Artificial Intelligence
ShotSpotter Reports Second Quarter 2020 Financial Results
NEWARK, Calif., Aug. 06, 2020 (GLOBE NEWSWIRE) — ShotSpotter, Inc. (NASDAQ: SSTI), the leader in acoustic gunshot detection and precision policing solutions that help law enforcement officials and security personnel prevent and reduce gun violence, today reported financial results for the second quarter ended June 30, 2020.
Second Quarter 2020 Financial and Operational Highlights
- Revenues increased 10% to $11.3 million from $10.3 million for the second quarter of 2019.
- Gross profit margin increased by 300 basis points to 61% from 58% for the second quarter of 2019.
- Net income more than doubled to $866,000, an improvement from net income of $387,000 for the second quarter of 2019.
- Adjusted EBITDA1 increased 41% to record $3.4 million from $2.4 million for the second quarter of 2019.
- Added 26 net new “go-live” square miles of coverage during the quarter with no attrition, bringing the total live miles to 761 at quarter end.
- Repurchased 74,520 shares of common stock for an aggregate purchase price of $1.6 million.
- Maintained a strong balance sheet with $25.8 million in cash and cash equivalents at the end of the quarter.
- Full year 2020 revenue guidance narrowed to a range of $43.5 million to $45.5 million.
1 See the section below titled “Non-GAAP Financial Measures” for more information about Adjusted EBITDA, and its reconciliation to GAAP net income (loss).
Management Commentary
“The second quarter marked a solid step toward reestablishing our operational and financial momentum following the COVID-19 pandemic lockdown that temporarily suspended most of our sales and renewal activities,” said ShotSpotter CEO Ralph Clark. “Since late May, our customer facing teams have been relatively mobile, which has had a positive impact on both customer engagement and moving our opportunity pipeline forward. We successfully deployed 26 new miles in the second quarter, including new deployments in Springfield, Illinois, Albuquerque, the U.S. Virgin Islands and Monmouth County in New Jersey, as well as expansions in Cincinnati and New York City. These deployments, coupled with the fact that we experienced no attrition, helped drive several quarterly financial records in the second quarter, including revenues, gross profit and Adjusted EBITDA.
“Our success in the second quarter has carried into our current quarter. We booked Cleveland at the end of the second quarter and subsequent to the end of the quarter we have already booked Fort Lauderdale and have been selected to provide gunshot detection services to a portion of Broward County, which is the largest sheriff’s department in the state of Florida. These deals are fully staffed and projects that we expect to bring live later this year. Internationally, we were awarded a competitive tender bid with the municipality of Nelson Mandela Bay in South Africa. We believe this will strengthen our position to win additional contracts within our growing international pipeline. We believe this increased deal cadence reflects the effectiveness of our direct sales and marketing efforts as well as the positive effect of referrals we’re receiving from a growing list of existing customers, some of which describe our solutions as ‘indispensable’ to their operations.
“As violence remains a chronic and growing problem, public safety should continue to be top of mind for those who control and influence municipal budgets. ShotSpotter is a proven and cost-effective means of improving public safety and addressing gun violence. Given our attractive unit economics, solid balance sheet, and expanding scale and operational efficiency, we believe ShotSpotter not only remains resilient to the challenges of the current environment, but maintains a strong, profitable foundation on which to grow.”
Second Quarter 2020 Financial Results
Revenues for the second quarter of 2020 increased 10% to $11.3 million from $10.3 million for the same period in 2019. The increase in revenues reflects a significant increase in new live miles and customer renewals, including renewals in the second quarter that were delayed from the prior quarter.
Gross profit for the second quarter of 2020 increased 16% to $6.9 million (61% of revenues) from $6.0 million (58% of revenues) for the same period in 2019.
Total operating expenses for the second quarter of 2020 increased 6% to $6.0 million from $5.7 million for the same period in 2019. The increase in operating expenses was primarily due to increased insurance costs, legal fees and personnel-related costs.
Net income totaled $866,000 or $0.08 per basic share (based on 11.4 million basic weighted average shares outstanding) and $0.07 per diluted share (based on 11.7 million diluted weighted average shares outstanding), an improvement from net income of $387,000 or $0.03 per basic and diluted share (based on 11.4 million basic and 12.0 million diluted weighted average shares outstanding) for the same period in 2019.
Adjusted EBITDA for the second quarter of 2020 increased 41% to $3.4 million from $2.4 million in the same period last year.
2020 Financial Outlook
The Company is narrowing its full year revenue outlook to reflect greater visibility into the timing of adding new miles throughout the end of the year along with its continued success in minimizing attrition. For the full year of 2020, the company now expects revenues of $43.5 million to $45.5 million (previous guidance of $43 million to $46 million), with approximately 9% year-over-year revenue growth at the midpoint of the new range. The Company expects to remain GAAP profitable in both Q3 and Q4 as well as for the full year of 2020.
The company’s financial outlook statements are based on current expectations. The preceding statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Safe Harbor Statement” below.
Conference Call
ShotSpotter will hold a conference call today (August 6, 2020) at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results and provide an update on business conditions.
ShotSpotter management will host the presentation, followed by a question and answer period.
Date: Thursday, August 6, 2020
Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)
U.S. dial-in: 1-877-451-6152
International dial-in: 1-201-389-0879
Conference ID: 13706747
The conference call will be broadcast simultaneously and available for replay via the investor section of the company’s website at www.shotspotter.com.
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact ShotSpotter’s investor relations team at 1-949-574-3860.
A replay of the call will be available after 7:30 p.m. Eastern Time on the same day through September 6, 2020.
U.S. replay dial-in: 1-844-512-2921
International replay dial-in: 1-412-317-6671
Replay ID: 13706747
Non-GAAP Financial Measures
Adjusted EBITDA: ShotSpotter discloses the following non-GAAP financial measure in this release and the earnings call referencing this press release: Adjusted EBITDA, which represents the company’s net income or loss before interest (income) expense, income taxes, depreciation and amortization and stock-based compensation expense. Adjusted EBITDA is a measure used by management internally to understand and evaluate the company’s core operating performance and trends across accounting periods and in connection with developing future operating plans, making strategic decisions regarding the allocation of capital and considering initiatives focused on cultivating new markets for our solutions. In particular, the exclusion of these expenses in calculating adjusted EBITDA facilitates comparisons of the company’s operating performance on a period-to-period basis.
ShotSpotter believes adjusted EBITDA also provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. For example, ShotSpotter adjusts EBITDA for stock-based compensation expense because that expense often varies for reasons that are generally unrelated to financial and operational performance in any particular period. Stock-based compensation is utilized by ShotSpotter to attract and retain employees with a goal of long-term retention and the alignment of employee interests with those of the Company and its stockholders, rather than to address operational performance for any particular period.
Adjusted EBITDA is not a measure calculated in accordance with GAAP. Accordingly, use of adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of ShotSpotter’s financial results as reported under GAAP. Some of these limitations are: (1) adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation; and (2) other companies, including companies in our industry, may calculate adjusted EBITDA or similarly titled measures differently, which reduces the usefulness of the metric as a comparative measure. Because of these and other limitations, you should consider adjusted EBITDA alongside our GAAP-based financial performance measures, in particular net income or loss, and our other GAAP financial results.
The following table presents a reconciliation of adjusted EBITDA to net income, the most directly comparable GAAP measure, for each of the periods indicated (in thousands):
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
GAAP net income | $ | 866 | $ | 387 | $ | 879 | $ | 25 | |||||||
Less: | |||||||||||||||
Interest income | (5 | ) | (171 | ) | (98 | ) | (204 | ) | |||||||
Income taxes | (8 | ) | 22 | (9 | ) | 40 | |||||||||
Depreciation and amortization | 1,345 | 1,245 | 2,712 | 2,402 | |||||||||||
Stock-based compensation expense | 1,163 | 905 | 2,050 | 1,659 | |||||||||||
Adjusted EBITDA | $ | 3,361 | $ | 2,388 | $ | 5,534 | $ | 3,922 | |||||||
Safe Harbor Statement
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 the company’s business plans, the anticipated impact of the COVID-19 pandemic, international expansion, expectations regarding future sales and expenses, our ability to capitalize on market opportunities, the ability to achieve near and long-term growth and profitability objectives, anticipated timing and volume of customer contract renewals, and revenue and GAAP profitability guidance for full year 2020. Words such as “expect,” “anticipate,” “should,” “believe,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “could,” “intend,” 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 company’s ability to successfully negotiate and execute contracts with new and existing customers in a timely manner, if at all, the company’s ability to address the business and other impacts and uncertainties associated with the COVID-19 pandemic, maintain and increase sales; the availability of funding for the company’s customers to purchase the company’s solutions; the complexity, expense and time associated with contracting with government entities; the company’s ability to maintain and expand coverage of existing public safety customer accounts and further penetrate the public safety market; the company’s ability to sell its solutions into international and other new markets; the lengthy sales cycle for the company’s solutions; changes in federal funding available to support local law enforcement; the company’s ability to deploy and deliver its solutions; and the company’s ability to maintain and enhance its brand, as well as other risk factors included in the company’s most recent annual report on Form 10-K and 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 are 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.
About ShotSpotter, Inc.
ShotSpotter (NASDAQ: SSTI) provides acoustic gunshot detection and precision-policing solutions to help law enforcement officials and security personnel prevent and reduce gun violence and make communities, campuses and facilities safer. The company’s flagship product, ShotSpotter® Flex™, is the leading gunshot detection, location and forensic system trusted by over 100 cities. ShotSpotter® Missions™ uses artificial intelligence-driven analysis to dynamically direct patrol resources to areas of greatest risk and helps to improve officer accountability and deter crime. ShotSpotter has been designated a Great Place to Work® Company.
Company Contact:
Alan Stewart, CFO
ShotSpotter, Inc.
+1 (510) 794-3100
[email protected]
Investor Relations Contacts:
Matt Glover
Gateway Investor Relations
+1 (949) 574-3860
[email protected]
JoAnn Horne
Market Street Partners
+1 (415) 445-3240
[email protected]
ShotSpotter, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues | $ | 11,277 | $ | 10,260 | $ | 21,735 | $ | 19,853 | |||||||
Costs | |||||||||||||||
Cost of revenues | 4,353 | 4,277 | 8,695 | 8,281 | |||||||||||
Total costs | 4,353 | 4,277 | 8,695 | 8,281 | |||||||||||
Gross profit | 6,924 | 5,983 | 13,040 | 11,572 | |||||||||||
Operating expenses | |||||||||||||||
Sales and marketing | 2,321 | 2,439 | 4,837 | 5,068 | |||||||||||
Research and development | 1,377 | 1,374 | 2,729 | 2,668 | |||||||||||
General and administrative | 2,316 | 1,880 | 4,587 | 3,866 | |||||||||||
Total operating expenses | 6,014 | 5,693 | 12,153 | 11,602 | |||||||||||
Operating income (loss) | 910 | 290 | 887 | (30 | ) | ||||||||||
Other income (expense), net | |||||||||||||||
Interest income, net | 5 | 171 | 98 | 204 | |||||||||||
Other expense, net | (57 | ) | (52 | ) | (115 | ) | (109 | ) | |||||||
Total other income (expense), net | (52 | ) | 119 | (17 | ) | 95 | |||||||||
Income before income taxes | 858 | 409 | 870 | 65 | |||||||||||
Provision (benefit) for income taxes | (8 | ) | 22 | (9 | ) | 40 | |||||||||
Net income | $ | 866 | $ | 387 | $ | 879 | $ | 25 | |||||||
Net income per share, basic | $ | 0.08 | $ | 0.03 | $ | 0.08 | $ | 0.00 | |||||||
Net income per share, diluted | $ | 0.07 | $ | 0.03 | $ | 0.08 | $ | 0.00 | |||||||
Weighted average shares used in computing net income per share, basic | 11,390,580 | 11,365,472 | 11,364,035 | 11,186,371 | |||||||||||
Weighted average shares used in computing net income per share, diluted | 11,727,654 | 11,973,476 | 11,717,937 | 11,857,346 | |||||||||||
ShotSpotter, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, | December 31, | ||||||
2020 | 2019 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 25,824 | $ | 24,550 | |||
Accounts receivable and contract asset | 7,839 | 13,883 | |||||
Prepaid expenses and other current assets | 2,587 | 1,764 | |||||
Total current assets | 36,250 | 40,197 | |||||
Property and equipment, net | 16,273 | 16,556 | |||||
Operating lease right-of-use asset | 854 | 556 | |||||
Goodwill | 1,379 | 1,379 | |||||
Intangible assets, net | 231 | 249 | |||||
Other assets | 1,419 | 1,634 | |||||
Total assets | $ | 56,406 | $ | 60,571 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 869 | $ | 1,179 | |||
Deferred revenue, short-term | 21,957 | 26,360 | |||||
Accrued expenses and other current liabilities | 3,795 | 4,885 | |||||
Total current liabilities | 26,621 | 32,424 | |||||
Deferred revenue, long-term | 351 | 598 | |||||
Other liabilities | 566 | 298 | |||||
Total liabilities | 27,538 | 33,320 | |||||
Stockholders’ equity | |||||||
Preferred stock | — | — | |||||
Common stock | 57 | 57 | |||||
Additional paid-in capital | 123,848 | 122,907 | |||||
Accumulated deficit | (94,700 | ) | (95,579 | ) | |||
Accumulated other comprehensive loss | (337 | ) | (134 | ) | |||
Total stockholders’ equity | 28,868 | 27,251 | |||||
Total liabilities and stockholders’ equity | $ | 56,406 | $ | 60,571 |
Artificial Intelligence
Saviynt Appoints James Ross as RVP-ANZ to Strategically Accelerate Growth in the Australia and New Zealand Region
LOS ANGELES, May 22, 2024 /PRNewswire/ — Saviynt, a leading provider of cloud-native identity and governance platform solutions, today announced the appointment of James Ross as RVP-ANZ as the company has seen rapid growth in the Australia and New Zealand (ANZ) region, with double digit growth year over year.
Saviynt has solidified its position as a key player in the cloud identity security landscape with its Identity Cloud. The company’s continued focus on innovation and client satisfaction has contributed significantly to building a safer Australia with prominent customers across the energy and utilities, finance, retail, energy, and transport and logistics sectors.
“James’ appointment as the Regional Vice President (RVP) for ANZ marks a strategic move to accelerate growth and solidify market presence in the region,” said Dan Mountstephen, SVP APAC at Saviynt. “With a proven track record of dynamic leadership at Collibra, ForgeRock, and CA Technologies, James brings a wealth of experience and expertise to the role. His visionary approach and collaborative spirit are poised to inspire and mobilize teams toward ambitious targets.”
Saviynt has consistently expanded its client base and deepened its relationships with existing customers through customized solutions and unparalleled support, cementing its reputation as a trusted partner in the region’s cybersecurity ecosystem. As RVP ANZ, Ross is set to foster key partnerships and implement agile strategies to propel the company towards new heights of success in the dynamic ANZ market.
“Joining Saviynt excites me because it’s an opportunity to help more organizations simplify their identity ecosystem in order to drive efficiencies and improved security posture. I am committed to leveraging Saviynt’s cutting-edge solutions to continue to broaden our partnerships in the region to improve our accessibility for customers, strengthen our regional delivery, whilst continuing to provide a great customer experience,” said Ross.
To learn more about Saviynt, please visit our website.
About Saviynt
Saviynt empowers enterprises to secure their digital transformation, safeguard critical assets, and meet regulatory compliance. With a vision to provide a secure and compliant future for all enterprises, Saviynt’s cutting-edge solutions have been recognized as industry leaders. For more information, please visit www.saviynt.com.
Press Contact
Jacklyn [email protected]
Photo: https://mma.prnewswire.com/media/2418209/James_Ross_RVP_ANZ_Saviynt.jpg
View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/saviynt-appoints-james-ross-as-rvp-anz-to-strategically-accelerate-growth-in-the-australia-and-new-zealand-region-302151644.html
Artificial Intelligence
Appdome Sweeps Cybersecurity Excellence Awards
Unified Mobile Defense Platform Recognized for Innovation and Leadership Across Nine Cybersecurity Categories
REDWOOD CITY, Calif., May 21, 2024 /PRNewswire/ — Appdome, the mobile app economy’s one-stop shop for mobile defense, today announced it has received a total of nine (9) Cybersecurity Excellence Awards. The Appdome Unified Mobile App Defense Platform was awarded best in class across nine categories in recognition of the comprehensive breadth, depth and value of the Appdome platform to brands and enterprises alike.
“We congratulate Appdome on being recognized as an award winner in 9 categories of the 2024 Cybersecurity Excellence Awards,” said Holger Schulze, CEO of Cybersecurity Insiders and founder of the 600,000-member Information Security Community on LinkedIn, which organizes the 9th annual Cybersecurity Excellence Awards. “With over 600 entries across more than 300 categories, the awards are highly competitive. Appdome’s achievement reflects outstanding commitment to the core principles of excellence, innovation, and leadership in cybersecurity.”
Within a single pane of glass, Appdome delivers the most complete set of no-code, no-SDK, fully automated mobile defenses to mobile brands and enterprises, empowering mobile developers, cybersecurity, fraud and IT teams to deliver on any mobile cyber objective quickly and easily.
The nine (9) categories in which Appdome received a Cybersecurity Excellence Award are:
Mobile Security Platform: Appdome is the only enterprise-grade mobile security platform built for full mobile defense lifecycle management, visibility and control to brands and enterprises alike, including key features for build, test, release, monitor, response, and compliance automation. Mobile Security Automation: Appdome is the only mobile defense solution that uses machine learning to code and build over 300+ mobile app security, anti-fraud, anti-cheat, anti-malware, anti-bot, geo-compliance and other defenses in Android & iOS apps in the DevOps pipeline.Mobile Social Engineering Defense: The Appdome Social Engineering Prevention solution is the first of its kind to protect mobile users from voice phishing (Vishing) scams and other imposter scams, T.O.A.D. attacks, Remote Access Trojans (RATs), Gold Pickaxe, FaceID bypass and more without an SDK or external servers.Mobile Bot Defense: The Appdome MOBILEBot™ Defense solution is the first mobile anti-bot solution to come out of the box compatible with any industry standard web application firewall (WAF) on the market and provide multi-layered bot, credential stuffing and Account Take Over (ATO) defense without an SDK, external server, performance limits, or restrictions.Mobile Geo Compliance: Only the Appdome Mobile Geo-Compliance solution guarantees accurate and authentic geo location of mobile devices, applications and users without code or coding in the mobile app, without implementing an SDK and without deploying additional servers.Mobile XDR: The Appdome ThreatScope™ Mobile XDR solution is the only mobile attack and threat monitoring service that comes pre-packaged into the mobile defense lifecycle, requires no device agent, device profile, separate code, coding, SDK or server, and provides real-time detection and automated response across internal (employee facing) and external (consumer facing) Android & iOS apps.DevOps Mobile Security Tool: The Appdome platform’s fully integrated Security Release Management™ capabilities and Appdome Certified Secure™ mobile DevSecOps certification offer the only true enterprise-grade compliance assurance, audit and control for mobile defense at brands and enterprises, allowing quick verification that all security, anti-fraud and compliance objectives have been met. Mobile Application Security: With 300+ separate defenses for mobile apps, Appdome has the most comprehensive set of mobile application security features available in one product, fully compatible with all mobile Android & iOS apps.”Nine Cybersecurity Excellence Awards for Mobile Defense tells a very compelling story for the incredibly complex Dev, Sec, and Ops challenges organizations face detecting and defeating mobile-based risks and attacks,” said Chris Roeckl, Chief Product Officer at Appdome. “Point products make these challenges worse by adding complexity and overloading already taxed cyber and engineering teams. Appdome is the only platform simplifying work, bringing all these unique challenges under a single pane of glass, delivering 300+ protections and simultaneously resolving the security, fraud, resilience and compliance challenges brands and enterprises face.”
Learn more about the award-winning Appdome Platform at www.appdome.com or request a personalized demo at https://www.appdome.com/request-a-demo/appdome-home/
The full list of awards are available from the Cybersecurity Excellence Awards website https://cybersecurity-excellence-awards.com/
About AppdomeThe Appdome mission is to protect every mobile app and mobile user in the world. Appdome provides the mobile industry’s only Unified Mobile App Defense platform, powered by a patented mobile coding engine, Threat-Events™ Threat-Aware UX/UI Control, and ThreatScope™ Mobile XDR. Using Appdome, mobile brands eliminate complexity, ship faster and save money by delivering 300+ Certified Secure™ mobile app security, anti-malware, anti-fraud, mobile anti-bot, anti-cheat, geo compliance, MiTM attack prevention, code obfuscation, social engineering and other protections in Android and iOS apps with ease, inside the mobile DevOps and CI/CD pipeline. Leading financial, healthcare, government and m-commerce brands use Appdome to protect Android and iOS apps, mobile customers and mobile businesses globally. Appdome holds several patents including U.S. Patents 9,934,017 B2, 10,310,870 B2, 10,606,582 B2, 11,243,748 B2 and 11,294,663 B2. Additional patents pending.
Logo – https://mma.prnewswire.com/media/772169/AppDome_Logo_9_27_23.jpg
View original content:https://www.prnewswire.co.uk/news-releases/appdome-sweeps-cybersecurity-excellence-awards-302151786.html
Artificial Intelligence
Courageous Whistleblowers Reclaim Derogatory Terms As Data Shows 80% of Financial Professionals Stay Silent on Suspected Internal Fraud, Fearing Retaliation
Enron whistleblower, Sherron Watkins, alongside stars of Apple TV’s The Big Conn, Sarah Carver and Jennifer Griffith, reclaim derogatory labels for whistleblowers Concerning new data shows more than half of financial professionals in the UK and US have spotted or suspected internal fraud in their workplaces, yet four out of five stay silent fearing retaliation 32% of professionals in finance have seen whistleblowers victimized behind their back or to their faceJACKSONVILLE, Fla., May 21, 2024 /PRNewswire/ — New data from fraud detection software company Medius shows more than half of financial professionals in the UK and US (56%) have spotted or suspected internal fraud in their workplaces yet four in five (81%) stayed silent. When asked why, 45% of professionals cited the fear of recrimination.
Whistleblowers Sherron Watkins, Sarah Carver and Jennifer Griffith have joined forces to reclaim the derogatory names they were called after reporting serious internal financial fraud.
To help empower others to come forward, the whistleblowers are reclaiming the terms “snitch”, “rat” and “traitor”.
Sherron Watkins is the former Vice President of Enron Corporation who alerted the CEO to accounting irregularities, warning the organization “‘might implode in a wave of accounting scandals.” Watkins received national acclaim for her courageous actions and TIME magazine named her along with two others as their Persons of the Year in 2002, calling them simply ‘The Whistleblowers.’
Sarah Carver and Jennifer Griffith are the stars of Apple TV’s The Big Conn after they exposed a fraud scheme of more than $550 million while employed at the Social Security Administration. In efforts to silence their disclosures, they experienced multiple acts of severe retaliation and were denied protection. Ultimately, both Carver and Griffith were forced from employment.
Concerns of repercussions are vindicated – the survey reveals the extent to which financial professionals in the UK and US have witnessed negative consequences for whistleblowers firsthand:
59% have seen whistleblowers subsequently left out of important decisions 33% have seen whistleblowers moved to a different team 32% have heard whistleblowers called derogatory names behind their backs or directly to their faceWhen asked what would encourage them to flag suspicious activity, 93% of workers surveyed would feel more comfortable doing so if they had more evidence, yet nearly half (48%) said the legal system simply does not adequately protect whistleblowers.
Jim Lucier, CEO at Medius, a leading global provider of cloud-based accounts payable automation and spend management solutions, said:
“White collar crime is on the rise and no organization is safe. Employees are the last line of defense against fraud but confidence to report suspicious activity is declining. AI anomaly-detection technology can provide employees with the evidence and assurances they need to be more forthcoming. Building a culture where employees feel comfortable to report their suspicions could save organizations millions in the long-run.”
Medius works with over 4,000 customers across 102 countries and processes $200 billion in annual spend. It uses the power of AI and automation to detect fraud the moment invoices are submitted safeguarding against bad actors and potential threats, internal and external.
Sherron Watkins, whistleblower who was called a “snitch”, said: “When someone is troubled by corporate wrongdoing and they attempt to sound the alarm, the pathway is uncharted, things happen organically. Normal rational people speak about their concerns with their closest friends and work colleagues, who often suggest staying safe saying “keep your head down, if you must report, go soft, nothing black and white.” Yet black and white evidence is what is needed to get the attention of those in power, either internally or with media or outside watchdog groups to prevent or stop fraudulent activity.”
Jennifer Griffith, whistleblower who was called a “traitor”, said: “Choosing to blow the whistle involves more than just the desire to right a wrong. It’s about protecting their employers from fraud. However, it’s more often than not seen as causing trouble for the employer, or as a self-serving action to get a financial reward. No one who chooses to blow the whistle expects to have their reputation attacked, their credibility impugned or to lose their job. The cost of ignoring a whistleblowers complaints are far greater than acknowledging that a problem exists and taking steps to fix it. It’s been 19 years since I blew the whistle and the problems that existed then with the Social Security Administration still exist today. We must do more to protect whistleblowers.”
Sarah Carver, whistleblower who was called a “rat”, said: “The government’s attempt to conceal the fraud resulted in exacerbated damage, whereas a more prudent approach would have entailed immediate acknowledgement and rectification upon initial disclosure. The retaliatory measures aimed at silencing me made me stronger and fight harder to find someone to listen and stop the fraud.”
Georgina Hallford-Hall, CEO of Whistleblowers UK, said: “Too many organisations talk the talk but fail to engage with whistleblowers often at great cost to both. Technology used properly can remove the fear that both organisations and whistleblowers have about dealing with whistleblowing because it removes the person and focuses on the concerns or malfeasance. WhistleblowersUK are calling on the UK government to introduce an Independent Office of the Whistleblower to protect everyone from discrimination setting standards that end stigmatisation and discrimination making it safe to speak up.”
The billboard advertising campaign runs on Wall Street from Saturday, 18th May to Friday, 24th May 2024.
For more information about how Medius can prevent fraud, visit: https://www.medius.com/whistleblowing/
Notes to Editor
Methodology
The research was conducted by Censuswide with 1500 financial professionals in the UK and US (aged 18+) between 04/22/24 – 05/07/24. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles and are members of The British Polling Council.
For more information, please contact:
Fight or Flight for [email protected] / +44 330 133 0985
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/medius/r/snitch—traitor—rat–courageous-whistleblowers-reclaim-derogatory-terms-as-data-shows-80–of-fina,c3985054
View original content:https://www.prnewswire.co.uk/news-releases/courageous-whistleblowers-reclaim-derogatory-terms-as-data-shows-80-of-financial-professionals-stay-silent-on-suspected-internal-fraud-fearing-retaliation-302151622.html
-
Artificial Intelligence5 days ago
Japan Data Center Market Investment to Reach $14.48 Billion by 2028 – Watch Out Exclusive Insight on Japan & Hong Kong Data Center Market – Arizton
-
Uncategorized4 days ago
Coca-Cola: The future is ‘AI meets human ingenuity’
-
Uncategorized6 days ago
Google to roll out AI-generated summaries at top of search engine
-
Artificial Intelligence5 days ago
Strava Unveils New Chapter of Accelerated Product Development at Brand’s Flagship Event
-
Artificial Intelligence4 days ago
More than $9 Million Awarded to High School Scientists and Engineers at the Regeneron International Science and Engineering Fair 2024
-
Artificial Intelligence5 days ago
Data Center Colocation Market Worth USD 58.4 Billion to 2031 – Exclusive Report by InsightAce Analytic Pvt. Ltd.
-
Artificial Intelligence6 days ago
IBM Expands Qiskit, World’s Most Performant Quantum Software
-
Uncategorized5 days ago
SoftBank looks at ‘softening’ angry customer calls with AI