By Investing.com Staff
Shares of Shotspotter (NASDAQ:SSTI) fell 22% Wednesday on concerns that Chicago mayor-elect Brandon Johnson may make good on his campaign promise to end the contract with the real-time gunshot detection system provider.
The threat is a real reason for concern for the company and investors. Chicago is the company's second-largest customer, making up 10% of its revenues in 2022. Meanwhile, New York City is the company's largest customer, with revenue accounting for 30% of last year's total.
Commenting in a statement on the matter to StreetInsider.com, Ralph Clark, CEO of ShotSpotter, congratulated Mayor-elect Johnson on his win and said he is optimistic that they can continue their relationship with the city.
"ShotSpotter congratulates Mayor-elect Johnson on his win," Clark said. "We are immensely proud of the work we have done within the city of Chicago, and we are optimistic that we can continue our relationship with this great city and support Mayor-elect Johnson and his administration. Over the years, ShotSpotter has worked to alert law enforcement to gunfire incidents that would otherwise go unreported, save lives, and enhance community trust in Chicago and other partnering cities. We are hopeful that we can demonstrate how ShotSpotter can best provide value to Chicago, and how it can be a vital component of Mayor-elect Johnson’s holistic strategy in addressing gun violence."