ShotSpotter, Inc. (NASDAQ:SSTI) Q4 2023 Earnings Call Transcript

Alan Stewart: Sure. This is Alan. So the nice thing about having more products now is that as the revenue grows, the cost of goods sold does not grow as much and the gross margin is going to increase. We haven’t given guidance on gross margin for ’24, but we expect it to be around 60%, which will be higher than we ended this year. And that’s as the — all of the products that we have continue to grow revenue, we don’t necessarily have to increase so much in COGS. The other thing, too, is SafePointe is brand new for us. So there’s a little bit of expense there as we continue to build up the solution. It’s also a software solution. The other ones are software solutions, even if they have some sort of sensors that are related to it, going closer to some of the higher gross margins for those solutions as well as Ralph mentioned, international when we go live in miles internationally, they have a significantly higher gross margin.

So we still believe that ultimately in the next couple of years, we’ll be around that 70% or maybe even a little more.

Unidentified Participant: Okay. Thank you.

Operator: At this time, this concludes our question-and-answer session. If your question was not taken, you may contact SoundThinking’s Investor Relations team by e-mailing ssti@gateway-grp.com. I’d now like to turn the call back over to Mr. Clark for his closing comments.

Ralph Clark: Great. Thank you very much. I want to thank everyone for joining today’s call and looking forward to hopefully seeing many of you on our Investor Day, which is currently scheduled for March 14. Thank you very much and be safe.

Operator: Thank you for joining us today for our call. You may now disconnect.