Knightscope (NASDAQ:KSCP) Announces Quarterly Earnings Results

Knightscope (NASDAQ:KSCP) issued its quarterly earnings results on Thursday. The company reported ($0.50) earnings per share for the quarter, beating the consensus estimate of ($0.55) by $0.05, FiscalAI reports. Knightscope had a negative return on equity of 152.20% and a negative net margin of 217.29%. The company had revenue of $8.68 million during the quarter, compared to the consensus estimate of $8.85 million.

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

• Third-quarter revenue rose 177% year over year to $8.7 million, marking the company’s third consecutive quarter of triple-digit growth. Gross margin improved by $2 million year over year to positive $0.4 million, with service gross margin reaching 8%.
• Knightscope reported a record approximately $27 million in renewals, bookings, and client awards secured since May, and said it has begun limited K7 manufacturing and deployments. The company emphasized that converting these awards into revenue and scaling deployments will require disciplined execution.
• The company is shifting toward an integrated managed-service model combining robots, software, and security personnel; service revenue was nearly all of third-quarter revenue. Management expects margins to improve as technology becomes a larger part of client solutions, but said that improvement will take time.
• Knightscope posted an $11.8 million net loss and ended the quarter with $6.8 million in cash; management did not provide a timeline for reaching profitability. Product revenue fell to $0.1 million from $1.2 million a year earlier, and the company is evaluating how to sell and bundle those products.
• The company received a Nasdaq bid-price deficiency notice and said it is evaluating options to regain compliance within the 180-day period.

Knightscope Trading Down 2.2%

KSCP stock traded down $0.01 on Friday, hitting $0.43. 714,366 shares of the company were exchanged, compared to its average volume of 810,095. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.16 and a quick ratio of 0.98. The stock has a market capitalization of $10.15 million, a price-to-earnings ratio of -0.13 and a beta of 1.38. Knightscope has a twelve month low of $0.39 and a twelve month high of $5.96. The business’s fifty day moving average is $0.78 and its two-hundred day moving average is $2.28.

Wall Street Analysts Forecast Growth

KSCP has been the subject of a number of recent analyst reports. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Knightscope in a research report on Friday, September 4th. Lake Street Capital set a $3.00 target price on Knightscope and gave the stock a “buy” rating in a research report on Thursday, August 13th. Three analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $12.67.

Knightscope Company Profile

Knightscope, Inc. develops autonomous security technology designed to help organizations monitor and protect public and private spaces. The company combines robotics, artificial intelligence, autonomous navigation, and communications technologies to support security personnel and provide a visible presence in environments such as corporate campuses, shopping centers, residential communities, hospitals, schools, and public facilities. Its product portfolio includes autonomous security robots such as the outdoor K5, indoor K3, and compact K1 models, as well as related systems including the K1 Blue Light Tower.