Knightscope (NASDAQ:KSCP) Announces Quarterly Earnings Results

Knightscope (NASDAQ:KSCP) posted its quarterly earnings data on Wednesday. The company reported ($0.79) EPS for the quarter, missing the consensus estimate of ($0.66) by ($0.13), FiscalAI reports. The company had revenue of $9.02 million during the quarter, compared to the consensus estimate of $9.00 million. Knightscope had a negative return on equity of 143.53% and a negative net margin of 257.99%.

Here are the key takeaways from Knightscope’s conference call:

• Record revenue and client growth: Second-quarter revenue reached $9 million, up 228% year over year, driven by the Security Force acquisition and growth in core subscriptions and deployments. The company now serves 434 clients across 42 states.
• Margins improved after the acquisition: Knightscope generated $0.7 million of gross profit, or approximately 7% gross margin, versus a gross loss in the prior-year quarter. Management said service efficiencies, maturing machines, and the integrated hardware-software-services model should support further improvement.
• Operating losses and cash remain significant concerns: Operating expenses rose to $13.8 million, contributing to a $14.1 million net loss, while cash and equivalents ended the quarter at only $8.2 million. Higher R&D and headcount spending are intended to fund growth but continue to pressure profitability.
• Several product and commercialization milestones are planned for the second half: The company expects initial K7 robot deployments in the fourth quarter, an Autonomous Security Force launch at GSX in September, and an initial launch of its Signals orchestration platform. Management also highlighted cross-selling opportunities across its expanded client base.
• Additional acquisitions remain possible: Management is evaluating guarding-company roll-ups, remote-monitoring businesses, and technology or talent acquisitions, but emphasized that integration discipline and strategic fit matter more than simply adding revenue.

Knightscope Stock Performance

KSCP opened at $1.46 on Thursday. Knightscope has a 52-week low of $1.35 and a 52-week high of $7.62. The company has a quick ratio of 1.34, a current ratio of 1.51 and a debt-to-equity ratio of 0.12. The firm’s fifty day simple moving average is $1.81 and its two-hundred day simple moving average is $2.94. The company has a market cap of $28.97 million, a price-to-earnings ratio of -0.41 and a beta of 1.29.

Institutional Investors Weigh In On Knightscope

A number of large investors have recently made changes to their positions in KSCP. Geode Capital Management LLC raised its holdings in shares of Knightscope by 32.5% in the 2nd quarter. Geode Capital Management LLC now owns 53,372 shares of the company’s stock valued at $264,000 after buying an additional 13,081 shares during the period. Jane Street Group LLC acquired a new position in shares of Knightscope during the second quarter worth about $77,000. Envestnet Asset Management Inc. acquired a new stake in Knightscope in the third quarter valued at approximately $71,000. Vanguard Group Inc. lifted its stake in Knightscope by 9.6% in the third quarter. Vanguard Group Inc. now owns 276,857 shares of the company’s stock worth $1,597,000 after acquiring an additional 24,283 shares during the last quarter. Finally, Kestra Private Wealth Services LLC acquired a new position in Knightscope during the 3rd quarter worth approximately $151,000. 14.61% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Wall Street Zen raised Knightscope from a “strong sell” rating to a “sell” rating in a research note on Saturday, May 23rd. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Knightscope in a research report on Tuesday, June 9th. Finally, Ascendiant Capital Markets reduced their price target on Knightscope from $26.00 to $23.00 and set a “buy” rating for the company in a research report on Monday, June 15th. Two equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $17.50.

Knightscope Company Profile

Knightscope, Inc (NASDAQ: KSCP) is a technology company specializing in the design and deployment of autonomous security robots. The firm offers a robotics-as-a-service platform that integrates self-driving devices with artificial intelligence and machine learning capabilities to enhance perimeter security, detect anomalies and deliver real-time incident reporting.

Since its founding in 2013 and headquartered in Mountain View, California, Knightscope has developed a series of fully autonomous models—designated K1 through K7—suited for indoor and outdoor environments.