SHOTSPOTTER ANNOUNCES ACQUISITION OF HUNCHLAB TO SPRINGBOARD INTO AI-DRIVEN ANALYSIS AND PREDICTIVE POLICING
ShotSpotter® Missions™ Expands Company’s Platform to Deliver Data-Driven Patrol Missions and Help Deter Crime
NEWARK, Calif. – October 3, 2018 – ShotSpotter, Inc. (Nasdaq: SSTI), the leader in gunshot detection solutions that help law enforcement officials identify, locate and deter gun violence, today moved into the AI-driven analysis and predictive policing category with the announcement of its acquisition of the HunchLab technology and related assets from Azavea, a Philadelphia-based firm. HunchLab applies risk modeling and artificial intelligence to help forecast when and where crimes are likely to emerge and recommends specific patrol missions and tactics that can deter these events.
Based on the HunchLab platform, ShotSpotter Missions is a proactive patrol management solution that goes beyond traditional hotspot modeling and builds upon the experiential knowledge of patrol officers. In addition to historical crime data, it uses current and future indicators that are run through advanced statistical models and machine learning to forecast potential crime incidents based on specific locations and times. It analyzes factors such as seasonality, time of day, day of week, trends in socioeconomic conditions and upcoming events to create a risk analysis that helps inform patrol missions by shift. The application breaks a city into 250 square-meter “cells” and gives guidance on when to patrol that cell, what crime type is likely to occur, and what patrol tactics to use. Officers no longer must be in an area hour after hour to have effective deterrence.
“The HunchLab technology provides a proven, high-value, and complementary solution we can immediately offer to our existing law enforcement customers,” said Ralph A. Clark, President and CEO of ShotSpotter. “We believe our investment will democratize the sharing of important intelligence with patrol officers who currently have limited direct access to crime analysts. ShotSpotter Missions provides officers in the field with their own personal virtual crime analyst to plan the most strategic and efficient patrol missions in an effort to reduce crime.”
The Chicago Police Department uses both ShotSpotter and HunchLab to fight crime – and they are the largest customer for each product. “We selected the HunchLab product, which is now ShotSpotter Missions, as a component of our Department’s innovative smarter policing technology platform,” said Jonathan Lewin, Chief of Technical Services for the Chicago Police Department. “We are in the process of rolling out the technology more broadly in Chicago within our Strategic Decision Support Centers to help us deploy patrol resources in the most efficient and effective manner.”
“Precision-policing products represent a new era in law enforcement that will provide more specific and objective data to help prevent crime,” said William J. Bratton, former NYPD and LAPD Commissioner and current ShotSpotter Board member. “I’ve seen the evolution of intelligence-based tools over the years and I think the combination of HunchLab with ShotSpotter will accelerate the maturation of the category and result in even greater value to police departments.”
ShotSpotter plans to integrate Missions with gunfire data to enable it to update predictive models and patrol missions in real time. The application will be offered as an add-on product to the company’s gunfire detection solution, as well as a stand-alone application. Along with the acquisition, the company plans to invest in additional data science and development resources to continually improve the product as well as advance the use of AI technology to help make existing and new products better.
The Company used existing cash on hand to fund the acquisition and it is not expected to be material to ShotSpotter’s full year 2018 results. The Company will provide additional details regarding the transaction on its regular third quarter earnings call, scheduled to take place after market close on November 13, 2018.
About ShotSpotter, Inc.
ShotSpotter (NASDAQ: SSTI) is the leader in gunfire detection, location and incident-specific forensic analysis solutions that assist police and security personnel in their efforts to deter gun violence. ShotSpotter solutions are trusted by more than 90 cities to help make their communities, campuses and facilities safer.
Safe Harbor Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding availability and efficacy of the HunchLab technology and ShotSpotter Missions. Words such as “believe,” “potential,” “plans,” “predict,” “will,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the company’s control. The company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the ability of the company to sell ShotSpotter Missions to its customers and the efficacy of the ShotSpotter Missions product, as well as other risk factors included including the company’s most recent quarterly report on Form 10-Q and other SEC filings. These forward-looking statements are made as of the date of this press release and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Except as required by law, the company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.
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