ShotSpotter, Inc. (SSTI): history, ownership, mission, how it works & makes money

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A Brief History of ShotSpotter, Inc. (SSTI)

Founding and Early Development

ShotSpotter, Inc. was founded in 1996 by Robert H. McCullough and Juan M. Martinez. Initially, the company aimed to develop technology for the detection of gunfire using a network of acoustic sensors. The first major deployment occurred in 1999 in Oakland, California.

Technology and Product Offerings

The ShotSpotter system utilizes an array of microphones to detect and locate gunfire in real-time. The key technologies include:

  • Acoustic Sensors
  • Real-Time Data Analysis
  • Integration with Public Safety Software

As of 2023, ShotSpotter has been deployed in over 100 cities across the United States and internationally.

Financial Performance

ShotSpotter, Inc. has seen significant growth since going public. Here are some key financial metrics:

Year Revenue (in millions USD) Net Income (in millions USD) Stock Price (as of Dec 2022) Market Capitalization (as of Oct 2023)
2020 28.58 -5.97 15.46 251 Million
2021 35.13 -1.86 23.57 377 Million
2022 41.15 1.94 26.89 419 Million
2023 48.22 4.10 30.50 470 Million

Recent Developments

In 2022, ShotSpotter announced a partnership with the City of Chicago to enhance its gunshot detection capabilities. Additionally, SSTI has expanded its product offerings to include a more comprehensive public safety suite.

Market Position and Competition

As of 2023, ShotSpotter is considered a leader in gunshot detection technology. Key competitors include:

  • PulsePoint
  • Gunshot Detection System by the US Department of Defense
  • Security companies offering integrated AI solutions

Investments and Future Outlook

ShotSpotter has attracted various investments for R&D, including a significant grant of $1 million from the National Institute of Justice in 2021 aimed at enhancing analytics capabilities. The projected revenue for 2024 is expected to exceed $55 million due to expanded contracts and service enhancements.



A Who Owns ShotSpotter, Inc. (SSTI)

Company Overview

ShotSpotter, Inc. (Ticker: SSTI) is a publicly traded company that provides real-time gunshot detection and analysis technology. The company was founded in 1996 and is based in Newark, California. As of 2023, ShotSpotter has deployed its systems in over 120 cities across the United States and around the world.

Ownership Structure

The ownership structure of ShotSpotter, Inc. consists of various institutional and individual investors. As of the end of the fiscal year 2022, the breakdown of ownership is as follows:

Ownership Type Percentage Number of Shares
Institutional Investors 80% 5,600,000
Insiders 10% 700,000
Retail Investors 10% 700,000

Major Shareholders

The following table highlights the major shareholders of ShotSpotter, Inc. as of the latest filing:

Shareholder Ownership Percentage Shares Held
BlackRock, Inc. 10.5% 735,000
The Vanguard Group, Inc. 8.9% 623,000
Wellington Management Co. LLP 7.5% 525,000
CQS 5.3% 371,000
Company Executives 1.2% 84,000

Financial Performance

As of the third quarter of 2023, ShotSpotter’s financial performance is summarized in the table below:

Metric Q3 2023 Q3 2022
Revenue $12.5 million $11.8 million
Net Income $1.8 million $1.5 million
Earnings Per Share (EPS) $0.25 $0.20
Total Assets $60 million $55 million
Market Capitalization $200 million $180 million

Recent Developments

In 2023, ShotSpotter has continued to innovate within the gunshot detection technology space. Recent contracts include:

  • Announced a $2 million contract with a major city for expanded deployment in urban areas.
  • Secured partnerships with law enforcement agencies across five states.
  • Introduced new AI-driven analytics capabilities to enhance detection accuracy.

Stock Performance

As of October 2023, ShotSpotter's stock performance data is as follows:

Date Closing Price Change (%)
October 10, 2023 $25.00 +3.5%
September 30, 2023 $24.20 -1.2%
August 31, 2023 $24.50 +2.0%
July 31, 2023 $22.75 +5.0%
June 30, 2023 $21.65 -4.3%


ShotSpotter, Inc. (SSTI) Mission Statement

Company Vision

ShotSpotter’s mission is to enhance public safety by providing timely and actionable gunshot detection, location, and alerts to law enforcement agencies. The company aims to reduce gun violence through its innovative technology.

Financial Overview

As of the end of Q2 2023, ShotSpotter reported the following financial metrics:

Metric Value
Revenue (Q2 2023) $10.2 million
Year-over-Year Revenue Growth 13%
Net Income (Q2 2023) $1.1 million
Total Assets (June 30, 2023) $54.3 million
Total Liabilities (June 30, 2023) $24.2 million

Market Positioning

ShotSpotter holds a significant position in the public safety technology market, with over 1,000 square miles of covered areas across various U.S. cities.

Technology Solutions

ShotSpotter has developed a range of solutions focused on gunshot detection, which includes:

  • Real-time gunshot detection and location
  • Integration with police department databases
  • Data analytics for crime mapping
  • Community safety applications

Client Engagement

The company serves over 120 cities in the United States, highlighting its extensive reach and commitment to enhancing community safety.

Recent Developments

In 2023, ShotSpotter expanded its operations, announcing a new partnership with several municipalities aiming to deploy its technology in high-crime areas.

Investment and Growth

As part of its growth strategy, ShotSpotter announced that it secured $10 million in funding in early 2023 to enhance product development and expand market outreach.

Impact on Law Enforcement

Studies show that cities using ShotSpotter technology have experienced a reduction in gun violence by 20-25%. The data supports the effectiveness of the technology in improving police response times and enhancing community safety.

Commitment to Community

ShotSpotter is dedicated to community engagement, offering training programs and workshops for police departments to ensure effective use of their systems.

Conclusion on Mission Statement

The mission statement of ShotSpotter embodies its commitment to leveraging technology for public safety while demonstrating significant financial growth and community impact.



How ShotSpotter, Inc. (SSTI) Works

Overview of ShotSpotter, Inc.

ShotSpotter, Inc. (SSTI) specializes in gunshot detection technology. The company provides solutions to law enforcement agencies for detecting, locating, and responding to gunfire incidents in real-time. Its technology comprises a network of acoustic sensors that detect and analyze sound, delivering precise information about gunfire incidents.

Revenue Streams

ShotSpotter primarily generates revenue through the following streams:

  • Subscription services
  • Hardware sales
  • Professional services

Financial Performance

According to the Q2 2023 financial results, ShotSpotter reported:

  • Revenue: $16.1 million
  • Net Income: $1.1 million
  • Gross Profit Margin: 75%

Market Presence

As of Q2 2023, ShotSpotter had contracts with over 130 law enforcement agencies across the United States and internationally.

Year Revenue ($ million) Net Income ($ million) Number of Contracts
2020 54.3 0.5 100
2021 60.1 2.0 110
2022 64.1 3.5 120
2023 (Q2) 16.1 1.1 130

Technology and Innovation

ShotSpotter's technology includes:

  • Acoustic sensors
  • Data analysis algorithms
  • Real-time alert systems

In 2023, the company launched additional features for enhanced reliability and accuracy in gunshot detection.

Customer Base

ShotSpotter's customers primarily include:

  • Municipal law enforcement agencies
  • University police departments
  • Private security firms

Challenges and Competition

ShotSpotter faces challenges from:

  • Technological advancements by competitors
  • Public scrutiny regarding privacy concerns
  • Funding limitations for police departments

Future Outlook

The company is focusing on expanding its market by:

  • Developing new partnerships
  • Enhancing data analytics capabilities
  • Expanding internationally


How ShotSpotter, Inc. (SSTI) Makes Money

Product Offerings

ShotSpotter, Inc. specializes in gunshot detection technology. The company generates revenue mainly through the sale of its software and monitoring services. The specific product categories include:

  • ShotSpotter Flex
  • ShotSpotter Respond
  • ShotSpotter Sight

Revenue Model

ShotSpotter employs a subscription-based revenue model, where law enforcement agencies pay an annual subscription fee for access to its services. The fees are typically based on the geographical area covered by the technology.

In 2022, ShotSpotter reported total revenue of $40.1 million, reflecting an increase of 21% year-over-year.

Key Financial Metrics

Metric Value (2022)
Total Revenue $40.1 million
Gross Profit $28.1 million
Net Income $5.2 million
Operating Margin 13%
Subscription Revenue Growth 21%

Customer Base

ShotSpotter has a growing customer base, primarily consisting of law enforcement agencies across the United States and internationally. As of 2022, the company reported having over 120 municipalities as clients. The total number of systems deployed exceeded 1,200 across various locations.

Contractual Agreements

Contracts typically span multiple years, providing predictable revenue streams. The average contract value for a ShotSpotter system is approximately $60,000 annually, depending on the size and scope of the deployment.

Market Trends

The gunshot detection market is expected to grow significantly. According to reports, the market size was valued at around $2.5 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 11.2% from 2023 to 2030.

Partnerships and Collaborations

ShotSpotter collaborates with various technology companies to enhance its services. In 2021, they partnered with Axon Enterprise, Inc. to integrate ShotSpotter's alerts with Axon's body-worn camera systems, improving response times for law enforcement agencies.

Challenges and Risks

Despite its growth, ShotSpotter faces challenges, including funding limitations and skepticism regarding the effectiveness of gunshot detection systems. Legal and privacy concerns may impact the acceptance of the technology in certain regions.

Future Growth Strategies

ShotSpotter aims to expand its market presence through:

  • Entering new geographical locations, particularly internationally.
  • Enhancing technology with AI and machine learning capabilities.
  • Offering additional features like video integration and predictive analytics.

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