Nasim Golzadeh, an executive at SoundThinking, Inc. (NASDAQ:SSTI), recently sold 415 shares of the company's common stock. The shares were sold at prices ranging from $11.62 to $11.64, amounting to a total transaction value of $4,826. Following this transaction, Golzadeh holds 67,666 shares in the company. The sale was made to cover tax withholding obligations related to the vesting of restricted stock units, as noted in the filing.
In other recent news, SoundThinking's third-quarter results showed a 10% rise in revenue to $26.3 million, with year-to-date revenues up by 18% to $78.6 million. However, the company missed on adjusted EBITDA due to lower gross margins. Despite this, Craig-Hallum maintains a Hold rating on the stock, albeit with a reduced price target.
SoundThinking expanded its presence into four new cities and a university, and its international reach into Uruguay. Its SafetySmart platform saw 15 new implementations during Q3. The company also anticipates the renewal of its ShotSpotter contract in New York City, an event that analysts from Craig-Hallum suggest could trigger a relief rally in the company's shares.
Despite these positive developments, SoundThinking's initial guidance for fiscal year 2025 fell short of consensus expectations. The company projects its 2025 revenue to be between $107 million and $109 million, with adjusted EBITDA margins forecasted at 19% to 21%. These are recent developments and reflect the company's ongoing efforts to grow and expand its operations.
InvestingPro Insights
While Nasim Golzadeh's recent stock sale was relatively small and for tax purposes, it's worth examining SoundThinking's broader financial picture. According to InvestingPro data, the company's market capitalization stands at $147.92 million, with a revenue of $104.67 million over the last twelve months as of Q3 2023. This represents a robust revenue growth of 19.39% during the same period.
InvestingPro Tips highlight that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. Additionally, SoundThinking holds more cash than debt on its balance sheet, potentially providing financial flexibility in uncertain economic times.
However, it's important to note that the company is not currently profitable, with a negative operating income of $4.07 million over the last twelve months. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for SoundThinking, providing a deeper understanding of the company's financial health and market position.
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