Good afternoon, and welcome to the ShotSpotter’s Third Quarter 2017 Earnings Conference Call. My name is Ben, and I will be your co-ordinator for today’s call. Joining us for today’s call are ShotSpotter’s CEO, Ralph Clark, and CFO, Alan Stewart. Please note that certain information discussed on the call today will include forward-looking statements about future events and ShotSpotter’s business strategy and future financial and operating performance. These forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict and may cause the actual results to differ materially from those stated or implied by those statements. Certain of these risks and assumptions are discussed in ShotSpotter’s SEC filings, including its registration statement on Form-S1. These forward-looking statements reflects Management’s beliefs, estimates and predictions as of the date of this live broadcast, November 7, 2017, and ShotSpotter undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this conference call. Finally, I’d like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the Company’s website at ir.shotspotter.com. I would now like to turn the call over to ShotSpotter’ CEO, Ralph Clark. Please go ahead, sir.

Thanks, Operator. It’s great to be talking with all of you again. I’m going to give you a quick look at our progress last quarter and Alan will run through the numbers before we take your questions. Before we begin, I would like to take a moment to acknowledge and thank my work colleagues whose passion and hard work in collaborating with our valued customers is making a difference in the many communities that we serve. I’m sincerely grateful for all of your efforts. This is our second earnings call since going public and we’re pleased to report that we’ve accelerated our operating momentum from last quarter Q2 2017. We posted Q3 2017 revenue of $6.8 million, which represented a 72% increase over the last year’s Q3 2016 revenue of $4.0 million. The $6.8 million includes $900,000 in accelerated set-up fees associated with Puerto Rico and the U.S. Virgin Islands, which Alan and I will discuss in this call. But even without the $900,000 our revenues were slightly ahead of our revenue expectations. In addition, our other operating metrics were equally encouraging. We went live with 50 gross new square miles, including customer Go Lives in Jacksonville, Florida, Syracuse and Newburgh, New York, as well as Cincinnati, Ohio. We also had expansion in the existing customer deployments in San Pablo, California, Birmingham, Alabama, New York City and Chicago, which, by the way, has become our second largest customer as measured by miles deployed. Our net new miles deployed for the quarter was 17 square miles reflecting a reduction in live miles from Puerto Rico and U.S. Virgin Islands, which I will speak to in a moment. This represents a 55% increase compared to the 11 net new square miles deployed from Q3 of last year. Alan will parse the financials…

Thank you, Ralph, and good afternoon, everyone. I think you will see from our numbers, Q3 reflects continued success for ShotSpotter. We grew revenues to a record $6.8 million, a 72% increase over third quarter of last year. Approximately $900,000 of this quarter’s revenues were related to the acceleration of a deferred set of revenue fees – incentive fees related to Puerto Rico and the U.S. Virgin Islands, which ceased to be live customers due to the unfortunate effects of recent hurricanes. We also incurred an approximately $700,000 impairment charge to expense the remaining netbook value of the acoustic sensor networks that were presumed destroyed by the hurricanes. Our net loss for the quarter was $1.6 million. We continue to invest in and then focus on customer success, which is driving our growth. We believe that our subscription-based revenue business model will keep us on this positive trajectory for the foreseeable future. We were also operating cash flow positive for the second quarter in a row. Now, turning to our financial numbers, we encourage you to reference today’s earnings release, which is posted on our website. As I mentioned, revenues for the third quarter increased 72% to $6.8 million from $4 million in the same quarter last year, and were up 17% from the second quarter of 2017. For the quarter, aside from the one-time $900,000 in accelerated revenue related to the loss of Puerto Rico and USVI as customers, our revenue increases were driven by new customer orders, mileage expansions with existing customers and customer renewals. Even without the additional revenues related to Puerto Rico and the U.S. Virgin Islands, we believe our Q3 performance is evidence of the momentum that we are seeing from continued and expanding customer adoption. Turning to expenses, our gross profit for the quarter…

Thanks, Alan. Let me close by saying we’re extremely positive about our position in this unique market space that we’ve created. We believe that we’re in the early innings of broad customer adoption of our solution as a standard of care. We will continue to focus on building strong customer relationships and judge our success by the level of success that our customers have in responding to, investigating and ultimately decreasing and forbidding gun violence. Thank you very much, and we will now take your questions.

Thank you. We will now take questions from ShotSpotter’s publishing analysts. [Operator Instructions] The first question comes from Richard Baldry of ROTH Capital. Please go ahead.

Thanks. I’ll try to keep it quick, I think there is some background noise here. Could you put that 50 gross miles in perspective, was that one of your best quarter or top two or three? Then possibly then talk about how sustainable that is, repeatable, if there is any one-time sort of things that are hard to kind of repeat going forward in that number? Thanks.

Sure, thanks, Rich. This is Ralph. I’ll take a crack at the first part of your question. With respect to net or gross miles going live, it’s probably one of our best quarters ever at 50. I think I would be very careful to not comment on how sustainable that is every quarter. But we are, I think, doing a great job in converting these customers over to live status, and had a great experience in Q3 of this year.

And could you talk a little bit about how much of your 2018 guide relies on new sales versus how much is built on what you’ve already booked that has yet to deploy, sort of give us a view of how much visibility you have into 2018? Thanks.

Sure, another great question. Rich, I guess I would point you to look at our nine-month ending balance sheet and look at the short-term deferred number that we have there. I mean, we start the year 2018 with a lot of visibility. To the extent that we run a good track record on renewals, I think we’ve always said that we have excellent visibility into our long-term revenue, I’ll call it medium-term revenue, not long-term revenue, but medium-term revenue over the next twelve months. I don’t know, Alan, would you add anything to that or…

No, only other than to say that, internally, from our backlog and the projects that we are working on, we felt comfortable enough to put the $30 million to $32 million revenue preliminary guidance out there for 2018. We feel pretty confident in that.

Then maybe can you talk about sort of how many heads you have added or think you’ll be adding to the sales and marketing team to keep up to building the pipeline for the demand that you expect, now you think you’ve hit this inflection point on the demand side? Thanks.

In terms of our hunters for domestic public safety, I think we are in a pretty good position. I think we’ll continue to look at making some limited investments in our customer success team, or more the farmers, and those folks, again, are responsible for the on-boarding experience, which is so critical to what we do. I think we still very much are planning to add some go-to-market sales capability to drive international sales. We haven’t done that yet, but I think we’ve committed to get that done no later than early Q1 of next year.

Thanks, and last thing, can you talk a little bit more about the AT&T GE Smart City deal? What scale will that first deployment be? Is that using very much off the shelf hardware now or is there some sort of – because it’s the first one, will there will be some unique sort of deployment issues around getting back first one up and running? Thanks.

Yes, this is Alan, great question. This is the first Smart City deployment. So, we do expect to learn things during this first deployment on all sides, we’re using the GE Smart nodes, we’re using a combination of the nodes as well as some of our censors, so that’s something that we are taking a look at. We certainly hope that it will be fully successful but as we roll it out, we are and the customers’ standing by to work with us through any challenges we might have with that first deployment.

Okay. Thanks, and congrats on a great quarter.

Thank you.

Thanks.

[Operator Instructions] There are no more questions at this time. If your question was not taken, you may contact ShotSpotter’s Investor Relations team at ir.shotspotter.com. I would now like to turn the call back over to Mr. Clark for his closing comments.

Great. Well, thank you very much. We really appreciate everyone that dials in to listen to our second quarterly earnings announcement. We are really proud of the fact that this is our second beat and raise quarter. So looking forward to putting our heads down and continuing to work really hard in Q4 and looking forward to speaking with you all again in about three months or so. Thank you very much.

Thank you for joining us on today’s call. I especially thank you for joining us for ShotSpotter’s third quarter 2017 earnings call. You may now disconnect.