ShotSpotter Stock Posts Strong Growth
Campus shootings. Angry protestors. Calls for gun control.
The media is full of these topics in the U.S. these days. There are continuous debates on how to bring gun violence under control. But there is no consensus or clear solution.
However, there is one company that is deploying its technology to secure campuses and other high-risk communities in the event of such incidents.
Shotspotter Inc (NASDAQ:SSTI) is a leading player with technology that detects gunshots. This helps law enforcement officials and security personnel identify, locate, and respond to these incidents as quickly as possible.
ShotSpotter Inc’s software is being used by customers located in the U.S. and South Africa. The growing demand for the technology has helped ShotSpotter stock gain substantially since last year.
ShotSpotter’s gunshot location technology can detect outdoor threats and provide a complete dome of protection for a campus, building, or facility.
The company’s “ShotSpotter Flex” is deployed in urban, high-crime areas to help deter gun violence. The system accurately detects and locates gunshots and then sends near real-time alerts to law enforcement.
Its intelligent sensors are Internet-enabled devices that ignore ambient noise. They respond to impulsive sounds and can alert authorities within 45 seconds of a gunshot.
Through its leading technology, ShotSpotter helps in ensuring safety for schools and other institutions. ShotSpotter’s security solutions are like a fire alarm for active shooter events. They can offer a life-saving time advantage when it is needed.
A recent report by CNN says that there have already been 23 school shootings in the 21 weeks of 2018 so far. (Source: “There has been, on average, 1 school shooting every week this year,” CNN, May 25, 2018.)
In ShotSpotter’s latest annual report, mention has been made of a 2016 FBI report. According to the report, the number of active-shooter events in the U.S. in 2014 and 2015 was among the highest for any two-year average period in the preceding 16 years. (Source: “ShotSpotter, Inc Form 10-K (Annual Report),” March 28, 2018.)
Moreover, response time is critical. Nearly 70% of active-shooter events last five minutes or less with over one-third ending in two minutes or less. This is according to a 2013 study conducted by the FBI of active-shooter events.
With gun-related crimes on the rise, the value of what ShotSpotter is offering cannot be overemphasized. There will likely be increased demand for gunfire detection and location notification solutions in the coming years.
And ShotSpotter is a leading player in this space. This bodes well for SSTI stock going forward.
The company announced its first-quarter results this month. The quarterly revenues grew by 51% to $6.9 million from $4.6 million in the same period last year. (Source: “ShotSpotter Reports First Quarter 2018 Financial Results,” ShotSpotter Inc, May 8, 2018.)
Although ShotSpotter has yet to turn out a profit, the growth rate has been quite impressive. This was the fifth consecutive quarter when the revenue growth was more than 40%.
The company made its debut in June 2017, with the SSTI stock price soaring by over 25% on the first day. Since then, the stock has almost doubled, as the following SSTI stock chart shows.
Chart courtesy of StockCharts.com
Gun violence is a persistent problem with no short-term solution in sight. With increased demands for campus security, ShotSpotter’s technology stands to gain in the future. It provides a real-time advantage through alerts, which can help first responders save more lives in an active-shooter situation.
The company may be small right now, but as the problem gets bigger in the U.S. as well as globally, the demand for its technology should grow. Investors may want to consider ShotSpotter stock for the long term.