 546-0444
ahira@soleburystrat.com

FAQ

What is the value of SoundThinking's (SSTI) new NYPD contract renewal?

The multi-year contract renewal with NYPD is valued at approximately $21.8 million in aggregate.

What accuracy rate did SoundThinking's (SSTI) ShotSpotter achieve in 2024?

ShotSpotter achieved an average monthly accuracy rate of 94% in 2024, exceeding the contractually required 90%.

How long has ShotSpotter (SSTI) been deployed in New York City?

ShotSpotter has been deployed in New York City since 2015, marking nearly ten years of partnership with NYPD.

What percentage of gunfire incidents goes unreported to 911 according to SSTI's data?

According to independent research cited in the announcement, over 80% of total gunfire instances go unreported to 911.

How long is the new contract extension for SoundThinking (SSTI) with NYPD?

The new contract is a three-year extension with the New York Police Department.